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UK Air Handling Units Market

ID: MRFR/EnP/46364-HCR
200 Pages
Garvit Vyas
February 2026

UK Air Handling Units Market Research Report By Type (Packaged Rooftop, Modular, Custom), By Effect (Single-Effect, Double-Effect), By Capacity (Upto 5000 m3/hr, 5000 m3/hr – 15000 m3/hr, Above 15000 m3/hr) andBy Application (Industrial, Residential, Commercial)- Forecast to 2035

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UK Air Handling Units Market Infographic
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UK Air Handling Units Market Summary

As per Market Research Future analysis, the UK air handling units market size was estimated at 645.12 $ Million in 2024. The UK air handling-units market is projected to grow from 680.6 $ Million in 2025 to 1162.8 $ Million by 2035, exhibiting a compound annual growth rate (CAGR) of 5% during the forecast period 2025 - 2035

Key Market Trends & Highlights

The UK air handling-units market is experiencing a transformative shift towards energy efficiency and smart technology integration.

  • The market is increasingly prioritizing energy efficiency, driven by regulatory compliance and consumer demand.
  • Integration of smart technology is becoming prevalent, enhancing operational efficiency and user experience.
  • Customization and modular solutions are gaining traction, allowing for tailored applications in various sectors.
  • Rising demand for indoor air quality and technological advancements in HVAC systems are key drivers of market growth.

Market Size & Forecast

2024 Market Size 645.12 (USD Million)
2035 Market Size 1162.8 (USD Million)
CAGR (2025 - 2035) 5.5%

Major Players

Trane Technologies (IE), Carrier Global Corporation (US), Daikin Industries Ltd (JP), Johnson Controls International plc (IE), Mitsubishi Electric Corporation (JP), Lennox International Inc (US), Gree Electric Appliances Inc (CN), Rheem Manufacturing Company (US), York International Corporation (US)

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UK Air Handling Units Market Trends

The air handling-units market is currently experiencing a notable transformation, driven by increasing awareness of energy efficiency and sustainability. As environmental regulations tighten, manufacturers are compelled to innovate and enhance their product offerings. This shift is evident in the growing demand for energy-efficient systems that not only reduce operational costs but also minimize carbon footprints. Furthermore, advancements in technology are facilitating the integration of smart features into air handling units, allowing for better monitoring and control of indoor air quality. This trend aligns with the broader movement towards smart buildings, where automation plays a crucial role in optimizing energy consumption. In addition to energy efficiency, the air handling-units market is witnessing a rise in customization and modular designs. Clients are increasingly seeking solutions tailored to their specific needs, which has led to a surge in demand for flexible systems that can be easily adapted to various applications. This trend is particularly relevant in sectors such as healthcare and education, where air quality is paramount. As the market evolves, it appears that the focus will remain on developing innovative solutions that address both performance and environmental concerns, ensuring that the air handling-units market remains dynamic and responsive to changing demands.

Energy Efficiency Focus

The air handling-units market is increasingly prioritizing energy efficiency as a response to stringent environmental regulations. Manufacturers are innovating to create systems that consume less energy while maintaining optimal performance. This trend not only helps reduce operational costs but also aligns with sustainability goals.

Integration of Smart Technology

There is a growing trend towards the incorporation of smart technology in air handling units. These advancements enable better monitoring and control of indoor air quality, contributing to enhanced user comfort and energy management. Smart features are becoming essential in modern building designs.

Customization and Modular Solutions

The demand for customized and modular air handling units is on the rise. Clients are seeking solutions that can be tailored to their specific requirements, particularly in sectors where air quality is critical. This trend reflects a shift towards more flexible and adaptable systems.

UK Air Handling Units Market Drivers

Regulatory Compliance and Standards

The air handling-units market is increasingly influenced by stringent regulatory compliance and standards set by the UK government. These regulations aim to enhance energy efficiency and reduce carbon emissions in buildings. As a result, manufacturers are compelled to innovate and produce units that meet these standards, which often leads to higher operational costs. The market is projected to grow as companies invest in compliant technologies, with an estimated increase of 15% in demand for energy-efficient units by 2027. This regulatory landscape not only drives innovation but also ensures that the air handling-units market aligns with the UK's broader environmental goals.

