(MENAFN- GlobeNewsWire - Nasdaq) The Europe HVAC market is set to expand at a CAGR of 6.30% from 2024 to 2030, despite uncertainties stemming from global tariffs, trade wars, and regulatory pressures. This growth is driven by the emergence of smart products and IoT innovations, rising demand for energy efficiency, and favorable government policies promoting renewable energy solutions. However, challenges include economic uncertainties, volatile energy prices, and strict environmental regulations. Key players like Daikin, Bosch, and LG are leading innovation, while the market's future demand will thrive on localized supply chains and sustainable technologies.

Dublin, Nov. 24, 2025 (GLOBE NEWSWIRE) -- The "Europe HVAC Market - Industry Outlook & Forecast 2025-2030" report has been added to ResearchAndMarkets's offering.
Europe HVAC Market to reach $99.27 billion by 2030 from $68.8 billion in 2024, Growing at a CAGR of 6.3%

Several key factors are driving the surge in HVAC equipment sales across Europe. These include rising construction spending, a growing number of retail building projects, increased government investment in sustainable building development, ongoing industrial expansion, rapid urbanization, shifting climate conditions, and higher disposable incomes throughout the region.

Government regulations promoting eco-friendly refrigerants and energy-efficient, smart HVAC systems are also contributing to increased demand, especially in countries like Germany, the UK, France, and Italy, where construction activity is robust. Western Europe currently leads the market, holding over 56% of the regional share in 2024, and is projected to grow at a CAGR of 6.60% over the forecast period.
From a product demand standpoint, air conditioning systems dominate the market in Western Europe. Rising temperatures - driven by urbanization, pollution, and climate change - are making cooling solutions more essential, particularly in urban areas. Companies operating in the HVAC industry, specifically in air conditioning, are seeing steady sales growth thanks to strong demand in this region. This is largely due to the concentration of commercial facilities, industrial operations, and higher consumer purchasing power compared to other parts of Europe.

Growing demand for HVAC systems in European domestic markets is driven by various climatic changes, tighter energy efficiency requirements, and growing consumer awareness. Extended heatwaves in South Europe, i.e., Italy, Spain, and Greece, are placing a high value on cooling systems, while the colder regions of the Nordics and Eastern Europe are witnessing growing demand for heat solutions due to cold winters. These climatic oscillations are prompting inhabitants to invest in sophisticated HVAC systems for comfort throughout the year and to support the Europe HVAC market growth. Besides, tough EU legislation like the Eco-design and Energy Labelling Framework is also prompting people towards energy-efficient alternatives, as a result of which householders are incorporating systems that decrease energy consumption and carbon emissions as well as lower utility costs.
In addition, awareness of IAQ post-pandemic is also the major driver for the Europe HVAC market with advanced air purifying technology like HEPA filters, UV-C disinfection, and DCV. It is extremely widespread in highly congested urban areas where people seek healthier indoor air for health and wellness. HVAC system technology advancement, including IoT-based climate control and smart functionalities, is also driving growth in the Europe HVAC market. These technologies facilitate remote control and optimization of HVAC devices by homeowners, which improve energy efficiency and reduce long-term expenses.
But the competitive Europe HVAC market is more than just offering green solutions. To be competitive in this rapidly evolving market, companies must focus on incorporating cutting-edge technology that not only meets environmental requirements but also maximizes operational performance. This includes features like smart connectivity, real-time energy monitoring, and automation, which maximize system efficiency and reduce long-term operating expenses for end-users. Firms that can merge sustainability with advanced technological offerings will be poised to lead the Europe HVAC market, delivering solutions that not only comply with strict environmental regulations but also provide superior comfort, affordability, and energy efficiency.
Generally, the Europe HVAC market is driven by a combination of government incentives, advancements in technology, and heightened concern for sustainability. Those suppliers who can navigate this complex area, both adopting green solutions and advanced technologies, will be the future leaders in the competitive marketplace. With the industry continuing to revolutionize itself, the demand for energy-saving, technology-based HVAC systems will continue to escalate, and therefore, the demand to meet ecological requirements as well as government and social expectations in the future.
IMPACT OF GLOBAL TARIFFS AND TRADE WARS
The recent escalation of trade tensions among the U.S., China, and the EU in 2024 and beyond into 2025 directly impacted HVAC manufacturers in as the issue has largely struck major components of HVAC units, such as compressors, heat exchangers, and electronic sensors, most of which are sourced from Asia.
Several companies have encountered higher procurement costs in Europe as a result of several new import tariffs and anti-dumping duties implemented by the European Commission on HVAC-related products imported from outside the EU, tightening margins and affecting project timelines.

