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The Europe HVAC equipment market is projected to reach a value of USD 42.65 billion in 2027, at a CAGR of 5.16% between 2022 and 2027. The market is driven by factors such as increasing demand for energy-efficient HVAC systems and growing construction activities in the region.
Analysis Period | 2017-2027 |
Market Size (2017) Historic Year | USD 27.03 billion |
Market Size (2027) - Forecasted Year | USD 42.65 billion |
Historic Opportunity (2017-2021) | USD 4.74 billion |
Historic CAGR | 4.12 % |
Forecasted Opportunity (2023-2027) | USD 9.49 billion |
Market Opportunity Transformation Growth | 57.79 % |
Market Opportunity Capitalization | USD 14.23 billion |
The Europe HVAC Equipment market refers to the market for heating, ventilation, and air conditioning systems in Europe. The market is segmented based on equipment type, including heating equipment, ventilation equipment, and air conditioning equipment. Key players in the market include companies like Daikin Industries, Johnson Controls, Mitsubishi Electric, and Carrier. Europe's strict regulations regarding energy efficiency and environmental sustainability are driving the adoption of advanced HVAC technologies in the region. The market report also includes an in-depth analysis of market in Europe market trends and analysis, market growth analysis, and market forecasting of forecast and historic growth.
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Our researchers studied the market research and growth data for years, with 2022 as the base year and 2023 as the estimated year, and presented the key market growth and trends, and challenges for the market. Although there has been a disruption in the Industrial market in Europe growth during the COVID-19 pandemic, a holistic analysis of drivers, trends, and challenges of market growth and forecasting will help companies refine marketing strategies to gain a competitive advantage.
The growth in data centers is notably driving the Europe heating, ventilation, and air conditioning market. A data center comprises highly sensitive electronic components that require a consistent temperature, humidity, airflow, and cleanliness to prevent equipment failure. HVAC systems form an indispensable part of a data center, as cooling is a major cost factor in data centers. With the growth in the number of data centers, the need to manage the huge amount of heat dissipated by equipment and machines in data centers has also increased.
Factors such as the ongoing migration of data from private servers to cloud-based solutions, industrial development in the region, increased adoption of hybrid cloud storage systems, growing demand for colocation facilities, especially from small and medium-sized enterprises (SMEs), and increased investments have led to an increase in the number of data centers, which, in turn, is fostering the demand equipment in the region. Therefore, such factors will boost the Europe heating, ventilation, and air conditioning market growth during the forecast period.
The increasing use of renewable energy sources for the market is an emerging trend. The shift to renewable energy sources is also gaining traction of the market in Eastern Europe. The adoption of renewable energy sources for the heating equipment market is high in the residential and commercial sectors. Moreover, strict environmental regulations will also pave the way for the adoption of renewable sources in other sectors.
Solar-powered space heating is a method that uses solar energy to reduce energy consumption for heating purposes. A solar space heating system works in conjunction with the existing buildings heat pumps system, such as an oil or gas-fired heater, or independently to provide heated air handling units for indoor heating spaces. The use of solar-powered space heating systems enables end-users to cut down on the fuel costs incurred on heating considerably. This hybrid system can also provide large-scale, cost-effective reductions in greenhouse gas emissions. The cost benefits that hybrid systems offer in conjunction with the strict government environmental regulations in Europe will lead to a shift in the market toward renewable energy sources and will have a significant impact on the growth of the European heating, ventilation, and air conditioning equipment market during the forecast period.
The lack of skilled HVAC technicians is a major challenge impeding market growth. Technical skills and knowledge are mandatory while installing or handling any type of HVAC industry equipment. At present, retaining and finding skilled labor are major challenges faced by contractors. The shortage of labor will affect the profit margins of manufacturers as it has an adverse impact on aftermarket services.
A massive shortage of skilled manpower has plagued contractors for several years and is expected to continue during the forecast period. The inclination of fresh graduates toward more popular career paths, such as computer programming, application designing, and investment banking and competition instead of less desirable or low-paid jobs is the primary reason for the shortage of technical workers. Thus, such factors may hinder the growth of the Europe heating, ventilation, and air conditioners equipment market during the forecast period.
The Europe heating, ventilation, and air conditioning market share growth by the air conditioning equipment segment will be significant during the forecast period. Air conditioning equipment is used everywhere, from homes, shopping malls, and commercial spaces to entertainment centers. The air conditioning equipment segment was valued at USD 16.99 billion in 2017 and continued to grow until 2021. Air conditioning equipment plays an important role in changing the indoor environment, especially in hot and dry climates, and is a vital part of the infrastructure that supports modern spaces. Moreover, as the economic growth of emerging markets continues to accelerate, the demand for air conditioning equipment is expected to grow exponentially during the forecast period. Factors like the expanding construction industry, deregulation in the real estate and construction sector, great potential for energy savings, and low and easy air conditioning maintenance requirements will drive the air conditioning market during the forecast period.