Rising Demand for Indoor Air Quality

The growing awareness of indoor air quality (IAQ) is a significant driver for the air handling-units market. With increasing concerns about health and well-being, particularly in commercial and residential spaces, there is a heightened demand for systems that can effectively filter and circulate air. The market is expected to see a surge, with a projected growth rate of 10% annually as consumers prioritize air quality. This trend is further supported by studies indicating that improved IAQ can enhance productivity and reduce health-related costs. Consequently, manufacturers are focusing on advanced filtration technologies, which are becoming essential in the air handling-units market.

Technological Advancements in HVAC Systems

Technological advancements play a crucial role in shaping the air handling-units market. Innovations such as variable air volume systems, advanced control systems, and energy recovery ventilators are becoming increasingly prevalent. These technologies not only enhance energy efficiency but also improve the overall performance of HVAC systems. The market is likely to experience a compound annual growth rate (CAGR) of 12% over the next five years, driven by the integration of these advanced technologies. As manufacturers continue to invest in research and development, the air handling-units market is expected to evolve, offering more efficient and user-friendly solutions.

Shift Towards Sustainable Building Practices

The shift towards sustainable building practices is a pivotal driver for the air handling-units market. With the UK government advocating for greener construction methods, there is a growing emphasis on energy-efficient systems that minimize environmental impact. This trend is reflected in the increasing adoption of renewable energy sources and sustainable materials in building projects. The market is anticipated to grow by 9% as more developers seek to comply with sustainability certifications. This shift not only enhances the appeal of properties but also positions the air handling-units market as a key player in the transition towards a more sustainable built environment.

Growth in Construction and Renovation Activities

The air handling-units market is significantly impacted by the growth in construction and renovation activities across the UK. As urbanization continues to rise, there is an increasing need for efficient HVAC systems in new buildings and retrofitting existing structures. The construction sector is projected to expand by 8% annually, which directly correlates with the demand for air handling units. This growth is further fueled by government initiatives aimed at promoting sustainable building practices. Consequently, the air handling-units market is poised for expansion, as more projects incorporate advanced air handling solutions to meet modern standards.

Market Segment Insights

By Type: Packaged Rooftop (Largest) vs. Modular (Fastest-Growing)

In the UK air handling-units market, the Packaged Rooftop segment leads in market share, offering flexibility and efficiency in a compact design. This segment is particularly popular in commercial buildings, where space conservation is crucial. Conversely, the Modular segment is gaining traction and is projected to experience rapid growth, primarily due to its customizable nature and adaptability to various applications, appealing to a wide range of end-users. The growth trends in this segment are driven by increasing demand for energy-efficient solutions and advancements in technology. The Modular type, which can be expanded or modified without significant structural changes, is particularly favored in sectors requiring dynamic configurations. Incentives for sustainability and enhanced building regulations further fuel the market, encouraging the adoption of air handling units that meet modern efficiency standards.

Packaged Rooftop (Dominant) vs. Modular (Emerging)

The Packaged Rooftop segment is recognized for its dominance in the UK air handling-units market due to its all-in-one design, which simplifies installation and maintenance. These units are ideal for rooftops in urban settings, efficiently managing space while providing effective climate control. On the other hand, the Modular segment represents an emerging trend where flexibility is key. With units that can be added or adjusted based on need, Modular systems address changing demands in various environments, from commercial to industrial spaces. This adaptability allows businesses to scale their air handling solutions seamlessly, positioning Modular systems as a future-focused option for facilities aiming to optimize energy consumption and operational efficiency.

