Europe HVAC Services Market Size, Share, and COVID-19 Impact Analysis, By Type of Service (Maintenance and Repair, Installation, and Others), By Service Delivery Model (Conventional Time and Material Contracts, Performance-Based Energy Contracts, and Others), and Europe HVAC Services Market Insights, Industry Trend, Forecasts to 2035

Europe HVAC Services Market Insights Forecasts to 2035

• The Europe HVAC Services Market Size Was Estimated at USD 14.58 Billion in 2024
• The Market Size is Expected to Grow at a CAGR of Around 7.3% from 2025 to 2035
• The Europe HVAC Services Market Size is Expected to Reach USD 31.64 Billion by 2035

According to a research report published by Spherical Insights & Consulting, the Europe HVAC services market size is anticipated to reach USD 31.64 billion by 2035, growing at a CAGR of 7.3% from 2025 to 2035. The Europe HVAC market is growing due to energy efficiency regulations, sustainability & green initiatives, building renovation and construction, technological advancement, and government incentives & policies.

Market Overview

The Europe HVAC Services Market is the industry in Europe that provides installation, maintenance, repair, and optimization of heating, ventilation, and air-conditioning (HVAC) systems for residential, commercial, and industrial buildings. The market is driven by energy efficiency requirements, sustainability goals, and regulatory compliance. It serves residential, commercial, and industrial buildings, as well as hospitals, schools, and data centers, by delivering heating, cooling, ventilation, and indoor air quality management for comfort, efficiency, and safety.

Market growth is supported by energy efficiency regulations, sustainability and green initiatives, ongoing building renovation and construction activities, technological advancements, and supportive government incentives and policies. The market also presents significant opportunities in areas such as energy-efficient and green HVAC solutions, retrofit and modernization projects, smart and IoT-enabled services, renewable heating and cooling integration, indoor air quality solutions, and long-term service and after-sales contracts.

In January 2025, Europe accelerated its low-carbon heating transition, with the REPowerEU plan targeting at least 30 million heat pump installations by 2030. Along with the EPBD zero-emission building standards and the Renovation Wave initiative supporting energy-efficient retrofits, subsidies, and financing programs, these developments are expected to further boost growth in the European HVAC services market.

Report Coverage

This research report categorizes the market for the Europe HVAC services market based on various segments and regions, and forecasts revenue growth and analyses trends in each submarket. The report analyses the key growth drivers, opportunities, and challenges influencing the Europe HVAC services market. Recent market developments and competitive strategies, such as expansion, product launch, development, partnership, merger, and acquisition, have been included to draw the competitive landscape in the market. The report strategically identifies and profiles the key market players and analyses their core competencies in each sub-segment of the Europe HVAC services market.

Driving Factors

The HVAC services market in Europe is driven by the EU renovation Wave, which is driving large-scale upgrades, fueling a surge in heat pump installations and replacements. Demand for energy-efficient retrofits is rising across residential, commercial, and industrial buildings, while data center cooling needs are expanding rapidly. Opportunities are growing in Heat-as-a-Service contracts, seasonal thermal storage solutions, and ongoing operations & maintenance services. Additional drivers include smart HVAC system adoption, predictive maintenance via IoT, and the push for low-carbon and renewable heating integration, creating diverse revenue streams across the European HVAC market.

Restraining Factors

The HVAC market in Europe is mostly constrained by the shortage of F-gas certified technicians, high costs for IoT retrofits on legacy HVAC systems, supply chain vulnerabilities for compressors amid the heat pump boom, and increased data privacy compliance requirements for remote monitoring and maintenance services.

Market Segmentation

The Europe HVAC services market share is classified into type of service and service delivery model.

• The maintenance and repair segment accounted for the largest revenue market share in 2024 and is expected to grow at a significant CAGR during the forecast period. 

The Europe HVAC services market is segmented by type of service into maintenance and repair, installation, and others. Among these, the maintenance and repair segment accounted for the largest revenue market share in 2024 and is expected to grow at a significant CAGR during the forecast period. This is due to the vast aging installed base of systems requiring frequent servicing, stringent EU regulations mandating regular energy-efficiency inspections, and the need to reduce operational downtime. Increased reliance on service contracts and, to a lesser extent, the rise of predictive, IoT-enabled maintenance also boosted this segment’s revenue share.

• The conventional time and material contracts segment dominated the share in 2024 and is anticipated to grow at a remarkable CAGR during the forecast period. 

The Europe HVAC services market is segmented by service delivery model into conventional time and material contracts, performance-based energy contracts, and others. Among these, the conventional time and material contracts segment dominated the share in 2024 and is anticipated to grow at a remarkable CAGR during the forecast period. This is due to their flexibility, the large installed base of legacy systems, and the immediate need for repair-focused maintenance in a market characterized by aging infrastructure. While performance-based contracts are growing, the T&M model remains the preferred choice for many due to lower upfront administrative hurdles, familiarity, and suitability for quick, unpredictable repair needs.

Competitive Analysis:

The report offers the appropriate analysis of the key organizations/companies involved within the Europe HVAC services market, along with a comparative evaluation primarily based on their product offering, business overviews, geographic presence, enterprise strategies, segment market share, and SWOT analysis. The report also provides an elaborate analysis focusing on the current news and developments of the companies, which includes product development, innovations, joint ventures, partnerships, mergers & acquisitions, strategic alliances, and others. This allows for the evaluation of the overall competition within the market.

List of Key Companies

• Daikin Industries Ltd.
• Bosch Thermotechnik GmbH
• Carrier Global Corporation
• Viessmann Climate Solutions SE
• Vaillant Group
• NIBE Industrier AB
• Panasonic Corporation
• Mitsubishi Electric Corporation
• Systemair AB
• Johnson Controls International plc
• Others

Key Target Audience

• Market Players
• Investors
• End-users
• Government Authorities 
• Consulting and Research Firm
• Venture capitalists
• Value-Added Resellers (VARs)

Recent Developments

• In November 2025, Systemair AB won the Heat Pump Innovation of the Year award at the Atmosphere Europe Summit for its Compass AHU. The system uses natural refrigerant R-744 to deliver efficient, PFAS-free, non-toxic, and non-flammable heat pump and air-handling performance, marking a significant step toward sustainable ventilation and heat pump integration.

• In March 2025, Daikin Industries Ltd. showcased its latest heat pump innovations, including the Daikin Altherma 4 generation and VRV systems, reinforcing its commitment to energy-efficient, low-carbon HVAC solutions for residential, commercial, and industrial buildings. The company also highlighted a projected 250% market growth for heat pumps by 2030 under EU decarbonization policies.

Market Segment

This study forecasts revenue at the Europe, regional, and country levels from 2020 to 2035. Spherical Insights has segmented the Europe HVAC services market based on the below-mentioned segments:

Europe HVAC Services Market, By Type of Service

• Maintenance and Repair
• Installation
• Others

Europe HVAC Services Market, By Service Delivery Model

• Conventional Time and Material Contracts
• Performance-Based Energy Contracts
• Others