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The Residential encompasses a wide array of elements that cater directly to consumers seeking replacement or installation services. In different areas across the globe, including Russia, the HVAC market size continues to evolve, emphasizing the importance of achieving optimal comfort while considering factors like varying temperatures and maintaining superior air quality. Various incentives aim to encourage the adoption of more efficient systems, aligning with the global efforts to mitigate the effects of warming and reduce reliance on fossil fuels.
Boilers, radiators, and heating equipment for hospitals and other establishments play a crucial role in managing prices and ensuring optimal conditions. The European market, including regions like London, Benelux, and the Nordics, drives product innovations and suppliers' role in providing efficient alternatives and fostering developments across the value chain.
European HVAC markets observe a surge in heating air conditioning solutions, incorporating modern systems equipped with VRF technology. The heating equipment industry thrives on consistent industry trends and the emergence of product development aimed at efficient monitoring and delivering substantial advantages. The Residential market continues to evolve, adapting to changing consumer needs and environmental dynamics, thereby shaping the trajectory of the broader HVAC system industry.
The Commercial HVAC Market caters to diverse environments and demands quality brands offering innovative chillers worldwide. Essential for optimal temperatures, furnaces and replacements shape this industry's landscape, navigating changing environments and market threats. The new entrants and savvy buyers in bustling cities drive innovation, seeking practical applications for efficient ACS and HAVC units, pivotal market drivers. Influences from Chinese manufacturers and evolving market snapshots impact regions like Poland and the Netherlands, challenging industry assumptions. Efficient distribution channels is vital for the competitive system market including HVAC system market. The industry's pulse in European markets showcases adaptability and resilience, shaping Europe's HVAC industry.
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Europe is estimated to contribute 100% to the growth by 2027. Germany holds the largest market share in the Europe market equipment market. The residential sector dominates the demand for HVAC equipment in Europe, representing over 50% of the market. Technavio's analysts have provided extensive insight into the market forecasting, detailing the regional trends and drivers influencing the market's trajectory throughout the forecast period.
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
LG Electronics Inc. - The company offers technology and consumer electronics such as home appliance and air solutions, home entertainment, vehicle component solutions, and business solutions. The key offerings of the company include HVAC equipment. We also have detailed analyses of the market’s competitive landscape and offer information on 20 market companies, including:
Carrier Global Corp., Hitachi, Daikin Industries Ltd., Danfoss AS, FlaktGroup Holding GmbH, Haier Smart Home Co. Ltd., Honeywell International Inc., Ingersoll Rand Inc., Johnson and Johnson, LG Electronics Inc., LUVE Spa, MIDEA Group, Mitsubishi Electric Corp., Nortek Inc., OSTBERG GROUP AB, Panasonic Holdings Corp., Regal Rexnord Corp., Robert Bosch GmbH, Samsung Electronics Co. Ltd., Systemair AB, and Zehnder Group AG
Technavio market in Europe market forecasts an in-depth analysis of the market and its players through combined qualitative and quantitative data. The analysis classifies companies into categories based on their business approaches, including pure-play, category-focused, industry-focused, and diversified. Companies are specially categorized into dominant, leading, strong, tentative, and weak, based on their quantitative data analysis.
The market is transforming with a strong emphasis on energy efficiency and IoT integration. The market size is influenced by a surge in consumer demand for advanced solutions, prompting suppliers to innovate in heat pumps and efficient installations. A notable trend is the replacement of outdated systems in buildings, further enhancing overall efficiency. As consumers prioritize sustainable choices, the HVAC industry in Europe is evolving rapidly, with a collective commitment to energy efficiency, making it a dynamic and responsive market.
The Europe HVAC market analysis and report forecast market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2017 to 2027.
Product Outlook (USD Billion, 2017 - 2027)
HVAC Market In Europe Scope |
|
Report Coverage |
Details |
Page number |
163 |
Base year |
2022 |
Historic period |
2017 - 2021 |
Forecast period |
2023-2027 |
Growth momentum & CAGR |
Accelerate at a CAGR of 5.16% |
Market growth 2023-2027 |
USD 9.49 billion |
Market structure |
Fragmented |
YoY growth 2022-2023(%) |
4.52 |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
Carrier Global Corp., Daikin Industries Ltd., Danfoss AS, FlaktGroup Holding GmbH, Haier Smart Home Co. Ltd., Honeywell International Inc., Ingersoll Rand Inc., Johnson and Johnson, LG Electronics Inc., LUVE Spa, MIDEA Group, Mitsubishi Electric Corp., Nortek Inc., OSTBERG GROUP AB, Panasonic Holdings Corp., Regal Rexnord Corp., Robert Bosch GmbH, Samsung Electronics Co. Ltd., Systemair AB, and Zehnder Group AG |
Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID 19 impact and recovery analysis and future consumer dynamics, Market condition analysis for forecast period |
Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
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1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Product
7 Market Segmentation by End-user
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
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