Air Handling Units Market Size, Share, and Growth Analysis

Air Handling Units Market By Type (Packaged Rooftop, Modular), By Effect (Single-Effect, Double-Effect), By Application (Industrial, Residential), By Region -Industry Forecast 2025-2032


Report ID: SQMIG20E2099 | Region: Global | Published Date: February, 2025
Pages: 198 |Tables: 91 |Figures: 71

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Air Handling Units Market Insights

Global Air Handling Units Market size was valued at USD 12.71 Billion in 2023 poised to grow from USD 13.41 Billion in 2024 to USD 20.58 Billion by 2032, growing at a CAGR of 5.5% in the forecast period (2025-2032).

The HVAC (heating, ventilation, air conditioning) business remains characterized by volatility. The notable trends and movements in the air handling units market over recent years is indicative of this trend. There certainly is a trend of increasing need for energy-efficient solutions. With the growing importance of sustainability and environmental concerns in the corporate sector, the demand for highly energy-efficient air handling units is rising. In response, producers are adding cutting-edge technologies to their goods, such as energy recovery systems and variable speed drives. In addition to following the worldwide trend of replacing more harmful products, this also helps end users reduce their operating expenses by using less energy.

The second notable trend affecting the market for air handling units is smart and networked systems. The integration of air handling units with building automation control systems (BACS) has been gaining acceptance over time, as the Internet of Things and Industry 4.0 continues to advance. To enhance operational performance, smart air handling units rely on sensors, data analytics, and remote monitoring tools. The building owners and facility managers now get real-time information on system performance, energy usage, and indoor air quality. They can hence manage the situation by carrying out preventive maintenance. This is not just a reaction to the need for more intelligent HVAC systems; it also represents advancements in sustainable infrastructure and smart buildings.

Market snapshot - (2025-2032)

Global Market Size

USD 12.71 Billion

Largest Segment

Packaged Rooftop

Fastest Growth

Modular

Growth Rate

5.5% CAGR

Global Air Handling Units Market ($ Bn)
Country Share by Asia Pacific (%)

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Air Handling Units Market Segments Analysis

The global air handling units market is segmented based on type, effect, application, and region. In terms of type, the market is grouped into packaged rooftop, modular, custom, low profile, rooftop-mounted, and others. Based on the effect, the market is bifurcated into single-effect and double-effect. Based on application, the market is trifurcated into industrial, residential, and commercial. Based on region, the market is segmented into North America, Europe, Asia-Pacific, Central & South America and the Middle East & Africa.

Analysis by Type

As per categorization by type, the market is classified as packaged rooftop, modular, custom, low profile, rooftop-mounted, and others. Among these, packaged rooftops earned the largest share and continue to hold the dominant global air handling units market share. Packaged rooftops are leading the global air handling units' market due to their compact, all-in-one design, ease of installation, and energy-efficient performance. Innovations of smart controls, variable speed drives, and eco-friendly refrigerants enhance the operational efficiency and sustainability of those innovations. Thus, they dominate the market due to their widespread adoption in commercial buildings, healthcare, and retail, where space constraints and the need for cost-effective climate control solutions are prevalent. Urbanization and energy regulations are on the rise globally, making their market position grow day by day.

The modular segment is poised for the fastest growth in the global air handling units market due to its flexibility, scalability, and customization capabilities. These units allow customers to select components such as fans, filters, and coils to meet individual needs, making them widely used in sectors like pharmaceuticals, food processing, and electronics manufacturing. Innovations in energy-efficient designs, IoT-based monitoring, and high-performance filtration further increase their appeal. The growing demand for flexible HVAC solutions in fast-changing industrial environments, increased air quality regulations, and the demand for 'green' infrastructure all contribute to their adoption. As a result, modular air handling units are becoming the fastest-growing segment worldwide.

Analysis by Effect

Double-effect, often referred to as double-skin air handling units, are gaining prominence in the global market due to their superior energy efficiency and enhanced thermal insulation. This reduces bridging of heat and condensation and, hence contributes more to good quality indoor air and less energy usage. These units are used in hospitals, commercial buildings, and industries, where there is a great need for exact climate control. The increased concern over sustainable building and stringent energy rules are further encouraging the use of double-effect air handling units, thus maintaining a significant share in the market.

