Air Handling Units Market size was over USD 17.29 billion in 2024 and is anticipated to exceed USD 42.52 billion by the end of 2037, growing at over 7.1% CAGR during the forecast period i.e., between 2025-2037. In the year 2025, the industry size of air handling units is evaluated at USD 18.29 billion.
The major factor influencing the growth of the market is the growing construction of modern buildings. These modern buildings deploy air handling units in order 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 rise in temperature also affects the inside environment of the buildings. Hence, the adoption of air-handling units is growing.
Additionally, buildings are getting more insulated in order 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.
Growth Drivers
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, with the growth in the number of people in malls, the temperature tends to rise. 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.
Challenges
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Base Year |
2024 |
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Forecast Year |
2025-2037 |
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CAGR |
7.1% |
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Base Year Market Size (2024) |
USD 17.29 billion |
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Forecast Year Market Size (2037) |
USD 42.52 billion |
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Regional Scope |
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End User (Residential, Commercial, Industrial)
The commercial segment in the air handling units market is set to hold the largest revenue share of about 60% over the projected period. In latest years, the commercial application sector, which includes a number of 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 which 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.
Type (Packaged, Modular, Custom)
Air handling units market from the packaged segment is anticipated to have significant growth with a share of about 56% over the forecast period. Packaged air handling systems prove to be beneficial for the population with less house space, especially in urban regions. As a result, since packaging consumes less space, it is mostly preferred. Additionally, it also reduces the heating bill. Consequently, adoption is high among middle-class people in urban regions.
Our in-depth analysis of the global market includes the following segments:
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Type |
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End User |
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APAC Market Forecast
The air handling units market in Asia Pacific is poised to dominate 43% revenue share by 2037. The growth of the market is set to grow on account of 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 handing units is growing.
North American Market Analysis
Additionally, the air handling units market in North America is growing at a noteworthy rate of 7% by the end of 2037. This could be owing to the high standard of living of the people in this region. Another element that contributes to the market growth is the prominent presence of air handler manufacturers in the United States and Canada. Additionally, both the commercial and industrial sectors have embraced the technical improvements in these items, including artificial intelligence or AI in IoT and sensor-based systems.
Author Credits: Richa Gupta
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