India 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) andBy Application (Industrial, Residential, Commercial)- Forecast to 2035

India Air Handling Units Market Overview:

As per MRFR analysis, the India Air Handling Units Market Size was estimated at 1.27 (USD Billion) in 2023.The India Air Handling Units Market Industry is expected to grow from 1.34(USD Billion) in 2024 to 2.68 (USD Billion) by 2035. The India Air Handling Units Market CAGR (growth rate) is expected to be around 6.475% during the forecast period (2025 - 2035).

Key India Air Handling Units Market Trends Highlighted

In the Air Handling Units Market in India, there is a growing focus on energy conservation and green development practices. India’s urban and industrial development is rapid and there is a need for HVAC Systems to aid in energy and cost efficiency. The government policies supporting renewable energy and energy efficiency is a driving factor of this trend which urges innovations of products by the manufacturers. The integration of smart technology for better monitoring and control of indoor air quality is also becoming common in air handling units. Change in the AIoT sector is increasing thus adaption of IoT in urban residential and commercial buildings is on the rise.

The growth of both residential and commercial infrastructure across India considerably fuels the construction industry, and that is one of the core reasons controlling this industry. Nowadays, almost every government policy focuses on improving the indoor air quality of buildings and also shifts towards the use of energy efficient technologies. This gives a positive outlook for the air handling unit manufacturers. Additionally, newer laws related to the environmental sustainability also aids in the growth for this market. A huge potential lies in the tier-II and tier-III cities since they are becoming increasingly aware of air quality and comfort in homes and workplaces, thus leading to a greater demand for air handling units.

This emerging market can particularly benefit from launching more affordable models. Along with that, the opportunity for installing modern air handling systems into older buildings is also a great growth potential. Therefore, emerging technologies and changing consumer preferences, along with supportive regulations, is what drives the India Air Handling Units Market.

India Air Handling Units Market Drivers

Rapid Urbanization and Growing Construction Activities

India is experiencing rapid urbanization, with the Urban Planning Department reporting that over 31% of the country's population lived in urban areas as of 2021, and this figure is expected to reach 50% by 2050. This significant increase drives the demand for Air Handling Units (AHUs) as modern buildings require efficient ventilation systems to maintain air quality. Furthermore, the Ministry of Housing and Urban Affairs has launched initiatives aimed at developing smart cities across the country, which highlights the need for advanced HVAC (Heating, Ventilation, and Air Conditioning) solutions, including AHUs.Major construction firms such as Lodha Group and DLF are actively involved in these developments, amplifying the demand for India Air Handling Units Market Industry, as they implement sustainable practices that require high-efficiency equipment.

Increasing Awareness of Energy Efficiency

There is a growing awareness of energy efficiency among industries in India, driven by regulations such as the Perform, Achieve and Trade (PAT) scheme initiated by the Bureau of Energy Efficiency. This program mandates energy-intensive industries to reduce energy consumption by a specific percentage, pushing companies to invest in energy-efficient solutions like Air Handling Units. The Energy Efficiency Services Limited reported energy savings of about 125 million tonnes of CO2 equivalent per annum through regular audits and retrofits in HVAC systems, which directly influences the demand for modern AHUs.This trend reflects a burgeoning market for the India Air Handling Units Market Industry that aligns with national energy conservation goals.

Rising Healthcare Infrastructure Investments

The Government of India has significantly boosted investments in healthcare infrastructure, with the Union Budget 2021-22 allocating approximately USD 10.8 billion towards health and well-being initiatives. The need for improved indoor air quality in healthcare facilities, especially in the wake of the COVID-19 pandemic, has become a priority. Air Handling Units play a crucial role in hospitals to ensure a safe environment for patients and staff. Major healthcare providers like Apollo Hospitals and Max Healthcare are modernizing their infrastructure, thus driving the demand for advanced AHUs that comply with stringent health regulations. This trend is solidifying the position of the India Air Handling Units Market Industry as it caters to the evolving needs of the healthcare sector.

India Air Handling Units Market Segment Insights:

Air Handling Units Market Type Insights

The India Air Handling Units Market showcases a diverse array of types that cater to various application needs across commercial, industrial, and residential sectors. With significant growth observed in recent years, the market for air handling units focuses on several prominent types, such as Packaged Rooftop, Modular, and Custom units. Packaged Rooftop units are known for their compact design and are ideal for urban landscapes where space is at a premium. They offer efficient air conditioning and ventilation solutions, which are increasingly being adopted due to the rising demand for energy-efficient systems in the face of escalating energy costs and environmental regulations. Modular air handling units, with their scalable design, provide flexibility for building owners, enabling them to customize their heating, ventilation, and air conditioning (HVAC) systems according to specific needs and changes in building layout.

