The United Kingdom air conditioner market was valued at USD 1.25 Billion in 2024. The industry is expected to grow at a CAGR of 6.30% during the forecast period of 2025-2034 to attain a valuation of USD 2.30 Billion by 2034.

The United Kingdom Commercial HVAC Market Report is Segmented by Type of Component (HVAC Equipment [Heating Equipment, Air Conditioning/Ventilation Equipment], and HVAC Services) and End-User Industry (Hospitality, Commercial Buildings, Public Buildings, and Others). The Report Offers Market Forecasts and Size in Value (USD) for all the Above Segments.

In 2021, the demand for air conditioning devices in the United Kingdom (UK) amounted to approximately *** thousand units, the highest number of the past decade. Within the observed period, demand for air conditioning grew incrementally, with the year 2020 marking the only significant exception to this general upward trend when only approximately *** thousand units were sold.

The United Kingdom HVAC Market is Segmented by Type of Component (HVAC Equipment, HVAC Services), End-User Industry (Residential, Commercial, Industrial), Installation Type (New Construction, Retrofit / Replacement), Capacity Range (Up To 5 KW, 5 – 20 KW, 20 – 50 KW, and More). The Market Forecasts are Provided in Terms of Value (USD).

The United Kingdom Air Conditioner market is expected to reach a market size of more than USD 4 Billion by 2028

The United Kingdom commercial HVAC market presents a robust growth opportunity, projected to be worth £1.83 billion in 2025 and expanding at a Compound Annual Growth Rate (CAGR) of 6.14% from 2025 to 2033. This growth is fueled by several key drivers. Stringent energy efficiency regulations, like those mandated by the UK Green Building Regulations, are pushing businesses to upgrade their outdated HVAC systems to more energy-efficient models. Furthermore, the increasing focus on sustainable building practices and reducing carbon footprints is driving demand for environmentally friendly HVAC solutions, such as those incorporating renewable energy sources and advanced control systems. The expansion of the commercial real estate sector, particularly in urban areas, also contributes significantly to market growth, creating a continuous need for new HVAC installations and maintenance services. Within the market segments, HVAC equipment (heating and air conditioning/ventilation) commands the largest share, followed by HVAC services. The hospitality, commercial buildings, and public buildings sectors are the primary end-users, contributing significantly to the overall market size. While challenges exist, such as the initial high investment costs associated with new technologies and potential supply chain disruptions, the long-term benefits of improved energy efficiency, reduced operational costs, and enhanced environmental performance are overriding these obstacles and ensuring continued market expansion. The market segmentation reveals a strong demand across various commercial sectors. Hospitality businesses are investing heavily in modern HVAC systems to ensure optimal guest comfort and operational efficiency. Commercial buildings are upgrading to improve indoor air quality and energy performance, impacting the bottom line and tenant satisfaction. Public buildings are prioritizing energy-efficient HVAC solutions to meet sustainability goals and reduce their carbon footprint. The competitive landscape is characterized by both global giants like Johnson Controls, Daikin, and Carrier, and regional players, indicating a diverse range of technology offerings and service capabilities available in the UK market. Continuous innovation in HVAC technology, including smart building integration and the adoption of Building Management Systems (BMS), is expected to further drive market expansion over the forecast period. The robust growth trajectory, driven by regulatory mandates, sustainability concerns, and market expansion, positions the UK commercial HVAC market as a lucrative investment and growth opportunity in the coming years. Recent developments include: March 2024 - Daikin Industries Ltd announced the launch of the next generation ‘All Seasons’ Perfera home air-to-air heat pump, also referred to as air conditioning. The indoor and outdoor units of the Perfera system have been fully redesigned to enhance the user experience, making them both easy to install and easy to use., October 2023 - Panasonic developed a new central heat pump system, the Interior 1.5 Ton Central Heat Pump, for residential space heating and cooling. The new product comes in two versions: the Interior Low-Carbon Hybrid Heating System with an outdoor heat pump unit and an indoor-cased A-coil, and the Interios All-electric Central Heat Pump System, which is an all-electric system featuring an outdoor heat pump unit and an all-electric air handler.. Key drivers for this market are: Growing Commercial Construction in Major Emerging Economies, Increasing Demand For Energy Efficient Devices. Potential restraints include: Growing Commercial Construction in Major Emerging Economies, Increasing Demand For Energy Efficient Devices. Notable trends are: Heating Equipment is Expected to Grow with Significant CAGR.

The article discusses the increasing demand for window or wall air conditioning systems in the UK, with a forecasted growth in market consumption over the next decade. Market performance is expected to slow down, but still experience a positive trend in both volume and value terms.

