Europe Air Conditioner Market Report and Forecast 2025-2034

The Europe air conditioner market is projected to grow at a CAGR of 4.90% between 2025 and 2034.

Europe Air Conditioner Market Growth

High-income individuals and the continuous rise in temperature across this region are propelling the Europe air conditioner market growth. Living standards in Europe are high and they spend a good proportion of their income on buying household equipment including air conditioners.

In the business sector, Europe is one-sixth of the global economy having a GDP of 26.64 trillion dollars (PPP). Companies are under obligation to open their headquarters in Europe to cater for this market. These headquarters and office openings boost the growth of the Europe air conditioner market.

Policies in Europe, such as the EU industrial policy which aims to promote competitiveness among its peers help Europe to create a more resilient and digitalized economy. All these policies are helping industries to have better price positioning in the market.

Key Trends and Developments

April 2024

Toshiba Carrier UK launched embedded building management solutions for centralised control and monitoring of HVAC systems for better consumer experience.

March 2024

Daikin Europe acquired BKF Klima, a Danish HVAC distributor in Denmark to reduce carbon footprint across this region.

January 2024

Electrolux Group targeted to reduce direct and indirect emissions by 85% in support of the Paris Climate Agreement.

October 2023

Mitsubishi Electric extended its initiatives further towards its 2050 global sustainability vision by partnering with the NGO Plastic Free to promote awareness among people.

Technological innovations and advancements

Embedded Systems integrated with features like AI and ML, enable devices to detect objects and sense temperature, and automatically adjust temperature and humidity.

Government initiatives

EU is planning to increase capital investment and access to financing and will be setting up a new partnership in Europe by raising investment between 2025-2027.

Environment Management

European Union aims to eliminate hydrofluorocarbon (HFCs) by 2050 and stricter rules are implemented to limit the use of F gas.

Safety measures

Standards for manufacturing are introduced by international agencies to eradicate any chances of accidents generating more trust in technology among consumers thus boosting Europe air conditioner market share.

Europe Air Conditioner Market Trends

As per the reports from IEA, there is a strong pull for air conditioners in high-income countries. Air conditioners offer a better lifestyle by eliminating viruses, bacteria, and PM2.5 from the air. With the increasing population across Europe, this will generate a spike in sales of air conditioners in Europe.

Moreover, the United Nations issued a warning stating Europe continent is warming twice as compared to the global average which will provide additional thrust to the Europe air conditioner market growth.

Europe Air Conditioner Market Segmentation

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

Market Breakup by Type

• Window AC
• Central AC
• Mini Split AC
• Others

Market Breakup by Size

• < 12K BTU
• 12K-36K BTU
• 36K-60K BTU
• 60K+ BTU

Market Breakup by End Use

• Commercial
• Residential

Market Breakup by Distribution Channel

• Hypermarkets/Supermarkets
• Specialty Stores
• Online Channels
• Others

Market breakup by Country

• United Kingdom
• Germany
• France
• Italy
• Others

Europe Air Conditioner Market Share

The window AC and split AC provide cost-effective, agile, and readily deployable HVAC solutions for both residential and commercial spaces.

Window ACs are suitable for rooms having proper window space and good air circulation, making them suitable for smaller rooms. They require less maintenance compared to other types as they contain all the components in a single unit. They have a maximum capacity of 2 tons.

Split ACs find their application where aesthetics and energy efficiency an important factors. There is no capacity limitation for split ACs, but this comes with high maintenance costs. They are known for their durability and cooling efficiency.

Centralized ACs are used by large organisations where the carpet area is very large such as workplaces and complexes. They are known for their high energy efficiency and better cooling capacity. They have filters to improve the quality of air by removing allergens. They are placed where aesthetics is a factor in selecting ACs.

Based on end use, the Europe air conditioner market growth is led by the residential and commercial spaces.

The substantial rise in demand for air conditioners in Europe can be attributed to the region's affluent population, characterised by high net incomes and luxurious living standards companies are compelled to set up their headquarters and offices across this region contributing to the growth of the air conditioners market in Europe.

Based on distribution channels, Europe air conditioner market share dynamics are changing rapidly across different sales channels. With the government push toward digitalisation across Europe there is a significant disruption in the distribution channel

Online distribution channels are boosting the growth of the air conditioner market by digitally targeting a certain population and making them aware of a product that the company is offering.

Businesses also began establishing their dedicated stores throughout Europe, recognising that full digitalisation, and earning consumer trust will require more time.

Leading Manufacturers in Europe Air Conditioner Market

Market players are driving Europe air conditioner market growth by offering air-conditioning devices at competitive pricing and offering additional health benefits to their consumers.

Carrier Global Corporation

Carrier Global Corporation, a leading HVAC company founded in 1915, operates in 60 countries across six continents. Acquired by United Technologies, it regained its autonomy in 2020.

Mitsubishi Electric Corp

Mitsubishi Electric Corp was established in 1921 as a Japanese MNC for manufacturing electronics and electrical components headquartered in Tokyo, Japan.

LG Corporation

LG Corporation, previously known as Lucky-Goldstar, is a South Korean multinational formed through merger of Lucky and Goldstar in 1983. Offering diverse products from mobile devices to air conditioners.

AB Electrolux

AB Electrolux, a Swedish multinational, commenced its product sales in 1919 and ranks as the world's second-largest appliance seller, trailing only Whirlpool.

Haier Group Corp

Haier Group Corp, established in 1984, is a Chinese multinational headquartered in Qingdao, Shandong. Their product range spans from air conditioners to televisions.

Other Europe air conditioner market key players are Daikin Industries, Ltd, Samsung Electronics Co. Ltd, Panasonic Holdings Corporation, and Johnson Controls International Plc among others.

Europe Air Conditioner Market Analysis by Region

With high-income individuals living in countries like the UK, Germany, France, and Italy people love to enjoy a lavish lifestyle which in turn provides a good boost to sales of air conditioners across Europe.

The total building stock in Europe is divided into residential and non-residential space in a 75:25 ratio. Among the non-residential building stock, office, educational, and hotel and restaurant spaces account for about 58% of the total building stock. As new structures continue to emerge across Europe, the demand for air conditioners will further rise in both office and residential spaces.

As per the Europe air conditioner market analysis, Europe boasts a growing air conditioner industry, particularly in the UK, Germany, and France, along with investments and schemes by governments. This dynamic ecosystem encourages ongoing innovation and competition. The region's expansive landscapes and high spending habits of individuals in this region are attributed to the strong Europe air conditioner market growth.