Single effects are experiencing rapid growth in the global air handling units' market due to their cost-effectiveness and simplicity, making them ideal for residential and small commercial applications. Their simple design makes them very easy to install and maintain, and budget-conscious consumers are more attracted to it. The high level of urbanization and demand for affordable housing drives the demand for single-effect units. Moreover, awareness of indoor air quality and energy efficiency increases the adoption of single-effect air handling units, as they offer efficient ventilation without the complexity and higher cost of double-effect systems.

Global Air Handling Units Market By Type (%)

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Air Handling Units Market Regional Insights

Asia-Pacific dominates the global air handling units market due to rapid industrialization, urbanization, and expanding infrastructure projects. The highly vibrant construction sectors, especially in commercial and residential realms, of China, India, and Southeast Asia are adding immensely to the demand for energy-efficient HVAC systems. Government regulations on energy conservation and smart building initiatives also accelerate the adoption of air handling units. Moreover, advanced climate control solutions are in high demand with the growing manufacturing, pharmaceutical, and healthcare industries in the region. The growing disposable income and increasing awareness of indoor air quality also boost market expansion. Asia-Pacific remains to be the strongest market for air handling units worldwide with constant investments in infrastructures and very strong economic growth.

North America is the fastest-growing region in the global air handling units market due to rising demand for energy-efficient HVAC solutions, stringent environmental regulations, and increasing investments in smart buildings. Advanced air handling units in the U.S. and Canada are increasingly adopted in commercial, healthcare, and data centers spaces for indoor air quality and optimum energy consumption. Growth is accelerated further by a push toward green building certifications as well as through the incorporation of IoT and AI-driven climate control systems. The regional extreme weather patterns in regional and increased infrastructure development are also drivers that demand innovative air handling units solutions and thereby result in an increase in market size.

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Air Handling Units Market Dynamics

Drivers

Expanding Commercial and Industrial Infrastructure

  • Rapid urbanization and industrial growth, particularly in emerging economies, are fueling the global air handling units market growth. Growing commercial building, hospital, data center, and manufacturing facility construction creates a need for sophisticated HVAC systems that can regulate climate and ensure high-quality air. Government initiatives supporting smart infrastructure and green building practices also contribute to the growing demand for air handling units globally.

Rising Demand for Energy-Efficient HVAC Systems

  • The global urge for energy efficiency has also taken over the air handling units market. Consider the environment with tighter regulations and sustainability goals. High-efficiency air handling units are being implemented by industries to decrease energy consumption and carbon footprint. Variable speed drives and heat recovery systems enhance the operational efficiency of these units.

Restraints

Maintenance and Operational Challenges

  • Maintenance and operational challenges restrain the further expansion of air handling units markets. Filters, coils, and fan devices need serviceable maintenance very often to reduce friction and restrict airborne contamination within it. Malfunctions and inefficiency cause increased additional cost in carrying out the operations successfully. Moreover, air handling units requires specialists in handling repairs and troubleshooting, which raises long term expenses and restrictions in their markets.

Space Constraints and Retrofitting Challenges

  • Air handling units require significant space for installation, making them less feasible for older buildings with limited mechanical room availability. The complexity of retrofitting air handling units in place, involving significant ductwork and structural reinforcement alterations, increases its cost and does not attract users, especially for densely populated regions with less available space in an urban city.

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Air Handling Units Market Competitive Landscape

The global air handling units market is highly competitive, with several international players driving innovation and market expansion. Key players in the market are Johnson Controls International, Daikin Industries Ltd., Carrier Global Corporation, Trane Technologies, and Systemair AB. The companies undertake these energy-efficient solutions, smart controls, and advanced materials as the competitive edge to take the market space. Other strategic mergers and acquisitions, combined with technological advancement in HVAC systems, are also taken into the market leadership that will provide solutions catering to diversified needs across global industries.

Top Player’s Company Profiles

  • Johnson Controls International (Ireland)
  • Daikin Industries Ltd. (Japan)
  • Carrier Global Corporation (USA)
  • Trane Technologies (Ireland)
  • Systemair AB (Sweden)
  • Lennox International Inc. (USA)
  • Zehnder Group (Switzerland)
  • FläktGroup (Finland)
  • Swegon AB (Sweden)
  • Greenheck Fan Corporation (USA)
  • Munters AB (Sweden)
  • Toshiba Carrier Corporation (Japan)
  • LG Electronics (South Korea)
  • Samsung Electronics (South Korea)
  • Bosch Thermotechnology (Germany)

