According to a new report published by Introspective Market Research, titled, Air Handling Units Market by Type, Application, and Region, 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 involves equipment essential for the regulation and circulation of air as part of HVAC systems. AHUs deliver enhanced air quality, temperature control, and humidity regulation compared to traditional ventilation methods, resulting in energy efficiency and improved indoor environments. These systems are widely used across key industries including commercial buildings, healthcare facilities, industrial plants, and residential complexes for maintaining healthy and comfortable environments. Increasing urbanization and infrastructure development drive the prominence of AHUs globally.
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 sectors. By Region, the market spans North America, Europe, Asia-Pacific, and Rest of the World.
A principal growth driver for the AHU market is the strengthening regulatory focus on energy efficiency and indoor air quality. Increasing government mandates on building codes and environmental standards compel adoption of advanced, energy-saving AHUs. Corporations and building owners prioritize systems that reduce energy consumption while maintaining optimal air quality, fueling AHU demand.
The surge in adoption of smart, IoT-enabled AHUs integrated with building management systems presents a lucrative growth opportunity. These units facilitate real-time monitoring, predictive maintenance, and automation, enhancing energy efficiency and system reliability. Rapid urbanization in emerging economies and green building trends amplify demand for such cutting-edge AHU solutions.
Air Handling Units Market, Segmentation
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 preferred for their customizable design, streamlined installation, and suitability for diverse applications, driving strong adoption in commercial and industrial sectors.
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 properties require robust AHU solutions to meet ventilation and indoor air quality standards, especially in offices, hospitals, shopping malls, and educational institutions.
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 initiative enhances energy efficiency, improves operational reliability, and extends maintenance cycles, strengthening Carrier’s leadership in AHU innovation.
- In March 2025, Johnson Controls expanded its manufacturing facility in Asia-Pacific to meet growing demand for energy-efficient HVAC systems.This expansion supports the company’s ability to provide customized AHU solutions rapidly, addressing accelerated infrastructure growth in emerging markets.
Key Findings of the Study
- Modular AHUs and Commercial applications dominate the market segments.
- Asia-Pacific and North America lead in regional market growth and adoption.
- Energy efficiency regulations and indoor air quality concerns propel market expansion.
- Technological innovations such as IoT integration and AI-enabled predictive maintenance are key trends shaping the market.
