According to a recently updated industry analysis by Fact.MR, revenue from air conditioning system sales in Europe is forecasted to reach US$ 32.68 billion in 2024. This regional market is projected to expand at 6.5% CAGR and climb to a value of US$ 61.35 billion by the end of 2034.

Report Attribute	Detail
Air Conditioning System Sales in Europe (2024E)	US$ 32.68 Billion
Projected Sales (2034F)	US$ 61.35 Billion
Demand Growth (2024 to 2034)	6.5% CAGR
Sales in United Kingdom (2024E)	US$ 2.99 Billion
Market Share of Split Air Conditioning Systems (2034F)	36.9%
Sales in Residential Sector (2034F)	US$ 22.64 Billion
Sales in France (2034F)	US$ 5.67 Billion
Key Companies Profiled	Daikin Europe N.V.; Tx`x`rotec GmbH; Hebs Group Limited; Samsung Electronics Air Conditioner Europe BV; Wilo SE; Robert Bosch GmbH; Kelvion Holding GmbH; Mitsubishi Electric Corporation; AB Electrolux; Hocker Polytechnik GmbH.

Country-wise Insights

Attribute	Germany
Market Value (2024E)	US$ 3.79 Billion
Growth Rate (2024 to 2034)	6.6% CAGR
Projected Value (2034F)	US$ 7.18 Billion

Attribute	Russia
Market Value (2024E)	US$ 5.09 Billion
Growth Rate (2024 to 2034)	6.5% CAGR
Projected Value (2034F)	US$ 9.58 Billion

Category-wise Insights

Attribute	Split Air Conditioning Systems
Segment Value (2024E)	US$ 12.03 Billion
Growth Rate (2024 to 2034)	6.5% CAGR
Projected Value (2034F)	US$ 22.64 Billion

Attribute	Residential
Segment Value (2024E)	US$ 11.99 Billion
Growth Rate (2024 to 2034)	6.6% CAGR
Projected Value (2034F)	US$ 22.64 Billion

The Europe Air Conditioning Market Report is Segmented by Product Type (Room AC, VRF, Chillers, and More), Cooling Capacity (less Than 8kW, 8-15kW, 15-20kW, Greater Than 20kW), Refrigerant Type (R-32, R-410A, R-290, CO₂, and More), Technology (Inverter, Non-Inverter), End User (Residential, Commercial, Industrial), Distribution Channel, and Geography. The Market Forecasts are Provided in Terms of Value (USD).

The Europe Aircraft Air Conditioning Systems market size is USD 54.24 billion in 2023 and will expand at a compound annual growth rate (CAGR) of 23.5% from 2023 to 2030.

The Europe Commercial HVAC Market Report is Segmented by Type of Component (HVAC Equipment [Heating Equipment, Air Conditioning/Ventilation Equipment], HVAC Services), End-User Industry (Hospitality, Commercial Building, Public Building, Other End-User Industries), and Country (United Kingdom, Germany, France, Italy). The Market Sizes and Forecasts are Provided in Terms of Value (USD) for all the Above Segments.

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Air Conditioning Systems Market Size 2024-2028

The air conditioning systems market size is forecast to increase by USD 47.02 billion at a CAGR of 6.46% between 2023 and 2028.

The market is experiencing significant growth due to the increasing demand for energy-efficient heating, ventilation, and air conditioning (HVAC) systems. This trend is driven by growing concerns over energy consumption and sustainability, as well as regulatory initiatives promoting energy efficiency. Another key driver is the rise of smart air conditioning systems, which offer advanced features such as remote control, energy management, and compatibility with the Internet of Things (IoT). However, high upfront costs of energy-efficient and sustainable AC systems pose a challenge for market growth. These systems often require a larger investment compared to traditional systems, which may deter some buyers.
Despite this obstacle, companies can capitalize on the market opportunities by offering financing options, energy savings guarantees, and demonstrating the long-term cost savings of energy-efficient AC systems. In summary, the market is witnessing robust growth due to the increasing demand for energy-efficient and smart HVAC systems, while high upfront costs present a challenge for market expansion. Companies seeking to capitalize on this market can offer financing solutions and demonstrate the long-term cost savings of energy-efficient AC systems.

What will be the Size of the Air Conditioning Systems Market during the forecast period?

