The global air handling units market size was estimated at USD 13.05 billion in 2024 and is projected to reach USD 17.63 billion by 2030, growing at a CAGR of 5.3% from 2025 to 2030. This growth is primarily driven by accelerating urbanization, expanding construction activities, and the rising demand for energy-efficient heating, ventilation, and air conditioning (HVAC) systems across residential, commercial, and industrial sectors. Air handling units (AHUs) play a critical role in maintaining indoor air quality by regulating temperature, humidity, and airflow, making them an essential component of modern building infrastructure.

According to the World Health Organization (WHO), approximately 55% of the global population currently resides in urban areas, a figure expected to rise to 68% by 2050, significantly increasing the demand for residential and commercial buildings equipped with advanced HVAC systems. This urban expansion directly drives the adoption of AHUs in offices, shopping centers, hospitals, educational institutions, and residential complexes. Government-led infrastructure initiatives, such as India’s “National Infrastructure Program,” are further accelerating construction activity, thereby boosting demand for AHUs in both public and private projects. Additionally, increasing awareness regarding the benefits of AHUs, including improved indoor air quality, thermal comfort, and energy efficiency, continues to enhance their adoption across diverse end-use applications.

Furthermore, the growing global population is intensifying the need for affordable housing and enhanced commercial infrastructure worldwide. According to the United Nations, the global population is expected to reach 9.7 billion by 2050, representing an increase of 2 billion over the next 30 years. This population growth is supported by improvements in living standards, increased life expectancy, declining mortality rates, and ongoing technological advancements. As urban populations expand, pressure on the real estate sector to develop cost-effective housing solutions continues to rise, leading to the launch of new residential and mixed-use development projects across regions. Alongside housing, expanding population levels also drive demand for commercial facilities such as offices, retail centers, healthcare facilities, and transportation hubs, all of which require reliable and efficient air handling systems. Collectively, these factors are expected to positively influence the growth of the air handling units market throughout the forecast period.

Key Market Trends & Insights:

  • Asia Pacific dominated the global air handling units market, accounting for 46.8% of total market revenue. The region is witnessing rapid market expansion due to strong urbanization trends, large-scale industrial development, and significant investments in infrastructure projects. China held a substantial share of the Asia Pacific air handling units market, supported by its robust construction sector, expanding manufacturing base, and increasing focus on energy-efficient building solutions.
  • By product, the single-flux segment led the market and accounted for 53.2% of the global revenue share in 2024. The strong demand for single-flux and double-flux air handling units is driven by the need for efficient, reliable, and cost-effective HVAC solutions across commercial, residential, and industrial applications, particularly in regions experiencing rapid construction growth.
  • By type, the packaged air handling units segment dominated the market, accounting for 58.9% of the global revenue share in 2024. Packaged AHUs are widely preferred due to their compact design, ease of installation, and suitability for a wide range of applications. Meanwhile, modular air handling units are expected to witness significant growth over the forecast period, supported by their flexibility, scalability, and ability to be customized to meet specific building and application requirements.
  • By capacity, the up to 5,000 m³/h segment led the market, accounting for 32.6% of the global revenue share in 2024. This dominance is attributed to the increasing adoption of AHUs in both small- and large-scale applications, including warehouses, industrial facilities, commercial kitchens, and food service establishments, where efficient air circulation and ventilation are critical.
  • By application, the commercial segment accounted for 46.7% of the market revenue share in 2024. The growing number of commercial spaces such as shopping malls, office complexes, theaters, hotels, and hospitality facilities is expected to continue driving demand for air handling units in commercial applications.

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Market Size & Forecast:

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

Key Companies & Market Share Insights:

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

  • Trane, a member of the Ingersoll Rand family of brands, operates across two main business segments: climate and industrial. Its industrial segment provides products and services designed to enhance energy efficiency, operational performance, and productivity, including power tools, compressed air and gas systems, fluid management solutions, material handling systems, and utility vehicles.
  • Carrier offers a comprehensive portfolio of HVAC solutions, including heat pumps, air conditioners, boilers, furnaces, air purifiers, humidifiers, dehumidifiers, ventilators, air scrubbers, thermostats, UV lamps, energy services, and advanced building control systems. The company serves retail, commercial, transportation, and foodservice sectors globally. Although Carrier was acquired by United Technologies Corporation in 1979, it became an independent company following its separation in April 2020.
  • Johnson Controls designs, manufactures, and delivers solutions that improve building operational efficiency and system performance across multiple industries. The company provides building automation systems, HVAC equipment, integrated facility management services, and interior solutions. Its operations are structured across four key business segments: 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 among the emerging participants in the air handling units market.

  • Nortek Global HVAC is a leading manufacturer of HVAC equipment for residential and light commercial applications, offering air conditioners, heat pumps, furnaces, and air handlers under well-known brands such as Frigidaire, Maytag, and Westinghouse. The company maintains a strong presence in North America and employs more than 1,000 professionals across its manufacturing and sales operations.
  • Hastings HVAC Inc., based in Canada, specializes in the design, manufacturing, and distribution of HVAC equipment for commercial and industrial applications. Its product portfolio includes air handling units, rooftop units, and custom-engineered HVAC solutions, with operations spanning North America and a strong reputation for quality, energy efficiency, and customer-focused service.

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Conclusion:

In conclusion, the global air handling units market is set to experience steady growth, driven by rapid urbanization, expanding construction activities, and increasing demand for energy-efficient HVAC systems. Rising global population levels and the need for affordable housing and modern commercial infrastructure are further supporting market expansion. Technological advancements and growing awareness of indoor air quality and thermal comfort continue to enhance the adoption of advanced AHU solutions. Strong growth in Asia Pacific, supported by large-scale infrastructure development, remains a key contributor to overall market performance. Collectively, these factors position the air handling units market for sustained growth over the forecast period.