Europe Air Conditioner (AC) Market Outlook, 2028

The European air conditioner market is a vital segment of the broader HVAC (Heating, Ventilation, and Air Conditioning) industry, serving the cooling needs of diverse sectors across the continent. It embodies a dynamic landscape characterized by constant innovation, driven by the region's changing climate patterns, increasing environmental awareness, and evolving consumer preferences. With Europe experiencing both scorching summers in the southern regions and a growing demand for energy-efficient cooling solutions, the market has witnessed a surge in the adoption of smart, eco-friendly air conditioning systems. Furthermore, regulatory initiatives and environmental considerations are playing an integral role in shaping the industry, with the European Union implementing stringent regulations aimed at reducing greenhouse gas emissions from refrigerants used in air conditioning equipment. European consumers and businesses are known for their strong environmental consciousness. This cultural awareness has driven demand for energy-efficient and eco-friendly air conditioning solutions. Buyers often prioritise products with lower carbon footprints, which has led to the development of greener cooling technologies and refrigerants. The climate varies widely from north to south, resulting in distinct seasonal patterns. In southern Europe, air conditioning is a cultural necessity during scorching summers, driving high demand for cooling systems. Conversely, Northern Europe tends to focus on heating solutions due to colder winters. This climatic variation influences regional preferences and market dynamics. Many Europeans live in densely populated urban areas where space is at a premium. As a result, compact and space-efficient air conditioning solutions, such as split-system units and ductless mini-splits, are popular choices to maximise living space while ensuring indoor comfort. European governments and institutions have implemented regulations and standards to align with the continent's cultural values of sustainability and energy efficiency. These regulations have a profound impact on the design and manufacturing of air conditioning systems, promoting eco-friendly features and responsible refrigerant use.

According to the research report, “Europe Air Conditioner Market Outlook, 2028,” the Europe Air Conditioner market was valued at more than USD 21 billion in 2022. Europe has been witnessing frequent and intense heat waves, which are driving the need for cooling solutions. Rising temperatures during the summer months have led to a higher demand for air conditioning to maintain indoor comfort, especially in southern European countries. Increasingly aware of climate change and its impact this awareness has led to a cultural shift towards more responsible and sustainable living. As a result, consumers are looking for energy-efficient and eco-friendly air conditioning options, fostering the growth of the market for greener technologies. The European Union (EU) has implemented stringent regulations and energy efficiency standards for appliances, including air conditioners. These regulations promote the development and adoption of energy-efficient cooling systems, making them an attractive choice for consumers. The European air conditioner market benefits from continuous technological advancements. Manufacturers are incorporating smart features, improved refrigerants, and energy-saving technologies into their products. These innovations enhance the performance and efficiency of air conditioning systems. Europe has a high rate of urbanisation, with more people living in cities. Urban areas tend to experience higher temperatures due to the urban heat island effect, leading to increased demand for air conditioning in residential and commercial buildings. Europe is home to many historic and older buildings that were not originally designed with air conditioning in mind. The retrofitting of these structures with modern cooling systems has become a significant market driver, contributing to the growth of the industry. Changing lifestyles and a growing middle class have resulted in increased spending on home comfort and convenience. Air conditioning is viewed as an essential appliance for maintaining a comfortable living environment, driving consumer demand.

Based on the report, the major countries covered in this report include Germany, the UK, France, Italy, Spain, Russia, and the rest of Europe. Among them, Germany is the leading country. Germany is one of Europe's economic powerhouses with a strong manufacturing sector. Its economic stability allows for a robust domestic market and export capacity, making it a hub for the production and sale of air conditioners. Germany experiences warm summers, especially in regions like Bavaria, which drives domestic demand for air conditioners. Rising temperatures in recent years have made cooling solutions more essential. German consumers prioritise energy efficiency and sustainability. This has led to a strong preference for energy-efficient air conditioners, pushing manufacturers to develop and market eco-friendly products. German engineering is renowned worldwide. German manufacturers are at the forefront of air conditioning technology, offering cutting-edge products with advanced features, smart capabilities, and superior performance. German manufacturers, such as Bosch, Daikin, and Midea, are major players in the European air conditioner market. They also export their products to other European countries, contributing to Germany's leadership in the industry.

According to the report, the product types are segmented into Window Ac, Portable Ac, Ductless Multi Split Ac, Packaged Ac, Floor Mounted Ac, Central Ac, Variable Refrigerant Ac, and Others. Among them, Window Ac has the second highest market share. Window AC units have a long history in Europe and have been a popular choice for cooling residential spaces for decades. This historical preference has created a strong market presence for window ACs. Window AC units are relatively easy to install, especially in buildings with compatible window openings. They do not require complex ductwork or extensive installation procedures, making them accessible to a wide range of consumers. In some European regions, the architecture and building design are conducive to window AC units. Older buildings with wooden window frames often accommodate these units more easily. Some window AC units are now equipped with smart features, including Wi-Fi connectivity and compatibility with home automation systems. Users can control and monitor their AC units remotely via smartphones or voice commands, enhancing convenience and energy management. Some European governments and organisations are offering incentives and rebates for the purchase of energy-efficient and environmentally friendly air conditioning units, encouraging consumers to choose greener options.

