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Europe Air Conditioning Equipment Market Size (2024 - 2029)

The Europe Air Conditioning Equipment market is experiencing growth driven by factors such as increasing temperatures, rising construction spending, and government investments in green building initiatives. The market size is influenced by the shift in perception of air conditioners from luxury items to essential utilities, alongside regulatory frameworks aimed at enhancing energy efficiency. Innovations in products and services, like the BluEdge service platform, are further supporting market expansion. However, challenges such as supply chain disruptions and increased raw material costs due to the COVID-19 pandemic have impacted the market dynamics.

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Market Size of Europe Air Conditioning Equipment Industry

Europe Air Conditioning Equipment Market Size
Study Period 2019 - 2029
Base Year For Estimation 2023
Forecast Data Period 2024 - 2029
Historical Data Period 2019 - 2022
CAGR 5.78 %
Market Concentration Low

Major Players

Europe Air Conditioning Equipment Market Major Players

*Disclaimer: Major Players sorted in no particular order

Europe Air Conditioning Equipment Market Analysis

The Europe Air Conditioning Equipment market is expected to grow at a CAGR of 5.78% over the forecast period (2022-2027). Air conditioners (AC) are considered more of a utilitarian item than a luxury one in Europe. The rising temperatures and humidity levels throughout the European region are responsible for expanding the air conditioning sector. Additionally, it offers clean outdoor air to remove interior airborne pollutants like VOCs and odors from fixtures or other cleaning agents. The market for Air conditioning equipment in Europe is primarily driven by an increase in new housing starts, rising construction spending on average, rising government investment in green building initiatives, and fast urbanization.

  • In line with European commitments toward an increase in energy efficiency, the United Kingdom and France developed a massive regulatory framework and binding targets for the industrial, transport, and building sectors over the past decade.
  • For instance, Smart Buildings Alliance (SBA), an association in France, aims to promote the smart building industry in smart cities. The alliance has combined 170 organizations from different trades related to the construction industry (industrial companies, service companies, builders, developers, design offices, architects, developers, and innovative start-ups).
  • The growing product innovations are further bolstering the adoption rate of the equipment. For instance, In February 2021, Carrier Global Corporation announced the launch of its new BluEdge service platform for Carrier and CIAT heating, ventilating, and air conditioning (HVAC) equipment in Europe. Carrier Global Corporation is a prominent global provider of healthy, safe, and sustainable building and cold chain solutions. The multi-tiered BluEdge service platform was created to accommodate specific customer needs and maintain equipment performance over the course of a product's lifecycle.
  • The COVID-19 second wave has also impacted the supply chain for air conditioning equipment. The cost of air conditioning grew in 2021 due to supply limitations since the cost of raw materials to make HVAC equipment, such as steel, plastic, and aluminum, increased. Due to the high demand from other industries, such as smartphone and Electron Vehicle producers, the market also experienced a shortage of semiconductor supplies.

Europe Air Conditioning Equipment Industry Segmentation

Europe Air Conditioning Equipment market is segmented By Type (Single Splits/Multi Splits, VRF, Air Handling Units, Chillers, Fans), By End User(Residential, Commercial, Industrial), and Country. The study further analyzes the overall impact of COVID-19 on the demand-side market dynamics and the ecosystem, in the near & short-term basis. The recent changes in trade scenario are also analyzed in the study.

By Type
Single Splits/Multi-Splits
VRF
Air Handling Units
Chillers
Fans
Other Types
By End User
Residential
Commercial
Industrial
Country
United Kingdom
Germany
France
Spain
Rest of Europe
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Europe Air Conditioning Equipment Market Size Summary

The Europe Air Conditioning Equipment market is experiencing significant growth, driven by factors such as rising temperatures, increased urbanization, and a focus on energy efficiency. Air conditioning units are increasingly viewed as essential rather than luxury items, with new housing developments and construction projects further fueling market expansion. The market is also supported by government investments in green building initiatives and smart building technologies, which aim to enhance energy efficiency and reduce carbon footprints. Innovations in product offerings, such as Carrier Global Corporation's BluEdge service platform and Efficient Energy's eChiller120, are contributing to the adoption of advanced HVAC solutions across the region. However, challenges such as supply chain disruptions and rising raw material costs have impacted the market, highlighting the need for strategic collaborations and investments in research and development.

The competitive landscape of the Europe Air Conditioning Equipment market is characterized by the presence of major players like Daikin Industries Limited, ROBERT Bosch GmbH, and Mitsubishi Electric Corporation, who are leveraging well-established distribution networks and innovative technologies to maintain their market positions. The integration of smart solutions and connected HVAC systems is expected to enhance competitive rivalry among vendors, as seen with Johnson Controls-Hitachi Air Conditioning's airHome series and CIAT's CLIMACIAT line. Additionally, collaborations such as those between Barrisol and Carrier, and Smith Brothers Stores and Midea, are expanding market reach and offering consumers more options. The market's growth is further supported by regulatory frameworks in countries like the UK and France, which promote energy efficiency and sustainability in building operations.

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Europe Air Conditioning Equipment Market Size - Table of Contents

  1. 1. MARKET INSIGHTS

    1. 1.1 Market Overview

    2. 1.2 Industry Attractiveness - Porter's Five Forces Analysis

      1. 1.2.1 Threat of New Entrants

      2. 1.2.2 Bargaining Power of Buyers/Consumers

      3. 1.2.3 Bargaining Power of Suppliers

      4. 1.2.4 Threat of Substitute Products

      5. 1.2.5 Intensity of Competitive Rivalry

    3. 1.3 Value Chain / Supply Chain Analysis

    4. 1.4 Assessment of the Impact of COVID -19 on the Market

  2. 2. MARKET SEGMENTATION

    1. 2.1 By Type

      1. 2.1.1 Single Splits/Multi-Splits

      2. 2.1.2 VRF

      3. 2.1.3 Air Handling Units

      4. 2.1.4 Chillers

      5. 2.1.5 Fans

      6. 2.1.6 Other Types

    2. 2.2 By End User

      1. 2.2.1 Residential

      2. 2.2.2 Commercial

      3. 2.2.3 Industrial

    3. 2.3 Country

      1. 2.3.1 United Kingdom

      2. 2.3.2 Germany

      3. 2.3.3 France

      4. 2.3.4 Spain

      5. 2.3.5 Rest of Europe

Europe Air Conditioning Equipment Market Size FAQs

The Europe Air Conditioning Equipment Market is projected to register a CAGR of 5.78% during the forecast period (2024-2029)

Daikin Industries Limited, ROBERT Bosch GmbH, Carrier Global Corporation, Johnson Controls–Hitachi Air Conditioning and Mitsubishi Electric Corporation are the major companies operating in the Europe Air Conditioning Equipment Market.

Europe Air Conditioning Equipment Market Report Snapshots

Europe Air Conditioning Equipment Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)