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    US Air Handling Units Market

    ID: MRFR/E&P/16713-HCR
    100 Pages
    Garvit Vyas
    October 2025

    US 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) and By Application (Industrial, Residential, Commercial) - Forecast to 2035

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    US Air Handling Units Market Infographic
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    US Air Handling Units Market Summary

    As per MRFR analysis, the US Air Handling Units Market Size was estimated at 1950.0 $ Million in 2024. The US air handling-units market is projected to grow from 2054.91 $ Million in 2025 to 3470.0 $ Million by 2035, exhibiting a compound annual growth rate (CAGR) of 5.38% during the forecast period 2025 - 2035.

    Key Market Trends & Highlights

    The US The air handling-units market is experiencing a transformative shift. This shift is driven by technological advancements and sustainability initiatives.

    • Technological advancements in air handling units are enhancing energy efficiency and operational performance.
    • The focus on sustainability is prompting manufacturers to develop eco-friendly air handling solutions that comply with new regulations.
    • The commercial segment remains the largest, while the residential segment is the fastest-growing in the air handling-units market.
    • Rising demand for energy efficiency and increased construction activities are key drivers propelling market growth.

    Market Size & Forecast

    2024 Market Size 1950.0 (USD Million)
    2035 Market Size 3470.0 (USD Million)

    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), York International Corporation (US), Rheem Manufacturing Company (US)

    US Air Handling Units Market Trends

    The air handling-units market is undergoing a notable transformation driven by advancements in technology and increasing demand for energy-efficient solutions. As environmental concerns gain prominence, manufacturers are focusing on developing units that not only enhance indoor air quality but also reduce energy consumption. This shift is evident in the growing adoption of smart technologies, which allow for better monitoring and control of air handling systems. Furthermore, regulatory frameworks are evolving, pushing for stricter energy efficiency standards, which in turn influences product design and innovation. In addition, the trend towards sustainable building practices is reshaping the landscape of the air handling-units market. Stakeholders are increasingly prioritizing eco-friendly materials and processes, aligning with broader sustainability goals. The integration of renewable energy sources, such as solar power, into air handling systems is becoming more common, reflecting a commitment to reducing carbon footprints. As these trends continue to develop, the market is likely to see a surge in demand for advanced, efficient, and environmentally friendly air handling solutions, catering to both residential and commercial sectors.

    Technological Advancements

    The air handling-units market is witnessing rapid technological advancements, particularly in automation and smart controls. These innovations enable enhanced monitoring and management of air quality, leading to improved energy efficiency and user comfort.

    Sustainability Focus

    There is a growing emphasis on sustainability within the air handling-units market. Manufacturers are increasingly adopting eco-friendly materials and practices, aligning their products with environmental regulations and consumer preferences for greener solutions.

    Regulatory Changes

    Regulatory changes are significantly impacting the air handling-units market. Stricter energy efficiency standards are being implemented, compelling manufacturers to innovate and adapt their offerings to meet new compliance requirements.

    US Air Handling Units Market Drivers

    Increased Construction Activities

    The air handling-units market is significantly influenced by the ongoing expansion in the construction sector across the U.S. This expansion is marked by a robust economy. With a robust economy, there is a marked increase in both residential and commercial construction projects. The U.S. Census Bureau reported a year-on-year increase of approximately 10% in new housing starts, which directly correlates with the demand for air handling units. These units are essential for ensuring proper ventilation and air quality in newly constructed buildings. Furthermore, the trend towards smart buildings, which integrate advanced HVAC systems, is likely to further propel the air handling-units market. As construction activities continue to rise, the need for efficient air handling solutions becomes increasingly critical.

    Regulatory Compliance and Standards

    The air handling-units market is significantly shaped by evolving regulatory compliance and standards. These standards aim to improve energy efficiency and environmental sustainability. The U.S. Department of Energy (DOE) has implemented stringent regulations that require air handling units to meet specific energy efficiency criteria. These regulations not only promote the adoption of energy-efficient technologies but also compel manufacturers to innovate and enhance their product offerings. Compliance with these standards is becoming a prerequisite for market participation, thereby driving the development of advanced air handling solutions. As regulations continue to evolve, the air handling-units market is likely to experience sustained growth, as manufacturers adapt to meet these new requirements.

