Europe Room AC Market Size and Forecast (2021 - 2031), Regional Share, Trend, and Growth Opportunity Analysis Report Coverage: By Product Type (Split AC, Window AC, and Portable AC), Technology (Inverter Technology and Non-Inverter Technology), and End Us
Description
The Europe room air conditioner (AC) market is projected to grow significantly, reaching approximately US$ 6,205.72 million by 2031, up from US$ 4,235.13 million in 2024. This growth reflects a compound annual growth rate (CAGR) of 5.7% from 2025 to 2031.
Executive Summary and Market Analysis
The European real estate sector is experiencing a robust recovery after a prolonged period of stagnation. Recent research from CBRE, a leading commercial property firm, indicates that investment volumes in European real estate surged by 25% over the past year, demonstrating renewed investor confidence and market stability. In the first quarter of 2025 alone, real estate investments rose by 6% year-on-year, totaling Euro 45 billion (approximately US$ 51 billion). Over the last 12 months, total investment volumes reached Euro 213 billion.
This revitalization in the real estate market has a direct impact on the room air conditioner sector. As both commercial and residential developments accelerate, the demand for HVAC solutions, particularly compact and energy-efficient room air conditioning systems, is on the rise. New construction and refurbishment projects across urban and suburban areas are increasingly prioritizing indoor climate control, not only for occupant comfort but also to comply with stringent building efficiency and environmental standards.
The combination of improving macroeconomic conditions and lower interest rates has made property development and renovation more financially viable, encouraging investments in new buildings and the retrofitting of older structures. Room air conditioners are particularly appealing as they provide practical and scalable cooling solutions, especially in multi-unit dwellings, offices, and hospitality venues where centralized air conditioning may be impractical or too costly. Thus, the ongoing recovery of the real estate sector is expected to drive sustained growth in the room air conditioner market across Europe.
Market Segmentation Analysis
The Europe room AC market can be segmented by product type, technology, and end users.
Refrigerants play a crucial role in the operation of indoor climate control systems, facilitating the heat transfer necessary for cooling or heating indoor spaces. Traditionally used refrigerants like R-410A and R-22, while effective, have high global warming potential (GWP) and contribute to environmental degradation. In light of increasing environmental concerns and evolving regulatory standards, the shift towards next-generation refrigerants such as R-32 presents a significant growth opportunity for the room air conditioner market.
R-32 is a low-GWP refrigerant that offers enhanced thermodynamic performance and energy efficiency. It boasts approximately 10% higher thermal capacity than R-410A, allowing air conditioning systems to operate more efficiently, thereby reducing energy consumption and greenhouse gas emissions. The integration of R-32 into new air conditioning systems aligns with global sustainability commitments and climate goals, while also stimulating demand for redesigned and upgraded AC components. Components such as compressors, heat exchangers, and expansion valves must be optimized for R-32's unique properties, fostering innovation and product development within the domestic manufacturing sector.
From an environmental standpoint, transitioning to R-32 could lead to a 19% reduction in CO₂-equivalent emissions over a decade if it replaces high-GWP refrigerants across all installed AC units. R-32 has zero ozone depletion potential, similar to R-410A, making it an environmentally responsible alternative that supports long-term regulatory compliance. As the industry shifts towards energy-efficient, inverter-based AC systems, the adoption of R-32 becomes increasingly vital. This transition not only supports sustainable indoor comfort but also drives demand for advanced system components designed to optimize the performance of R-32-based systems.
Country Insights
The Europe room AC market includes key countries such as Germany, the UK, France, Italy, Russia, and others. In 2024, the Rest of Europe held the largest market share, with Spain, the Netherlands, and Sweden being significant contributors. In 2025, Spain's Institute for Energy Diversification and Saving launched a Euro 300 (approximately US$ 339.32) grant program to assist households in upgrading their air conditioning systems. This initiative is part of Spain's Air Conditioning Renewal Plan 2025, aimed at reducing national energy consumption and greenhouse gas emissions by promoting the replacement of outdated units with modern, energy-efficient alternatives. This program aligns with broader European environmental objectives and is expected to stimulate growth in the room air conditioner market across Europe as other countries consider similar measures to modernize their residential cooling infrastructure.
Company Profiles
Key players in the Europe room AC market include Blue Star Ltd, Carrier Global Corp, Daikin Industries Ltd, Johnson Controls - Hitachi Air Conditioning Company, LG Electronics Inc, Mitsubishi Electric Corp, Panasonic Holdings Corp, Samsung Electronics Co Ltd, Voltas Ltd, and Whirlpool Corp. These companies are employing various strategies such as expansion, product innovation, and mergers and acquisitions to enhance their market presence and offer innovative products to consumers.