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The market continues to evolve, driven by advancements in technology and shifting market dynamics. Split systems, with their energy efficiency and flexibility, are gaining popularity in both residential and commercial applications. Remote monitoring and building automation systems enable better energy management, while LEED certification and demand response initiatives promote sustainability and cost savings. HVAC design innovations include the integration of air filtration, smart thermostats, and humidity control for improved indoor air quality. SEER rating and evaporative cooling technologies enhance energy efficiency, particularly in hot climates. The market also caters to diverse sectors, such as data centers, food processing, and pharmaceutical manufacturing, with solutions like energy management software, engineering services, and variable refrigerant flow systems.
Energy efficiency remains a key focus, with the adoption of compressor technology, variable speed drives, solar thermal, and cloud-based solutions. The market's continuous unfolding is reflected in the ongoing evolution of R410a refrigerants, HSPF rating, and green building initiatives. The market's applications span across various sectors, including retail stores, cold storage, and commercial buildings, with installation, maintenance, and engineering services ensuring optimal performance.

How is this Air Conditioning Systems Industry segmented?

The air conditioning systems industry research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in 'USD billion' for the period 2024-2028, as well as historical data from 2018-2022 for the following segments.

End-user

  Residential
  Commercial
  Industrial


Technology

  Inverter
  Non-inverter
  Smart AC


Product Types

  Split Systems
  Window Units
  Central AC
  Portable AC


Distribution Channel

  Online Retail
  Offline Retail
  Direct Sales


Geography

  North America

    US
    Canada


  Europe

    France
    Germany
    Italy
    UK


  Middle East and Africa

    Egypt
    KSA
    Oman
    UAE


  APAC

    China
    India
    Japan


  South America

    Argentina
    Brazil


  Rest of World (ROW)

By End-user Insights

The residential segment is estimated to witness significant growth during the forecast period.

The residential segment significantly contributes to the expansion of the market. With rising temperatures and growing disposable income, the demand for air conditioning systems has surged among residential consumers. Urbanization and population migration towards cities fuel this demand, as the need for residential properties, such as apartments, condominiums, and houses, increases. Homeowners prioritize comfort and convenience, leading to increased investments in air conditioning systems. Energy efficiency and indoor air quality are crucial factors influencing consumer preferences. Geothermal systems and heat pumps, with high HSPF ratings, offer energy savings and reduced carbon footprints. Building automation systems, remote monitoring, and smart thermostats enable efficient energy management.

LEED certification and green building practices are driving the adoption of energy-efficient and eco-friendly air conditioning systems. In commercial applications, data centers, retail stores

Europe Air Conditioners Market was valued at USD 21.36 billion in 2024 and is anticipated to grow to USD 30.12 billion by 2030 with a CAGR of 5.96% during forecast period.

Pages	131
Market Size	2024: USD 21.36 Billion
Forecast Market Size	2030: USD 30.12 Billion
CAGR	2025-2030: 5.96%
Fastest Growing Segment	Splits
Largest Market	Germany
Key Players	1. Daikin Industries Limited 2. Toshiba Corporation 3. Mitsubishi Corporation 4. Electrolux AB 5. Carrier Global Corporation 6. Danfoss A/S 7. Samsung Electronics (UK) Limited 8. Whirlpool Corporation 9. Robert Bosch GmbH 10. Lennox International Inc.

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Europe Heating, Ventilation, And Air Conditioning Equipment Market Size 2024-2028

The Europe heating, ventilation, and air conditioning (HVAC) equipment market size is forecast to increase by USD 10.8 billion at a CAGR of 5.57% between 2023 and 2028.

The market is experiencing significant growth, driven by several key factors. One major growth driver is the expansion of data centers, which necessitates advanced cooling systems to maintain optimal operating temperatures. Another trend is the increasing focus on predictive maintenance, which enables preventive measures and reduces downtime. However, the market faces intense competition from APAC companies, who offer lower production costs and higher efficiency. To remain competitive, European HVAC manufacturers must invest in research and development to innovate and differentiate their offerings. Additionally, the adoption of renewable energy sources and energy efficiency regulations are shaping the market landscape, making sustainability a crucial consideration for HVAC providers in Europe.

What will be the size of the Europe Heating, Ventilation, and Air Conditioning (HVAC) Equipment Market during the forecast period?

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The market is witnessing significant growth due to the increasing focus on energy efficiency, indoor environmental conditions, and temperature control systems. Urbanization and the need for comfortable indoor conditions in both residential and commercial sectors are major drivers for the market. The integration of advanced technologies such as Industrial automation and Smart manufacturing through the Internet of Things (IoT) is leading to product innovation and strategic investments in the HVAC industry. Europe's HVAC market encompasses various types of equipment including heating systems, ventilation systems, and air conditioning systems. Energy-saving and low-carbon heat sources are gaining popularity due to the energy crisis and the need to reduce greenhouse gas emissions.
Temperature, humidity, and air quality are key factors influencing the market. Safety and comfort are also important considerations for consumers. Heat pumps are a growing segment of the market due to their energy efficiency and ability to reduce carbon emissions. The market is also witnessing innovation in filtration technologies to improve indoor air quality. Construction trends towards sustainable and energy-efficient buildings are expected to further boost the market. Overall, the market in Europe is expected to continue its growth trajectory in the coming years.