    Rising Demand for Energy Efficiency

    There is a notable surge in demand for energy-efficient solutions in the air handling-units market. As energy costs continue to rise, consumers and businesses alike are increasingly seeking systems that minimize energy consumption while maintaining optimal performance. This trend is further supported by the U.S. government's initiatives aimed at promoting energy efficiency, which include tax incentives and rebates for energy-efficient installations. According to recent data, energy-efficient air handling units can reduce energy consumption by up to 30%, making them an attractive option for both residential and commercial applications. Consequently, manufacturers are focusing on developing advanced technologies that enhance the energy efficiency of their products, thereby driving growth in the air handling-units market.

    Growing Awareness of Indoor Air Quality

    There is a growing awareness regarding the importance of indoor air quality (IAQ) among consumers and businesses, which is positively impacting the air handling-units market. Studies indicate that poor indoor air quality can lead to various health issues, prompting a shift towards systems that enhance air filtration and circulation. The U.S. Environmental Protection Agency (EPA) has highlighted that indoor air can be 2 to 5 times more polluted than outdoor air, leading to increased demand for air handling units equipped with advanced filtration technologies. This heightened focus on IAQ is driving manufacturers to innovate and offer products that not only meet regulatory standards but also exceed consumer expectations, thereby fostering growth in the air handling-units market.

    Technological Integration in HVAC Systems

    The integration of advanced technologies into HVAC systems is a key driver for the air handling-units market. Innovations such as IoT connectivity, smart sensors, and automation are transforming traditional air handling units into intelligent systems capable of optimizing performance and energy use. The U.S. market is witnessing a shift towards smart HVAC solutions that allow for real-time monitoring and control, enhancing user experience and operational efficiency. According to industry estimates, the adoption of smart HVAC technologies could lead to energy savings of up to 20%. As consumers increasingly prioritize convenience and efficiency, the demand for technologically advanced air handling units is expected to rise, further propelling market growth.

    Market Segment Insights

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

    In the US air handling-units market, the market share distribution among the types shows that Packaged Rooftop units remain the largest segment due to their versatility, efficiency, and ease of installation. These units are favored for both commercial and residential applications, contributing significantly to their dominant position in the market. Conversely, Modular units are gaining traction as they offer scalability and customization, allowing users to easily adapt to changing needs, which is essential in dynamic environments. Growth trends indicate that while Packaged Rooftop units hold a steady market presence, Modular units are poised to become the fastest-growing segment driven by increased demand for energy-efficient and flexible solutions. With rising energy costs and environmental considerations, stakeholders are looking for adaptable systems that can be modified for different applications. This shift is encouraging manufacturers to innovate, enhancing the appeal of Modular units in the market.

    Packaged Rooftop (Dominant) vs. Modular (Emerging)

    Packaged Rooftop units are recognized for their all-in-one design, making them ideal for various installations. These units integrate components like heating and cooling, air filtration, and ventilation in a single package, allowing for simplified installation and maintenance. On the other hand, Modular units represent an emerging trend, offering flexibility and scalability to end-users seeking tailored solutions. Their design allows for expansion by adding more modules, which is particularly advantageous in applications with fluctuating demand. Both segments cater to different market needs, with Packaged Rooftop units maintaining a robust market position, while Modular units are quickly adapting to current trends for energy efficiency and customization.

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

    The US air handling-units market is characterized by a significant preference for Single Effect units, which dominate the market landscape due to their reliability and efficiency in various applications. This segment holds the largest market share, making it a preferred choice among consumers, particularly in commercial and institutional settings where high performance and consistent air handling are essential. Conversely, the Double Effect segment is witnessing rapid growth as it offers enhanced energy efficiency and advanced technology features, attracting environmentally conscious buyers and those looking to optimize energy consumption. The growth trends in this segment highlight a shift towards more sustainable and energy-efficient solutions. The rising emphasis on reducing energy costs and adhering to environmental regulations is driving adoption for Double Effect units, which are viewed as an emerging solution for the future. Technological advancements and innovations in air handling systems are also propelling this segment forward, creating a competitive landscape that encourages improvements and differentiates products within the market.

