Europe HVAC Market Report and Forecast 2025-2034

Europe HVAC Market Size

The Europe HVAC market is projected to grow at a CAGR of 5.6% between 2024 and 2032. The rising installation of air conditioners in residential settings and the development of high-performance heat pumps are expected to fuel the market in the forecast period.

Europe HVAC Market Outlook

• The use of HVAC systems in residential settings is expected to significantly surge in the forecast period.

• 50% of the total energy consumption in the EU is utilised for heating and cooling purposes.

• Germany is expected to witness a sustained growth in the demand for new HVAC systems.

Europe HVAC Market Growth

The increasing demand for air conditioners and heat pumps in southern European countries, such as Italy, France, and Spain is expected to drive the market growth. The International Atomic Energy estimates that Europe can have nearly 520 million units of ACs by 2050, recording a fourfold increase from 130 million units in 2023. While the current penetration rate of ACs in Europe is merely 19% (significantly lower than countries like China, the USA, and Japan), it is expected that rising global temperature and climate change may impact the demand for HVAC systems, thereby driving the HVAC market development.

Increasing investments into the commercialisation of new business models and the development of innovative heat pumps and low-carbon technologies are expected to contribute to the market expansion. In May 2024, the UK’s Department of Energy Security and Net Zero created the Net Zero Innovation Portfolio, whereby funded the Heat Pump Ready Scheme with 5.3 million pounds to accelerate the development of solutions which simplify the process of heat pump installation and enhance the performance and safety levels of the device. By minimising the costs of lifetime ownership of heat pumps, their consumer appeal can be boosted, which, in turn, facilitates the market growth.

Europe HVAC Industry Segmentation

Europe HVAC Market Report and Forecast 2024-2032 offers a detailed analysis of the market based on the following segments:

Market Breakup by Equipment

• Heating
  • Heat Pumps
  • Furnaces
  • Unitary Heaters
• Ventilation
  • Air-Handling Units
  • Air Filters and Purifiers
  • Ventilation Fans
  • Dehumidifiers and Humidifiers
  • Others
• Cooling
  • Unitary Air Conditioners
  • VRF Systems
  • Chillers
  • Coolers
  • Cooling Towers
  • Others

Market Breakup by Implementation Type

• New Constructions

• Retrofits

Market Breakup by End Use

• Residential

• Commercial

• Industrial

Market Breakup by Country

• Germany

• United Kingdom

• France

• Italy

• Others

Europe HVAC Market Share

Based on country, the market is divided into Germany, the United Kingdom, France, and Italy, among others. Over the forecast period, Germany is expected to emerge as one of the leading markets for HVAC systems, as the German government implements the system of district cooling to minimise electricity bills and the environmental footprint.

Leading Companies in the Europe HVAC Market

The report provides a detailed analysis of the following key players in the market, covering their competitive landscape and latest developments like mergers and acquisitions, investments, and capacity expansion.

• Robert Bosch GmbH

• Mitsubishi Electric Corporation

• Alfa Laval AB

• Daikin Industries Ltd.

• Lennox International Inc.

• Carrier Global Corp.

• Ariston Holding N.V.

• Danfoss A/S

• Vaillant GmbH

• BDR Thermea Group B.V.

• Others

Major market players are designing energy-efficient HVAC systems, which enjoy high consumer demand.

Key Highlights of the Report