Recent Developments

  • In December 2024, Johnson Controls International announced the launch of its next-generation energy-efficient air handling units featuring smart controls and integrated air purification systems. This new product line will use IoT in real-time monitoring and predictive maintenance to enhance sustainability and operational efficiency within commercial buildings.
  • In November 2024, Daikin Industries Ltd. has developed a new modular air handling unit product line. It comprises customizable modules that enhance indoor air quality and energy performance. They ensure flexible use in large industrial and commercial applications, thus providing scalable solutions for HVAC facilities without higher environmental burdens.
  • In October 2024, Carrier Global Corporation unveiled its new advanced air handling unit that features the latest heat recovery technology. The new design recycles the waste heat thus improving the overall energy efficiency level by up to 30 percent. This technological innovation is tailored towards green buildings, which encourages sustainability in all commercial and industrial spaces.

Air Handling Units Key Market Trends

Air Handling Units Market SkyQuest Analysis

SkyQuest’s ABIRAW (Advanced Business Intelligence, Research & Analysis Wing) is our Business Information Services team that Collects, Collates, Correlates, and Analyses the Data collected by means of Primary Exploratory Research backed by robust Secondary Desk research.

As per SkyQuest analysis, the global air handling units industry is fast-changing with respect to energy efficiency and smart technologies. Energy-efficient HVAC solutions have further fueled the production process. Manufacturers are looking to innovate more and include smart controls and energy recovery systems in these devices.

As sustainability becomes a core aspect of multiple industries, advanced air handling units streamline the goal of reducing operating costs for companies while working toward more ambitious environmental objectives. Moreover, connected systems in air handling units open opportunities for better operation performance and predictive maintenance, making these advanced air handling units highly attractive in commercial and industrial uses around the globe.

Report Metric Details
Market size value in 2023 USD 12.71 Billion
Market size value in 2032 USD 20.58 Billion
Growth Rate 5.5%
Base year 2024
Forecast period (2025-2032)
Forecast Unit (Value) USD Billion
Segments covered
  • Type
    • Packaged Rooftop, Modular, Custom, Low Profile, Rooftop-Mounted, and Others
  • Effect
    • Single-Effect and Double-Effect
  • Application
    • Industrial, Residential, and Commercial
Regions covered North America (US, Canada), Europe (Germany, France, United Kingdom, Italy, Spain, Rest of Europe), Asia Pacific (China, India, Japan, Rest of Asia-Pacific), Latin America (Brazil, Rest of Latin America), Middle East & Africa (South Africa, GCC Countries, Rest of MEA)
Companies covered
  • Johnson Controls International (Ireland)
  • Daikin Industries Ltd. (Japan)
  • Carrier Global Corporation (USA)
  • Trane Technologies (Ireland)
  • Systemair AB (Sweden)
  • Lennox International Inc. (USA)
  • Zehnder Group (Switzerland)
  • FläktGroup (Finland)
  • Swegon AB (Sweden)
  • Greenheck Fan Corporation (USA)
  • Munters AB (Sweden)
  • Toshiba Carrier Corporation (Japan)
  • LG Electronics (South Korea)
  • Samsung Electronics (South Korea)
  • Bosch Thermotechnology (Germany)
Customization scope

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Table Of Content

Executive Summary

Market overview

  • Exhibit: Executive Summary – Chart on Market Overview
  • Exhibit: Executive Summary – Data Table on Market Overview
  • Exhibit: Executive Summary – Chart on Air Handling Units Market Characteristics
  • Exhibit: Executive Summary – Chart on Market by Geography
  • Exhibit: Executive Summary – Chart on Market Segmentation
  • Exhibit: Executive Summary – Chart on Incremental Growth
  • Exhibit: Executive Summary – Data Table on Incremental Growth
  • Exhibit: Executive Summary – Chart on Vendor Market Positioning

Parent Market Analysis

Market overview

Market size

  • Market Dynamics
    • Exhibit: Impact analysis of DROC, 2021
      • Drivers
      • Opportunities
      • Restraints
      • Challenges
  • SWOT Analysis