    Single Effect (Dominant) vs. Double Effect (Emerging)

    Single Effect units are well-established in the US air handling-units market, recognized for their simplicity and effectiveness in delivering adequate air circulation and temperature control. These units are often preferred for standard applications due to their cost-effectiveness and ease of maintenance, making them a staple choice for facilities managers. On the other hand, Double Effect units, while newer to the market, are becoming increasingly popular due to their lower energy consumption. This enhancement in efficiency makes them appealing for large-scale operations seeking to minimize operational costs and carbon footprints. As such, this contrast between the Dominant Single Effect and the Emerging Double Effect shapes the competitive dynamics in the air handling systems sector.

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

    In the US air handling-units market, the capacity segment showcases a notable distribution of market share across different capacity ranges. The 'Upto 5000 m3/hr' segment dominates the market due to its widespread adoption in residential and small commercial applications, contributing significantly to overall sales. Conversely, the 'Above 15000 m3/hr' segment, while smaller in share, is experiencing rapid growth as larger commercial and industrial facilities increasingly demand higher capacity handling units for efficient air management. Growth trends reveal that the 'Above 15000 m3/hr' segment is the fastest-growing, driven by factors such as increasing industrialization, heightened energy efficiency mandates, and technological advancements in air handling systems. Additionally, the stringent regulations on indoor air quality are prompting businesses to invest in higher-capacity units that offer better filtration and circulation capabilities, propelling this segment to the forefront of the market.

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

    The 'Upto 5000 m3/hr' segment holds a dominant position in the US air handling-units market, largely due to its versatility and cost-effectiveness for various applications, including residential units and small commercial buildings. This capacity range offers manufacturers an opportunity to deliver highly customizable solutions, catering to specific air quality and circulation needs. On the other hand, the 'Above 15000 m3/hr' segment is emerging as a vital player, addressing the requirements of large-scale industrial operations. This segment benefits from innovations that enhance efficiency and performance, making it particularly appealing as industries seek to comply with stricter environmental regulations and improve operational sustainability.

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

    In the US air handling-units market, the application segment is primarily divided into three categories: industrial, residential, and commercial. Among these, the commercial segment holds the largest market share due to the increasing demand for advanced climate control systems in office buildings and retail spaces. The residential segment, while smaller, is seeing increased market interest as more homeowners seek energy-efficient solutions for heating and cooling their living spaces. The growth trends within this segment indicate a robust expansion, primarily driven by rising construction activities and the push for green building initiatives. The residential market is emerging as the fastest-growing area, fueled by technological advancements and consumers' growing awareness of energy efficiency. As smart home technologies continue to evolve, the demand for modern air handling units in residential settings is expected to surge significativamente over the coming years.

    Commercial (Dominant) vs. Residential (Emerging)

    The commercial application segment remains the dominant force within the US air handling-units market, mainly due to robust investments in commercial infrastructure and a concerted focus on improving indoor air quality. This segment caters to a variety of sectors, including offices, shopping malls, and educational institutions, where efficient climate control is crucial. On the other hand, the residential segment is emerging as a significant player, characterized by an increasing number of installations of energy-efficient air handling units. Homeowners are now more inclined to invest in technologies that promise lower operational costs and better environmental sustainability, thus driving innovation and growth in this sector.

    Get more detailed insights about US Air Handling Units Market

    Key Players and Competitive Insights

    The air handling-units market is characterized by a dynamic competitive landscape, driven by increasing demand for energy-efficient solutions and stringent regulatory standards. Major players such as Trane Technologies (IE), Carrier Global Corporation (US), and Daikin Industries Ltd (JP) are strategically positioned to leverage innovation and sustainability in their offerings. Trane Technologies (IE) emphasizes its commitment to sustainability through the development of low-GWP refrigerants and energy-efficient systems, while Carrier Global Corporation (US) focuses on digital transformation and smart building technologies to enhance operational efficiency. Daikin Industries Ltd (JP) is also investing heavily in R&D to advance its product portfolio, particularly in the realm of environmentally friendly technologies, thereby shaping a competitive environment that prioritizes innovation and sustainability.

