Europe Air Conditioner Market Size and Share Analysis - Growth Trends and Forecast Report 2025-2033

Europe Air Conditioner (AC) Market was valued at USD 24.93 billion in 2024 and is expected to reach USD 43.34 billion by the year 2033, registering a CAGR of 6.35% during the forecast period from 2025 to 2033. The growth of the market is fueled by rising temperatures, urbanization, and the heightened need for energy-efficient cooling.

Europe Air Conditioner (AC) Market Forecast Report by Types (Split Type (Single), Split Type (Multi), PAC, VRF, Others), Country (Russia, Italy, Spain, France, Turkey, Greece, Germany, England, Netherlands, Poland, Portugal, Bulgaria, Belgium, Romania, Hungary, Norway, Finland, Sweden, Cyprus, Croatia Republic, Austria, Switzerland, Rest of Europe), Company Analysis 2025-2033.

Europe Air Conditioner (AC) Market Outlooks

An air conditioner (AC) is a cooling system designed to regulate indoor temperatures by removing heat and moisture from the air. It operates using refrigerants, compressors, and fans to create a comfortable indoor environment. ACs are widely used in homes, offices, commercial buildings, and industrial settings to improve air quality and maintain optimal temperature levels.

Air conditioners are increasingly popular in Europe as temperatures rise due to climate change, urbanization, and enhanced lifestyles. Spain, Italy, and France have also witnessed tremendous increases in AC use, especially among households and business. Energy-saving variants like inverter and smart ACs are also becoming choice products because governments encourage sustainability through regulation. The demand for portable and split ACs has also surged, especially in regions with extreme summer heat. As smart home technology advances, the integration of AI-powered ACs further enhances user convenience, making air conditioning an essential household and workplace solution in Europe.

Growth Drivers in the Europe Air Conditioner Market

Rising Temperatures and Climate Change

Europe has been witnessing rising summer temperatures as a result of climate change, which has increased the demand for air conditioning systems. Heatwaves have been more recurrent, rendering cooling mechanisms a necessity and not a luxury. This is especially the case in Southern Europe, where extended heat spells take a huge toll on residential and commercial environments. Consequently, governments and consumers are investing in cost-effective cooling measures to ensure comfort and productivity and propel the market's growth. Energy-efficient, eco-friendly air conditioners specifically are in great demand as governments try to promote carbon footprint minimization through regulatory efforts. Summer 2024 was noted as the hottest summer in Europe, with a mean temperature of 1.54°C over the 1991-2020 average, breaking the old record in 2022. Southeastern Europe saw intense heat stress, where daily maximum "feels like" temperatures above 32°C were recorded for two-thirds of the days throughout the summer.

Increasing Urbanization and Smart Home Adoption

Urbanization has increased residential and commercial buildings, driving demand for air conditioning systems in Europe. With the growth of smart home technology, consumers increasingly demand air conditioners with IoT and AI-powered systems that improve user experience through remote control and automation. The need for energy-efficient smart air conditioners that can be controlled through voice and are connected via mobile apps is propelling innovation among players in the industry, resulting in increased market growth in prominent European economies. In March 2024, Crestron Electronics is a top player in smart home technology, creating innovative products that augment the user experience and support energy efficiency in home automation systems.

Stringent Energy Efficiency Regulations

The European Union (EU) has enacted stringent energy efficiency standards, compelling manufacturers to design high-efficiency air conditioners. Policies like the EU's Ecodesign Directive and the Energy Labelling Regulation promote the use of sustainable cooling technologies. Customers are increasingly choosing inverter-based, energy-efficient ACs that lower power consumption and running costs. Also, inlcents for environmentally friendly and renewable energy-based cooling technologies are encouraging development in the industry, with sustainability being a key European market driver. The EU's AC market adheres to the Ecodesign and Energy Labelling Directive (Regulation No 206/2012), which imposes requirements for energy performance, noise level, and product information. There might be more stringent regulations in some EU nations, while non-EU European countries might vary. Mitsubishi Electric is moving forward with its 2050 sustainability vision by collaborating with the NGO Plastic Free to increase awareness.

Challenges in the Europe Air Conditioner Market

High Initial Costs and Installation

Expenses Although there is increasing demand, the initial cost of smart and energy-efficient air conditioners is the main hindrance to market growth. Costs of installation, particularly for VRF and split types, also increase the financial load on businesses and consumers. This proves to be difficult for budget-conscious consumers in developing markets in Europe, where affordability is a priority. To counter this, manufacturers and governments are looking into financing and subsidization.

Environmental Issues and Refrigerant Laws

Application of hydrofluorocarbon (HFC) refrigerants in conventional air conditioners has become an environmental issue because of their high global warming potential. Laws like the EU's F-Gas Regulation are limiting the application of these refrigerants, necessitating the creation of substitute cooling technologies by manufacturers. Adherence to such laws raises production expenses, which may hinder market growth, especially among small manufacturers that are facing adaptation challenges.

Europe Single Split Air Conditioner Market

Single split air conditioners are one of the most popular cooling systems in Europe, particularly in homes and small businesses. They are affordable, easy to install, and energy-efficient, making them a favorite among households and small enterprises. The demand for single split ACs has increased because of increasing temperatures and the popularity of home remodeling. Smart split ACs with remote control, voice commands, and AI climate control are becoming popular, increasing the market further. As urbanization and apartment culture increase, single split ACs will continue to grow steadily in Europe.

Europe VRF Air Conditioner Market

Variable Refrigerant Flow (VRF) air conditioning systems are becoming popular in Europe, especially in big commercial and office buildings. VRF technology supports accurate temperature management, improved energy efficiency, and zoning versatility, making it well-suited for contemporary infrastructure. The commercial real estate bubble combined with the move towards sustainability has fueled VRF AC uptake. Germany, France, and the UK are among the nations seeing growing demand as companies place more emphasis on energy-efficient cooling technologies. Furthermore, government incentives toward green buildings add to the uptake of VRF systems throughout the region.

