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Europe HVAC Services Market Analysis

The Europe HVAC Services Market size is estimated at USD 14.68 billion in 2024, and is expected to reach USD 20.68 billion by 2029, growing at a CAGR of 7.10% during the forecast period (2024-2029).

The HVAC services market directly correlates with the HVAC equipment market. Any increase in equipment demand will positively impact the market as higher demand for new equipment leads to higher demand for installation or retrofitting services.

During the pandemic, the need for ventilation systems across European countries significantly increased the demand for HVAC services. Some research suggested that COVID-19 transmission was especially effective in crowded and confined indoor spaces, such as workplaces, offices, factories, and other indoor environments, such as churches, restaurants, shopping malls, and vehicles. Ventilation with outside air has been shown to dilute contaminants in enclosed spaces and increase the time required for exposure to infectious doses.

In addition to its ventilation function, air filtration reduces the risk of virus transmission compared to simply increasing the air exchange rate in a closed space. Therefore, the demand for installation services related to air filters has increased significantly since the COVID-19 pandemic.

The rapid rise in industrialization and urbanization across the region is one of the primary factors driving the market growth. The significant increase in the construction of different industrial, commercial, and residential buildings creates considerable demand for HVAC services.

In emerging countries, especially Germany, the United Kingdom, and France, many people have migrated from rural areas to cities, increasing public and private spending on housing, commercial construction, and industrial infrastructure. The construction of new buildings creates a significant need to install new HVAC equipment, further driving the market growth.

The HVAC industry is experiencing growth and change but needs more skilled labor. An aging workforce in Europe and other regions mainly causes the shortage.

There is a need for policymakers, training providers, and the heating industry in the United Kingdom to address the skills gap to support the country's ambitions for a transition to net zero. Many regional governments are offering tax incentives to encourage the installation of efficient HVAC (heating, ventilation, and air conditioning) equipment. This is part of a more significant effort to reduce carbon emissions and mitigate the impact of climate change. By bolstering current supplies while accelerating the sustainable energy transition, the energy provisions will strengthen energy security and meaningfully reduce emissions, representing an essential step toward a better future.

Europe HVAC Services Industry Segmentation

The market is defined by the revenue generated from services such as heating, ventilation, and air conditioning equipment offered by different market players across Europe for a diverse range of end users.

The European HVAC services market is segmented by type of service (maintenance & repair and installation), implementation type (new construction and retrofit buildings), end user (residential and non-residential), and country (United Kingdom, Germany, France, Italy, Spain, Nordic, and Central/Eastern/Rest of Europe). The market sizes and forecasts are provided in terms of value in USD for all the above segments.