Air Handling Units Market revenue to hit USD 23 Billion by 2035, says Research Nester


Prominent air handling units market players include Daikin Industries, Ltd., Carrier Corporate, Trane Technologies Plc, and Johnson Controls.

New York, Sept. 04, 2023 (GLOBE NEWSWIRE) — The global air handling units market size is slated to expand at ~7% CAGR between 2023 and 2035. The market is poised to garner a revenue of USD 23 billion by the end of 2035, up from a revenue of ~USD 15 billion in the year 2022.The major factor influencing the growth of the market is the growing construction of modern buildings. These modern buildings deploy air handling units to regulate the temperature inside the building. Moreover, with the rise in global warming, the temperature outside has risen significantly. For instance, the average worldwide temperature in 2022 was 1.15°C more than the average between 1850-1900. However, the temperature rise also affects the inside environment of the buildings. Hence, the adoption of air-handling units is growing.

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Additionally, buildings are getting more insulated to avoid heat evaporation and thus reduce energy expenses. This is more likely to turn air inside the structure stale and hang around for longer. As a result, the building’s structure and its personnel and visitors are more at risk since the stale air may encourage the growth of mold and cause condensation issues. Hence, this is another factor that is set to dominate the market demand.

Air Handling Units Market: Key Takeaways

  • Market in Asia Pacific to propel highest growth
  • The commercial segment to garner the highest growth
  • Market in North America to grow at the highest rate

Increasing Adoption of IoT across the Globe to Boost Market Growth

The use of the Internet of Things (IoT) in air handling units has made the functioning of the system efficient. It has made it easy to collect data and store it in the cloud and also schedule maintenance according to its prediction. Moreover, monitoring, controlling, and diagnosing the system becomes cost-effective with the adoption of IoT. Since it also provides real-time data on the function of the AHU system. Hence, the further maintenance cost is reduced. For instance, loT-enabled structures may provide facility managers with early indications of any technical anomalies and enable remote diagnostics and correction, which could reduce system failures and save money. People generate an equal amount of heat as a light bulb. Hence, the temperature tends to rise with the growth in the number of people in malls. Therefore, the installation of air handling units is growing in malls.

Currently, in the world, there are approximately 7,999 data centers. These data centers necessities the use of air-handling systems. To guarantee the best performance and dependability of information and technology equipment (ITE) systems, data center air handling units (AHUs) and conditioning systems are crucial.

Air Handling Units Market: Regional Overview

The market is segmented into five major regions including North America, Europe, Asia Pacific, Latin America, and the Middle East and Africa region.

Expanding Urban Population to Drive Market Growth in the Asia Pacific Region

The air handling units market in the Asia Pacific region is estimated to garner the largest revenue by the end of 2035. The growth of the market is set to grow on account of the rising urban population. In the Asia-Pacific area, urbanization is still a defining megatrend. Asia is home to more than 2.2 billion people or 54% of the world’s metropolitan population. In Asia, an additional 1.2 billion people will live in urban areas by 2050, a growth of 50%. Hence, with this growth in urban population construction activities are on surge which is further boosting the deployment of air handling units.

Moreover, since the urban population is on the rise, the population in commercial buildings is also growing such as hotels and malls. Consequently, the need for air handling units is growing.

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Growing Efficiency and Green Building Standards to Propel Growth in the North American Region

The North American air handling units market is estimated to garner the highest CAGR by the end of 2035. Increasing emphasis on energy efficiency and green building practices is driving the adoption of energy-efficient HVAC solutions like AHUs. Building codes and standards, such as ASHRAE 90.1, mandate efficient HVAC systems to reduce energy consumption. Rapid urbanization and industrialization are driving the construction of commercial spaces and manufacturing facilities, increasing the demand for HVAC systems, including AHUs, to ensure indoor air quality and comfort.

The need to modernize existing HVAC systems for improved efficiency and performance is fostering the replacement and retrofit market for AHUs. Older systems are being replaced with advanced, energy-efficient AHUs. Growing awareness of indoor air quality and its impact on occupant health is driving the demand for AHUs with advanced filtration and ventilation capabilities, particularly in commercial buildings, healthcare facilities, and educational institutions.

Air Handling Units, Segmentation by End User

  • Residential
  • Commercial
  • Industrial

Amongst these segments, the commercial segment in air handling units market is anticipated to hold the largest share over the forecast period.  In recent years, the commercial application sector, which includes several hospitals, universities, laboratories, data centers, and server rooms, has seen an increase in demand for packaged air handling units. This is a result of the growth of numerous infrastructure-linked developments in different countries. Commercial buildings must have an air handling unit as part of their HVAC control system. The air that comes into a building from the outside is regulated and circulated so that it can be heated, cooled, and filtered as necessary. Due to their capacity variations, and extreme size, air handling systems may be used in a single room or whole buildings. When used for a commercial-sized building, they are frequently located either on the roof or in the basement.

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Air Handling Units, Segmentation by Type

  • Packaged
  • Modular
  • Custom

Amongst these segments, the packaged segment in air handling units market is anticipated to hold a significant share over the forecast period. Packaged AHUs are known for their compact design, making them suitable for applications with limited space. This feature is particularly appealing in commercial and residential buildings where space optimization is crucial. The global compact air handling unit sales are projected to reach USD 45 billion by 2025. The global trend of urbanization is driving the construction of new buildings and infrastructures. As urban areas continue to expand, there’s a growing need for efficient and scalable HVAC systems, leading to the demand for packaged AHUs. Energy-efficient HVAC solutions are in high demand due to environmental concerns and energy cost savings. Packaged AHUs, with advanced technologies and components, contribute to reducing energy consumption and carbon emissions.

A few of the well-known industry leaders in the air handling units market that are profiled by Research Nester are Daikin Industries, Ltd., Carrier Corporate, Trane Technologies Plc, Johnson Controls, and other key market players.

Recent Development in the Market

  • With a MEUR 29 purchase price, Munters AB has purchased EDPAC, an Irish company that makes air handling and cooling solutions for data centers. To expand in the segment of prioritized data centers, Munters made the acquisition. With the acquisition, Munters, a pioneer in North America’s market for energy-efficient data center cooling solutions, expands into Europe.
  • It was revealed that Johnson Controls, a pioneer in smart, healthy, and sustainable buildings, had fully acquired Silent-Aire. For hyper-scale cloud and colocation providers, Silent-Aire, with its headquarters in Edmonton, Alberta, specializes in designing, engineering, and producing specialized air handlers with a high degree of mission criticality and modular data centers.

About Research Nester

Research Nester is a one-stop service provider with a client base in more than 50 countries, leading in strategic market research and consulting with an unbiased and unparalleled approach to helping global industrial players, conglomerates, and executives for their future investments while avoiding forthcoming uncertainties. With an out-of-the-box mindset to produce statistical and analytical market research reports, we provide strategic consulting so that our clients can make wise business decisions with clarity while strategizing and planning for their forthcoming needs and succeed in achieving their future endeavors. We believe every business can expand to its new horizon, provided the right guidance at the right time is available through strategic minds.

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