Europe Multi Split Air Conditioner Market

The European multi-split air conditioner market is growing as residential and commercial property owners and businesses look for versatile cooling solutions for more than one room or floor. Multi-split technology enables multiple indoor units to be connected to one outdoor compressor, minimizing energy usage and space. Their usage in both residential homes and commercial buildings, especially hotels and offices, has driven demand. The rising focus on environmental sustainability and energy efficiency has caused more and more consumers to shift towards inverter-based multi-split systems that are more efficient while consuming less power.

Portugal Air Conditioner Market

The market for air conditioning in Portugal has been on the rise because of rising summer temperatures and tourism development. The hospitality and domestic sectors are the market's major drivers of growth, with energy-efficient models becoming popular. Mar 2022, LoxamHune, the Iberian unit of Europe's biggest machine rental firm, Loxam Group, is expanding its Power division in Portugal to service the power and air conditioning needs of the country, following a release to SUPERCASA Notícias.

Belgium Air Conditioner Market

Belgium's air conditioner market is developing steadily, fueled by increasing urbanization and demand for eco-friendly cooling products. Incentives from the government in favor of energy-saving ACs and smart home compatibility are molding the future of the market. March 2024 - Daikin has introduced the new range 'All Seasons' Perfera air-to-air heat pump, poised to enhance customer experience with hassle-free installation and usage. This system provides climate control throughout the year and clean air, with energy efficiency and reduced bills.

France Air Conditioner Market

France has experienced a steep rise in air conditioner adoption, especially within commercial and office spaces. Low-energy consumption AC units due to regulations are propelling the transition to inverter-based and environmentally friendly systems. April 2024 - Mitsubishi Electric Corporation said its subsidiaries Mitsubishi Electric Hydronics & IT Cooling Systems S.p.A. and Mitsubishi Electric Europe B.V. acquired AIRCALO, a French air-conditioning firm. In April, AIRCALO expects to use the company's range of products and customization options to expand its hydronic HVAC systems in Europe's expanding market, especially with regard to the demand for products made to order and environmental sustainability.

Germany Air Conditioner Market

Germany's AC market is growing as industries and homes use energy-efficient cooling systems. Smart and IoT-enabled air conditioners are gaining momentum, in step with Germany's emphasis on sustainable energy. September 2023, Swedish company Aira, focused on Europe's air-source heat pump sector, has entered Germany and bought a UK installer. Launched in June by Stockholm-based investment firm Vargas, Aira retails heat pumps on a monthly subscription basis.

Spain Air Conditioner Market

Spain has high summer temperatures, so air conditioning in homes and offices is necessary. Demand comes from the hospitality industry in particular, and energy-saving and solar-powered ACs are increasingly popular. March 2024, LG Electronics (LG) introduces its new DUALCOOL™ residential air conditioner at MCE 2024 in Milan, Italy, March 12-15. Equipped with latest technologies such as the Soft Air™ function, DUALCOOL provides a cozy indoor climate all year round.

United Kingdom Air Conditioner Market

Although historically a low-adoption market because of more temperate climates, increasing heatwaves have boosted demand for air conditioners in the UK. Portable and energy-saving ACs are increasingly found in homes and offices. December 2024, Airzone, a European HVAC control system manufacturer, has opened operations in the UK, supporting the nation's ambition to reach net-zero carbon emissions by 2050.

Russia Air Conditioner Market

Russia's air conditioner market is expanding, particularly in urban regions facing warmer summers. The office and retail segments are the prime movers, with energy-efficient products increasing market share. Jan 2025, Morphy Richards made innovation the focus in 2024 to improve people's everyday lives, introducing the world's first certified portable air conditioner. The product successfully raised almost a million dollars on Kickstarter and earned various design and innovation awards from the IFA exhibition, generating interest from prospective partners in Japan, Europe, and South Korea.

Netherlands Air Conditioner Market

The Netherlands is witnessing a significant increase in the usage of air conditioning units, fueled by the twin forces of climate change and increasing urbanization. As temperatures increase and heatwaves become more common, homeowners and businesses alike are looking for efficient means of keeping indoor spaces comfortable. This has created a growing need for smart and environmentally friendly air conditioning systems that not only improve efficiency but also reduce environmental footprint. New technologies such as smart thermostats and energy-efficient systems are being adopted as part of a larger movement towards sustainability. Government policies and measures to lower carbon footprints further are fueling this transition, persuading homes and businesses alike to invest in cleaner options. Consequently, the market for air conditioners in the Netherlands is growing fast, signifying a prioritization of both comfort and earth stewardship against a backdrop of shifting climate factors.

Europe Air Conditioner (AC) Market & Volume Segments

Country

1. Russia
2. Italy
3. Spain
4. France
5. Turkey
6. Greece
7. Germany
8. England
9. Netherlands
10. Poland
11. Portugal
12. Bulgaria
13. Belgium
14. Romania
15. Hungary
16. Norway
17. Finland
18. Sweden
19. Cyprus
20. Croatia Republic
21. Austria
22. Switzerland
23. Rest of Europe

Types

1. Split Type (Single)

2. Split Type (Multi)

3. PAC
4. VRF
5. Others

Companies have been covered from 5 viewpoints

• Overviews
• Key Person
• Recent Developments & Strategies
• Product Portfolio & Product Launch in Last 1 Year
• Revenue

Company Analysis

1. Daikin Industries Limited
2. Toshiba Corporation
3. Mitsubishi Corporation
4. Electrolux AB
5. Carrier Global Corporation
6. Panasonic Corporation
7. Fujitsu Limited