Europe's HVAC Market Emerges as Blue Ocean Amid Climate-Driven Cooling Demand

As climate change turns 40°C heatwaves into the “new normal” across the European continent, demand for cooling solutions is exploding. The European market, once hindered by strict aesthetic regulations to protect cultural heritage, is now emerging as the biggest battleground and a new “blue ocean” for the global heating, ventilation, and air conditioning (HVAC) industry.

South Korea’s two major home appliance giants, Samsung Electronics and LG Electronics, are countering the onslaught of low-cost Chinese products by leveraging cutting-edge technologies such as refrigerant-free cooling, localized portable air conditioners, and high-efficiency eco-friendly premium solutions to capture the European market.

◇France’s air conditioner penetration rate at 24%… Chinese mid- to low-priced products surge

According to the International Energy Agency (IEA), the number of air conditioners in the European Union (EU) is projected to reach 275 million units by 2050, more than double the 2019 figure. However, Europe’s dense concentration of historic buildings imposes significant barriers to air conditioner installations.

In Paris, for instance, legally strict restrictions prohibit outdoor units on building exteriors or windows due to concerns over urban aesthetics and heat discharge into city streets. Industry analysts attribute France’s household air conditioner penetration rate of just 24% last year (per the French Environment and Energy Management Agency) to these regulations.

With centuries-old buildings making invasive installations impossible, demand for easy-to-install portable air conditioners is surging in Europe, attracting a fierce onslaught of Chinese mid- to low-priced products.

◇Samsung acquires HVAC firm, develops refrigerant-free technology

Instead of competing on price with Chinese firms, South Korean companies are focusing on technological innovation to penetrate Europe’s highly regulated market.

Samsung Electronics is pursuing a dual-track strategy targeting both commercial and residential sectors. To strengthen its dominance in the large-scale commercial market, it acquired Europe’s largest HVAC firm, Flakt Group, for 1.5 billion euros, approximately 2.6262 trillion Korean won, last year. This move aims to preemptively capture Europe’s rapidly growing data center and cleanroom markets.

For Europe’s residential market, where outdoor unit installations are heavily restricted, Samsung is developing next-generation Peltier cooling technology that eliminates the need for outdoor units. Developed in collaboration with the Johns Hopkins University Applied Physics Laboratory, this technology uses only electricity for cooling, moving away from traditional refrigerant compressors. It was selected as one of the top 100 innovations in the “R&D 100 Awards,” often dubbed the “Nobel Prize of engineering,” last year. It is praised as a solution that addresses both building exterior preservation and environmental regulations.

◇LG targets localized appliances and secures large-scale B2B projects

LG Electronics is boosting its European market share through localized home appliances and large-scale B2B contracts. Its “LG Whisen portable air conditioner” line does not require window-mounted installation; instead, it uses a dual exhaust hose connected to a window to vent heat. This design, which avoids damaging building exteriors, has received strong praise from local consumers.

LG is also aggressive in the B2B sector. It recently secured HVAC solution contracts for eco-friendly residential areas in Madrid, Spain, by offering the ThermV Monobloc heat pump, which uses eco-friendly refrigerants, and the MultiV i, an AI-based smart control system. Last year, LG launched a consortium for HVAC research in hot climates and accelerated the establishment of a localized system to respond immediately to complex overseas architectural environments.

“A region once considered a blind spot for the HVAC market, Europe is now growing into a blue ocean due to climate change,” said a source from the home appliance industry. “Next-generation eco-friendly HVAC technologies will become core infrastructure that transforms European residential culture while preserving urban aesthetics.”