Europe HVAC Equipment 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, and More).

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.

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.

The Europe HVAC market size was valued at USD 68.80 billion in 2024 and is expected to reach USD 99.27 billion by 2030, growing at a CAGR of 6.30% during the forecast period.

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.

Unlock data-backed intelligence on Europe HVAC Market, size at USD 64.35 billion in 2023, showcasing trends and key players driving growth.

The Europe HVAC Services Market Report is Segmented by Type of Service (Maintenance and Repair, Installation, Smart-Connected OandM), Implementation Type (New Construction, Retrofit Buildings), End-User Industry (Residential, Non-Residential Including Commercial, Industrial, Public and Institutional), and Geography. The Market Forecasts are Provided in Terms of Value (USD).

The size of the Europe HVAC market was valued at USD XXX Million in 2023 and is projected to reach USD XXX Million by 2032, with an expected CAGR of 6.20% during the forecast period. 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: , High Cost of Implementation. Notable trends are: The Commercial Segment is to be the Fastest-growing End-user Verticals.

The Europe HVAC Market size was valued at USD 82.42 Billion in 2024 and is projected to reach USD 135.79 Billion by 2032, growing at a CAGR of 6.8% from 2026 to 2032.

Key Market Drivers:

Rising Demand for Energy-Efficient Systems: The demand for energy-efficient HVAC systems is rapidly rising across Europe as governments enforce stricter environmental standards. In 2023, the European Commission reported that buildings account for around 40% of the EU’s total energy consumption, leading to increased investments in energy-efficient technologies. Major players like Daikin and Siemens are responding with innovative solutions that comply with the EU's energy directives. These solutions help reduce both energy usage and carbon footprints, making them highly attractive to consumers and businesses alike.

Growing Focus on Smart Buildings: The growing focus on smart building technologies is driving the HVAC market forward in Europe.

The Europe HVAC market was valued at USD 44.93 Billion in 2024. The industry is expected to grow at a CAGR of 5.60% during the forecast period of 2025-2034 to attain a valuation of USD 77.48 Billion by 2034.

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

The Europe heating, ventilation, and air conditioning (HVAC) equipment market size is valued to increase USD 10.8 billion, at a CAGR of 5.57% from 2023 to 2028. Growth in data centers fueling market growth will drive the Europe heating, ventilation, and air conditioning (hvac) equipment market.

Major Market Trends & Insights

By End-user - Non-residential segment was valued at USD 26.20 billion in 2022
By Product - Air conditioning equipment segment accounted for the largest market revenue share in 2022

Market Size & Forecast

Market Opportunities: USD 61.35 billion
Market Future Opportunities: USD 10.80 billion
CAGR from 2023 to 2028 : 5.57%

Market Summary

The market is a dynamic and evolving sector, driven by advancements in core technologies and applications. With the increasing adoption of energy-efficient solutions and the growing focus on predictive maintenance, the market is poised for significant growth. According to recent reports, the European HVAC market is expected to account for over 30% of the global market share by 2025. However, the market faces challenges such as high market competition from APAC companies and stringent regulations. Despite these hurdles, opportunities abound, particularly in the data center sector, where the demand for reliable and efficient HVAC systems is surging due to the expansion of cloud computing and the increasing number of internet users.
Overall, the European HVAC Equipment Market is a vibrant and ever-changing landscape, offering numerous opportunities for stakeholders and investors alike.

What will be the Size of the Europe Heating, Ventilation, And Air Conditioning (Hvac) Equipment Market during the forecast period?

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How is the Heating, Ventilation, And Air Conditioning (HVAC) Equipment in Europe Market Segmented and what are the key trends of market segmentation?

The heating, ventilation, and air conditioning (hvac) equipment in Europe 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

  Non-residential
  Residential


Product

  Air conditioning equipment
  Heating equipment
  Ventilation equipment


Geography

  Europe

    France
    Germany
    Italy
    UK

By End-user Insights

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

The European HVAC Equipment Market is characterized by continuous evolution and ongoing activities, with a focus on energy efficiency, air quality, and safety. Smart HVAC controllers and building automation systems are increasingly integrated to optimize HVAC load calculations and improve system diagnostics. Air filtration technology and thermal comfort modeling are essential for maintaining healthy indoor environments and ensuring regulatory compliance with building energy codes. In the non-residential segment, industries such as oil and gas, power, pulp and paper, water and wastewater treatment, chemical and petrochemical, mining and metal, pharmaceutical, and food and beverages account for the largest share. The increasing risk of dust-related explosions in these industries necessitates the use of explosion-proof HVAC systems.

