2024 highs and lows across European Air Conditioning market
Latest research conducted by BSRIA on the European Air Conditioning markets revealed how volatile markets have become in response to a variety of conflicting factors driving and pushing back sales. The overall regional sales posted some growth in 2024, reaching market value above 18 billion dollars. However, the good performance has not been equal across the countries and the segments.
Water-based AC segment held up well, posting an annual growth rate of 5.6%, compared to a 1.4% increase in the packaged AC segment.
The launch of the European Green Deal and deployment of National Energy Plans have supported renovation projects boosting sales of chillers in 2024, but political debacles and economic hardships have taken toll in some countries curbing ambitions of private and public investors.
AC sales, particularly in residential segment, are driven by replacement and refurbishment sectors, and factors like high inflation, high borrowing cost or uncertainly of employment impact consumer confidence. Many European countries have also seen decrease in new construction activities, which translated in slowing sales, in both, residential and commercial segments.
Among the biggest European AC markets, Italy, Turkey, and Spain have seen positive market progression, but sales in France, Germany and UK have been disappointing in 2024.
Key Scandinavian markets, Sweden and Norway have also experienced significant decrease in sales.
The picture varied greatly in other European countries, where sales results spanned between double-digit decrease and double digit growth in comparison towards last year’s results.
High discrepancy rates in the annual demand for AC units