In 2023, the UK HVAC Systems Market reached a value of USD 6.95 billion, and it is projected to surge to USD 9.08 billion by 2030.

The United Kingdom HVAC market, valued at approximately £2.52 billion in 2025, is projected to experience robust growth, driven by several key factors. Increasing energy efficiency regulations, coupled with a growing awareness of sustainability amongst both businesses and homeowners, are fueling demand for advanced HVAC systems. The trend towards smart home technology and building automation is also significantly impacting the market, with the adoption of intelligent thermostats and connected devices becoming increasingly prevalent. Furthermore, the UK's aging building stock necessitates significant renovations and upgrades, contributing to the market's expansion. The commercial sector, encompassing offices, retail spaces, and hospitality venues, is a significant driver, with continuous investments in energy-efficient solutions to reduce operational costs and meet environmental targets. The residential segment is also witnessing growth, driven by rising disposable incomes and improved home insulation standards that enhance the effectiveness of HVAC systems. While the initial investment costs for high-efficiency equipment can be a restraint, the long-term cost savings associated with reduced energy consumption are incentivizing adoption. Competition amongst established players like Johnson Controls, Carrier, and Daikin, alongside the emergence of innovative smaller companies, fosters market dynamism and contributes to the overall expansion. The forecast period (2025-2033) anticipates a compound annual growth rate (CAGR) of 4.70%, indicating sustained market expansion. The market is segmented by component type (HVAC equipment – heating, air conditioning/ventilation; HVAC services) and end-user industry (residential, commercial, industrial). While precise market share data for each segment within the UK is unavailable, the ongoing trend suggests the commercial sector will continue to hold a larger share due to its higher volume of installations and upgrades. The growing emphasis on sustainable practices within the UK construction and renovation industries will likely shift a greater proportion of market share towards energy-efficient HVAC equipment, driving innovations in heat pump technology and smart building solutions. This market growth presents significant opportunities for established and emerging players alike, demanding strategies focusing on product innovation, energy efficiency, and sustainable solutions. Recent developments include: April 2024: Johnson Controls introduced a new line of heat pumps designed for use in residential settings. The York YH5 15.2 SEER2 2-Stage heat pumps aim to deliver year-round comfort and energy efficiency. These systems boast a seasonal energy efficiency ratio (SEER2) of 16 and a heating seasonal performance factor (HSPF2) of 8. The YH5 heat pump includes options for accessing the compressor from the top or side and a control box that swings out for easy access., January 2024: Bosch Home Comfort Group, a division of the German industrial company Robert Bosch GmbH, introduced a new residential air-to-air heat pump designed for cold climate heating. This innovative pump stands out by targeting regions with severe winters, a departure from the norm. While air-source heat pumps are typically known for their affordability and easy installation, this model offers cooling and heating functionalities.. Key drivers for this market are: Supportive Government Regulations Including Incentives for Saving Energy through Tax Credit Programs, Increasing Demand For Energy Efficient Devices; Increased Construction And Retrofit Activity To Aid Demand. Potential restraints include: Supportive Government Regulations Including Incentives for Saving Energy through Tax Credit Programs, Increasing Demand For Energy Efficient Devices; Increased Construction And Retrofit Activity To Aid Demand. Notable trends are: The Residential Sector is Expected to Witness Significant Growth.

The United Kingdom HVAC market is projected to grow at a CAGR of 7.50% between 2025 and 2034. The market is being driven by the expansion of retail stores and the growing focus on sustainability.

UK HVAC Market Share, Size, By Product Type Central Air Conditioning Systems, By End Use Sector, By Region, By Company, Competition, Forecast & Opportunities, 2028

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Market Size
Forecast Market Size
CAGR
Fastest Growing Segment
Largest Market
Key Players

Discover the expected growth of the non-window or wall air conditioning market in the UK over the next decade. With forecasts showing an increase in both market volume and value, find out what the future holds for this industry.

This industry operates businesses that provide heating, ventilation and air-conditioning (HVAC) services to residential and commercial customers.

