According to a new report published by Introspective Market Research, titled, Air Handling Units Market by Key Segments, The Global Air Handling Units Market Size Was Valued at USD 12.62 Billion in 2023 and is Projected to Reach USD 19.92 Billion by 2032, Growing at a CAGR of 5.2%.The Air Handling Units (AHU) market encompasses devices essential for regulating and circulating air as part of a heating, ventilating, and air-conditioning (HVAC) system. AHUs offer efficient air quality control and thermal comfort in residential, commercial, and industrial applications. Compared to traditional ventilation methods, air handling units provide improved energy efficiency, filtration capabilities, and precise environmental control. These features make AHUs indispensable in major sectors such as manufacturing, healthcare, commercial buildings, and data centers where air quality and temperature regulation are critical for safety and operational efficiency.
The Air Handling Units Market is segmented into Type, Application, and Region. By Type, the market is categorized into Modular AHUs, Packaged AHUs, and Custom-built AHUs. By Application, the market is categorized into Commercial, Industrial, and Residential segments. By Region, the market analysis covers North America, Europe, Asia-Pacific, and Rest of the World.
One key growth driver for the Air Handling Units Market is the increasing focus on indoor air quality and energy-efficient building codes worldwide. Rising awareness regarding the health impacts of poor air quality has compelled building owners and facility managers to adopt advanced AHUs with filtration and smart controlling systems. Additionally, governments’ implementation of stringent energy conservation regulations stimulates demand for energy-efficient HVAC solutions, including AHUs that reduce operational costs and carbon footprints.
A major market opportunity lies in the growing adoption of smart and IoT-enabled air handling units that integrate with building management systems for real-time monitoring and energy optimization. The shift towards sustainable infrastructure and green buildings creates substantial demand for advanced AHUs offering superior performance, automation, and compliance with environmental standards. Expansion in emerging economies’ construction sectors further presents untapped markets for AHU manufacturers to innovate and capture.
The Air Handling Units Market is segmented on the basis of Type, Application, and Region.
Type
The Type segment is further classified into Modular AHUs, Packaged AHUs, and Custom-built AHUs. Among these, the Modular AHUs sub-segment accounted for the highest market share in 2023. Modular AHUs are favored for their flexibility, ease of installation, and ability to be customized for diverse applications. Their widespread adoption across commercial and industrial sectors is driven by the balance they offer between cost-effectiveness and performance efficiency.
Application
The Application segment is further classified into Commercial, Industrial, and Residential. Among these, the Commercial sub-segment accounted for the highest market share in 2023. Commercial buildings demand reliable and efficient air handling solutions to meet ventilation standards and occupant comfort requirements. High-rise offices, hospitals, shopping malls, and educational institutions heavily rely on AHUs to maintain controlled indoor environments.
Some of The Leading/Active Market Players Are-
- Carrier Corporation (USA)
- Johnson Controls (USA)
- Daikin Industries (Japan)
- Trane Technologies (Ireland)
- Mitsubishi Electric (Japan)
- Lennox International (USA)
- Toshiba Carrier Corporation (Japan)
- LG Electronics (South Korea)
- FläktGroup (Sweden)
- Voltas Limited (India)
- Swegon Group (Sweden)
- Elfath Group (China)
- Hisense (China)
- Other active players.
Key Industry Developments
- In June 2025, Carrier Corporation launched a new series of smart air handling units incorporating AI for predictive maintenance and energy optimization.This launch enhances building automation capabilities, reduces energy consumption, and extends maintenance intervals, positioning Carrier as a technology leader in the AHU segment.
- In March 2025, Johnson Controls expanded its manufacturing facility in Asia-Pacific to meet increasing demand for energy-efficient HVAC solutions.The expansion aims to accelerate delivery and customization of AHUs, supporting rapid infrastructure growth in emerging markets.
Key Findings of the Study
- Modular AHUs and Commercial applications dominate the market segments.
- Asia-Pacific and North America emerge as leading regions in market adoption.
- Energy efficiency regulations and indoor air quality concerns act as primary growth drivers.
- Technological advancements like IoT integration and AI-enabled predictive maintenance shape market trends.