By Effect: Single Effect (Largest) vs. Double Effect (Fastest-Growing)

In the UK air handling-units market, the Single Effect segment holds the largest market share, demonstrating its dominance in applications requiring straightforward and efficient air handling solutions. Its established presence among manufacturers and consumers alike has fortified its position as the preferred choice for various industrial and commercial sectors. In contrast, the Double Effect segment is gaining momentum and is noted for being the fastest-growing segment, largely due to advancements in technology that enhance efficiency and functionality in more complex air handling applications. The growth trends in this segment are driven by the rising demand for energy-efficient systems as environmental regulations become more stringent. Businesses are increasingly opting for solutions that offer improved energy management capabilities. Moreover, the versatility of Double Effect units, which can operate in diverse settings, positions them favorably to capture emerging market opportunities, stimulating innovation and investment within the sector.

Single Effect: Dominant vs. Double Effect: Emerging

The Single Effect segment is characterized by its simplicity and reliability, making it the dominant choice for many traditional applications in the UK air handling-units market. Its design focuses on efficiency and ease of maintenance, appealing to businesses seeking cost-effective solutions. On the other hand, the Double Effect segment represents an emerging trend where technological advancements are paramount. These units provide higher energy efficiency and adaptability for specialized tasks, catering to industries that require sophisticated air management systems. Their rapid growth can be attributed to the increasing focus on sustainability and energy savings, aligning with the UK's broader environmental goals.

By Capacity: Upto 5000 m3/hr (Largest) vs. Above 15000 m3/hr (Fastest-Growing)

In the UK air handling-units market, the capacity segment is predominantly driven by the 'Upto 5000 m3/hr' category, which holds the largest market share. This segment is highly favored due to its adaptability for smaller commercial and residential applications, making it a preferred choice among manufacturers and consumers alike. The '5000 m3/hr – 15000 m3/hr' segment follows, catering to medium-scale applications, while 'Above 15000 m3/hr' is emerging with growing acceptance in industrial settings. Growth trends indicate a significant shift towards higher capacity units, particularly in the 'Above 15000 m3/hr' segment, which is gaining traction due to increased industrialization and the demand for more efficient air handling solutions. This trend is bolstered by regulatory pushes for energy-efficient systems and the evolving requirements of larger facilities aiming for better air quality and ventilation solutions. Such shifts are likely to shape market dynamics in the forthcoming years.

Upto 5000 m3/hr (Dominant) vs. Above 15000 m3/hr (Emerging)

The 'Upto 5000 m3/hr' segment stands as the dominant force in the UK air handling-units market, providing optimal solutions for small-scale applications, which makes it fundamental for residential and light commercial spaces. Its versatility plays a key role in its success, with manufacturers constantly innovating to enhance performance and energy efficiency in this range. Conversely, the 'Above 15000 m3/hr' segment is positioned as emerging, primarily focused on large industrial applications. This segment's growth reflects the rising demand for advanced air handling systems that can meet stringent environmental standards while effectively managing high air throughput. As industries expand and necessitate higher capacity systems, future investments and innovations in this segment are anticipated to rise significantly.

By Application: Industrial (Largest) vs. Residential (Fastest-Growing)

In the UK air handling-units market, the distribution of market share among the application segments reveals a dominant position for the industrial sector, which caters to various manufacturing and engineering processes. This segment benefits from significant investments in infrastructure and technology upgrades, leading to its leading market presence. In contrast, the residential segment is gaining momentum, driven by a surge in housing developments and an increasing focus on energy efficiency in home heating, ventilation, and air conditioning systems. The growth trends indicate a strong upward trajectory for the residential segment, attributed to rising consumer awareness regarding indoor air quality and energy-saving solutions. As more homeowners seek to enhance comfort and achieve energy savings, demand for advanced air handling solutions is expected to rise. Meanwhile, the industrial sector continues to evolve, incorporating technology such as automation and IoT to optimize performance, ensuring it remains competitive in the marketplace.