How is this market segmented and which is the largest segment?

The market research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in 'USD billion' for the period 2024-2028, as well as historical data from 2018-2022 for the following segments.

End-user

  Non-residential
  Residential


Product

  Air conditioning equipment
  Heating equipment
  Ventilation equipment


Geography

  Europe

    Germany
    UK
    France
    Italy

By End-user Insights

The non-residential segment is estimated to witness significant growth during the forecast period.

The market is experiencing significant growth due to various factors, including urbanization, industrial automation, and the Internet of Things (IoT). In the context of industrial applications, sectors such as oil and gas, power, pulp and paper, water and wastewater treatment, chemical and petrochemical, mining and metal, pharmaceutical, and food and beverages industries require explosion-proof HVAC systems due to the high risk of dust and potential chemical or vapor leaks. This need for safety, driven by increasing concerns over indoor environmental conditions, temperature, humidity, and air quality, is propelling the demand for advanced HVAC systems that ensure comfort, safety, and energy efficiency.

Moreover, the adoption of smart manufacturing and green building initiatives is fueling the market's growth. Energy-saving, low-carbon heat sources, and temperature control systems are becoming increasingly popular, as are heat pumps and energy-efficient heating and air conditioning equipment. Strategic investments in product innovation, ventilation systems, and building automation are also contributing to the market's expansion. Environmental regulations, such as those related to greenhouse gas emissions and the F-gas regulation, are driving the shift towards energy-efficient and eco-friendly HVAC solutions. Construction trends and renovating or retrofitting existing buildings are also creating opportunities for market growth.

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The Non-residential segment was valued at USD 26.20 billion in 2018 and showed a gradual increase during the forecast period.

Market Dynamics

Our researchers analyzed the data with 2023 as the base year,

Europe Air Conditioners Market by Type (Split, Window, Centralized/Ducted, Others), Tonnage (Up to 2 Tons, 2 Tons to 5 Tons, Others), Technology (Inverter, Non-inverter), End User (Residential, Commercial, Industrial), and Geography - Forecast to 2032

Europe HVAC Market was valued at USD 62.21 billion in 2024 and is anticipated to grow to USD 88.03 billion by 2030 with a CAGR of 6.02% during forecast period.

Pages	120
Market Size	2024: USD 62.21 Billion
Forecast Market Size	2030: USD 88.03 Billion
CAGR	2025-2030: 6.02%
Fastest Growing Segment	Central Air Conditioning Systems
Largest Market	Germany
Key Players	1. Daikin Industries, Ltd. 2. Robert Bosch GmbH 3. Mitsubishi Electric Europe B.V. 4. Danfoss A/S 5. Vaillant GmbH 6. Carrier Global Corporation 7. Alfa Laval Corporate AB 8. Lennox International Inc. 9. Ariston Thermo S.p.A. 10. BDR Thermea Group

The Steam and Air Conditioning Supply industry in Europe is evolving rapidly, driven by a shift towards sustainable energy solutions and diversification away from traditional fossil fuels. Rising temperatures and urbanisation, combined with policy support for district heating and cooling networks, having driven increased uptake of industry services in recent years. Revenue is forecast to increase at a compound annual rate of 5.6% over the five years through 2025, reaching €101.8 billion. The industry has navigated significant volatility over the past five years, underpinned by huge fluctuations in energy prices across the continent. A surge in natural gas prices stemming from Russia’s full-scale invasion of Ukraine spurred a significant hike in input costs incurred by industry operators, contributing to strong revenue growth over the two years through 2022. Profitability took a hit as a result of rising input costs; however, long-term supply contracts, and an accelerated diversification away from combustion sources prevented widespread losses. Revenue has since dropped-off in line with tumbling natural gas prices, though once again, the long-term nature of contracts has limited the decline. Revenue is set to inch up by 0.6% in the current year. Revenue is forecast to grow at a compound annual rate of 4.9% over the five years through 2030, reaching €129.1 billion. Ongoing urbanisation and supportive government policy is set to contineu to drive increased uptake of district heating and cooling solutions. The transition from combustion sources to renewables is essential as the industry seeks to position itself as a key enabler towards the continents climate targets. The deployment of large-scale heat pumps represents the most viable method of decarbonising district heating and cooling networks in the coming years, though significant investment will be required in order to retrofit existing systems and build new facilities, with huge capital requirements set to drive up capital expenditure.

