Market Size of Air Handling Units (AHU) Industry
Study Period | 2019 - 2029 |
Market Size (2024) | USD 15.07 Billion |
Market Size (2029) | USD 20.25 Billion |
CAGR (2024 - 2029) | 6.08 % |
Fastest Growing Market | Asia-Pacific |
Largest Market | Asia-Pacific |
Major Players*Disclaimer: Major Players sorted in no particular order |
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Air Handling Units (AHU) Market Analysis
The Air Handling Units Market size is estimated at USD 15.07 billion in 2024, and is expected to reach USD 20.25 billion by 2029, growing at a CAGR of 6.08% during the forecast period (2024-2029).
- Air handling units (AHUs) are commonly used in large facilities visited by many people, such as shopping malls, as such facilities frequented by people are subjected to strict regulations regarding the exhaustion of carbon dioxide and air cleanliness. A large facility must let adequate amounts of air into the building and use multiple blower fans and other equipment to circulate the air. As the air handling units deliver outside air into the rooms, they can significantly reduce the number of required blower fans.
- The rapid rise in industrialization and urbanization around the world is one of the primary factors driving market growth. The significant increase in the construction of different commercial and residential buildings worldwide creates considerable demand for Air Handling Units as a space cooling and heating system. For instance, as per CIArb, the volume of construction output is anticipated to grow by about 85 percent globally to USD 15.5 trillion by 2030.
- According to the European Commission, buildings in the EU region are responsible for around 36 percent of GHG emissions and 40 percent of energy consumption, mainly from construction, usage, renovation, and demolition. HVAC systems account for a considerable share of energy usage in these buildings. Hence, the demand for energy-efficient HVAC systems, including air handling units, is anticipated to gain traction during the forecast period.
- Furthermore, the HVAC equipment market, including air handler units, is highly dependent on sectors such as construction, government regulations, and new initiatives by the governments of various regions to boost the infrastructure and industrial and manufacturing sectors. Any fluctuations in the growth in the commercial and industrial sectors are bound to impact the demand for this equipment directly.
- Additionally, macroeconomic factors such as geo-political issues and the recent economic instability witnessed in the North American and European regions are also anticipated to influence the studied market's growth. For instance, the growing energy prices, owing to the Russia-Ukraine war, are anticipated to slow down the demand for air handling units in Europe as energy consumption by these devices is higher.
Air Handling Units (AHU) Industry Segmentation
An air handling unit (AHU), also called an air handler, is a piece of equipment used to condition and circulate air as a component of a heating, ventilating, and air conditioning system. It is usually a large metal box that comprises a blower, heating and cooling elements, filter chambers, sound attenuators, and dampers.
The air handling units (AHU) market is segmented by type (packaged, modular, custom), end user (residential, commercial, industrial), and geography (North America, Europe, Asia-Pacific, Latin America, the Middle East, and Africa).
The market sizes and forecasts are provided in terms of value in USD for all the above segments.
By Type | |
Packaged | |
Modular | |
Custom | |
Other Types |
By End User | |
Residential | |
Commercial | |
Industrial |
By Geography*** | |
North America | |
Europe | |
Asia | |
Australia and New Zealand | |
Latin America | |
Middle East and Africa |
Air Handling Units (AHU) Market Size Summary
The air handling units (AHUs) market is poised for significant growth, driven by the increasing demand for energy-efficient HVAC systems across various sectors. AHUs play a crucial role in maintaining air quality and temperature in large commercial spaces such as shopping malls, hospitals, and office buildings, making them essential in environments with high foot traffic. The market's expansion is largely attributed to rapid industrialization and urbanization, which have spurred construction activities worldwide. This surge in construction, coupled with stringent regulations on air quality and energy consumption, particularly in regions like the European Union, is propelling the demand for AHUs. Additionally, the market is influenced by macroeconomic factors, including geopolitical issues and economic fluctuations, which can impact energy prices and, consequently, the demand for energy-efficient solutions.
The Asia-Pacific region is expected to lead the market growth, driven by substantial investments in infrastructure and a rising focus on energy efficiency. Countries like China and India are emerging as key players due to their expanding industrial sectors and increasing urbanization. The demand for AHUs is further bolstered by the pharmaceutical industry's need for controlled environments, particularly in new manufacturing facilities. Environmental regulations and government initiatives promoting green energy solutions are also contributing to the market's expansion in this region. The competitive landscape is characterized by the presence of major players with established distribution networks, but the growing demand is attracting new entrants, leading to a more fragmented market. Companies are increasingly focusing on energy efficiency and sustainability, with strategic mergers and acquisitions enhancing their market positions.
Air Handling Units (AHU) Market Size - Table of Contents
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1. MARKET INSIGHTS
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1.1 Market Overview
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1.2 Industry Attractiveness - Porter's Five Forces Analysis
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1.2.1 Bargaining Power of Suppliers
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1.2.2 Bargaining Power of Buyers
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1.2.3 Threat of New Entrants
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1.2.4 Threat of Substitutes
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1.2.5 Intensity of Competitive Rivalry
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1.3 Industry Value Chain Analysis
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1.4 Impact of Macro Trends on the Market
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2. MARKET SEGMENTATION
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2.1 By Type
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2.1.1 Packaged
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2.1.2 Modular
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2.1.3 Custom
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2.1.4 Other Types
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2.2 By End User
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2.2.1 Residential
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2.2.2 Commercial
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2.2.3 Industrial
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2.3 By Geography***
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2.3.1 North America
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2.3.2 Europe
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2.3.3 Asia
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2.3.4 Australia and New Zealand
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2.3.5 Latin America
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2.3.6 Middle East and Africa
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Air Handling Units (AHU) Market Size FAQs
How big is the Air Handling Units Market?
The Air Handling Units Market size is expected to reach USD 15.07 billion in 2024 and grow at a CAGR of 6.08% to reach USD 20.25 billion by 2029.
What is the current Air Handling Units Market size?
In 2024, the Air Handling Units Market size is expected to reach USD 15.07 billion.