Market Trends of France Commercial HVAC Industry
Commercial Buildings is Expected to Witness a Significant Growth
- The commercial building segment compromises infrastructures like office buildings, retail, showrooms, and warehouses. The rise in commercial construction in France is expected to drive the studied market. For instance, according to Insee, in 2023, warehouses led non-residential construction in terms of floor space. The year also saw the construction of approximately 3.1 million sq m of office space and 2.9 million square.
- HVAC (heating, ventilation, air conditioning) systems are critical to the success of a retail business. These systems are responsible for creating and maintaining a comfortable shopping environment, ensuring the well-being of customers and employees, and maintaining the quality of temperature-sensitive products. Frequent and thorough maintenance is crucial to prevent the buildup of allergens and dust, affecting air quality and system efficiency. According to FEVAD, In 2023, France's e-commerce sales hit around EUR 160 billion, marking a growth of about 10.5% from the previous year's EUR 144.7 billion.
- Ventilation equipment may be utilized for either a single space or an entire building due to its wide range of size and functionality. These systems are frequently located in the basement or on the roof of commercial-sized buildings. These systems can then be allocated to particular building regions for heating or cooling.
- These structures use about 45% of the energy required to heat and cool commercial office buildings. The majority of the energy spent in office buildings was discovered to be wasted. The overall demand for thermal and mechanical energy has remained the same, even though the efficiency of heating and cooling energy consumption in office buildings has generally grown significantly. The increasing building energy consumption trend will continue as the office-built area expands, creating a demand for ventilation equipment to maintain indoor air quality in the country.
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Heating Equipment is Expected to Hold Largest Market Share
- Heat pumps are seen as a significant solution in lowering emissions related to heating. Depending on the specific area, the systems use about three times less energy than gas boilers or electric radiators. The production of many heat pumps stimulates demand for HVAC equipment across industry segments. For instance, France has established clear objectives and policies to expedite its shift towards renewable energy sources. The EU's REPowerEU initiative also aims to ramp up annual heat pump installations, lessening the bloc's dependence on gas imports.
- The market for HVAC equipment is expanding quickly in France because of the rising need for air conditioning and ventilation systems that are both energy and financially efficient. The country is anticipated to experience significant growth in the upcoming years because of rising disposable incomes, expanding construction activity, and a greater emphasis on energy efficiency
- Due to the substantial cooling requirements, commercial AC systems require a crucial amount of energy efficiency. To address this, manufacturers integrate various energy-saving elements into these systems, including variable-speed compressors and fans, energy recovery systems, and advanced control algorithms. For example, commercial air conditioning systems utilize multiple air ducts to distribute conditioned air across different areas effectively.
- In line with the changing regulations in the country, the companies have been investing in introducing new services, mergers, and acquisitions in the market. For instance, in November 2023, Sonepar announced the acquisition of Hydeclim, a French specialist distributing equipment and solutions for AC and air treatment. Following the Group's recent French acquisitions, notably Alliantz (photovoltaics) and CD Sud, this operation would enable Sonepar to expand in the HVAC market and extend its offering to AC and heating installers, particularly in Western and Northern France.
