Air Handling Units Market Trends

Growth Drivers

• Stringent energy efficiency regulations: Policies like the EU’s Ecodesign Directive and U.S. DOE standards are pushing adoption of high-efficiency systems. Over 30% of new AHU installations comply with Tier 4+ efficiency ratings, reducing energy consumption by 20–25%. Green building certifications (LEED, BREEAM) mandate AHU upgrades in 25% of commercial retrofits, boosting demand for energy recovery ventilators (ERVs) (USGBC). The global ERV market is growing at 8% CAGR, driven by regulations targeting 30% lower HVAC emissions by 2030 (IEA). In the U.S., ASHRAE 90.1-2022 standards have increased AHU efficiency requirements by 15%, accelerating replacement cycles (ASHRAE). These policies are projected to expand the high-efficiency market to account for 45% of total sales.
• Climate change & decarbonization efforts: The demand for energy-efficient air handling units (AHUs) is rising due to climate change and decarbonization initiatives; the global market for low-carbon HVAC systems is expected to expand at a 7.2% CAGR through 2030. Heat recovery AHUs now represent 25% of sales in Europe, reducing building emissions by 30% to meet the EU’s 2030 decarbonization targets. In the U.S., DOE’s 2024 building codes mandate 15% higher AHU efficiency, driving a 40% increase in retrofits (DOE). Electrification trends boost 10% annual growth in electric AHUs, while refrigerant phase-outs (e.g., HFC bans) push 20% of buyers toward natural refrigerant-based systems (UNEP). These efforts will expand the green air handling units market to $8.5B by 2027, with Asia-Pacific leading at 35% adoption growth.

1. Emerging Trade Dynamics & Future Market Prospects

Changes in global trade are occurring as geopolitical tensions persist, supply chains are realigned, and countries begin to transition to green energy. The global merchandise trade expanded by 9.7% in 2021 as it recovered from a -5.3% decline in 2020.  Asia-Pacific continues to dominate trade in 2022 as it accounted for 37% of global trade by value (-3% from 2021). Trade policies like the US-China tariffs eliminated 14% of bilateral trade from 2019-2022. Specialty chemicals trade, however, exploded. During this period, EU exports to North America grew from a modest import CAGR of 6.2% (2018-2023). Trade data are listed below:

Air Handling Units Trade Data (2019-2024)

Top Exporting Countries (2022)

Top Importing Countries (2022)

Key Trade Routes (2022)

Specialty Chemicals Trade Growth (2018-2023)

1. Air Handling Units (AHUs) – Pricing and Sales

The global air handling units market has increased steadily, in large part owing to growing demand for HVAC solutions in commercial and industrial markets. The AHU unit sales annually peaked in 2023 at nearly 1.2 million, with North America at 40% share, Europe at 30%, and Asia at 25%. Pricing for AHUs was inconsistent with pricing fluctuations noted for raw materials, supply chain issues, and regulatory updates. From 2019 to 2023, AHU prices in North America increased by 18%, in Europe by 22%, and in Asia by 12%. Future trends will depend on decarbonization policies and raw material pricing variability. The shipment data is mentioned below:

Price History & Unit Sales (2019–2023)

Key Factors Influencing Price Fluctuations

Regional Market Prospects (2024 Forecast)

1. Japan’s Air Handling Unit (AHU) Shipment Value

Japan's air handling units (AHU) market demonstrated steady recovery, with total shipments reaching ¥181.2 billion ($1.3 billion) in 2023, up from ¥147.6 billion in 2018. Commercial AHUs drove growth at 4.3% CAGR, reaching ¥105.4 billion (2023), while industrial AHUs grew to ¥75.8 billion. Exports surged 62.7% (2018–2023), hitting ¥68.5 billion, with 40% destined for China (data centers) and 30% to ASEAN (construction boom). Post-pandemic recovery accelerated domestic demand by 12% (2021–2023), while energy-efficient models captured 35% of shipments under Japan’s 2030 Carbon Neutral Policy. The market is projected to grow at a 6% CAGR (2024–2026), led by smart and low-carbon AHUs.

Domestic Shipments (¥ Billion)

Export Market Influence (¥ Billion)

Challenges

• Sustainability mandates and circular economy pressures: Governments are advancing eco-design, recyclability, and life-cycle assessments (LCAs) for HVAC systems as the main issue. This leads to additional R&D and redesign burdens for legacy AHU product lines. The EU Ecodesign Directive (2023 update) requires that all HVAC products with power above 250 W be compliant with ERP energy class A+ and be recyclable for parts (ECHA). Systemair AB (Sweden) has gone beyond the Geniox AHU range by integrating modular recyclable frames, which in turn resulted in a 13.2% year-over-year increase of its EU sales.
• Infrastructure limitations in emerging markets: AHUs correspond to the integration with power, ducting, insulation, and building management systems (BMS). Infrastructure of this kind is not present in many emerging markets. Thus, it restrains the adoption of such products in the developing economies of Africa and rural parts of Southeast Asia. According to UNIDO (2023), more than 40.5% of industrial zones in Africa do not have the power supply infrastructure to operate HVAC systems like AHUs (UNIDO). High-performing AHUs are being replaced with decentralized, inefficient ones most of the time.