This adaptability is becoming exceptionally desirable in India, where building construction is booming in urban areas and retrofitting existing buildings becomes necessary to meet modern efficiency standards. Custom units are tailored to meet unique HVAC requirements, making them a dominant player in the market as they serve niche applications that cannot be satisfied by standard units. They are often used in specialized environments like laboratories, clean rooms, and industrial settings, where exact temperature and humidity controls are essential. Given the rapid urbanization and increasing construction activities in India, alongside a growing awareness of indoor air quality, the importance of these unit types cannot be overstated.

Government initiatives aimed at promoting sustainable practices further catalyze the demand for advanced air handling solutions, pushing for better energy performance and indoor air quality standards in commercial buildings. The continuous innovation and technological advancements in the air handling units sector, along with the increasing focus on the HVAC industry's role in addressing climate change, are shaping a positive outlook for the India Air Handling Units Market. As demand surges, it becomes clear that each type of air handling unit plays an instrumental role in optimizing energy efficiency, enhancing comfort, and improving air quality across various environments in India.

Air Handling Units Market Effect Insights

The India Air Handling Units Market, focusing on the Effect segment, displays a diverse landscape significantly influencing the overall industry dynamics. With an increasing emphasis on energy efficiency and air quality in India's urban development initiatives, the demand for effective air handling systems has surged. Within the Effect segment, both Single-Effect and Double-Effect units play crucial roles; Single-Effect systems are recognized for their simplicity and cost-effectiveness, making them suitable for smaller buildings, while Double-Effect systems, with their enhanced efficiency and cooling capacity, are preferred in larger installations and industrial settings.

The significance of these systems can be attributed to their ability to adapt to varied climate conditions across India, thereby addressing the unique challenges faced in different regions. Additionally, the growing awareness of indoor air quality and the need for sustainable solutions propel the growth of these systems. As urbanization and infrastructure development continue to rise, the Effect segment is expected to remain pivotal in meeting the increasing demand for efficient air handling solutions in the country, reflecting shifting preferences towards advanced technologies and sustainability practices in the industry.

Air Handling Units Market Capacity Insights

The India Air Handling Units Market exhibits notable dynamics within its Capacity segment, reflecting the varied application needs across different industries. The segment is divided into categories such as Up to 5000 m3/hr, 5000 m3/hr – 15000 m3/hr, and Above 15000 m3/hr. The Up to 5000 m3/hr capacity is essential for small to medium-sized buildings, particularly in residential and light commercial applications, where energy efficiency and cost-effectiveness are priorities. In contrast, the 5000 m3/hr – 15000 m3/hr capacity caters to larger commercial buildings and industrial facilities, emphasizing the need for advanced technology to ensure optimal airflow and temperature control.

This segment responds well to the growing trend of smart building solutions and climate control, aligning with increased urbanization in India. The Above 15000 m3/hr capacity is crucial for large-scale applications such as manufacturing plants, hospitals, and airports, where robust performance and reliability are paramount. Overall, this segment supports significant growth in the India Air Handling Units Market, driven by the rising demand for improved indoor air quality and energy-efficient systems.

Air Handling Units Market Application Insights

The Application segment of the India Air Handling Units Market plays a crucial role in defining the overall dynamics of the industry. With a diverse range of applications including Industrial, Residential, and Commercial sectors, this segment is integral to various operational efficiencies. The Industrial sector emphasizes the importance of effective ventilation and air quality control in manufacturing facilities, contributing significantly to workplace safety and productivity. In the Residential sector, increasing urbanization and the rising demand for energy-efficient solutions are driving growth, as consumers prioritize indoor air quality in their homes.

The Commercial sector, encompassing offices, hotels, and retail spaces, is focusing on creating comfortable environments for occupants while also addressing sustainability concerns. This segment’s growth is supported by increased construction activities and investments in infrastructure across India, guided by governmental initiatives and policy frameworks aimed at enhancing air quality and energy efficiency in buildings. Robust market statistics indicate that this sector is evolving rapidly, providing ample opportunities for innovation and development within the India Air Handling Units Market, driven by both regulatory pressures and consumer demand for improved living and working environments.

India Air Handling Units Market Key Players and Competitive Insights:

The India Air Handling Units Market is characterized by a diverse and competitive landscape that has been evolving rapidly due to increasing urbanization, industrialization, and heightened awareness regarding energy-efficient solutions. This market encompasses a variety of players ranging from established multinational corporations to local manufacturers, each aiming to capture a share of the growing demand for air handling units. The competition is driven by advancements in technology, shifting consumer preferences towards sustainable and energy-efficient products, and the need for enhanced indoor air quality in commercial, residential, and industrial settings. As the market expands, companies are focusing on innovation, improved product offerings, and strategic collaborations to strengthen their position and cater to the specific needs of the Indian market while also aiming to achieve operational efficiencies and reduce costs.

