Heating, Ventilation, and Air Conditioning (HVAC) Equipment Market in Europe to grow by USD 10.8 Billion from 2024-2028, driven by data center expansion, with AI redefining the market landscape - Technavio

NEW YORK, Oct. 21, 2024 /PRNewswire/ -- Report with market evolution powered by AI - The Heating, Ventilation, and Air Conditioning (HVAC) Equipment Market in Europe size is estimated to grow by USD 10.8 billion from 2024-2028, according to Technavio. The market is estimated to grow at a CAGR of almost 5.57%  during the forecast period. Growth in data centers fueling market growth is driving market growth, with a trend towards increasing focus on predictive maintenance. However, high market competition from APAC vendors  poses a challenge - Key market players include Carrier Corp., Daikin Industries Ltd., Danfoss AS, FlaktGroup Holding GmbH, Haier Smart Home Co. Ltd., Honeywell International Inc., Ingersoll Rand Inc., Johnson and Johnson Services Inc., LG Electronics Inc., LUVE SpA, MIDEA Group Co. Ltd., Mitsubishi Electric Corp., Nortek, OSTBERG GROUP AB, Panasonic Holdings Corp., Regal Rexnord Corp., Robert Bosch GmbH, Samsung Electronics Co. Ltd., Systemair AB, and Zehnder Group AG.

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Market Driver

The European HVAC equipment market is experiencing significant growth due to the increasing adoption of Internet of Things (IoT) technology. IoT-enabled devices, such as wireless acoustic transmitters and steam trap monitors, are increasingly being used for monitoring HVAC system operations in industries. End-users are shifting towards predictive maintenance, which helps reduce downtime and enhance operational efficiency. Smart thermostats, equipped with sensors and Wi-Fi capability, enable remote temperature adjustment using smartphones or PCs. In large operational areas like oil and gas, chemicals, and petrochemical industries, IIoT-enabled HVAC systems are particularly beneficial. Real-time monitoring and control of HVAC equipment, along with alarm diagnostics, help minimize energy losses and reduce on-site service expenses. This integration of IIoT in industrial HVAC systems positively impacts market growth in Europe during the forecast period.

The European HVAC Equipment Market is experiencing significant growth due to trends like IoT, smart manufacturing, and industrial automation. Urbanization drives demand for temperature control systems, with a focus on energy-saving and low-carbon heat sources. Strategic investments in heat pumps and greenhouse gas emissions reduction are key. The energy crisis fuels the need for energy-efficient heating and cooling systems. Residential and commercial sectors prioritize indoor environmental conditions, including temperature, humidity, and air quality for comfort and safety. Product innovation in energy-efficient heating systems, ventilation systems, and air conditioning equipment is essential. Environmental regulations, such as F-gas, push for filtration technologies like HEPA filters and UV-C light sterilization. Construction trends include green building initiatives, renovating, and retrofitting, with a focus on building automation and smart technology for air quality improvement. Acquisitions and expansions continue in the market.

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Market Challenges

• The European HVAC equipment market faces intense competition from both regional and international players, particularly from low-cost manufacturers in Asia. Regulations in APAC are less restrictive, allowing for lower production costs and increased sales of counterfeit products. This price competition significantly impacts established vendors in Europe and the Americas, compelling them to lower prices to remain competitive. To counteract this, global vendors may consider horizontal integration through mergers and acquisitions to expand market share and enter new markets. However, this strategy may hinder the growth of the European HVAC equipment market during the forecast period. International players must also focus on research and development and brand image to differentiate themselves from low-cost competitors. Despite these challenges, opportunities exist for vendors to provide high-quality, energy-efficient solutions to meet the growing demand for sustainable HVAC systems in Europe.
• The European HVAC market encompasses heating equipment, air conditioning systems, and ventilation solutions. Key challenges include energy efficiency and indoor environmental conditions, with a focus on temperature, humidity, and air quality for occupant comfort and safety. Environmental regulations, such as F-gas and carbon emissions, are driving the adoption of eco-friendly technologies, including renewable energy sources like solar-powered HVAC systems and photovoltaic technology. Energy cost savings and construction trends towards green building initiatives are also influencing market growth. Acquisitions, expansions, and retrofitting projects continue, with a focus on building automation, smart technology, and air quality improvement through filtration technologies like HEPA filters and UV-C light sterilization. Price volatility in raw materials remains a concern, but the market is adapting with innovations like energy-saving regulations and advanced cooling equipment.

