HVAC Air Handling Units Market Analysis

HVAC Air Handling Units Market Analysis

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Based on the component type, the filters segment accounted for revenue of around USD 18.9 billion in 2023 and is expected to cross USD 29.6 billion by 2032. The growing awareness of the value of IAQ in institutional, commercial, and residential buildings is fueling segment growth. Filters are essential to eliminating allergens, pollutants, airborne particles, and other contaminants from the air to improve IAQ and support occupant health & well-being. Green building certification programs, such as Leadership in Energy and Environmental Design (LEED) and WELL Building Standard, prioritize IAQ and mandate the use of high-performance air filtering systems in HVAC designs.

Based on application, the commercial segment held approximately 50% of the market share in 2023 and will capture 51% by 2032. The demand for HVAC air handling units is prominently increased by the construction of commercial buildings including offices, shopping malls, hotels, restaurants, medical facilities, and educational institutions. HVAC air handling units are used to distribute conditioned air, maintain comfort levels, and ensure IAQ in these business spaces. The demand for HVAC air handling systems that promote IAQ, thermal comfort, and occupant well-being is expected to rise in response to the growing awareness of health & wellness in the workplace, enhancing business growth.

Asia Pacific region dominated the 43% share of the HVAC air handling units market in 2023 and is predicted to surpass USD 42.4 billion by 2032. HVAC air handling units are in high demand in the region due to the growing commercial & industrial sectors including manufacturing, hotel, retail, healthcare, education, and IT services. These sectors are subject to temperature control requirements for buildings and facilities. In addition, the growing demand for refrigeration, air conditioning, and ventilation solutions in commercial spaces, data centers, cleanrooms, hospitals, and laboratories is spurring the adoption of HVAC air handling units with particular features and capabilities.

Country-level Analysis

The U.S. dominated the North America HVAC air handling units market with revenue of over USD 13.5 billion in 2023 and is expected to grow at a CAGR of 4.5% through 2032. Programs, such as efficiency STAR certification, tax incentives, utility rebates, and building efficiency codes, encourage the use of high-performance air handling units with advanced controls, variable-speed drives, and energy recovery technology.

Germany dominated the Europe HVAC air handling units market with revenue of around USD 3.3 billion in 2023 and is likely to register at a CAGR of 4.7% from 2024 to 2032, due to the construction of commercial projects including office buildings, retail centers, hotels, and healthcare facilities, as well as residential projects comprising single-family & multi-family homes and condominiums.

China dominated the Asia Pacific HVAC air handling units market with revenue of around USD 9.3 billion in 2023 and is expected to reach around USD 14.7 billion by 2032. The demand for HVAC systems and air handling units is boosted by the Chinese government's investments in sustainable construction initiatives, urban regeneration projects, and infrastructure development. In addition, energy-efficient HVAC solutions are becoming increasingly popular in China owing to government initiatives, such as the "Green Buildings Program" and the "Thirteenth Five-Year Plan," which support green building practices, energy efficiency, and environmental sustainability.