U.S. HVAC Air Handling Units and Fan Coil Units Market
Report Code: 13294
U.S. HVAC Air Handling Units and Fan Coil Units Market Size & Share Analysis - Trends, Drivers, Competitive Landscape, and Forecasts (2025 - 2032)
This Report Provides In-Depth Analysis of the U.S. HVAC Air Handling Units and Fan Coil Units Market Report Prepared by P&S Intelligence, Segmented by Product Type (Air Handling Units (AHUs), Fan Coil Units (FCUs)), Energy Source (Electric-powered AHUs and FCUs, Hybrid AHUs and FCUs), Application (Residential, Commercial, Industrial), Distribution Channel (Offline Sales, Online Sales), and Geographical Outlook for the Period of 2019 to 2032
U.S. HVAC Air Handling Units and Fan Coil Units Market Size
Market Statistics
Study Period
2019 - 2032
2024 Market Size
USD 319.8 Million
2025 Market Size
USD 326.8 Million
2032 Forecast
USD 410.0 Million
Growth Rate (CAGR)
3.30%
Largest Region
South
Fastest-Growing Region
West
Nature of the Market
Fragmented
Largest Application Category
Commercial
Growth Forecast
Key Players
Key Report Highlights
Market Size and Forecast
Industry Trend
Regulatory Landscape
Demand Trend Analysis
Companies Recent Strategical Developments
Key Stakeholders
Voice of Industry Experts/KOLs
Future Opportunity
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U.S. HVAC Air Handling Units and Fan Coil Units Market Future Prospects
The U.S. HVAC air handling units and fan coil units market stood at USD 319.8 million in 2024, and it will grow by 3.3% during 2025–2032, reaching USD 410.0 million by 2032.
The market is driven by the hot climate in most parts of the country, the growing construction industry, rampant urbanization, and people’s surging disposable income.
Air handling units and fan coil units are designed to regulate indoor air quality and manage temperature control. It addresses the specific heating, ventilation, and air filtration needs in both large and small buildings.
U.S. HVAC Air Handling Units and Fan Coil Units Market Trends and Growth Drivers
Demand for Compact and Quiet Designs Is a Key Trend
As spaces get smaller and buildings become more packed, AHUs and FCUs are being designed to be more compact and efficient to save space it may give more flexibility, letting HVAC systems fit into tight spaces with performance or efficiency.
As a result of the increasing human activity, urban areas are facing more environmental challenges, which increases the demand for smart and energy-efficient HVAC systems. Additionally, making a less noisy design is becoming important for comfort and functionality, especially for environment like hospitals, offices, and hotels.
In November 2024, Daikin introduced kits that connect air handling units (AHUs) to DX outdoor units, providing a ready-made solution that ensures easy installation and compatibility with R-32 or R-410A coils. These kits offer eco-friendly heating, cooling, and fresh air solutions for commercial spaces.
Growing Focus on Operational Efficiency and Cost Reduction Is the Growth Driver
Consumers are concerned about the growing operational and energy costs and they are focusing on the cost of ownership (TCO). AHUs and FCUs that offer longer lifespans, lower maintenance needs, and greater energy efficiency are becoming more becoming more attractive.
In October 2023, Lennox acquired AES to grow its commercial HVAC services, including air handling units (AHUs), across North America. This acquisition is expected to bring new services for customers and help support Lennox’s growth strategy in the commercial heating and cooling sector.
Space Limitations in Urban Buildings Is the Key Challenge
As the urban areas become more congested, the available space for installing HVAC systems becomes limited and this may create a challenge for manufacturers to design HVAC units that can fit within the limited area while still offering optimal air handling capacity, performance in large spaces, systems efficiency, and maintenance.
U.S. HVAC Air Handling Units and Fan Coil Units Market Analysis
Product Type Insight
The air handling units (AHUs) category held a larger market share, of around 60%, in 2024.
This is because these units are customizable in terms of size, components, and functionality. It is cost-effective, easy to install, and requires less time to set up and is often used in commercial buildings where space for installation is limited.
The fan coil units (FCUs) category will grow at a higher CAGR during the forecast period.
This is because these units are installed in the ceilings and are ideal for rooms with less space and provide flexible air distribution.
Additionally, these units are hidden in the false ceilings, making them less noticeable and ideal for spaces where appearance is a priority.
