Air Handling Units Market 2030: The Role of IoT in HVAC

Air Handling Units Market

The global air handling units (AHUs) market was valued at USD 13.05 billion in 2024 and is projected to grow to USD 17.63 billion by 2030, with a compound annual growth rate (CAGR) of 5.3% from 2025 to 2030. This growth is driven by the rising demand for energy-efficient HVAC systems, fueled by increasing urbanization, construction activities, and growing awareness of the benefits of AHUs.

As urbanization accelerates, the demand for commercial and residential buildings that require AHUs continues to grow. According to the World Health Organization (WHO), around 55% of the global population resides in urban areas, a figure that is expected to rise to 68% by 2050. This population shift is creating an increased need for buildings with efficient air handling systems. Government initiatives, such as India's "National Infrastructure Program," are further stimulating construction activity and thereby increasing the demand for AHUs.

Additionally, the global population is expected to reach 9.7 billion by 2050, according to the United Nations, which will put pressure on the housing sector to provide affordable housing. This, in turn, is expected to drive further demand for AHUs as part of the growing need for improved infrastructure.

Governments are also providing financial support to boost housing projects. For instance, Canada's 2023 Fall Economic Statement introduced a new loan funding package worth USD 15 billion, aiming to support residential construction. Such initiatives are anticipated to continue driving demand for AHUs in the residential sector over the forecast period.

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Key Market Trends and Insights:

• Regional Leadership: The Asia Pacific region dominated the global market, accounting for 46.8% of the market share in 2024. Urbanization and industrial growth in this region are creating substantial demand for AHUs. With increased construction activities in both residential and commercial sectors, manufacturers are focusing on producing compact and energy-efficient AHUs to meet regional needs. Environmental awareness is also driving the adoption of eco-friendly AHUs.
• China's Dominance: China holds a significant share within the Asia Pacific AHU market. The country's rapid industrial growth and urbanization contribute to the rising demand for both residential and commercial air handling solutions. The market is expected to continue expanding as China focuses on improving energy efficiency and reducing environmental impact.
• Product Segment: The single-flux AHU segment led the market in 2024, accounting for 53.2% of global revenue. Single-flux AHUs are widely used in smaller commercial and residential applications, such as small offices, retail spaces, and single-family homes, due to their cost-effectiveness and efficiency.
• Type of AHUs: The packaged air handling unit segment held a dominant 58.9% share of the market in 2024. These pre-assembled units offer cost-effective solutions with easy installation and compact designs. Their popularity is rising due to the increasing demand for space-saving and energy-efficient HVAC solutions in both residential and commercial buildings.
• Capacity Breakdown: The up to 5,000 m³/h capacity segment led the market in 2024, accounting for 32.6% of the global revenue share. These AHUs are typically used in smaller applications such as warehouses, kitchens, industrial facilities, and food service properties. Their lower upfront cost makes them ideal for small commercial projects and residential buildings.
• Application Insights: The commercial application segment represented the largest revenue share in 2024, with 46.7%. The growing number of commercial spaces, including shopping malls, offices, theaters, and hotels, is driving demand for AHUs. When selecting AHUs for commercial applications, factors such as air quality, building design, energy efficiency, and system lifespan are crucial considerations.

Market Size and Forecast:

• 2024 Market Size: USD 13.05 billion
• 2030 Projected Market Size: USD 17.63 billion
• CAGR (2025-2030): 5.3%
• Largest Market Region (2024): Asia Pacific

Key Companies in the Air Handling Units Market:

Leading players in the market include:

• Carrier Corporation
• Trane Inc.
• Rheem Manufacturing Company
• Johnson Controls
• LG Electronics

These companies are actively involved in providing HVAC solutions that improve energy efficiency and offer innovative air handling systems. Emerging companies like Nortek Global HVAC and Hastings HVAC Inc. are also making significant contributions to the market, especially in terms of energy-efficient and cost-effective solutions for commercial and industrial applications.

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Conclusion:

The air handling units market is set for steady growth, driven by factors such as urbanization, increasing demand for energy-efficient HVAC systems, and rising construction activities. With the Asia Pacific region leading the way, both residential and commercial sectors are expected to see a surge in demand for AHUs over the forecast period. The market will continue to evolve with increasing emphasis on compact, energy-efficient, and eco-friendly systems to meet the diverse needs of modern buildings. The ongoing financial support from governments and the growing focus on improving air quality and thermal comfort in indoor spaces will further propel the demand for AHUs globally.