In terms of the tonnage, it is segmented into up to 2 tonnes, 2 tonnes to 5 tonnes, 5 tonnes to 10 tonnes, and more than 10 tonnes. Among them in Europe, the 2 tonnes to 5 tonnes will grow with the highest growth rate by 2028. Within Europe, there is a significant demand for air conditioning in commercial and industrial settings, such as office buildings, shopping malls, factories, and warehouses. The 2 to 5 tonnage segment is well-suited for cooling larger spaces and meeting the high cooling loads required by these applications. Commercial buildings in Europe, including office complexes and shopping centres, often have larger floor areas and higher occupancy rates. These structures require air conditioning systems with higher cooling capacities to maintain comfortable indoor conditions. European countries have witnessed urbanisation trends, with more people living and working in urban areas. In densely populated cities, there is a greater need for air conditioning systems with a tonnage capacity of 2 to 5 tonnes to cool larger office spaces, retail stores, and residential apartments. European building regulations and energy efficiency standards have become more stringent in recent years. Larger air conditioning systems within the 2 to 5 tonnes range often come equipped with advanced energy-efficient technologies, making them compliant with these regulations.

Based on the end user segmented into residential, commercial, and industrial markets in Europe, residential is leading the market. Europe has been experiencing warmer summers in recent years, with heat waves becoming more frequent and intense. This has led to a growing demand for cooling solutions in residential areas to maintain comfort during hot weather. The effects of climate change are leading to shifts in weather patterns, resulting in higher temperatures during the summer months. As a response to these changing climate conditions, more households are opting for AC units to cope with the heat. Over time, the cost of purchasing and installing residential AC units has become more affordable, making them accessible to a wider range of households. Changes in lifestyles, such as longer working hours and increased indoor activities, have led to a greater reliance on air conditioning to maintain comfortable indoor temperatures, especially in urban areas where outdoor heat can be intense. Modern home designs often incorporate features that may lead to increased heat buildup, such as large windows and less shading. As a result, many newer homes are being equipped with AC systems as a standard feature.

According to the report, the technology is segmented into inverter ACs and non-inverter ACs. In Europe, inverter ACs leads the market. Inverter ACs is known for their superior energy efficiency compared to traditional non-inverter models. They can adjust their cooling capacity based on the actual cooling load, which means they use less energy when cooling demands are lower. This efficiency is particularly appealing in Europe, where energy costs are often high and environmental concerns are significant. The energy-efficient operation of inverter ACs results in lower electricity bills, making them a cost-effective choice for consumers. The potential for long-term cost savings appeals to budget-conscious homeowners. Inverters ACs typically operate more quietly than non-inverter models. This feature is important in residential settings where noise levels can affect the overall comfort and well-being of occupants. Inverters ACs often have longer lifespans than non-inverter units. The ability to operate at variable speeds results in less wear and tear on components, contributing to durability and reliability.

Based on the distribution channel, which includes multi-brand stores, exclusive stores, online stores, and other channels, In Europe, online shopping as the distribution channel will grow with the highest CAGR rate. Online shopping offers unparalleled convenience, allowing consumers to browse, compare, and purchase air conditioners from the comfort of their homes or offices. This convenience is especially appealing to busy individuals and those looking to avoid crowded stores. Online retailers and e-commerce platforms often have extensive catalogues that include a wide range of air conditioner models, brands, and types. This variety provides consumers with more choices and the ability to find products that match their specific needs. Online shoppers can read reviews and ratings from other customers who have purchased the same product. This social proof can influence purchase decisions and build trust in the chosen product.

Companies Covered in this Report:

Samsung Electronics, Panasonic Holdings Corporation , Haier Group Corporation, Whirlpool Corporation , Havells India Limited, Daikin Industries, Ltd, LG Corporation, Electrolux AB, Robert Bosch GmbH, Carrier Global Corporation, Johnson Controls Hitachi AC Limited , Gree Electric Appliances Inc., Midea Group, Fujitsu General Limited, Trane Technologies plc, Lennox International Inc., Sharp Corporation and Blue Star Ltd.

Considered in this report:

• Geography: Europe
• Historic year: 2017
• Base year: 2022
• Estimated year: 2023
• Forecast year: 2028

Aspects covered in this report:

• Europe Air Conditioner market Outlook with its value and forecast along with its segments
• Country-wise Air Conditioner market analysis
• Various drivers and challenges
• On-going trends and developments
• Top profiled companies
• Strategic recommendation

Country Covered in this report:

• Germany
• UK
• France
• Italy
• Spain
• Russia

By Product types

• Window Ac
• Portable Ac
• Ductless Multi Split Ac
• Packaged Ac
• Floor Mounted Ac
• Central Ac
• Variable Refrigerant Ac
• Others

By Tonnage Types:

• Up to 2 Ton
• 2 Ton to 5 Ton
• 5 Ton to 10 Ton
• More Than 10 Ton

By Technology

• Inverter ACs
• Non-Inverter ACs

By End Users

• Residential
• Commercial
• Industrial

By Distribution Channel

• Multi-brand Stores
• Exclusive Stores
• Online
• Other Channels

The approach of the report:

This report consists of a combined approach of primary as well as secondary research. Initially, secondary research was used to get an understanding of the market and list out the companies that are present in the market. The secondary research consists of third-party sources such as press releases, and annual reports of companies, analyzing the government-generated reports and databases. After gathering the data from secondary sources primary research was conducted by making telephonic interviews with the leading players about how the market is functioning and then conducting trade calls with dealers and distributors of the market. Post this we have started doing primary calls to consumers by equally segmenting consumers into regional aspects, tier aspects, age groups, and gender. Once we have primary data with us we started verifying the details obtained from secondary sources.

Intended audience:

This report can be useful to industry consultants, manufacturers, suppliers, associations & organizations related to the Air Conditioner industry, government bodies, and other stakeholders to align their market-centric strategies. In addition to marketing & presentations, it will also increase competitive knowledge about the industry.