Mitsubishi Electric has a significant presence in the India Air Handling Units Market, recognized for its commitment to energy-efficient technologies and innovative solutions. The company has established a solid reputation for providing high-quality products that meet stringent performance standards, emphasizing reliability and longevity. Mitsubishi Electric's strengths lie in its robust engineering capabilities, advanced manufacturing processes, and strong after-sales support, which enhances customer satisfaction. The company's focus on research and development has enabled it to introduce cutting-edge technologies tailored to the Indian market, which is gaining momentum as the demand for sophisticated air handling solutions continues to rise. Additionally, Mitsubishi Electric's strategic partnerships and collaborations with local distributors and contractors allow it to effectively reach a wider customer base, further solidifying its position in the market.

Carrier, a well-known name in the air conditioning and refrigeration sector, has made notable strides in the India Air Handling Units Market by leveraging its extensive portfolio of products and services. The company's key offerings include a range of air handling units designed for diverse applications, which align with industry standards for energy efficiency and sustainability.

Carrier's strengths are underscored by its deep understanding of the Indian market, allowing it to provide customized solutions that meet unique regional requirements. With a strong distribution network and service capability across India, Carrier not only caters to commercial and residential customers but also addresses larger industrial applications. The company has also enhanced its market presence through strategic mergers and acquisitions, reinforcing its competitive advantage by integrating advanced technologies and expanding its service capabilities. Carrier's unwavering commitment to quality and innovation enables it to maintain its status as a preferred choice among consumers seeking reliable air handling solutions in India.

Key Companies in the India Air Handling Units Market Include:

• Mitsubishi Electric


• Carrier


• Sundaram Clayton


• Siemens


• Rittal


• Daikin


• Voltas


• Airoil Flaregas Technologies


• Blue Star


• Lennox International


• Zeco Aircon


• Aqua Air Systems


• Integrated Air Systems


• Trane Technologies


• Johnson Controls

India Air Handling Units Market Industry Developments

The India Air Handling Units Market has recently seen significant developments, with companies such as Mitsubishi Electric and Carrier expanding their operations to meet increasing demand driven by urbanization and environmental regulations. In September 2023, Daikin announced a strategic partnership with Trane Technologies to enhance energy-efficient solutions, aiming to leverage both companies' technology strengths. Concurrently, Siemens has seen a surge in demand for its air handling units, particularly in commercial buildings and industrial applications.

In terms of market valuation, the growth of the HVAC sector in India has been remarkable, attributed to government initiatives promoting energy efficiency and sustainable practices. Notably, in November 2022, Voltas acquired the air conditioning division of Airoil Flaregas Technologies, enhancing its product portfolio and market presence. The Indian government’s focus on infrastructure development has also spurred investments in the air handling units sector, allowing companies like Blue Star and Johnson Controls to innovate and tailor their offerings to local requirements. Last but not least, the rising awareness about air quality solutions continues to drive the market forward, positioning India as a growing hub for Air Handling Unit technologies and solutions.

India Air Handling Units Market Segmentation Insights

Air Handling Units Market Type Outlook

• Packaged Rooftop


• Modular


• Custom

Air Handling Units Market Effect Outlook

• Single-Effect


• Double-Effect

Air Handling Units Market Capacity Outlook

• Upto 5000 m3/hr


• 5000 m3/hr – 15000 m3/hr


• Above 15000 m3/hr

Air Handling Units Market Application Outlook

• Industrial


• Residential


• Commercial

Report Attribute/Metric Source:	Details
MARKET SIZE 2023	1.27(USD Billion)
MARKET SIZE 2024	1.34(USD Billion)
MARKET SIZE 2035	2.68(USD Billion)
COMPOUND ANNUAL GROWTH RATE (CAGR)	6.475% (2025 - 2035)
REPORT COVERAGE	Revenue Forecast, Competitive Landscape, Growth Factors, and Trends
BASE YEAR	2024
MARKET FORECAST PERIOD	2025 - 2035
HISTORICAL DATA	2019 - 2024
MARKET FORECAST UNITS	USD Billion
KEY COMPANIES PROFILED	Mitsubishi Electric, Carrier, Sundaram Clayton, Siemens, Rittal, Daikin, Voltas, Airoil Flaregas Technologies, Blue Star, Lennox International, Zeco Aircon, Aqua Air Systems, Integrated Air Systems, Trane Technologies, Johnson Controls
SEGMENTS COVERED	Type, Effect, Capacity, Application
KEY MARKET OPPORTUNITIES	Growing HVAC infrastructure demand, Energy efficiency regulations, Smart building technology integration, Expansion in commercial construction, Increasing focus on air quality
KEY MARKET DYNAMICS	growing construction industry, rising energy efficiency standards, increasing urbanization, demand for HVAC systems, technological advancements in systems
COUNTRIES COVERED	India