    The business tactics employed by these companies include localizing manufacturing and optimizing supply chains to enhance responsiveness to market demands. The market structure appears moderately fragmented, with a mix of established players and emerging companies vying for market share. The collective influence of key players fosters a competitive atmosphere where innovation and customer-centric solutions are paramount, allowing companies to differentiate themselves in a crowded marketplace.

    In October 2025, Trane Technologies (IE) announced a partnership with a leading technology firm to develop AI-driven air handling solutions aimed at optimizing energy consumption in commercial buildings. This strategic move underscores Trane's commitment to integrating advanced technologies into its product offerings, potentially enhancing its competitive edge in the market. The collaboration is expected to yield significant advancements in energy efficiency, aligning with the growing demand for sustainable building solutions.

    In September 2025, Carrier Global Corporation (US) launched a new line of air handling units designed specifically for the healthcare sector, incorporating advanced filtration systems to improve indoor air quality. This initiative reflects Carrier's strategic focus on addressing the unique needs of specific industries, thereby expanding its market reach and reinforcing its position as a leader in innovative air handling solutions. The introduction of these specialized units may also enhance Carrier's reputation for reliability and performance in critical applications.

    In August 2025, Daikin Industries Ltd (JP) unveiled a new range of air handling units featuring enhanced energy recovery capabilities, aimed at reducing operational costs for commercial users. This development highlights Daikin's ongoing commitment to sustainability and energy efficiency, positioning the company favorably in a market increasingly driven by environmental considerations. The focus on energy recovery technologies may also serve to attract environmentally conscious consumers and businesses seeking to lower their carbon footprints.

    As of November 2025, current competitive trends in the air handling-units market are increasingly defined by digitalization, sustainability, and the integration of AI technologies. Strategic alliances among key players are shaping the landscape, fostering innovation and enhancing product offerings. The shift from price-based competition to a focus on technological advancement and supply chain reliability is evident, suggesting that future differentiation will hinge on the ability to deliver innovative, efficient, and sustainable solutions.

    Key Companies in the US Air Handling Units Market market include

    Industry Developments

    In recent months, the US Air Handling Units Market has seen significant developments. Notably, LG Electronics and Carrier Global Corporation are focusing on sustainable temperature control technologies, reflecting a growing trend towards energy-efficient solutions in HVAC systems. In November 2023, Johnson Controls International announced an acquisition of a smaller company aimed at expanding its digital capabilities in building efficiency, enhancing their product portfolio in air handling units. Additionally, Trane Technologies recently reported a strategic partnership to enhance indoor air quality technologies, indicating the market's shift towards improved air management solutions. 

    The growth in market valuation across companies, particularly Emerson Electric and Mitsubishi Electric, has been driven by increased demand for energy-efficient air handling units, spurred by new US regulations aimed at reducing carbon footprints in commercial buildings. In the last couple of years, major shifts included Goodman Manufacturing's announcement in March 2022 regarding advanced air handling solutions, further reflecting the competitive landscape. As companies adapt to evolving consumer demands and regulatory pressures, innovation within the market continues to accelerate.

    Future Outlook

    US Air Handling Units Market Future Outlook

    The air handling-units market is projected to grow at 5.38% CAGR from 2024 to 2035, driven by energy efficiency demands, technological advancements, and regulatory support.

    New opportunities lie in:

    • Integration of IoT for real-time monitoring and predictive maintenance solutions.
    • Development of energy-efficient units to meet stringent regulations.
    • Expansion into emerging markets with tailored product offerings.

    By 2035, the air handling-units market is expected to achieve robust growth and enhanced competitive positioning.