Industrial (Dominant) vs. Residential (Emerging)

The industrial segment of the UK air handling-units market is characterized by robust infrastructure and demand from various sectors like manufacturing, pharmaceuticals, and processing industries. This segment often requires customized solutions capable of handling significant volumes of air efficiently and effectively. Advanced technology integration and compliance with stringent regulatory standards are essential for industrial applications, ensuring safety and efficiency. Meanwhile, the residential segment is emerging rapidly, primarily due to growing concerns about indoor air quality and energy efficiency. Products designed for residential use are increasingly smart and energy-efficient, catering to the needs of modern households, which prefer sustainable options. As the residential sector grows, it challenges traditional market dynamics, positioning itself as a vital player alongside the well-established industrial segment.

Get more detailed insights about UK Air Handling Units Market

Key Players and Competitive Insights

The air handling-units market is currently characterized by a competitive landscape that is both dynamic and multifaceted. Key growth drivers include the increasing demand for energy-efficient solutions, stringent regulatory frameworks, and a heightened focus on indoor air quality. Major players such as Trane Technologies (IE), Carrier Global Corporation (US), and Daikin Industries Ltd (JP) are strategically positioned to leverage these trends. Trane Technologies (IE) emphasizes innovation in sustainable technologies, while Carrier Global Corporation (US) focuses on digital transformation and smart building solutions. Daikin Industries Ltd (JP) is enhancing its operational focus on expanding its product portfolio to include advanced air handling systems, thereby collectively shaping a competitive environment that prioritizes technological advancement and sustainability.In terms of business tactics, companies are increasingly localizing manufacturing to reduce lead times and optimize supply chains. The market structure appears moderately fragmented, with several key players exerting considerable influence. This fragmentation allows for a diverse range of products and solutions, catering to various customer needs. The collective influence of these major players fosters a competitive atmosphere where innovation and efficiency are paramount.

In October Trane Technologies (IE) announced a partnership with a leading technology firm to develop AI-driven air handling solutions aimed at enhancing energy efficiency in commercial buildings. This strategic move underscores Trane's commitment to integrating cutting-edge technology into its product offerings, potentially setting a new standard for energy management in the sector. The collaboration is likely to enhance Trane's market position by appealing to environmentally conscious consumers and businesses.

In September Carrier Global Corporation (US) launched a new line of air handling units designed specifically for the healthcare sector, featuring advanced filtration systems to improve indoor air quality. This initiative reflects Carrier's strategic focus on addressing the unique needs of healthcare facilities, which have become increasingly critical in the current climate. By targeting this niche market, Carrier may strengthen its competitive edge and expand its customer base.

In August Daikin Industries Ltd (JP) unveiled a new range of energy-efficient air handling units that utilize refrigerants with lower global warming potential. This development aligns with global sustainability goals and positions Daikin as a leader in environmentally friendly technologies. The introduction of these units could enhance Daikin's reputation and market share, particularly among eco-conscious consumers and businesses.

As of November current competitive trends are heavily influenced by digitalization, sustainability, and the integration of AI technologies. Strategic alliances are increasingly shaping the landscape, enabling companies to pool resources and expertise to drive innovation. The competitive differentiation is likely to evolve from traditional price-based competition to a focus on technological innovation, reliability in supply chains, and sustainable practices. This shift suggests that companies that prioritize these aspects may gain a significant advantage in the air handling-units market.

Key Companies in the UK Air Handling Units Market include

Industry Developments

The UK Air Handling Units Market has experienced several notable developments recently. Systemair and Swegon have been focusing on increasing energy efficiency in their products in response to the UK government's green initiatives. Aermec has also emphasized its commitment to sustainable practices through the launch of new energy-efficient units. Notably, Trane Technologies announced the acquisition of a strategic firm in September 2023 to enhance its product offerings in the UK market.

Mitsubishi Electric has expanded its operations by opening a new facility aimed at improving local manufacturing capabilities, which is expected to boost job opportunities in the region. In terms of market valuation, major players such as Bosch Thermotechnology and Carrier Global have reported significant growth in their market positioning recently, attributed to increasing demand for advanced HVAC solutions. The UK government’s regulations aimed at reducing carbon emissions have further stimulated investments in the air handling sector, showcasing a shift towards greener technologies.

