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Construction Tech Review | Monday, January 02, 2023
From 2022 to 2027, the market for air handling units will grow at a CAGR of 7.3 percent.
FREMONT, CA: The air handling units (AHU) market will expand at a CAGR of 7.3 percent between 2022 and 2027. The market size will grow by $3,825.59 million. Multiple reasons contribute to the expansion of the market, including the expanding construction industry, the expansion of data centers, and the rising replacement and refurbishment demand in industrialized nations.
Key Air Handling Unit Market Driver
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The expanding construction industry is notably driving market expansion. The construction industry has a significant impact on the need for HVAC systems, which in turn drives the demand for AHUs. The construction of more commercial and residential structures significantly adds to the expansion of the market.
Globally, the building business is increasing rapidly. Numerous variables contribute to the expansion of the building sector. APAC is a significant market for construction and will expand at the fastest rate throughout the forecast period. This is because the building industry in emerging nations such as India, China, Vietnam, Australia, and Indonesia is expanding rapidly. The expansion is primarily attributable to continued improvements in the infrastructural and real estate markets. Due to growing environmental concerns, the increasing trend of green buildings will increase the demand for HVAC systems, consequently driving the demand for AHU systems.
Important Air Handling Unit Market Development
Intelligent monitoring systems and technology represent the dominant market trend. The evolution of monitoring systems and intelligent technologies drives the market. Monitoring systems aid in tracking a building's energy usage, while intelligent technology regulates the energy output of HVAC systems, including handling units. For instance, fans are turned on just once the system meets the predetermined conditions, so conserving energy.
Air monitoring systems installed in HVAC equipment aid in the detection and removal of allergens, hazardous particulates, stale air, and virus-causing pollutants. In addition, they purify and manage humidity levels for optimal indoor air quality. This decreases HVAC system wear and tear, lowering the need for routine repairs and maintenance.
Integrating IoT with HVAC systems and AHU creates new income opportunities for the market. As this integration would improve the efficiency and dependability of BAS, the commercial building sector is likely to be an early adopter of this technology. IoT connects network-capable devices or systems to the Internet and enables them to send and receive data via a network. Consequently, the accelerating development of technology will drive the market over the forecast period.
Major AHU Market Challenge
High market competition is the most significant obstacle to market expansion. Due to numerous regional and worldwide competitors, the air handling market is characterized by fierce competition. Vendors are also under constant pressure to deal with pricing variations and maintain their market advantage. Reduced HVAC equipment, component pricing, and profit margins have driven businesses to diversify their product lines. As regional vendors provide inexpensive products and components, worldwide competitors cannot maintain their market share. Some merchants also offer HVAC parts and components at subsidized prices, as is typical in APAC nations. This decreases sales of premium, high-quality products offered by international competitors. This impacts the pricing strategy, R&D expenditures, and brand image of well-established multinational competitors.
Additionally, joint ventures and strategic alliances have strengthened market rivalry. In recent years, Hitachi and Johnson Controls agreed to provide consumers with innovative, high-quality HVAC solutions. As these units are essential components of building solutions, this relationship enabled both businesses to provide consumers with superior products.
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