    Market Segmentation

    US Air Handling Units Market Type Outlook

    • Packaged Rooftop
    • Modular
    • Custom

    US Air Handling Units Market Effect Outlook

    • Single Effect
    • Double Effect

    US Air Handling Units Market Capacity Outlook

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

    US Air Handling Units Market Application Outlook

    • Industrial
    • Residential
    • Commercial

    Report Scope

    MARKET SIZE 20241950.0(USD Million)
    MARKET SIZE 20252054.91(USD Million)
    MARKET SIZE 20353470.0(USD Million)
    COMPOUND ANNUAL GROWTH RATE (CAGR)5.38% (2024 - 2035)
    REPORT COVERAGERevenue Forecast, Competitive Landscape, Growth Factors, and Trends
    BASE YEAR2024
    Market Forecast Period2025 - 2035
    Historical Data2019 - 2024
    Market Forecast UnitsUSD 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)", "York International Corporation (US)", "Rheem Manufacturing Company (US)"]
    Segments CoveredType, Effect, Capacity, Application
    Key Market OpportunitiesIntegration of energy-efficient technologies in air handling-units market driven by regulatory sustainability initiatives.
    Key Market DynamicsRising energy efficiency standards drive innovation and competition in the air handling-units market.
    Countries CoveredUS

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    FAQs

    What is the projected market size for the US Air Handling Units Market in 2024?

    The US Air Handling Units Market is expected to be valued at 1.85 USD Billion in 2024.

    What will be the market size of the US Air Handling Units Market by 2035?

    By 2035, the market size is projected to reach 3.52 USD Billion.

    What is the expected CAGR for the US Air Handling Units Market from 2025 to 2035?

    The expected CAGR for the market from 2025 to 2035 is 6.045%.

    Which type of air handling unit had the highest market value in 2024?

    The Packaged Rooftop type is valued at 0.8 USD Billion in 2024, making it the highest.

    What is the projected market value for Modular air handling units in 2035?

    The Modular air handling units market is expected to reach 1.1 USD Billion by 2035.

    Who are some of the key players in the US Air Handling Units Market?

    Major players include LG Electronics, Emerson Electric, Goodman Manufacturing, and Trane Technologies among others.

    What growth opportunities exist in the US Air Handling Units Market?

    Emerging trends such as energy efficiency and smart technology integration present significant growth opportunities.

    What challenges might impact the growth of the US Air Handling Units Market?

    Challenges may include fluctuating raw material prices and stringent regulations on energy efficiency.

    What will be the market value of Custom air handling units by 2035?

    The Custom air handling units segment is projected to be valued at 0.92 USD Billion by 2035.

    How is the US Air Handling Units Market expected to perform regionally?

    The market is expected to see consistent growth across multiple regions, driven by increasing construction and renovation activities.

    What is the expected market size of the US Air Handling Units Market by 2035?

    The US Air Handling Units Market is expected to be valued at 4.8 billion USD by 2035.

    What was the market value of the US Air Handling Units Market in 2024?

    In 2024, the US Air Handling Units Market is projected to be valued at 1.9 billion USD.

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

    The US Air Handling Units Market is expected to grow at a CAGR of 8.79% from 2025 to 2035.

    Which segment of the US Air Handling Units Market holds the largest market value in 2024?

    The Packaged Rooftop segment is valued at 0.76 billion USD in 2024, making it the largest segment.

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

    The Modular segment is expected to reach a market value of 1.45 billion USD by 2035.

    Who are the key players in the US Air Handling Units Market?

    Major players in the market include Johnson Controls International, Trane Technologies, and Honeywell International among others.

    What is the projected market value of the Custom segment by 2035?

    The Custom segment is anticipated to be valued at 1.42 billion USD by 2035.

    What are the key growth drivers for the US Air Handling Units Market?

    Key growth drivers include increasing demand for energy-efficient systems and stringent building regulations.

    What challenges could impact the growth of the US Air Handling Units Market?

    Challenges may include fluctuating material costs and competition from alternative cooling and heating systems.

    How is the competitive landscape of the US Air Handling Units Market structured?

    The market is competitive with several key players vying for market share in emerging and existing segments.

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