The Germany HVAC market size was valued at USD 5.11 Billion in 2025. The industry is expected to grow at a CAGR of 5.00% during the forecast period of 2026-2035 to reach a value of USD 8.32 Billion by 2035. The market growth is strongly driven by the ongoing shift toward electrification and decarbonization, as heat pumps increasingly replace conventional gas boilers in both residential and commercial segments.
The Germany HVAC industry is observing an inclination towards modern heat pumps fueled by stringent EU and national regulations aimed at improving energy efficiency in buildings and reducing greenhouse gas emissions. In addition, rising energy costs makes electric, low-carbon solutions more attractive. In 2023, Bosch Home Comfort Group reported an 84% rise in heat pump sales in Germany, highlighting the rapid adoption of energy-efficient technologies. Complementing this trend, in March 2025, Midea Group unveiled a range of sustainable heat pump solutions at ISH 2025, world’s prominent HVAC (heating, ventilation, and air conditioning) trade fair. The product included integrated systems designed for European homes that optimize energy use and reduce environmental impact.
Such developments, supported by government incentives and growing awareness of energy efficiency, are encouraging building retrofits and new installations, reinforcing the Germany HVAC market expansion. As a result, the combined force of regulatory pressure and technological innovation is positioning HVAC sector of the country for sustained growth, while contributing to its broader decarbonisation objectives.
Base Year
Historical Period
Forecast Period
Germany recorded over 1.3 million unit sales of new heating systems in 2023.
The sale of modern, sustainable heat pumps in Germany reached 356,000 units, recording a y-o-y increase of 51%.
Natural gas-based heaters accounted for 60% of all new purchases of heating systems in Germany.
Compound Annual Growth Rate
5%
Value in USD Billion
2026-2035
*this image is indicative*
With the rise of energy prices and the general concern for the environment, building owners are focused on the integration of HVAC plus energy management solutions which provides heating/cooling solutions by combining storage, renewables, and smart home control. In March 2025, at ISH 2025, Midea Group unveiled its 'iEasyEnergy Solution,' a system that integrates an R290 heat pump, PV modules, and energy storage, enabling nearly the entire home’s energy consumption to be met through self-sufficiency. Such complete energy solutions appeal to eco-conscious homeowners and modern builders by providing heating, cooling, and overall energy optimization, transforming the HVAC sector from a commodity market into a provider of higher-margin, integrated building solutions.
Manufacturers are responding to evolving demands and stricter efficiency standards by developing modern HVAC systems tailored to conditions of European and Germany HVAC market, which are compact, indoor-friendly, energy-efficient, and low-emission. For instance, Midea Group came out with its "H Pack Heat Pump," a fully indoor modular heat pump (no outdoor unit), aimed at easier installation and maintenance for European homes at ISH 2025 in March 2025. This kind of technology removes obstacles for retrofitting projects and thus increases the demand, as the customers of the housing sector are now allowed to perform a modern HVAC upgrade without complicated outdoor installation limitations. Eventually, the number of potential buyers will not be limited only to new builds but also to the older buildings and smaller apartments.
The Germany HVAC market as emerged as a lucrative destination for new entrants and growing players, who are increasing the competition and the speed of penetration, especially in the retrofit and residential segments. Citing a prominent example, in Early 2025, Midea Group finalised the acquisition of the climate division, ARBONIA climate, of Arbonia AG. This gave rise to the integration of the founding European HVAC brands with Midea's R&D power, thus providing them with the ability to quickly launch extensive product lines spanning heating, cooling, energy distribution, and ventilation. Consumers benefit from this diversification since they can choose more from the existing companies or the new players who aggressively promote their products.
The expansion of the Germany HVAC market is largely driven by rising demand beyond the residential heating segment. Growth is fueled by new customers in commercial buildings, industrial facilities, data centers, hospitals, laboratories, and clean rooms, all of which require specialized HVACR solutions to meet complex environmental, energy-efficiency, and operational standards. The takeover of Zimmer & Hälbig by VINCI Energies in 2025 is a perfect example of this: Zimmer & Hälbig is well-positioned to provide highly complex and technically challenging HVAC R solutions for hospitals, labs, clean rooms, data centres, as well as industrial sites. As Germany's commercial infrastructure, industrial footprint, and digital infrastructure grow, the diversification of the market broadens the HVAC addressable market, it is no longer just about heat pumps for homes but also complete HVAC R installations for large-scale, complex facilities.