This focus on sustainable design and energy efficiency has been a consistent theme in recent years, impacting the overall competitive landscape of the UK Air Handling Units Market.

Future Outlook

UK Air Handling Units Market Future Outlook

The air handling-units market is projected to grow at a 5.5% CAGR from 2025 to 2035, driven by energy efficiency regulations, technological advancements, and increasing demand for indoor air quality.

New opportunities lie in:

  • Development of smart air handling units with IoT integration
  • Expansion into renewable energy systems for HVAC applications
  • Customized air handling solutions for industrial sectors

By 2035, the market is expected to achieve robust growth, driven by innovation and sustainability.

Market Segmentation

UK Air Handling Units Market Type Outlook

  • Packaged Rooftop
  • Modular
  • Custom

UK Air Handling Units Market Effect Outlook

  • Single Effect
  • Double Effect

UK Air Handling Units Market Capacity Outlook

  • Upto 5000 m3/hr
  • 5000 m3/hr – 15000 m3/hr
  • Above 15000 m3/hr

UK Air Handling Units Market Application Outlook

  • Industrial
  • Residential
  • Commercial

Report Scope

MARKET SIZE 2024 645.12(USD Million)
MARKET SIZE 2025 680.6(USD Million)
MARKET SIZE 2035 1162.8(USD Million)
COMPOUND ANNUAL GROWTH RATE (CAGR) 5.5% (2025 - 2035)
REPORT COVERAGE Revenue Forecast, Competitive Landscape, Growth Factors, and Trends
BASE YEAR 2024
Market Forecast Period 2025 - 2035
Historical Data 2019 - 2024
Market Forecast Units USD Million
Key Companies Profiled Trane Technologies (IE), Carrier Global Corporation (US), Daikin Industries Ltd (JP), Johnson Controls International plc (IE), Mitsubishi Electric Corporation (JP), Lennox International Inc (US), Gree Electric Appliances Inc (CN), Rheem Manufacturing Company (US), York International Corporation (US)
Segments Covered Type, Effect, Capacity, Application
Key Market Opportunities Integration of energy-efficient technologies in air handling-units market driven by regulatory sustainability initiatives.
Key Market Dynamics Rising energy efficiency regulations drive innovation and competition in the air handling-units market.
Countries Covered UK
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FAQs

What is the projected market value of the UK Air Handling Units Market in 2024?

The projected market value of the UK Air Handling Units Market in 2024 is 403.2 million USD.

What is the expected market value of the UK Air Handling Units Market by 2035?

By 2035, the expected market value of the UK Air Handling Units Market is 747.01 million USD.

What is the compound annual growth rate (CAGR) for the UK Air Handling Units Market from 2025 to 2035?

The CAGR for the UK Air Handling Units Market from 2025 to 2035 is expected to be 5.766 percent.

What segment of the UK Air Handling Units Market has the largest market share in 2024?

In 2024, the Packaged Rooftop segment of the UK Air Handling Units Market is valued at 161.0 million USD, which indicates a strong market share.

Which key players dominate the UK Air Handling Units Market?

The key players in the UK Air Handling Units Market include Systemair, Swegon, Trane Technologies, and Mitsubishi Electric among others.

What will be the market value of the Modular segment in 2035?

The Modular segment of the UK Air Handling Units Market is projected to reach a value of 224.59 million USD by 2035.

What is the estimated market size for the Custom segment in 2024?

In 2024, the estimated market size for the Custom segment of the UK Air Handling Units Market is 121.2 million USD.

What trends are currently emerging in the UK Air Handling Units Market?

Emerging trends in the UK Air Handling Units Market include advancements in energy efficiency and growing demand for customizable units.

What challenges may affect the growth of the UK Air Handling Units Market?

Challenges that may affect the growth of the UK Air Handling Units Market include increased competition and regulatory requirements.

How does the overall market growth rate from 2025 to 2035 appear for the UK Air Handling Units Market?

The overall market growth rate from 2025 to 2035 for the UK Air Handling Units Market is projected to be at a CAGR of 5.766 percent.

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