KEY MARKET INSIGHTS

  • Technology Analysis
    • (Exhibit: Data Table: Name of technology and details)
  • Pricing Analysis
    • (Exhibit: Data Table: Name of technology and pricing details)
  • Supply Chain Analysis
    • (Exhibit: Detailed Supply Chain Presentation)
  • Value Chain Analysis
    • (Exhibit: Detailed Value Chain Presentation)
  • Ecosystem Of the Market
    • Exhibit: Parent Market Ecosystem Market Analysis
    • Exhibit: Market Characteristics of Parent Market
  • IP Analysis
    • (Exhibit: Data Table: Name of product/technology, patents filed, inventor/company name, acquiring firm)
  • Trade Analysis
    • (Exhibit: Data Table: Import and Export data details)
  • Startup Analysis
    • (Exhibit: Data Table: Emerging startups details)
  • Raw Material Analysis
    • (Exhibit: Data Table: Mapping of key raw materials)
  • Innovation Matrix
    • (Exhibit: Positioning Matrix: Mapping of new and existing technologies)
  • Pipeline product Analysis
    • (Exhibit: Data Table: Name of companies and pipeline products, regional mapping)
  • Macroeconomic Indicators

COVID IMPACT

  • Introduction
  • Impact On Economy—scenario Assessment
    • Exhibit: Data on GDP - Year-over-year growth 2016-2022 (%)
  • Revised Market Size
    • Exhibit: Data Table on Air Handling Units Market size and forecast 2021-2027 ($ million)
  • Impact Of COVID On Key Segments
    • Exhibit: Data Table on Segment Market size and forecast 2021-2027 ($ million)
  • COVID Strategies By Company
    • Exhibit: Analysis on key strategies adopted by companies

MARKET DYNAMICS & OUTLOOK

  • Market Dynamics
    • Exhibit: Impact analysis of DROC, 2021
      • Drivers
      • Opportunities
      • Restraints
      • Challenges
  • Regulatory Landscape
    • Exhibit: Data Table on regulation from different region
  • SWOT Analysis
  • Porters Analysis
    • Competitive rivalry
      • Exhibit: Competitive rivalry Impact of key factors, 2021
    • Threat of substitute products
      • Exhibit: Threat of Substitute Products Impact of key factors, 2021
    • Bargaining power of buyers
      • Exhibit: buyers bargaining power Impact of key factors, 2021
    • Threat of new entrants
      • Exhibit: Threat of new entrants Impact of key factors, 2021
    • Bargaining power of suppliers
      • Exhibit: Threat of suppliers bargaining power Impact of key factors, 2021
  • Skyquest special insights on future disruptions
    • Political Impact
    • Economic impact
    • Social Impact
    • Technical Impact
    • Environmental Impact
    • Legal Impact

Market Size by Region

  • Chart on Market share by geography 2021-2027 (%)
  • Data Table on Market share by geography 2021-2027(%)
  • North America
    • Chart on Market share by country 2021-2027 (%)
    • Data Table on Market share by country 2021-2027(%)
    • USA
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)
    • Canada
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)
  • Europe
    • Chart on Market share by country 2021-2027 (%)
    • Data Table on Market share by country 2021-2027(%)
    • Germany
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)
    • Spain
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)
    • France
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)
    • UK
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)
    • Rest of Europe
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)
  • Asia Pacific
    • Chart on Market share by country 2021-2027 (%)
    • Data Table on Market share by country 2021-2027(%)
    • China
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)
    • India
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)
    • Japan
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)
    • South Korea
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)
    • Rest of Asia Pacific
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)
  • Latin America
    • Chart on Market share by country 2021-2027 (%)
    • Data Table on Market share by country 2021-2027(%)
    • Brazil
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)
    • Rest of South America
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)
  • Middle East & Africa (MEA)
    • Chart on Market share by country 2021-2027 (%)
    • Data Table on Market share by country 2021-2027(%)
    • GCC Countries
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)
    • South Africa
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)
    • Rest of MEA
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)

KEY COMPANY PROFILES

  • Competitive Landscape
    • Total number of companies covered
      • Exhibit: companies covered in the report, 2021
    • Top companies market positioning
      • Exhibit: company positioning matrix, 2021
    • Top companies market Share
      • Exhibit: Pie chart analysis on company market share, 2021(%)

Methodology

For the Air Handling Units Market, our research methodology involved a mixture of primary and secondary data sources. Key steps involved in the research process are listed below:

1. Information Procurement: This stage involved the procurement of Market data or related information via primary and secondary sources. The various secondary sources used included various company websites, annual reports, trade databases, and paid databases such as Hoover's, Bloomberg Business, Factiva, and Avention. Our team did 45 primary interactions Globally which included several stakeholders such as manufacturers, customers, key opinion leaders, etc. Overall, information procurement was one of the most extensive stages in our research process.