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Segment Overview

This heating, ventilation, and air conditioning (hvac) equipment market in Europe report extensively covers market segmentation by

1. End-user 
• 1.1 Non-residential
• 1.2 Residential
2. Product 
• 2.1 Air conditioning equipment
• 2.2 Heating equipment
• 2.3 Ventilation equipment
3. Geography 
• 3.1 Europe

1.1 Non-residential-  The European HVAC Equipment Market in the non-residential segment, which includes industrial and commercial industries, experienced varying trends in 2020. In the industrial sector, the oil and gas, chemical and petrochemical, and mining industries faced a decline in demand due to decreased investments and the shift towards cleaner energy sources. However, the need for explosion-proof HVAC systems to prevent dust-related explosions in explosion-prone environments will drive growth. In contrast, the commercial sector, which includes offices, airports, hotels, restaurants, retail, healthcare centers, and educational institutions, was primarily driven by government regulations aimed at reducing greenhouse gas emissions and minimum energy performance requirements for new and renovated buildings. The HVAC equipment market in Europe's commercial sector is expected to grow during the forecast period due to urbanization and the need for regulatory compliance. Despite the challenges faced by the non-residential segment in 2020 due to the COVID-19 pandemic, it is anticipated to register positive growth during the forecast period.

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Research Analysis

The Heating, Ventilation, and Air Conditioning (HVAC) equipment market in Europe is experiencing significant growth due to various factors. Urbanization and the need for temperature control systems in both residential and commercial sectors are driving demand for HVAC equipment. The integration of Internet of Things (IoT), smart manufacturing, and industrial automation is leading to the development of energy-saving, low-carbon heat sources. Strategic investments in HVAC technology are also on the rise to address the energy crisis and reduce greenhouse gas emissions. Product innovation is a key focus area, with a shift towards more energy-efficient and indoor environmental conditioning solutions. Temperature, humidity, and air quality are crucial factors influencing comfort and safety in indoor spaces. Heat pumps, ventilation systems, and air conditioning systems are essential components of HVAC systems, with a growing emphasis on energy efficiency, indoor air quality, filtration, and carbon emissions reduction. Construction trends towards sustainable and energy-efficient buildings are further fueling the demand for advanced HVAC solutions.

Market Research Overview

The European HVAC Equipment Market is experiencing significant growth due to various factors. Urbanization and the need for temperature control systems in both residential and commercial sectors are driving demand for heating, ventilation, and air conditioning equipment. The integration of Internet of Things (IoT), smart manufacturing, and industrial automation is leading to product innovation and energy savings. Low-carbon heat sources and strategic investments in greenhouse gas emissions reduction are key trends in the market. Energy-efficient heating and cooling systems, including heat pumps, are gaining popularity due to energy-saving regulations and environmental concerns. The market is also witnessing acquisitions and expansions by key players. Indoor environmental conditions, such as temperature, humidity, and air quality, are crucial factors influencing market growth. Comfort, safety, and energy cost savings are primary considerations for consumers. The market is also witnessing the adoption of eco-friendly technologies, such as solar-powered HVAC systems and filtration technologies like HEPA filters and UV-C light sterilization. Construction trends and green building initiatives are also driving demand for energy-efficient and indoor air quality improvement solutions. Price volatility in raw materials and the energy crisis are challenges for market growth. Overall, the European HVAC Equipment Market is expected to continue growing due to the increasing demand for temperature control systems, energy savings, and eco-friendly technologies.

Table of Contents:

1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation

• End-user
• Non-residential
• Residential
• Product
• Air Conditioning Equipment
• Heating Equipment
• Ventilation Equipment
• Geography
• Europe

7 Customer Landscape
8 Geographic Landscape
9 Drivers, Challenges, and Trends
10 Company Landscape
11 Company Analysis
12 Appendix

About Technavio

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SOURCE Technavio