This need is further fueled by the growing number of accidents in explosion-prone environments. As a result, the market is witnessing significant growth in explosion-proof HVAC systems, including air conditioning refrigerant systems, ventilation system designs, and heating system controls. Additionally, the chiller plant operation, heat exchanger efficiency, and HVAC commissioning process are undergoing advancements to enhance system efficiency and reduce energy consumption. Key trends include the adoption of variable refrigerant flow, demand-controlled ventilation, and pneumatic control systems. The market is also witnessing the emergence of thermal storage systems, cooling tower performance optimization, and heat pump technology with energy recovery ventilation.

Overall, the European HVAC Equipment Market is poised for continued growth as it addresses the evolving needs of industries for energy efficiency, safety, and indoor air quality.

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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.

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Market Dynamics

Our researchers analyzed the data with 2023 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.

The European HVAC market is witnessing significant growth

The size of the Europe Commercial HVAC Market market was valued at USD 8.22 Million in 2023 and is projected to reach USD 13.37 Million by 2032, with an expected CAGR of 7.20% during the forecast period. Recent developments include: May 2024: Lennox International Inc., a company offering climate control solutions, revealed the launch of a new range of HVAC products, including refrigerants with low global warming potential (GWP). This move was in line with the company's dedication to sustainability and in preparation for the 2025 requirements that will require the utilization of refrigerants with low GWP. The new series will consist of light commercial HVAC systems that will use R-454B refrigerant, which has a lower global warming potential of up to 78% compared to standard refrigerants., March 2024: Midea Building Technologies presented its complete range of heating solutions at MCE 2024, including the innovative MARS series R290 commercial heat pump. This heat pump received Intertek's highly regarded Ultra-High-Temperature Hot Water Performance Certification. Midea Building Technologies introduced the iEasyEnergy energy management system to meet the changing demands for clean heating, energy management, and digital integration in the European market. This system utilizes advanced control technology based on heat pumps and dynamic algorithms to help European households improve their building energy efficiency ratings, qualify for more subsidies, and reach up to 90% energy self-sufficiency.. Key drivers for this market are: Increased Construction And Retrofit Activity to Aid Demand, Supportive Government Regulations Including Incentives for Saving Energy through Tax Credit Programs. Potential restraints include: Higher Installation Costs of Energy-efficient HVAC Systems, Shortage of Skilled Labor. Notable trends are: HVAC Equipment to Witness a Significant Growth.

In 2021, the size of the automotive heating, ventilation, and air conditioning (HVAC) market in Europe reached a value of **** billion U.S. dollars. It is projected that the market size will increase with a compound annual growth rate (CAGR) of **** percent from 2022 to 2027, reaching a value of **** billion U.S. dollars in 2027.

The Report Covers Europe HVAC Controls Systems Manufacturers and the Market is Segmented by Type (Standalone, Programmable and Thermostats), End User Vertical (Commercial, Residential and Industrial), and Country (Germany, Italy, France, UK and Rest of Europe). The Report Offers Market Forecasts and Size in Value (USD) for all the Above Segments.

The Europe HVAC Services market is experiencing robust growth, with a market size of €14.68 billion in 2025 and a projected Compound Annual Growth Rate (CAGR) of 7.10% from 2025 to 2033. This expansion is driven by several key factors. Increasing concerns about energy efficiency and sustainability are pushing businesses and homeowners to adopt energy-saving HVAC systems and maintenance contracts. Stringent government regulations aimed at reducing carbon emissions are also creating demand for more efficient and environmentally friendly HVAC solutions. Furthermore, the rising prevalence of smart home technology and the integration of smart HVAC systems are boosting market growth. The aging infrastructure in many European countries requires significant upgrades and replacements, presenting further opportunities for HVAC service providers. Key players like Johnson Controls, Vaillant Group, and Daikin are leveraging technological advancements and strategic partnerships to expand their market share and cater to the evolving needs of consumers and businesses. Competition within the market is intense, with established players facing challenges from smaller, specialized service providers offering niche solutions. Pricing pressures and fluctuating energy costs can impact profitability. However, the long-term outlook remains positive, fueled by continued urbanization, economic growth in several European regions, and the ongoing need for reliable and efficient climate control solutions across residential, commercial, and industrial sectors. The market segmentation is likely diverse, encompassing various services like installation, maintenance, repair, and modernization, each catering to different customer segments and technological advancements. The market is expected to see continued innovation in areas such as smart controls, renewable energy integration, and predictive maintenance, enhancing the efficiency and sustainability of HVAC services. Key drivers for this market are: Increased Construction Activity, Growing Demand for Replacement and Retrofit Services. Potential restraints include: Data privacy and security concerns, High installation and maintenance costs. Notable trends are: The Residential Segment Holds Significant Market Share.