In 2024, Italy and Spain were two of the countries with the highest demand for air conditioning devices in Europe. The demand of ACs in Italy amounted to roughly ***** million units that year, with Spain having a demand for those devices of roughly ******* million units.

Europe HVAC Market is Segmented by Equipment (Air-Conditioning/Ventilation Equipment, and Heating Equipment), End-User Industry (Residential, Commercial, Industrial and Manufacturing, and More), Installation Type (New Construction, and Retrofit/Replacement), Distribution Channel (OEM-Installer Networks, Wholesale/Distributor, and More), and Country (Germany, United Kingdom, France, Italy, Spain, Russia, Netherlands, and More).

The European air conditioning equipment market is experiencing robust growth, driven by rising temperatures, increasing urbanization, and stringent energy efficiency regulations. The market, estimated at €XX million in 2025 (assuming a logical estimation based on available CAGR and industry trends for missing market size data), is projected to exhibit a Compound Annual Growth Rate (CAGR) of 5.78% from 2025 to 2033. This growth is fueled by several key factors. Firstly, the escalating frequency and intensity of heatwaves across Europe are increasing the demand for residential and commercial air conditioning systems. Secondly, the ongoing trend of urbanization is leading to higher population densities in cities, further boosting the need for effective climate control solutions. Finally, increasingly stringent environmental regulations are encouraging the adoption of energy-efficient air conditioning technologies, such as those with high SEER ratings and use of eco-friendly refrigerants. Key players like Whirlpool Corp, Carrier Global Corporation, and Daikin Industries Limited are actively shaping the market through innovations and strategic partnerships. However, market expansion is not without challenges. Rising raw material costs and supply chain disruptions pose significant restraints. Furthermore, the initial investment cost associated with installing air conditioning systems can be a barrier for certain segments of the market. Despite these hurdles, the long-term outlook for the European air conditioning equipment market remains positive, driven by strong underlying demographic and climatic trends. Market segmentation reveals significant opportunities in both residential and commercial sectors, with further potential in specialized applications like data centers and industrial settings. Future growth will depend on manufacturers' ability to innovate and deliver affordable, energy-efficient, and environmentally sustainable solutions to meet the growing demands of a warming Europe. Key drivers for this market are: Growing Smart Cities in the Region, Replacement of Existing Equipment with Better Performing Ones. Potential restraints include: High Costs of Equipment. Notable trends are: Industrial is Expected to Grow at a Signficant Rate.

Learn about the growing market for window and wall air conditioning systems in the European Union, with a projected increase in market volume to 14M units and market value to $4.8B by 2035.

The European HVAC market, valued at €28.67 billion in 2025, is projected to experience robust growth, exhibiting a Compound Annual Growth Rate (CAGR) of 6.20% from 2025 to 2033. This expansion is driven by several key factors. Stringent energy efficiency regulations across European nations are compelling building owners and occupants to upgrade their existing HVAC systems to more energy-efficient models, boosting demand. Furthermore, the rising prevalence of smart home technologies and the increasing adoption of building automation systems are contributing to market growth, as these systems integrate seamlessly with modern HVAC equipment for optimized energy management and enhanced user experience. The burgeoning construction sector, particularly in commercial and residential segments across major European economies like Germany, the UK, and France, further fuels market expansion. Growing awareness of indoor air quality (IAQ) and the subsequent demand for advanced air filtration and ventilation solutions also play a crucial role. Competition among major players like Daikin, Bosch, Mitsubishi Electric, and Carrier is intensifying, fostering innovation and driving down costs, thus making HVAC solutions more accessible. However, certain restraints are expected to slightly temper the market's growth trajectory. Economic fluctuations and potential supply chain disruptions could impact the availability and pricing of raw materials and components, potentially affecting the overall market expansion. Furthermore, the high initial investment cost associated with installing advanced HVAC systems might deter some potential customers, particularly in the residential sector. Nevertheless, the long-term benefits of energy savings and improved comfort levels are expected to outweigh the initial investment costs, ensuring sustained market growth. The market segmentation, encompassing diverse equipment types (air conditioning, heating) and end-user industries (residential, commercial, industrial), presents ample opportunities for specialized players to cater to distinct market needs, fostering further growth and diversification within the European HVAC landscape. Recent developments include: March 2024: Daikin announced the acquisition of BKF Klima in Denmark to drive the region's carbon reduction efforts and expand installer upskilling opportunities. The company will also open two new facilities, a Daikin Installer Training Center and a Daikin Experience Center for consumers, at Daikin's new offices in Brondby, Denmark. This strategic acquisition will enable Daikin to further leverage its extensive research and development expertise in low-carbon HVAC solutions for the region., January 2024: Carrier acquired Viessmann Climate Solutions from the Viessmann Group. Through this acquisition, the company will strengthen its position in intelligent climate and energy solutions. The acquisition of Viessmann Climate Solutions strengthens Carrier’s position as a digitally enabled, end-to-end scalable, sustainable energy solutions provider that addresses all renewable, cooling, heating, solar PV, battery storage, and energy management requirements for the home.. Key drivers for this market are: Supportive Government Regulations Like Incentives for Saving Energy Through Tax Credit Programs, Increasing Demand for Energy-efficient Devices. Potential restraints include: Supportive Government Regulations Like Incentives for Saving Energy Through Tax Credit Programs, Increasing Demand for Energy-efficient Devices. Notable trends are: The Commercial Segment is to be the Fastest-growing End-user Verticals.