These political and trade uncertainties across the globe coupled with increased tariffs on imports and regional protectionism, are resulting in increased costs of production, delays in projects, and barriers to entering the European market for new HVAC technology. While giant companies with local manufacturing are more able to absorb these shocks, smaller import-based firms and vendors are most vulnerable. The expansion in the European HVAC market, while steady, is tempered by these outside threats, and reinforces the demand for localized supply chains, proactive R&D partnerships, and agile operating strategies in 2025.

KEY QUESTIONS ANSWERED:

• How big is the Europe HVAC market?
• Which region dominates the Europe HVAC market share?
• What are the significant trends in the Europe HVAC market?
• What is the growth rate of the Europe HVAC market?
• Who are the key players in the Europe HVAC market?

Key Attributes:

Report Attribute	Details
No. of Pages	414
Forecast Period	2024 - 2030
Estimated Market Value (USD) in 2024	$68.8 Billion
Forecasted Market Value (USD) by 2030	$99.27 Billion
Compound Annual Growth Rate	6.3%
Regions Covered	Europe

Market Opportunities & Trends

• Emergence of IoT and Product Innovations to Aid Replacements
• Surge in Demand for Energy-Efficient & Low-Carbon Hvac Systems
• Shift Toward Modular & Decentralized Hvac Solutions
• Replacement of Existing Equipment With Energy-Efficient Ones
• Climatic Conditions and Heat Waves Propel Demand for Hvac Systems

Market Growth Enablers

• Rise in Commercial Construction and Projects
• Increase in Demand for Hvac Systems in Coworking Spaces
• Airport Modernization Driving Demand for Smart and Sustainable Hvac Solutions in Europe
• Growth in Vrf Systems
• Favorable Government Policies and Incentives
• Demand for Low Gwp Refrigerant Solutions in Heating Equipment

Market Restraints

• Turbulent Political and Trade Relations
• High Installation and Upfront Costs
• Lack of Skilled Labor
• Stringent Regulations

Key Company Profiles

• Aldes
• Atlantic
• Daikin
• Johnson Controls
• Mitsubishi Electric
• Vaillant Group
• Viessmann Group
• Ostberg
• Pentair
• Robert Bosch
• Rheem Manufacturing Company
• Samsung
• Siemens AG
• Systemair
• NIBE Group
• Zehnder

Other Prominent Vendors

• Alfa Laval
• Carrier
• Honeywell International Inc
• LG
• Panasonic
• Midea
• Regal
• Raytheon Technologies
• Flakt Group
• Swegon
• VTS Group
• Nuaire
• Nortek
• Hitachi
• LU-VE
• Vent-Axia
• Rosenberg
• S & P
• Wolf
• CIAT
• AL-KO GROUP
• Dynair
• Danfoss
• Lennox
• Backer Springfield
• Dunhambush
• TCL
• Trox GmbH
• Stiebel Eltron
• Uponor Corporation
• Glen Dimplex
• Ferroli
• Elco Burners
• BDR Thermea Group
• Biddle Air Systems
• Riello Group
• Ingersoll Rand
• Camfil

Segmentation by Equipment

• Heating
• Air Conditioning
• Ventilation

Segmentation by Heating

• Heat Pump
• Boiler Unit
• Furnace
• Others

Segmentation by Air Conditioning

• RAC
• CAC
• Chiller
• Heat Exchanger
• Others

Segmentation by Ventilation

• Air Handling Unit (AHU)
• Air filter
• Humidifier & Dehumidifier
• Fan Coil Unit
• Other Ventilation Equipment

Segmentation by End-user

• Residential
• Commercial
• Others

Segmentation by Geography

• Western Europe
• Germany
• France
• UK
• Italy
• Netherlands
• Spain
• Belgium
• Ireland
• Portugal
• Switzerland
• Nordic
• Norway
• Denmark
• Sweden
• Finland
• Central & Eastern Europe (CEE)
• Russia
• Poland & Austria
• Hungary
• Czech Republic
• Greece
• Slovakia

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• European HVAC Market

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