Europe HVAC Services Market – Growth, Trends, Impact of COVID-19 and Forecast (2022)


The European HVAC Services Market is expected to reach USD 17.82 Billion by 2027, registering a CAGR of 7.11% during the forecast period. HVAC services include the installation, maintenance and repair of heating, cooling and ventilation systems and equipment.

New York, Nov. 03, 2022 (GLOBE NEWSWIRE) — announces the publication of the report “Europe HVAC Services Market – Growth, Trends, COVID-19 Impact, and Forecasts (2022 – 2027)” – https:/ /www

The market size encompasses the revenue generated from the provision of HVAC services in different regions of Europe such as UK, Germany, France, Italy, Spain, Nordic region and rest of Europe. The study also tracks key market parameters, underlying growth influencers, and major vendors operating in the industry, which supports market estimations and growth rates over the forecast period.
The construction sector plays a key role in driving demand for HVAC systems in Europe. With the increase in the construction of commercial and residential buildings, the demand for HVAC equipment and services has steadily increased in the region.
In line with Europe’s net zero emission targets, alongside the introduction of several energy saving policies in the region, there is a growing trend of replacing existing HVAC systems with energy efficient ones.
As the dynamic HVAC industry continues to grow and change, it faces a growing shortage of skilled labor. One of the main drivers of the shortage is due to the aging workforce in Europe and many other parts of the world, with many baby boomers (people born between 1945 and 1960) making up a significant number of existing HVAC technicians and installers, preparing to retire in the next two years.
The pandemic has highlighted the importance of ventilation, an important factor driving the demand for many HVAC systems in the region. Several studies have suggested that transmission of COVID-19 is particularly effective in crowded and confined indoor spaces, such as workplaces (offices, factories) and other indoor environments, such as churches, restaurants, malls. commercial and vehicles. Ventilation with outside air has been found to dilute contaminants in enclosed spaces and increase the time to exposure to an infectious dose. In addition to ventilation, air filtration reduced the risk of virus transmission, compared to just increasing the rate of air change in enclosed spaces. Thus, the demand for installation services related to air filters has increased significantly during the COVID-19 pandemic.

Main market trends

Increase in construction activities to stimulate the market

The construction sector plays a key role in driving demand for HVAC systems in Europe. With the increase in the construction of commercial and residential buildings, the demand for HVAC equipment and services has steadily increased in the region.
According to ING’s latest EU Construction Outlook report, the European construction sector is expected to grow by 2.5% in 2022 thanks to new investments from the EU recovery fund. According to the organization, business confidence at the start of 2022 was positive among most entrepreneurs in the European Union and returned to pre-covid levels. The study also revealed that the EU infrastructure sector grew by 1.5% (year-on-year) in November 2021.
According to Atradius, after a contraction of 14% in 2020, construction production in the UK is expected to rebound by almost 15% in 2021 and grow by more than 5% in 2022. Although commercial construction activity in the country remains slightly hampered by weak demand for retail and offices, growth is driven by residential buildings and major public infrastructure projects.
Growth in the UK housing construction sector is also being boosted by the stamp duty exemption, which has fueled housing demand among buyers in 2021. During the pandemic, the cost of stamp duty has been reduced for properties up to GBP 500,000. From July 1, 2020 until October 1, 2021, stamp duty did not apply to homes costing less than £250,000. Recently, UK Chancellor Kwasi Kwarteng revealed plans to announce another reduction in stamp duty, which is expected to increase demand for homes.
In Germany, the construction activities of several infrastructure projects started during the third quarter of 2021, which should support the growth of the construction sector in the short term. Notable infrastructure projects for which construction activities have begun include the Berlin Data Center Campus, Fechenheim Digital Park, Kieler Forde Shipbuilding Facility Development, and Hospital Campus Development center of Lorrach.

The Nordic region holds a large market share

The Nordic region includes countries such as Norway, Denmark, Sweden, Iceland and Finland. Due to colder weather conditions, the demand for cooling solutions is limited to certain industries and commercial facilities; on top of that, the strict sustainability regulations. For example, in 2020 the Nordic Council of Ministers issued new public procurement guidelines that exclude HFC refrigerants in refrigeration and air conditioning, where alternative low or zero GWP refrigerants are approved.
A significant part of the heating demand is driven by the district heating solution in the region; thus, the demand for decentralized heating solutions is recently gaining ground in the main countries of the region; in addition, countries are increasingly focusing on carbon neutrality.
In April 2022, as part of a government energy reform that included a strategy for Denmark to reduce its dependence on Russian gas, the climate and energy minister announced the goal. According to the government, natural gas currently provides heating for around 400,000 homes in Denmark. According to the plan, up to 30-50% of these residences can be converted to district heating and will do so continuously until 2028. By 2030, electric heat pumps will be installed in more places. Such initiatives by governments in the region are expected to increase the need for HVAC installation, maintenance and repair services in the region, thereby contributing to the growth of the HVAC services market in the region.
According to Statistics Norway, housing starts in Norway fell from 1929 units in April 2022 to 2777 units in May. a new municipal town centre. The Storhaugne district of Stavanger will receive the LervikQuarter development project. The 26.00 square meter structure would include parking spaces, a primary school, a kindergarten, offices, a grocery store, a multi-purpose hall and other amenities. on parallel lines, an increase in construction projects like this is expected to increase the demand for HVAC services in the market.
With the increasing expansion of various residential, commercial and industrial constructions in the Nordic countries, the demand for HVAC services is expected to increase with it.
In October 2022, BravidaNorge AS was awarded a contract from Morrow Battery Factory in Arendal for the installation of an HVAC system as well as heating and plumbing and automation services. The Morrow battery plant would be engaged in manufacturing long-lasting batteries for electric vehicles in the region. These installation, maintenance and repair contracts under HVAC services are also expected to increase the demand for HVAC services in the Nordic countries during the forecast period.

Competitive landscape

The European HVAC services market is highly competitive and consists of several major players. The market players are focusing on expanding their customer base in different countries. These companies leverage strategic collaborative initiatives such as partnerships to increase their market share and profitability. Companies operating in the market are also acquiring companies working on AI platforms to boost their product capabilities in HVAC services.

August 2022: AAF International and ClearSphere, a company specializing in controlled environment solutions, have entered into a strategic partnership to provide enhanced air filtration related products and services for the cleanroom industry in Ireland.
July 2022: Modine has partnered with Texas Air Systems to expand access to the Airedale product line. With this expansion of access, the company could offer a range of HVAC solutions to its potential customers.

Additional benefits:

The Market Estimate (ME) sheet in Excel format
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