2. Information Analysis: This step involved triangulation of data through bottom-up and top-down approaches to estimate and validate the total size and future estimate of the Air Handling Units Market.

3. Report Formulation: The final step entailed the placement of data points in appropriate Market spaces in an attempt to deduce viable conclusions.

4. Validation & Publishing: Validation is the most important step in the process. Validation & re-validation via an intricately designed process helped us finalize data points to be used for final calculations. The final Market estimates and forecasts were then aligned and sent to our panel of industry experts for validation of data. Once the validation was done the report was sent to our Quality Assurance team to ensure adherence to style guides, consistency & design.

Analyst Support

Customization Options

With the given market data, our dedicated team of analysts can offer you the following customization options are available for the Air Handling Units Market:

Product Analysis: Product matrix, which offers a detailed comparison of the product portfolio of companies.

Regional Analysis: Further analysis of the Air Handling Units Market for additional countries.

Competitive Analysis: Detailed analysis and profiling of additional Market players & comparative analysis of competitive products.

Go to Market Strategy: Find the high-growth channels to invest your marketing efforts and increase your customer base.

Innovation Mapping: Identify racial solutions and innovation, connected to deep ecosystems of innovators, start-ups, academics, and strategic partners.

Category Intelligence: Customized intelligence that is relevant to their supply Markets will enable them to make smarter sourcing decisions and improve their category management.

Public Company Transcript Analysis: To improve the investment performance by generating new alpha and making better-informed decisions.

Social Media Listening: To analyze the conversations and trends happening not just around your brand, but around your industry as a whole, and use those insights to make better Marketing decisions.

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FAQs

Global Air Handling Units Market size was valued at USD 12.71 Billion in 2023 poised to grow from USD 13.41 Billion in 2024 to USD 20.58 Billion by 2032, growing at a CAGR of 5.5% in the forecast period (2025-2032).

The global air handling units market is highly competitive, with several international players driving innovation and market expansion. Key players in the market are Johnson Controls International, Daikin Industries Ltd., Carrier Global Corporation, Trane Technologies, and Systemair AB. The companies undertake these energy-efficient solutions, smart controls, and advanced materials as the competitive edge to take the market space. Other strategic mergers and acquisitions, combined with technological advancement in HVAC systems, are also taken into the market leadership that will provide solutions catering to diversified needs across global industries. 'Johnson Controls International (Ireland)', 'Daikin Industries Ltd. (Japan)', 'Carrier Global Corporation (USA)', 'Trane Technologies (Ireland)', 'Systemair AB (Sweden)', 'Lennox International Inc. (USA)', 'Zehnder Group (Switzerland)', 'FläktGroup (Finland)', 'Swegon AB (Sweden)', 'Greenheck Fan Corporation (USA)', 'Munters AB (Sweden)', 'Toshiba Carrier Corporation (Japan)', 'LG Electronics (South Korea)', 'Samsung Electronics (South Korea)', 'Bosch Thermotechnology (Germany)'

Rapid urbanization and industrial growth, particularly in emerging economies, are fueling the global air handling units market growth. Growing commercial building, hospital, data center, and manufacturing facility construction creates a need for sophisticated HVAC systems that can regulate climate and ensure high-quality air. Government initiatives supporting smart infrastructure and green building practices also contribute to the growing demand for air handling units globally.

Integration of Smart Technologies in Air Handling Units: The global air handling units market trends is shifting towards having smart technologies for IoT, artificial intelligence, and various sensors for effective real-time monitoring, predictive maintenance, and enhancing energy efficiency. This enhances system performance and operational efficiency, thus raising the demand for technologically advanced air handling units in commercial and industrial applications.

Asia-Pacific dominates the global air handling units market due to rapid industrialization, urbanization, and expanding infrastructure projects. The highly vibrant construction sectors, especially in commercial and residential realms, of China, India, and Southeast Asia are adding immensely to the demand for energy-efficient HVAC systems. Government regulations on energy conservation and smart building initiatives also accelerate the adoption of air handling units. Moreover, advanced climate control solutions are in high demand with the growing manufacturing, pharmaceutical, and healthcare industries in the region. The growing disposable income and increasing awareness of indoor air quality also boost market expansion. Asia-Pacific remains to be the strongest market for air handling units worldwide with constant investments in infrastructures and very strong economic growth.

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Air Handling Units Market

Report ID: SQMIG20E2099

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