The European HVAC field device market is booming, projected to reach €9.61 billion by 2033 with a CAGR of 5.60%. This comprehensive analysis explores market drivers, trends, restraints, and key players across segments like control valves, sensors, and end-user industries. Discover growth opportunities in this expanding sector. Recent developments include: January 2023: SMACNA released its latest edition of the Fire, Smoke, and Radiation Damper Installation Guide for HVAC Systems. The latest development features a slew of new information regarding damper installations and updated ICC, UMC, and NFPA code references. The revised standard provides contractors, designers, and other industry professionals with all the information needed to install and inspect fire, smoke, and radiation dampers., January 2023: Equium, a French-based startup, developed a thermo-acoustic heat pump core that produces 3 kW to 4 kW of heat for every kilowatt of power it consumes. The new refrigerant-free device can generate up to 80 degrees Celsius of domestic hot water. The units can be scaled from 1 kW to 3 kW and are designed for residential applications.. Key drivers for this market are: Development of the Construction Market, Supportive Government Regulations Including Incentives for Saving Energy through Tax Credit Programs; The Emergence of IoT and Product Innovations to Aid Replacements. Potential restraints include: Development of the Construction Market, Supportive Government Regulations Including Incentives for Saving Energy through Tax Credit Programs; The Emergence of IoT and Product Innovations to Aid Replacements. Notable trends are: Residential Sector to have the Major Market Share.

The global commercial HVAC market, valued at $41.79 billion in 2025, is projected to experience robust growth, driven by increasing urbanization, rising construction activities in commercial sectors, and stringent government regulations promoting energy efficiency. The market's compound annual growth rate (CAGR) of 8.80% from 2025 to 2033 indicates significant expansion potential. Key drivers include the escalating demand for energy-efficient HVAC systems in commercial buildings like offices, hotels, and retail spaces, coupled with technological advancements such as smart HVAC solutions and the integration of IoT devices for improved control and monitoring. Growth is further propelled by the expanding hospitality and public building sectors, creating a strong demand for sophisticated climate control solutions. While the market faces some restraints, such as fluctuating raw material prices and potential supply chain disruptions, these are expected to be offset by the overall positive market trends and the continuous innovations in the industry. The market segmentation reveals a significant share held by HVAC equipment (heating and air conditioning/ventilation), followed by HVAC services. Geographically, North America and Europe currently dominate the market, but Asia is projected to witness substantial growth due to rapid infrastructural development and economic expansion. Major players like Johnson Controls, Daikin, Lennox, and Carrier are aggressively investing in research and development, strengthening their market positions through technological innovation and strategic partnerships. The forecast period (2025-2033) indicates a continued upward trajectory for the commercial HVAC market, with a projected market size exceeding $80 billion by 2033. This growth will be influenced by a number of factors. Increased focus on sustainable building practices and reduced carbon footprint are driving the adoption of green HVAC technologies. The ongoing development of energy-efficient solutions, such as heat pumps and variable refrigerant flow (VRF) systems, along with improved building automation systems, will further contribute to market expansion. Furthermore, the growing awareness of indoor air quality (IAQ) and the need for improved ventilation in commercial spaces are expected to fuel the demand for advanced HVAC systems with enhanced filtration and air purification capabilities. Competition among key players will likely intensify, driving innovation and offering diverse product choices to consumers. Commercial HVAC Market: A Comprehensive Analysis (2019-2033) This in-depth report provides a comprehensive analysis of the global commercial HVAC market, encompassing the period from 2019 to 2033. It offers invaluable insights into market size, growth drivers, challenges, and key trends, enabling businesses to make informed strategic decisions in this dynamic sector. The report utilizes data from the historical period (2019-2024), with 2025 serving as the base and estimated year, and projecting the forecast period (2025-2033). The market is segmented by type of component (HVAC equipment – including heating and air conditioning/ventilation equipment – and HVAC services), end-user industry (hospitality, commercial buildings, public buildings, and other end-user industries), and key players including Johnson Controls International PLC, Daikin Industries Ltd, Lennox International Inc, LG Electronics Inc, Danfoss A/S, Carrier Corporation, Midea Group Co Ltd, Robert Bosch GmbH, BDR Thermea Group, and Panasonic Corporation. Recent developments include: March 2024: Daikin announced the acquisition of BKF Klima in Denmark to drive Europe's carbon reduction efforts and expand installer upskilling opportunities. At Daikin's new offices in Brondby, Denmark, the company will also open two new facilities, including a Daikin Installer Training Center and a Daikin Experience Center for consumers. This strategic acquisition will enable Daikin to leverage its extensive research and development expertise in low-carbon HVAC solutions further., February 2024: Voltas announced the introduction of a new line of commercial air conditioning products for business space. A cooling capacity of 12-72 TR with eco-friendly refrigerants is available for the new Scroll Inverter Chillers. The product is enabled by the Internet of Things, is BMS-compatible, has silent operation, and is user-friendly as it can be used via a cell phone application. The company aims to further enhance its objective of promoting commercial spaces and the use of cutting-edge scroll technology to integrate energy-efficient solutions into its operations by means of this new line of inverter chillers.. Key drivers for this market are: Growing Commercial Construction in Major Emerging Economies, Increasing Demand For Energy Efficient Devices. Potential restraints include: Data privacy and security concerns, High installation and maintenance costs. Notable trends are: Air Conditioning /Ventilation Equipment Witnessed Increasing Demand.

