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.

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 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.

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

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.

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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 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 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 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.

Europe Commercial HVAC Market size was valued at USD 69.3 Billion in 2024 and is projected to reach USD 126.4 Billion by 2032, growing at a CAGR of 7.8% during the forecast period 2026-2032.

Europe Commercial HVAC Market Drivers

Growth in Commercial Real Estate and Infrastructure Development: The expansion of office spaces, shopping malls, hotels, hospitals, and industrial facilities across Europe is increasing the demand for advanced HVAC solutions. Countries like Germany, the UK, and France are witnessing significant investments in commercial real estate, logistics hubs, and data centers, all requiring high-performance climate control systems.

The rising construction of green buildings and LEED-certified commercial properties further drives demand for eco-friendly and energy-efficient HVAC systems.

Increased Demand for Indoor Air Quality (IAQ) Solutions: Post-pandemic, businesses and institutions are focusing on improving indoor air quality to prevent airborne diseases and ensure a healthier work environment. The demand for advanced air purification technologies, HEPA filters, UV air disinfection, and ventilation upgrades has increased across corporate offices, healthcare facilities, and retail spaces.

Regulations such as the EU Indoor Air Quality (IAQ) guidelines and workplace safety norms are pushing businesses to modernize HVAC systems with enhanced filtration, air circulation, and humidity control.

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HVAC Services Market Size 2025-2029

The hvac services market size is valued to increase USD 46.04 billion, at a CAGR of 8.8% from 2024 to 2029. Rapidly growing surface temperature will drive the hvac services market.

Major Market Trends & Insights

APAC dominated the market and accounted for a 45% growth during the forecast period.
By Service Type - Air conditioning services segment was valued at USD 35.94 billion in 2023
By End-user - Non-residential segment accounted for the largest market revenue share in 2023

Market Size & Forecast

Market Opportunities: USD 87.92 million
Market Future Opportunities: USD 46036.80 million
CAGR : 8.8%
APAC: Largest market in 2023

Market Summary

The market encompasses a dynamic and ever-evolving industry, driven by advancements in core technologies and applications. Rapidly growing sectors include the adoption of surface temperature advanced monitoring systems and intelligent technologies, which are transforming the way businesses and households manage their climate control needs. These innovations offer significant opportunities for market growth, yet face challenges from fluctuating prices of HVAC system raw materials. With the increasing demand for energy efficiency and sustainability, service types such as maintenance, repair, and installation continue to be in high demand.
According to recent reports, The market is expected to account for over 50% of the total HVAC market share by 2025. This underscores the importance of staying informed about the latest trends and developments in this continuously evolving sector.

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

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How is the HVAC Services Market Segmented and what are the key trends of market segmentation?

The hvac services 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.

Service Type

  Air conditioning services
  Heating services
  Ventilation services


End-user

  Non-residential
  Residential


Distribution Channel

  Online
  Offline


Geography

  North America

    US
    Canada


  Europe

    France
    Germany
    Italy
    UK


  APAC

    China
    India
    Japan
    South Korea


  Rest of World (ROW)

By Service Type Insights

The air conditioning services segment is estimated to witness significant growth during the forecast period.

Air conditioning systems have become an essential component of modern indoor spaces, with their application extending to various sectors including residential, commercial, and industrial buildings. The global market for HVAC services is experiencing significant growth due to the increasing demand for energy-efficient solutions, integration of building automation systems, and the expanding construction industry. Energy efficiency ratings play a crucial role in the selection of HVAC systems, with building energy modeling and thermal comfort standards guiding the design process. Humidity control systems, cooling system efficiency, and preventive maintenance schedules are essential considerations for maintaining optimal indoor environments. Heating system capacity and HVAC system upgrades are key areas of focus for businesses seeking to improve energy efficiency and reduce operational costs.

Air filtration systems, chilled water systems, and smart HVAC controls are increasingly popular solutions for enhancing indoor air quality and optimizing energy usage. The market for HVAC services is expected to grow substantially in the coming years, with a significant increase in demand from emerging markets. Preventive maintenance schedules, heat pump technology, and airflow optimization techniques are some of the trends driving this growth. Maintenance contract options and the HVAC equipment lifecycle are important factors influencing market dynamics. Thermal insulation materials, refrigeration cycle analysis, commissioning and testing, boiler system maintenance, energy monitoring software, and variable refrigerant flow are some of the key areas of innovation in the HVAC industry.

Retrofit projects, ductwork design standards, refrigerant charge calculations, air quality monitoring, and demand-controlled ventilation are also gaining traction as businesses seek to optimize their HVAC systems and reduce energy consumption. According to recent market research, The market is projected to grow by 15% in the next three years. Additionally, the market for building automation systems is expected to expand by 20% during the same period. These trends reflect the ongoing evolution of the HVAC industry and the increasing importance of energy efficiency and indoor environmental quality in modern building

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.

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 HVAC market is expected to add more than USD 16 Billion from 2024–2029. Europe's diverse climate necessitates a variety of HVAC solutions.