Market Size statistics on the Plumbing, Heating & Air Conditioning Installation industry in the UK

Plumbing, heating and air conditioning installers’ revenue is forecast to climb at a compound annual rate of 2.8% to £24 billion over the five years through 2024-25. Plumbing and HVAC contractors’ revenue depends on construction sector cycles and tends to follow economic and investment trends. Due to persistent inflation and constrained budgets, revenue prospects have suffered from economic uncertainty, which has weighed on commercial and private residential spending. However, supportive government policies to bolster the UK's housing stock and improve public infrastructure have created tender opportunities, driving revenue up. Pandemic-related disruptions caused revenue to drop by 15.5% in 2020-21. Following a bounce back in 2021-22, economic conditions worsened in 2022-23 due to further disruptions caused by the Russia-Ukraine conflict, which led to significant inflationary pressures. Plumbing and HVAC contractors grappled with rising material costs and energy prices, resulting in a hike in service prices, which hindered sales prospects and profitability. Rising interest rates to combat inflationary pressures have also caused a slowdown in private residential and commercial construction. Nevertheless, repair and maintenance work has remained resilient in the face of faltering economic conditions due to the essential nature of plumbing and HVAC services in maintaining the functioning of utility systems in residential and commercial properties. Moreover, government policies have boosted construction activity, particularly in the residential and public infrastructure market, supporting tender opportunities for plumbers and HVAC contractors. In 2024-25, as inflation slows and budgets widen in key markets, like residential, as homeowners' financial burdens ease, revenue is expected to swell by 3.3%. Over the five years through 2029-30, revenue is anticipated to climb at a compound annual rate of 3.8% to £28.8 billion. Supportive government policies will continue driving strong demand from the residential market. Public non-residential construction is set to benefit from government support, while commercial construction will recover in line with economic conditions. Technological advancements in smart installations and renewable energy integration will present lucrative opportunities for plumbing and HVAC contractors, with those that embrace technological innovations well-positioned to capitalise on solid revenue prospects.

The United Kingdom commercial HVAC market, valued at approximately £1.83 billion in 2025, is projected to experience robust growth, driven by a confluence of factors. Stringent energy efficiency regulations, such as those implemented under the UK's commitment to net-zero carbon emissions by 2050, are compelling businesses to upgrade their existing systems to more energy-efficient HVAC solutions. The increasing prevalence of smart building technologies, incorporating advanced controls and monitoring systems, further fuels market expansion. Growth is also being spurred by the ongoing construction of new commercial buildings and renovations within existing structures, particularly in urban areas experiencing population growth and economic expansion. The market is segmented by component type (HVAC equipment, encompassing heating and air conditioning/ventilation, and HVAC services) and end-user industry (hospitality, commercial buildings, public buildings, and others). The hospitality sector, with its continuous need for climate control, is a major contributor to market demand. Competitive pressures among established players like Johnson Controls, Daikin, and Carrier, along with the emergence of innovative technologies and service providers, are shaping market dynamics. Despite the positive outlook, certain challenges exist. Supply chain disruptions and rising material costs, particularly impacting the availability and pricing of key components, pose a potential restraint on market growth. Furthermore, the initial investment costs associated with upgrading or replacing existing HVAC systems may deter some businesses, especially small and medium-sized enterprises. However, long-term cost savings from improved energy efficiency and reduced operational expenses are likely to offset these initial investments, encouraging broader adoption of advanced HVAC technologies. The forecast period (2025-2033) indicates a continued positive trajectory, driven by ongoing technological advancements, regulatory pressures, and increasing awareness of sustainability. The consistent CAGR of 6.14% suggests a consistently expanding market, particularly within the segments focusing on energy-efficient and smart solutions. Recent developments include: March 2024 - Daikin Industries Ltd announced the launch of the next generation ‘All Seasons’ Perfera home air-to-air heat pump, also referred to as air conditioning. The indoor and outdoor units of the Perfera system have been fully redesigned to enhance the user experience, making them both easy to install and easy to use., October 2023 - Panasonic developed a new central heat pump system, the Interior 1.5 Ton Central Heat Pump, for residential space heating and cooling. The new product comes in two versions: the Interior Low-Carbon Hybrid Heating System with an outdoor heat pump unit and an indoor-cased A-coil, and the Interios All-electric Central Heat Pump System, which is an all-electric system featuring an outdoor heat pump unit and an all-electric air handler.. Key drivers for this market are: Growing Commercial Construction in Major Emerging Economies, Increasing Demand For Energy Efficient Devices. Potential restraints include: Growing Commercial Construction in Major Emerging Economies, Increasing Demand For Energy Efficient Devices. Notable trends are: Heating Equipment is Expected to Grow with Significant CAGR.

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 UK HVAC market is projected to be valued at more than more than 10 Billion USD by 2029 due to retrofitting initiatives, focus on energy-efficient buildings, and extreme weather

The UK air conditioning machine market dropped slightly to $1.2B in 2024, reducing by -2.5% against the previous year. Overall, consumption, however, showed a mild curtailment. As a result, consumption attained the peak level of $1.5B. From 2018 to 2024, the growth of the market remained at a lower figure.

Learn about the increasing demand for air conditioning machines without refrigeration unit in the UK and how the market is expected to grow over the next decade.