Germany HVAC Market Report and Forecast 2024-2032

Germany HVAC Market Size

The Germany HVAC market reached USD 4.87 billion in 2023. The market is projected to grow at a CAGR of 5.0% between 2024 and 2032, reaching almost USD 7.55 billion by 2032.

Germany HVAC Market Outlook

• Germany recorded over 1.3 million unit sales of new heating systems in 2023.

• The sale of modern, sustainable heat pumps in Germany reached 356,000 units, recording a y-o-y increase of 51%.

• Natural gas-based heaters accounted for 60% of all new purchases of heating systems in Germany.

The Federal Cabinet approved new amendments to the Building Energy Act in Germany in January 2024. It mandated the use of renewable energy sources (up to 65%) to power newly installed heating systems within households while providing generous transitional periods to owners of fossil-fuel-based heating systems. The law provides high tax exemptions to owners opting for the transition while laying down 2045 as the deadline year. This is expected to accelerate the demand for HVAC systems powered by renewable energy in the coming years.

Heat pumps are expected to constitute a major portion of the market share as they result in significant cost savings (up to 35% and more). An increasing number of Germans are utilising online tutorials and discussion forums to learn about self-installing modern heat pumps within their house.

The federal government is also providing subsidies covering 1/4th of the total cost of installation (worth 25,000-30,000 euros) and enabling people to perform repairs (of up to 60,000 euros) to improve the energy efficiency of devices. Though heat pumps constituted merely 15% of all heating systems’ sales in 2021, technological improvements eliminating excessive production of noise are expected to increase their appeal among consumers, thereby driving the market growth.

Germany HVAC Industry Segmentation

Germany 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 Region

• North Rhine-Westphalia

• Bavaria

• Baden-Württemberg

Germany HVAC Market Share

Based on end use, the market is divided into residential, commercial, and industrial. Over the forecast period, the industrial usage of HVAC systems is expected to record a significant increase as HVAC systems are essential for maintaining adequate temperature within data centres and other establishments.

Leading Companies in the Germany 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

• Panasonic Holdings Corp.

• Vaillant GmbH

• Johnson Controls-Hitachi Air Conditioning Company

• Systemair AB

• Carrier Global Corp.

• Ariston Holding N.V.

• Kingspan Group Plc (Colt International GmbH)

• Others

Major market players are focusing on manufacturing energy-efficient solutions to drive the market growth.

Key Highlights of the Report