Plumbing, heating and air conditioning installation revenue is forecast to grow at a compound annual rate of 2.2% over the five years through 2025 to €273.6 billion. The revenue of plumbing and HVAC contractors is closely tied to construction sector cycles and generally aligns with broader economic and investment trends. Since the pandemic, weak economic conditions, highlighted by rampant inflation and supply chain disruptions, have driven up construction material costs, squeezing investment budgets, particularly in the commercial market, as customers aim to conserve cash. Also, persistent inflationary pressures have further constrained revenue opportunities as central banks have raised base rates, leading to increased borrowing costs and further restricting new investments in construction. In 2024, inflated interest rates are expected to continue to weigh on the housing market, contributing to weaker house prices and hindering demand from residential property developers. Nonetheless, demand from infrastructure construction and utility companies will remain resilient due to the essential nature of plumbing and HVAC systems. This will also keep demand for repair and maintenance services from the commercial market fairly strong, especially where these systems are business-critical. In 2025, although inflation is easing and central banks are reducing interest rates, economic uncertainty persists due to ongoing supply chain issues that continue to drive up construction project costs, limiting revenue potential for industry contractors. Despite these challenges, the push for building decarbonisation is creating significant income opportunities for heat pump installers. Revenue is forecast to increase by 2.5% in 2025. Over the five years through 2030, revenue is forecast to expand at a compound annual rate of 6.4% to €372.6 billion. Easing inflationary pressures will translate into recovering economic sentiment, supporting renewed demand from commercial and residential clients alike. Continue public investment into infrastructure projects and public buildings, like schools and hospitals, will also support demand for plumbing and HVAC installation services. The provision of repair and maintenance services is also slated to remain healthy. Driven by the EU Green Deal’s targets, HVAC companies will continue to innovate their services, providing more energy-efficient solutions.

In 2021, the demand for air conditioning devices in Europe amounted to approximately *** million units, the highest number of the past decade. Within the observed period, demand for air conditioning increased steadily since 2015, with the year 2020 marking the only significant exception to this general upward trend when only approximately *** million units were sold.

The Germany HVAC Market was valued at USD 4.19 Billion in 2024 and is expected to reach USD 5.94 Billion by 2030 with a CAGR of 6.06%

Pages	70
Market Size	2024: USD 4.19 Billion
Forecast Market Size	2030: USD 5.94 Billion
CAGR	2025-2030: 6.06%
Fastest Growing Segment	Central Air Conditioning Systems
Largest Market	Southwest
Key Players	1. Bosch Thermotechnik GmbH 2. Vaillant GmbH 3. Daikin Europe N.V 4. Danfoss A/S 5. Ingersoll-Rand European Holding Company B.V 6. Carrier Corporation 7. CIAT Air Conditioners 8. Ferroli Limited 9. Midea Europe GmbH 10. Mitsubishi Electric Europe B.V.

Europe's Air conditioning connection components market will be USD XX million in 2024 and will grow at a compound annual growth rate (CAGR) of 7.5% from 2024 to 2031. High demand in the industrial sector is expected to aid the sales to USD XX million by 2031

The European Union's window and wall air conditioning market is on the rise, driven by increasing demand for self-contained and split-systems. Market performance is expected to grow steadily over the next decade, with a projected volume of 14M units and a value of $4.8B by 2035.