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Commercial HVAC Market Size 2025-2029

The commercial HVAC market size is forecast to increase by USD 28.8 million, at a CAGR of 4.7% between 2024 and 2029.

The market is experiencing significant growth, driven by the increasing number of data centers and the emergence of smart and connected HVAC systems. The proliferation of data centers necessitates advanced cooling solutions to maintain optimal operating temperatures, leading to increased demand for Commercial HVAC systems. Furthermore, the integration of IoT technologies in HVAC systems enables remote monitoring, predictive maintenance, and energy efficiency, making them an attractive investment for businesses. However, the market faces formidable competition, with numerous players vying for market share. This intense competition necessitates continuous innovation and differentiation to gain a competitive edge.
Additionally, the integration of new technologies into HVAC systems can pose challenges, such as high implementation costs and the need for specialized expertise. Building management systems and IoT integration facilitate data analytics and remote monitoring, allowing for real-time performance optimization. Companies seeking to capitalize on market opportunities must focus on delivering cost-effective, energy-efficient, and technologically advanced solutions while navigating these challenges effectively. By staying abreast of market trends and addressing customer needs, businesses can position themselves for long-term success in the market.

What will be the Size of the Commercial HVAC Market during the forecast period?

Explore in-depth regional segment analysis with market size data - historical 2019-2023 and forecasts 2025-2029 - in the full report.
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The market continues to evolve, driven by the need for carbon footprint reduction, improved air filtration, and enhanced indoor air quality. HVAC systems, including air handlers, packaged units, and rooftop units, are being integrated with advanced technologies such as variable speed drives, flow sensors, and demand response programs. These innovations enable energy efficiency, optimized performance, and demand response capabilities. New construction projects and building renovations are embracing sustainable design, adhering to codes and standards, and implementing green building practices. HVAC systems are being modeled and simulated to ensure optimal energy usage and carbon footprint reduction.

Air conditioning systems are being augmented with air filtration and indoor air quality solutions, such as air purifiers, UV air treatment, and humidity sensors. Water systems are being optimized for energy efficiency and carbon footprint reduction through the use of heat pumps and cooling towers. Variable refrigerant flow and VAV systems are gaining popularity for their energy efficiency and ability to adapt to changing environmental conditions. Smart controls and building automation systems are being employed to enhance overall system performance and reduce energy consumption. Carbon dioxide monitoring and temperature sensors are becoming essential components of HVAC systems, ensuring optimal indoor air quality and maintaining a healthy environment for building occupants.

HVAC software and cloud-based platforms are facilitating the integration of these advanced technologies, enabling building owners and operators to make data-driven decisions and maximize their return on investment.

How is this Commercial HVAC Industry segmented?

The commercial HVAC industry research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in 'USD million' for the period 2025-2029, as well as historical data from 2019-2023 for the following segments.

Application

  Equipment
  Services


Type

  Heat pump
  Furnaces
  Boilers
  Unitary heaters


Technology

  Conventional HVAC systems
  Smart HVAC systems


Variant

  Retrofit and replacement
  New installation


Geography

  North America

    US
    Canada


  Europe

    France
    Germany
    UK


  Middle East and Africa

    UAE


  APAC

    China
    India
    Japan


  South America

    Brazil


  Rest of World (ROW)

By Application Insights

The Equipment segment is estimated to witness significant growth during the forecast period. HVAC equipment, which includes heating, ventilation, and air conditioning systems, is experiencing significant demand due to the construction boom in the Middle East and Asian economies. In Europe and North America, where harsh winters necessitate heating, underfloor heating (UFH) systems are increasingly popular due to their energy savings and minimal space requirement. Split systems, a type of air conditioning equipment, are also gaining traction due to their energy efficiency and flexibility. Cloud-based platforms and building management systems are revolutio

The European HVAC field device market is booming, projected to reach €6.12 billion in 2025 and grow at a CAGR of 5.60% until 2033. Driven by smart building technology and energy efficiency demands, this market offers significant opportunities. Learn more about market drivers, trends, and key players. Key drivers for this market are: Development of the Construction Market, Supportive Government Regulations Including Incentives for Saving Energy through Tax Credit Programs; The Emergence of IoT and Product Innovations to Aid Replacements. Potential restraints include: Dependence on Macro-economic Conditions, High Initial Cost of Energy Efficient Systems. Notable trends are: Residential Sector to have the Major Market Share.

In 2023, the Europe HVAC Systems Market reached a value of USD 40.95 billion, and it is projected to surge to USD 58.49 billion by 2030.