BAS technology enhances facility management 

Building automation systems technology optimises HVAC performance, automatically adjusting to occupancy patterns and energy consumption. However, according to the latest market research report, high market competition poses a challenge.

The rising global population and urbanisation are increasing the demand for cooling and heating solutions. Consumers are looking for efficient temperature control and a better indoor environment. However, pollutants in the air are surging. AHUs play a crucial role in indoor air quality management by providing proper airflow control, air distribution, and air filtration, making them essential for maintaining healthy and comfortable environments. Ductwork, airflow control, and energy efficiency trends drive the Air Handling Unit (AHU) market. Rooftop units are gaining ground for commercial buildings due to their compact design and thermal comfort. Variable air volume (VAV) and constant air volume (CAV) systems ensure optimal supply and return air distribution. Heat recovery systems are also integrated into AHUs to minimise energy losses and enhance efficiency. Heat recovery and energy efficiency are concerns for AHU manufacturers.

Market driver

Managing fresh air intake and exhaust is vital for maintaining indoor air quality and adhering to safety standards. Noise and pressure control ensure occupant comfort. As building regulations and safety standards advance, the market is shifting towards smart HVAC solutions, green buildings, and sustainable HVAC designs. There is also growth in retrofitting and after-sales support. The market includes air conditioning, ventilation systems, heat recovery, and cooling/heating coils, among other components. The global air handling unit market size is estimated to grow by USD 4.69 billion at a CAGR of over 8.22 percent from 2024-2028, according to Technavio. Building Automation Systems (BAS) are becoming increasingly common in managing and interacting with HVAC, lighting, fire, and security systems in buildings. With the rise in construction and retrofit projects, the number of BAS installations has significantly increased. BAS technology enhances facility management by ensuring energy efficiency and incorporating user-friendly HVAC solutions. Advanced sensor technology and communication tools enable improved user interfaces. Manufacturers use open protocols like the Internet protocol to provide better control solutions. BAS technology optimises HVAC performance, automatically adjusting to occupancy patterns and energy consumption. It results in considerable energy savings, making BAS a key driver in the AHU market.

Challenge

Addressing challenges requires an understanding of AHU systems and their components. The Air Handling Unit (AHU) market is highly competitive due to numerous regional and international players. Vendors face continuous pressure to manage price fluctuations and maintain a competitive edge. Joint ventures and strategic alliances, such as Hitachi and Johnson Controls’ partnership, have intensified competition by enabling better building solutions for consumers.

The Air Handling Unit (AHU) market faces several challenges in various sectors, including commercial and residential buildings. Ductwork design and installation are crucial for optimal airflow control. Rooftop units require careful consideration for thermal comfort in supply and return air. HVAC technology, green building, and sustainable HVAC solutions are becoming increasingly important. Retrofits require after-sales support for successful implementation. Components like cooling coils, heating coils, fan sections, air filtration, humidification, and dehumidification play significant roles in system functionality. Air conditioning and ventilation systems must meet the demands of modern buildings while adhering to stringent regulations.

AHU market growth

The Air Handling Unit (AHU) market is growing due to increasing demand for energy-efficient HVAC systems in commercial and industrial buildings. AHUs condition and circulate air as part of heating, ventilation, and air conditioning systems. Their energy efficiency and ability to improve indoor air quality make them essential for maintaining comfortable and healthy work environments. The market growth of AHUs is rising with energy regulations, rising construction activities, and the need for sustainable building solutions. Innovations in eco-friendly refrigerants and advanced HVAC technologies are key drivers. 

The HVAC Systems market in India is expanding rapidly due to urbanisation, increased construction activities, and a growing middle-class population. Energy-efficient systems and Smart HVAC solutions are gaining traction, supported by government initiatives promoting sustainable practices. Both markets present lucrative opportunities for key players and investors.

Key markets players include American Air Filter Co. Inc., Arbonia AG, Ariston Holding NV, Breezeair Technology, Carrier Global Corp., Cooke Industries, Daikin Industries Ltd., Desiccant Technologies Group, Environmental Air Systems LLC, Euroclima AG, FlaktGroup Holding GmbH, Heinen and Hopman, Johnson Controls International Plc., Lennox International Inc., MANDIKA AS, MIDEA Group Co. Ltd., Systemair AB, Trane Technologies plc.