Air Conditioning System Sales in Europe and Opportunity Analysis

Air Conditioning System Sales Outlook for Europe (2024 to 2034)

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.

Use of air conditioning systems is mainly in closed spaces to help keep the environment at a desired temperature. These systems find application in commercial, industrial, and residential areas alike. Benefits include aiding in improving the productivity of employees working in commercial spaces and maintaining the appropriate temperature within a room.

Several manufacturers are incorporating advanced technologies and launching energy-efficient air conditioners. Energy-saving features of AC units, high durability, less noise, faster cooling, and speed-controlled compressors are key factors contributing to their increased demand, thereby complementing regional market growth. Growing preference for green air conditioning systems and integration of HVAC (heating, ventilation, and air conditioning) systems to align with sustainability trends are emerging market growth drivers in the European region.

• Western and Eastern Europe are forecasted to capture 62.9% and 37.1% share of the European market, respectively, 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.

Why is There Steady Demand Growth for ACs in Europe?

“District-cooling Air Conditioning a New Trend”

There is increased demand for district cooling units in Europe. Although this technology has been present for a long, it is now becoming more widespread. This method is used to cool buildings with the assistance of chilled water passing from a central facility through pipes to different buildings. It is an economic way of cooling building interiors and reducing carbon footprint.

Compared to conventional air conditioning systems, this district cooling method is becoming more popular for its efficiency. It suits better to commercial buildings requiring cooling throughout the year. Several benefits of this method, such as minimizing requirements for loud AC units, use of renewable energy, and adding flexibility to the electricity network are contributing to their growing demand.

“Evolving HVAC Designs to Provide Sustainable Solutions”

Conventional HVAC designs use higher energy, emit greenhouse gases, and chemical refrigerants. Modern designs are offering sustainable and energy-efficient solutions suitable for the requirements of consumers. Bringing modifications to HVAC system designs enables the use of renewable energy resources, such as solar energy.

What is Adversely Impacting European Market Expansion?

“High Energy Prices and Emission of Greenhouse Gases”

With the growing trend of sustainability, market players are facing challenges in delivering energy-efficient and eco-friendly solutions. In addition, to match new regulations, existing HVAC infrastructure in buildings, factories, and other facilities needs to be upgraded. Greenhouse gas emissions and energy consumption bills are higher than before, and this is one of the main reasons market growth in Europe is not as fast as expected.

Country-wise Insights

Which Western European Country Accounts for Substantial Revenue Share?

“Increasing Demand for Air Conditioners in Germany with Rising Temperatures”

Attribute	Germany
Market Value (2024E)	US$ 3.79 Billion
Growth Rate (2024 to 2034)	6.6% CAGR
Projected Value (2034F)	US$ 7.18 Billion

Germany is analyzed to account for 18.6% share of the market in Western Europe by the end of 2034. A spike in heat waves is stimulating demand for air conditioners in the country. Rising temperatures are leading to heatwaves, which are driving demand for cooling systems for use in residential applications.

Why is There Increase in Demand for Air Conditioning Systems in a Country Like Russia?

“Rising Popularity of Inverter Technology, VRF Systems, and Low-GWP Refrigerants”

Attribute	Russia
Market Value (2024E)	US$ 5.09 Billion
Growth Rate (2024 to 2034)	6.5% CAGR
Projected Value (2034F)	US$ 9.58 Billion

Russia is projected to hold 42.1% of the Eastern European market share by 2034-end. Energy efficiency is one of the primary factors considered by businesses and consumers for reducing operating costs and minimizing energy consumption. Increased efficiency of air conditioning systems is achieved with the use of VRF (variable refrigerant flow) systems, inverter technology, and low-GWP (global warming potential). In addition, there is an increased popularity of multi-zone air conditioners, utilizing ductless mini-splits and VRF technology. They help minimize energy waste, improve comfort levels, and precise zoning.

Category-wise Insights

Which Type of Air Conditioning System is Highly Preferred by Consumers?

“Implementation of Stringent Regulations Driving Demand for Energy-effective Spilt Air Conditioning Systems”

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

As per the recently updated study by Fact.MR, split air conditioning systems are projected to occupy a share of 36.9% of the European market by the end of 2034. One of the pivotal drivers responsible for the increased popularity of this system is attributed to its energy efficiency. Governments in European countries, such as Germany, the United Kingdom, Russia, and others are implementing stringent regulations for promoting the replacement of conventional air conditioning with energy-efficient air conditioning units.

Which Segment is Important for Air Conditioning System Manufacturers?

“High Need for Air Conditioners for Ensured Comfortable Indoor Temperature”

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 residential sector is approximated to possess a share of 36.9% of the European market revenue by 2034. These air conditioner systems work primarily intending to offer a comfortable and healthy indoor temperature for occupants. Several active electrical and mechanical technologies are included in these systems for regulating the temperature of the buildings, which is further having a positive impact on regional market growth prospects.

Competition Landscape

Some of the leading market players are relying on technological advancements, such as launching eco-friendly air conditioning systems and automated systems to attract a larger consumer base. Moreover, they are also focusing on acquisition, collaborations, partnerships, and other strategies for ensuring the reach of cooling systems at a larger scale.

For instance :

• Daikin Industries, Ltd., in May 2022, invested in Wlab Ltd., a start-up based in London, the United Kingdom. Sensio Air, a division of Wlab Ltd., came up with sensors in air conditioning systems for the identification and detection of airborne allergens with constant monitoring features with IoT (Internet of Things) and artificial intelligence technology.
• Mitsubishi Electric Corporation, in April 2022, announced the development of a new airflow-control technology, which was optimized for ensuring comfort throughout spaces by visualizing and analyzing temperature distribution and airflow.
• Robert Bosch GmbH, in 2022, acquired Climatec to strengthen its building technology and energy business. Expertise of Climatec includes indoor air quality, renewables, electrification, and others.

Fact.MR provides detailed information about the price points of leading manufacturers of air conditioning systems positioned across Europe, sales growth, production capacity, and speculative technological expansion, in this recently updated market report.

Segmentation of Air Conditioning System Study in Europe

• By Product Type :

  • Portable
  • Window
  • Cassette
  • Split
  • Single
  • Airside
  • Chiller

• By AC Type :

  • Unitary
  • Rooftop
  • PTAC

• By End Use :

  • Residential
  • Industrial
  • Commercial

• By Sales Channel :

  • B2B
  • Authorized Stores
  • Independent Electronic Stores
  • e-Commerce

• By Region/Country :

  • Western Europe
    • Germany
    • Italy
    • France
    • The United Kingdom
    • Spain
    • BENELUX
    • Nordic
    • Rest of Western Europe
  • Eastern Europe
    • Russia
    • Hungary
    • Poland
    • Balkan & Baltics
    • Rest of Eastern Europe