Air Handling Units Market Research Report – Forecast to 2030

Impact of COVID-19 on the Air Handling Units Market

Air handling units (AHUs) are filtration systems utilized in HVAC applications to regulate and circulate air. AHUs take in outside air, processes it (filter, either heat or cool), and then supply it to a room as fresh air. The outbreak of COVID-19 has altered the working styles of most industries. Since manufacturing, as well as other sectors, are facing lockdowns, a large section of employees has been working remotely from their homes to prevent the spread of the infection. Hence, the demand for HVAC systems has shifted from the industrial sector to the residential sector. However, despite the significant demand for residential AHUs, the sales figures have reported a decline owing to the fewer installations of AHUs at people’s homes, which can be attributed mainly to the restrictions enforced on technicians who were not allowed to enter residential premises for the installation of AHUs. Additionally, this decline in sales revenues was also attributed to the disrupted supply chain and warehouse operations affecting the availability of components required in HVAC systems. For instance, the average distributor of AHUs reported a revenue fall of over 19% till the end of April 2020 as compared to April 2019 and a rise in the unemployment rate due to the lockdown.

Average distributor sales revenue, 2019-2020On the other hand, the number of COVID-19 cases across the globe has increased, resulting in the rising demand for hospital beds to treat the infected, in turn, raising the requirement for AHUs since governments and NGOs are cooperating to build COVID-19 treatment facilities by turning non-hospital rooms into quarantine centers. This scenario has challenged the AHUs industry to think and operate in totally unfamiliar environments with new compilatory regulations as well as safety procedures. Also, this crisis is strengthening the value chain partnerships right from component manufacturers and distribution channel partners to customers. According to the MRFR analysis, the rising rate of unemployment is adding to the 2020 recession, which is expected to lower the demand for AHUs. The decline is also attributed to the decrease in the consumers’ spending capacity on high-cost luxury items, including the installation of HVAC systems. However, the rising demand for hospital beds is projected to support the demand for AHUs during the COVID-19 crisis. Additionally, the work from home policies adopted by the majority of the companies is expected to boost the product demand, in turn, driving the growth of the AHUs market in the coming quarters.

Source: Heating Air-conditioning & Refrigeration Distributors International (HARDI)

Source: Primary Experts, Secondary Sources, and MRFR Analysis