Air Handling Units Industry

The global air handling units market size was estimated at USD 12.56 billion in 2023 and is projected to grow at a CAGR of 5.1% from 2024 to 2030.

The demand for air handling units (AHUs) is rising due to the increasing urbanization, construction activities, and the need for energy-efficient HVAC systems. According to the World Health Organization (WHO), approximately 55% of the global population currently lives in urban areas, and this figure is expected to increase to 68% by 2050, driving the demand for commercial and residential buildings that require AHUs. Government initiatives like the "National Infrastructure Program" in India are boosting construction projects, further fueling the need for AHUs. Additionally, the growing awareness of the benefits of AHUs, such as maintaining fresh air quality and thermal comfort in indoor spaces, is contributing to their popularity.

Gather more insights about the market drivers, restrains and growth of the Global Air Handling Units market

The growing global population is increasing the requirements for affordable housing units and enhanced commercial infrastructure. According to the United Nations, the global population is expected to reach 9.7 billion in 2050, exhibiting a growth of 2 billion in the next 30 years. This significant increase in the global population is facilitated by the improving standard of living of the masses, increasing lifespan, decreasing mortality rate, and ongoing advancements in technologies. The growing global population is also putting pressure on the real estate sector to provide affordable housing to the masses. As such, new housing projects are being launched worldwide. This is expected to positively impact the growth of the AHU market over the forecast period.

Moreover, governments across the world are providing monetary support to customers by introducing various housing schemes. For instance, the Government of Canada announced through the 2023 Fall Economic Statement a new loan funding worth USD 15 billion, which is USD 9 billion more than the previous funding. With the increasing support from the governments of different countries and the requirement for affordable housing, the residential construction industry is flourishing worldwide. This is expected to surge the demand for AHU market over the forecast period.

Key Air Handling Units Company Insights

Some of the key players operating in the market include Carrier Corporation, Trane Inc., Rheem Manufacturing Company, Johnson Controls, LG Electronics, among others.

• Trane is a member of the Ingersoll Rand family of brands. The company operates its business in two segments, namely climate and industrial. The industrial segment offers products and services that enhance energy efficiency, operations, and productivity. It includes power tools, compressed air & gas systems, fluid management systems, material handling systems, and utility & low speed consumer vehicles. The climate segment provides energy efficient products and services, including heating, ventilation, and air conditioning (HVAC) systems. The company is engaged in the manufacturing of residential, industrial, and commercial HVAC systems. It offers products, such as HVAC accessories, thermostat controls, ductless systems, geothermal systems, packaged systems, heat pumps, coils, gas & oil furnaces, air handlers, and air conditioners.
• Carrier provides heat pumps, air conditioners, boilers, furnaces, air purifiers, humidifiers, dehumidifiers, ventilators, air scrubbers, thermostats, UV lamps, energy services, and building controls to the retail, commercial, transport, and foodservice sectors. The company was acquired by United Technologies Corporation in 1979; however, it was separated into a separate business in April 2020.
• Johnson Controls designs manufactures and offers solutions that enhance the operational efficiencies of buildings and various systems related to the automotive industry. The company supplies building control systems, automation, HVAC equipment, seating and interior systems, and integrated facility management services. It operates through four business segments, namely building solutions EMEA/LA, building solutions North America, building solutions Asia Pacific, and global products.

Nortek Global HVAC, STULZ GMBH, and Hastings HVAC Inc. are some of the emerging market participants in the air handling units (AHU) market.

• Nortek Global HVAC is a leading manufacturer of heating, ventilation, and air conditioning (HVAC) equipment for residential and light commercial applications. The company offers a wide range of products, including air conditioners, heat pumps, furnaces, and air handlers, under well-known brand names such as Frigidaire, Maytag, and Westinghouse. Nortek Global HVAC has a strong presence in North America and employs over 1,000 people across its manufacturing facilities and sales offices.
• Hastings HVAC Inc. is a Canadian company that designs, manufactures, and distributes HVAC equipment for commercial and industrial applications. The company's product range includes air handling units, rooftop units, and custom-engineered solutions. Hastings HVAC serves customers across North America and has a reputation for providing high-quality, energy-efficient products and exceptional customer service. The company operates manufacturing facilities in Canada and the U.S. and employs a team of experienced professionals in engineering, sales, and customer support.

Key Air Handling Units Companies:

The following are the leading companies in the air handling units market. These companies collectively hold the largest market share and dictate industry trends.

• Carrier Corporation
• Rheem Manufacturing Company
• Johnson Controls
• Lennox International Inc.
• LG Electronics
• Midea
• Trane Inc.
• Systemair AB
• Munters AB
• Nortek Global HVAC
• STULZ GMBH
• Hastings HVAC Inc.
• VTS Group
• Evapoler Eco Cooling Solutions
• TROX GmbH

Recent Developments

• In February 2024, Modine announced that it had entered into a definitive agreement to acquire Scott Springfield Manufacturing, a manufacturer of AHU. Through this transaction, Modine gained immediate access to a complementary product portfolio and a customer base across several industries, such as telecommunications, hyperscale & colocation data centers, healthcare, and aerospace.
• In January 2024, Carrier expanded its HVAC product portfolio manufactured in India with the introduction of air handling units (AHUs) and fan coil units (FCUs) tailored to meet the diverse needs of India's commercial buildings. These new additions, designed to provide custom solutions for healthy indoor environments with high-efficiency air filtering, affirm Carrier's more than five-decade presence in India and underscore the company's commitment to the country's growth under the 'Make in India' initiative.

Order a free sample PDF of the Air Handling Units Market Intelligence Study, published by Grand View Research.