The product types analyzed in this report are:
Air Handling Units (AHUs) (Larger Category)
Modular AHUs
Packaged AHUs
Dedicated Outdoor Air Systems (DOAS)
Fan Coil Units (FCUs) (Faster-Growing Category)
Ceiling-Mounted FCUs
Floor-Mounted FCUs
Concealed FCUs
Cassette FCUs
Energy Source Insight
The electric-powered AHUs and FCUs category held the largest market share, of around 60%, in 2024.
This is because these AHUs use electricity to run fans, compressors, heating elements, and other parts that help treat the air. They are the most common choice for homes, offices, and factories because they are easy to install, reliable, and widely available.
The hybrid AHUs and FCUs category will grow at the highest CAGR during the forecast period.
This is because hybrid AHUs and FCUs combine electric power with other energy sources to offer more energy-efficient and eco-friendly options for managing air and temperature.
The energy sources analyzed in this report are:
Electric-powered AHUs and FCUs (Largest Category)
Hybrid AHUs and FCUs (Fastest-Growing Category)
Others
Application Insight
The commercial category held the largest market share, of 40%, in 2024.
This is because commercial buildings, including office spaces, retail stores, hospitals, schools, and other business infrastructures, have the highest demand for HVAC systems and strict air quality regulations, especially in healthcare and hospitality sectors, driving demand for advanced air filtration and ventilation systems.
The residential category will grow at the highest CAGR during the forecast period.
This is because homeowners are becoming aware of the energy-efficiency systems that help in lowering their energy bills.
The applications analyzed in this report are:
Residential (Fastest-Growing Category)
Commercial (Largest Category)
Industrial
Distribution Channel Insight
The offline sales category held the larger market share, of around 75%, in 2024.
This is because HVAC systems are usually large, complicated, and costly products that need professional advice, installation, and ongoing service. Offline sales channels, such as distributors, contractors, and HAVC experts, are important for helping customers choose and buy these systems.
The online sales category will grow at a higher CAGR during the forecast period.
This is because the ease and convenience of buying products online, particularly for smaller or DIY HVAC projects, is driving growth in this channel. Consumers can compare models, read reviews, and get products delivered directly to their places.
The distribution channels analyzed in this report are:
Offline Sales (Larger Category)
Online Sales (Faster-Growing Category)
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U.S. HVAC Air Handling Units and Fan Coil Units Market Geographical Outlook
The south region held the largest market share, of 35%, in 2024. This is because the southern region of U.S. experiences the hot and humid summers with the high population and urbanization growth which may increase the need for cooling systems like AHUs and FCUs.
The western region will grow at the highest CAGR during the forecast period. This is because even though the climate in the West is generally milder, some areas experience hot temperatures, requiring cooling systems. The West has a growing demand for energy-efficient cooling systems because of the increasing focus of major cities on energy saving. After the south, the west is the most populated region in the country.
The regions analyzed in this report are:
Northeast
Midwest
West (Fastest-Growing Category)
South (Largest Category)
U.S. HVAC Air Handling Units and Fan Coil Units Market Share
U.S. HVAC Air Handling Units and Fan Coil Units Market is fragmented because of the presence of a wide range of manufacturers and suppliers. Many regional distributors, local HVAC contractors, and service providers play an important role in sales, installation, and maintenance. The HVAC industry is evolving rapidly, with companies focusing on smart HVAC systems, energy-efficient solutions, and green technologies and this diversity increases the involvement of different players, creating intense price competition
Major Companies in U.S. HVAC Air Handling Units and Fan Coil Units Market:
Carrier Global Corporation
Daikin Applied Americas
Johnson Controls International plc.
Lennox International Inc.
LG Electronics Inc.
Trane Technologies plc
Modine Manufacturing
Munters Group AB
Mitsubishi Electric Corporation
Hitachi Ltd
GEA Group AG
Rheem Manufacturing
U.S. HVAC Air Handling Units and Fan Coil Units Market News
In February 2024, Modine a global leader in management and ventilation solutions, announced that they reached an agreement to acquire Scott Springfield Manufacturing, a company known for making air handling units (AHUs).
In July 2024, Elta expanded its ability to offer more customized air handling solutions (AHUs) than ever before. Ventilation experts now have a wide variety of design options when selecting air handling units (AHUs).
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