Air Handling Units Market Outlook:
Air Handling Units Market size was estimated at USD 13.5 billion in 2024 and is expected to surpass USD 26.2 billion by the end of 2037, rising at a CAGR of 5.2% during the forecast period, i.e., 2025-2037. In 2025, the industry size of air handling units is evaluated at USD 14.2 billion.
The growth of urbanization and construction through government infrastructure programs is the primary driver of the AHU market. Over 56% of the global population resides in urban areas, and HVAC systems are increasingly in demand through initiatives like India’s ambitious Pradhan Mantri Awas Yojana, which provided 11.1 million homes by 2021. As building codes grow stricter (e.g., the U.S. and Europe), nothing has seen more efficiencies than AHUs, which have utilized the most recent data from the U.S. Department of Energy, showing a significant drop in price of 25% per doubling of efficiency.
AHUs are primarily constructed from steel and/or aluminium. All aluminium in the U.S. is reliant on over 76% recycled materials, while much of the steel comes from foreign sourcing. Input costs and sourcing are often affected by trade policies like the Section 232 tariff against aluminium. While these challenges exist, R&D annual investment in AHU-related metals is beyond $3 billion in developing new models. Price per AHU usually follows trend categories of CPI, like "air-conditioning and forced air heating," often indicating the change in energy and materials costs found in AHU pricing.
