Europe Turns Up the Cool: A Hot Summer Sparks a Chilling Boom

The European air conditioners market is enjoying a period of solid growth, driven by record heat, rising comfort needs, and greater awareness of energy efficiency. According to IC Market Tracking – Air Conditioners in Europe by Interconnection Consulting, sales increased by 4.3% in value in 2024. With another warm year ahead and growing replacement demand, the market is expected to reach 7.7 EUR billion, continuing its positive path in 2025—up 5.1% in value—as air conditioning becomes an increasingly essential part of European homes and buildings.

“The year 2024, the hottest ever recorded in Europe, triggered an unprecedented demand for air conditioning systems, especially in the residential sector,” explains Róbert Lukáč, author of the study. “Many consumers prioritized purchasing an air conditioner over other expenditures, including vacations, leading to temporary product shortages in several countries.”

After a year of contrasting dynamics across Europe, both Western and Central & Eastern markets are set to continue expanding in 2025. In Western Europe, following moderate growth in 2024 (3.0% in value), the market is expected to accelerate by 4.5% in value. Meanwhile, Central and Eastern Europe—where 2024 marked a remarkable rebound (9.4% in value)—will keep the momentum with projected increases of 6.2% in value. Climate change, the need to cut energy costs, and the replacement of older systems continue to sustain demand, with compound annual growth rates (CAGR) forecast at 4.9% in Western Europe and 6.0% in Central and Eastern Europe through 2028.

From a product perspective, the market’s vitality is reflected across segments. A compact A/C unit mainly used in residential systems such as single-split and multi-split units grew by 3.8% and 3.4%, respectively, while more advanced commercial technologies—VRF systems (+3.6%), Rooftops (+3.1%), and Chillers (+3.4%)—also performed strongly. The appeal of smart and connected solutions, offering users greater comfort and control, is reinforcing this positive trend.

Even with rising competition from alternative cooling and heating systems—like cooling ceilings or floor-based heat pumps—the air conditioning market remains resilient. In fact, in some countries, reduced heat pump subsidies have made air conditioners an even more attractive option, as they efficiently provide both cooling and heating.

Looking ahead, Northern Europe—historically less reliant on air conditioning—is expected to see the fastest growth, while Southern Europe continues expanding through replacement of older units. Urbanization, modernization of buildings, and the growing desire for better indoor comfort are expected to keep the market’s outlook bright.

The industry remains highly consolidated, with Carrier, Daikin, Fujitsu General, GREE, Hitachi, LG Electronics, Midea, Mitsubishi Electric, Panasonic, Samsung, and Toshiba together controlling 70.7% of the European market. In the single & multi splits used largely for residential segment, Daikin, Fujitsu, LG Electronics, Mitsubishi, Panasonic, and Toshiba lead the way, while Carrier, Daikin, Hitachi, Mitsubishi, Toshiba, and Trane dominate the non-residential market.