Europe HVAC Market Report and Forecast 2025-2034

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.

Europe HVAC Market Growth

The increasing demand for air conditioners and heat pumps in southern European countries, such as Italy, France, and Spain is expected to drive the market growth. The International Atomic Energy estimates that Europe can have nearly 520 million units of ACs by 2050, recording a fourfold increase from 130 million units in 2023. While the current penetration rate of ACs in Europe is merely 19% (significantly lower than countries like China, the USA, and Japan), it is expected that rising global temperature and climate change may impact the demand for HVAC systems, thereby driving theHVAC marketdevelopment.

Increasing investments into the commercialisation of new business models and the development of innovative heat pumps and low-carbon technologies are expected to contribute to the market expansion. In May 2024, the UK's Department of Energy Security and Net Zero created the Net Zero Innovation Portfolio, whereby funded the Heat Pump Ready Scheme with 5.3 million pounds to accelerate the development of solutions which simplify the process of heat pump installation and enhance the performance and safety levels of the device. By minimising the costs of lifetime ownership of heat pumps, their consumer appeal can be boosted, which, in turn, facilitates the market growth.

Europe HVAC Industry Segmentation

Europe HVAC Market Report and Forecast 2025-2034 offers a detailed analysis of the market based on the following segments:

Market Breakup by Equipment

• Heating _x000D_ _x000D_ Heat Pumps _x000D_ Furnaces _x000D_ Unitary Heaters _x000D_ _x000D_
• Heating _x000D_ _x000D_ Heat Pumps _x000D_ Furnaces _x000D_ Unitary Heaters _x000D_ _x000D_
• Ventilation _x000D_ _x000D_ Air-Handling Units _x000D_ Air Filters and Purifiers _x000D_ Ventilation Fans _x000D_ Dehumidifiers and Humidifiers _x000D_ Others _x000D_ _x000D_
• Cooling _x000D_ _x000D_ Unitary Air Conditioners _x000D_ VRF Systems _x000D_ Chillers _x000D_ Coolers _x000D_ Cooling Towers _x000D_ Others _x000D_ _x000D_
• Ventilation _x000D_ _x000D_ Air-Handling Units _x000D_ Air Filters and Purifiers _x000D_ Ventilation Fans _x000D_ Dehumidifiers and Humidifiers _x000D_ Others _x000D_ _x000D_
• Heating _x000D_ _x000D_ Heat Pumps _x000D_ Furnaces _x000D_ Unitary Heaters _x000D_ _x000D_
• Ventilation _x000D_ _x000D_ Air-Handling Units _x000D_ Air Filters and Purifiers _x000D_ Ventilation Fans _x000D_ Dehumidifiers and Humidifiers _x000D_ Others _x000D_ _x000D_
• Cooling _x000D_ _x000D_ Unitary Air Conditioners _x000D_ VRF Systems _x000D_ Chillers _x000D_ Coolers _x000D_ Cooling Towers _x000D_ Others _x000D_ _x000D_
• Cooling _x000D_ _x000D_ Unitary Air Conditioners _x000D_ VRF Systems _x000D_ Chillers _x000D_ Coolers _x000D_ Cooling Towers _x000D_ Others _x000D_ _x000D_
• Heating _x000D_ _x000D_ Heat Pumps _x000D_ Furnaces _x000D_ Unitary Heaters _x000D_ _x000D_
• Ventilation _x000D_ _x000D_ Air-Handling Units _x000D_ Air Filters and Purifiers _x000D_ Ventilation Fans _x000D_ Dehumidifiers and Humidifiers _x000D_ Others _x000D_ _x000D_
• Cooling _x000D_ _x000D_ Unitary Air Conditioners _x000D_ VRF Systems _x000D_ Chillers _x000D_ Coolers _x000D_ Cooling Towers _x000D_ Others _x000D_ _x000D_

Market Breakup by Implementation Type

• New Constructions
• Retrofits

Market Breakup by End Use

• Residential
• Commercial
• Industrial

Market Breakup by Country

• Germany
• United Kingdom
• France
• Italy
• Others

Europe HVAC Market Share

Based on country, the market is divided into Germany, the United Kingdom, France, and Italy, among others. Over the forecast period, Germany is expected to emerge as one of the leading markets for HVAC systems, as the German government implements the system of district cooling to minimise electricity bills and the environmental footprint.

Leading Companies in the Europe HVAC Market

The report provides a detailed analysis of the following key players in the market, covering their competitive landscape and latest developments like mergers and acquisitions, investments, and capacity expansion.

• Robert Bosch GmbH
• Mitsubishi Electric Corporation
• Alfa Laval AB
• Daikin Industries Ltd.
• Lennox International Inc.
• Carrier Global Corp.
• Ariston Holding N.V.
• Danfoss A/S
• Vaillant GmbH
• BDR Thermea Group B.V.
• Others

Major market players are designing energy-efficient HVAC systems, which enjoy high consumer demand.

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