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The Europe HVAC equipment market is estimated to grow by USD 9.49 billion at a CAGR of 5.16% between 2022 and 2027. Market growth relies on several factors, such as the expansion of data centers, the growing need for energy-efficient HVAC systems, and the tightening regulatory landscape governing HVAC systems. The increasing prevalence of data centers, driven by the digital transformation, necessitates robust cooling solutions to maintain optimal operating conditions. Simultaneously, the emphasis on energy efficiency aligns with sustainability goals, driving the adoption of efficient HVAC systems. Moreover, stringent regulatory standards and regulations compel businesses to upgrade their HVAC systems to meet compliance requirements, further fueling market growth. These factors collectively contribute to the expansion of the HVAC market, highlighting the importance of sustainable and compliant solutions in modern infrastructure development.
It also includes an in-depth analysis of drivers, trends, and challenges. Furthermore, the report includes historic market data from 2017 to 2021.
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This market research report extensively covers market segmentation by product (air conditioning equipment, heating equipment, and ventilation equipment), and end-user (non-residential and residential).
The market is witnessing significant growth driven by the increasing adoption of Internet of Things (IoT) technology and industrial automation systems in smart manufacturing. The market includes a wide range of products such as central air conditioners, heat pumps, and chillers. These systems are increasingly incorporating sensors to ensure thermal comfort in both residential and commercial setups. Technological innovations are leading to the development of energy-efficient solutions and smart controls for HVAC products, aligning with the region's focus on sustainable development. Construction activities and the need for improved indoor air quality are also driving the demand for energy-efficient designs and sustainable refrigerants in HVAC systems. The market is further boosted by energy efficiency regulations and the implementation of retrofit and renovation projects aiming to enhance the efficiency of existing HVAC systems. The emergence of smart and connected HVAC systems is reshaping the industry landscape, offering improved performance and energy savings. Our researchers analyzed the data with 2022 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
The growth in data centers is notably driving the 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 for HVAC equipment in the region. Therefore, such factors will boost the market growth during the forecast period.
The increasing use of renewable energy sources for HVAC systems is an emerging trend in market growth. The shift to renewable energy sources is also gaining traction in the market. The adoption of renewable energy sources for HVAC systems 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 building heating system, such as an oil or gas-fired heater, or independently to provide heated air 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 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 Europe 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 equipment. At present, retaining and finding skilled labor are major challenges faced by HVAC 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 HVAC 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, instead of less desirable or low-paid jobs is the primary reason for the shortage of HVAC technical workers. Thus, such factors may hinder the growth of the market during the forecast period.
The market report includes the adoption lifecycle covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their market growth and trends strategies.
Global Market Customer Landscape
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 report also includes detailed analyses of the competitive landscape of the market and information about 15 market companies, including:
Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
The 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.
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The air conditioning equipment segment was valued at USD 16.99 billion in 2017. 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 equipment market during the forecast period.
The market research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in "USD Billion" for the period 2023 to 2027, as well as historical data from 2017 to 2021 for the following segments.
The market is influenced by various factors such as economic volatility, green building initiatives, and stringent regulations like the F-gas regulation. The region's growing construction sector and the impact of climate change, including more frequent heat waves, are driving demand for HVAC systems. There's a shift towards low-carbon heat sources and renewable energy sources (RES) to reduce reliance on fossil fuels. Technological disruptions are also reshaping the market, with a focus on sustainable and green building units. However, challenges like supply chain disruptions and shifts in customer preferences are impacting the industry. The manufacturing plant relies on a combination of chemicals, electricity, mechanical/electrical equipment, as well as natural gas for its operations. Overall, the market is adapting to meet the demand for more efficient and environmentally friendly HVAC solutions.
Furthermore, the market is influenced by a range of factors, including construction projects, industrial processes, and residential setups. Stringent regulations and standards drive the adoption of energy-efficient solutions and sustainable practices. The use of HFC refrigerants is being phased out due to environmental concerns, leading to a shift towards RES (renewable energy sources) and alternatives like propane. The market also sees demand from sectors such as food manufacturing, metal industries, and plastics. Heat network funding supports the development of efficient heating systems, while portable cooling units cater to varying indoor climate conditions. Overall, the market is focused on sustainable development index and meeting regulatory requirements.
Market 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 |
Key countries |
Germany, UK, France, Italy, and Rest of Europe |
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 Forecasting, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, and Market condition analysis for the market 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. |
We can help! Our analysts can customize this report to meet your requirements. Get in touch
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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