Executive Summary and Market Analysis
The European real estate sector is experiencing a robust recovery after a prolonged period of stagnation. Recent research from CBRE, a leading commercial property firm, indicates that investment volumes in European real estate surged by 25% over the past year, demonstrating renewed investor confidence and market stability. In the first quarter of 2025 alone, real estate investments rose by 6% year-on-year, totaling Euro 45 billion (approximately US$ 51 billion). Over the last 12 months, total investment volumes reached Euro 213 billion.
This revitalization in the real estate market has a direct impact on the room air conditioner sector. As both commercial and residential developments accelerate, the demand for HVAC solutions, particularly compact and energy-efficient room air conditioning systems, is on the rise. New construction and refurbishment projects across urban and suburban areas are increasingly prioritizing indoor climate control, not only for occupant comfort but also to comply with stringent building efficiency and environmental standards.
The combination of improving macroeconomic conditions and lower interest rates has made property development and renovation more financially viable, encouraging investments in new buildings and the retrofitting of older structures. Room air conditioners are particularly appealing as they provide practical and scalable cooling solutions, especially in multi-unit dwellings, offices, and hospitality venues where centralized air conditioning may be impractical or too costly. Thus, the ongoing recovery of the real estate sector is expected to drive sustained growth in the room air conditioner market across Europe.
Market Segmentation Analysis
The Europe room AC market can be segmented by product type, technology, and end users.
- Product Type: The market is divided into split ACs, window ACs, and portable ACs. In 2024, the split AC segment held the largest market share.
- Technology: The market is categorized into inverter technology and non-inverter technology, with inverter technology dominating the market in 2024.
- End Users: The market is further segmented into residential and commercial users, with the residential segment holding a larger share in 2024.
Refrigerants play a crucial role in the operation of indoor climate control systems, facilitating the heat transfer necessary for cooling or heating indoor spaces. Traditionally used refrigerants like R-410A and R-22, while effective, have high global warming potential (GWP) and contribute to environmental degradation. In light of increasing environmental concerns and evolving regulatory standards, the shift towards next-generation refrigerants such as R-32 presents a significant growth opportunity for the room air conditioner market.
R-32 is a low-GWP refrigerant that offers enhanced thermodynamic performance and energy efficiency. It boasts approximately 10% higher thermal capacity than R-410A, allowing air conditioning systems to operate more efficiently, thereby reducing energy consumption and greenhouse gas emissions. The integration of R-32 into new air conditioning systems aligns with global sustainability commitments and climate goals, while also stimulating demand for redesigned and upgraded AC components. Components such as compressors, heat exchangers, and expansion valves must be optimized for R-32's unique properties, fostering innovation and product development within the domestic manufacturing sector.
From an environmental standpoint, transitioning to R-32 could lead to a 19% reduction in CO₂-equivalent emissions over a decade if it replaces high-GWP refrigerants across all installed AC units. R-32 has zero ozone depletion potential, similar to R-410A, making it an environmentally responsible alternative that supports long-term regulatory compliance. As the industry shifts towards energy-efficient, inverter-based AC systems, the adoption of R-32 becomes increasingly vital. This transition not only supports sustainable indoor comfort but also drives demand for advanced system components designed to optimize the performance of R-32-based systems.
Country Insights
The Europe room AC market includes key countries such as Germany, the UK, France, Italy, Russia, and others. In 2024, the Rest of Europe held the largest market share, with Spain, the Netherlands, and Sweden being significant contributors. In 2025, Spain's Institute for Energy Diversification and Saving launched a Euro 300 (approximately US$ 339.32) grant program to assist households in upgrading their air conditioning systems. This initiative is part of Spain's Air Conditioning Renewal Plan 2025, aimed at reducing national energy consumption and greenhouse gas emissions by promoting the replacement of outdated units with modern, energy-efficient alternatives. This program aligns with broader European environmental objectives and is expected to stimulate growth in the room air conditioner market across Europe as other countries consider similar measures to modernize their residential cooling infrastructure.
Company Profiles
Key players in the Europe room AC market include Blue Star Ltd, Carrier Global Corp, Daikin Industries Ltd, Johnson Controls - Hitachi Air Conditioning Company, LG Electronics Inc, Mitsubishi Electric Corp, Panasonic Holdings Corp, Samsung Electronics Co Ltd, Voltas Ltd, and Whirlpool Corp. These companies are employing various strategies such as expansion, product innovation, and mergers and acquisitions to enhance their market presence and offer innovative products to consumers.
Table of Contents
149 Pages
Pricing
Currency Rates
Questions or Comments?
Our team has the ability to search within reports to verify it suits your needs. We can also help maximize your budget by finding sections of reports you can purchase.
