Commercial HVAC Market Share

Air handling units, integral to the regulation and circulation of air, play a pivotal role in heating, ventilating, and air-conditioning (HVAC) systems. These units are crucial for creating a comfortable, safe, and healthy indoor environment by intaking outside air, reconditioning it, and supplying it back as fresh air inside buildings. The rising global demand for air handling units can be attributed to rapid industrialization, population growth, and an increase in per capita income, fostering remarkable advancements across various industry verticals such as chemical, pharmaceutical, and oil & gas on a global scale.

The industrial landscape is undergoing significant transformations, driven by the unprecedented growth in sectors such as chemical, pharmaceutical, and oil & gas. This surge is witnessed across numerous countries, and the developments within these industries are expected to experience exponential growth in the coming years. As a result, the demand for air handling units is poised to witness a substantial upswing during the study period, reinforcing their critical role in maintaining optimal indoor air quality and environmental conditions in industrial facilities.

The oil & gas industry, in particular, stands out as a significant contributor to the escalating demand for air handling units. According to the BP Statistical Review of World Energy 2020, global oil production witnessed an increase from 92,798 thousand barrels per day (TBPD) in 2017 to 95,254 TBPD in 2018. Additionally, global natural gas production surged from 3,857.5 billion cubic meters (BCM) in 2018 to 3,989.3 BCM in 2019. This growth in oil and gas production is attributed to improving global economic conditions and the escalating energy requirements from industrial sectors.

The exploration and production (E&P) activities in the oil and gas sector are gaining momentum, fueled by the growing energy demands. Noteworthy contracts and investments underline the industry's commitment to expanding its capacities. In August 2019, Halliburton (US) entered into a contract with Woodside Energy (Australia) for drilling and completion services of the offshore SNE Field in Senegal, Africa, contributing to the E&P activities in the oil and gas sector. Similarly, in February 2020, Saudi Aramco (Saudi Arabia) announced plans to invest USD 110 billion in the Al-Jafoura unconventional gas field for gas production. These strategic initiatives are poised to further amplify the demand for air handling units in the oil and gas industry.