PUBLISHER: Fortune Business Insights Pvt. Ltd. | PRODUCT CODE: 1930274
PUBLISHER: Fortune Business Insights Pvt. Ltd. | PRODUCT CODE: 1930274
The global air handling units (AHUs) market is witnessing robust growth, driven by increasing demand for efficient indoor air quality management across residential, commercial, and industrial sectors. According to Fortune Business Insights, the global AHUs market was valued at USD 13.32 billion in 2025. The market is projected to grow from USD 14.21 billion in 2026 to USD 25.66 billion by 2034, exhibiting a CAGR of 7.7% during the forecast period. In 2025, Asia Pacific dominated the global market with a share of 44.5%, supported by rapid urbanization and large-scale infrastructure development.
Air handling units are an integral component of HVAC systems, responsible for regulating and circulating air, controlling temperature, humidity, and maintaining indoor air quality. Their importance has increased significantly in the post-pandemic period, as businesses and governments prioritize healthier indoor environments.
Market Drivers
One of the primary drivers of the AHUs market is rapid population growth and urbanization. Expanding cities have led to increased construction of residential buildings, commercial complexes, hospitals, offices, and educational institutions. These infrastructures require advanced HVAC systems to ensure thermal comfort and adequate ventilation, boosting the demand for air handling units.
Additionally, stringent energy efficiency regulations and growing awareness about indoor air quality are pushing building owners to install modern AHUs. Sectors such as healthcare, data centers, and commercial offices are increasingly investing in advanced systems to comply with safety and environmental standards.
Market Restraints
Despite strong growth prospects, high installation and maintenance costs remain a major challenge for the AHUs market. Advanced AHUs with smart controls and energy-efficient components require significant upfront investment. Moreover, recurring maintenance costs such as filter replacement, component cleaning, and servicing increase long-term operational expenses. These factors can restrict adoption, especially among small businesses and budget-sensitive residential users.
Market Opportunities
The rising adoption of smart buildings presents lucrative growth opportunities for the AHUs market. Smart air handling units integrated with IoT sensors, AI-based controls, and building management systems (BMS) allow real-time monitoring, energy optimization, and predictive maintenance. These features reduce energy consumption and downtime, making AHUs more cost-effective in the long run.
The growing emphasis on green buildings and sustainability is also creating opportunities for manufacturers to develop modular, energy-efficient, and eco-friendly AHUs.
Market Trends
A key trend shaping the market is the global focus on sustainability and energy efficiency. Governments worldwide are enforcing green building certifications such as LEED and BREEAM, encouraging the use of HVAC systems with reduced carbon footprints. Manufacturers are responding by developing AHUs with heat recovery systems, variable speed drives, and high-efficiency fans and motors.
By type, packaged AHUs dominate the market due to their compact design and ease of installation, particularly in residential and small commercial buildings.
By business type, new equipment holds the largest share, driven by ongoing construction activities.
By capacity, units with less than 5,000 m3/h dominate due to their suitability for commercial spaces.
By end-user, the commercial segment leads the market, supported by strong demand from offices, hospitals, malls, and educational institutions.
Asia Pacific leads the global AHUs market, valued at USD 5.93 billion in 2025, driven by rapid urbanization in China, India, and Southeast Asia.
North America is projected to reach USD 4.15 billion in 2026, supported by strict energy regulations and smart building adoption.
Europe continues steady growth due to sustainability initiatives, while Middle East & Africa show rising demand driven by infrastructure development and extreme climate conditions.
Competitive Landscape
Key players operating in the AHUs market include Daikin Industries Ltd., Carrier, Trane Technologies, Johnson Controls, Systemair AB, LG Electronics, Voltas Limited, Blue Star Limited, and others. These companies focus on innovation, energy efficiency, and expanding their global presence through acquisitions and product launches.
Conclusion
The global air handling units market is set for strong and sustained growth, expanding from USD 13.32 billion in 2025 to USD 25.66 billion by 2034. Rising urbanization, increasing awareness of indoor air quality, growth in commercial infrastructure, and the adoption of smart and energy-efficient HVAC solutions are key factors driving market expansion. While high installation and maintenance costs pose challenges, technological advancements, green building initiatives, and smart building adoption will continue to create long-term growth opportunities. Overall, the AHUs market is well-positioned to play a critical role in the future of sustainable and healthy indoor environments.
Segmentation By Type
By Business Type
By Capacity
By End User
By Effect
By Region
Key Market Players Profiled in the Report Daikin Industries Ltd (Japan), Carrier (U.S.), Trane Technologies Plc (Ireland), Johnson Controls International Plc (Ireland), Systemair AB (Sweden), LG Electronics (South Korea), Lennox International Inc (U.S.), Munters AB (Sweden), Investment AB Latour (Publ) (Swegon Group AB) (Sweden), Trox GmbH (Germany), etc.