Digitalization and energy efficiency are becoming major factors influencing the demand of the Germany HVAC market. This is because building operators are demanding automation, less energy consumption, and lower operational costs. To meet these demand trends, manufacturers are fast-tracking their transition to integrated software-led solutions that not only optimize HVAC lifecycle performance but also make the system more sustainable. An up-to-date instance would be the smart infrastructure Siemens at Chillventa 2024, where the unveiling of the new Climatix Hub to enable decarbonized and digitally managed HVAC-R systems was the main event. The company thus confirms the strong upward trend of smart energy-optimized technologies for residential, commercial, and industrial assets.
The EMR’s report titled “Germany HVAC Market Report and Forecast 2026-2035” offers a detailed analysis of the market based on the following segments:
Market Breakup by Equipment
Key Insights: The Germany HVAC market scope comprises of a wide range of the three paradigms of heating, ventilation, and cooling. In the case of heating, which includes heat pumps, furnaces, unitary heaters, companies such as Bosch Home Comfort Group and Stiebel Eltron are ramping up the production of heat pumps and launching energy-efficient systems, whereas Daikin Europe has introduced air to water and air to air low GWP heat pumps at ISH 2025. Providing ventilating solutions is Ziehl Abegg that offers fans, AHUs, and air-purification systems. The cooling category which includes unitary AC, VRF, chillers, is the focus of Daikin Germany and Johnson Controls, which provide integrated systems for residential and commercial buildings. Companies are focused on innovating, extending their capacities, and implementing eco-friendly, integrated HVAC solutions to satisfy the regulatory and energy-efficiency requirements in each category.
Market Breakup by Implementation Type
Key Insights: The Germany HVAC market growth is attributed to the increasing product installations in new constructions and retrofits categories. The requirement for integrated, energy-efficient heating, ventilation, and cooling systems is raised by new buildings, where companies Daikin Germany and Bosch Home Comfort Group are putting on the market advanced heat pumps, VRF systems, and smart HVAC solutions for modern buildings. At the same time, retrofit projects are on the rise with the older buildings becoming more in need of low-carbon upgrades. Hence, a company like Stiebel Eltron is compelled to present a line of small, high-efficiency heat pumps and indoor HVAC units suitable for renovation applications. Both segments propel the extensive utilization of eco-friendly HVAC solutions in the residential and commercial sectors of Germany.
Market Breakup by End Use
Key Insights: Residential applications significantly contribute to the Germany HVAC market revenue as several leading companies such as Stiebel Eltron and Bosch Home Comfort Group have been actively developing compact, high-efficiency heat pumps and integrated heating/cooling solutions that can fit both apartments and single-family homes. Meanwhile, commercial buildings are leading consumers of VRF systems, air-handling units, and the chillers sector of Germany with Daikin Europe being the main supplier of energy-efficient solutions for offices, hotels, and retail spaces. As for the industrial sector, the same goes for the firms like Johnson Controls and Ziehl-Abegg that provide large-scale HVAC-R systems and sophisticated ventilation solutions for factories, warehouses, and clean rooms.
Market Breakup by Region
Key Insights: Germany HVAC market trends and dynamics reveals considerable differences from one region to another, the three states North Rhine-Westphalia, Bavaria, and Baden-Württemberg being the trendsetters. Daikin Germany was able to increase his commercial and residential VRF and heat-pump installations in 2025 in North Rhine-Westphalia, thereby being able to absorb the demand that the growth of the urban infrastructure has generated. The old building stock in Bavaria contributes to the increase in retrofitting, which, in turn, is the result of the firm Stiebel Eltron's decision to introduce a line of small heat pumps for apartment renovations. Besides that, the observation of a growing demand for chillers, air-handling units, and other industrial and commercial ventilation systems provided by Ziehl-Abegg in Baden-Württemberg is proving that this trend is taking hold there as well.
By types, heating continues to lead market growth
Heating remains the major contributor to the growing demand of the Germany HVAC market, owing to the increasing popularity of heat pumps and energy-efficient heaters. Ait group, for example, introduced in July 2025 two small brine heat pumps utilizing the natural refrigerant R290 that are intended for very small apartment houses and do not require the extra ventilation. Such a product demonstrates how heating producers are investing more in area-efficient low carbon solutions to satisfy the growing demand for environmentally friendly heating. Thus, the heating sub-market is renewing itself continuously, which means the substitution of residential and smaller housing units old gas boilers with new heat pumps of the next generation is deepening further.
Ventilation manufacturers, on the other hand, are consolidating their positions and broadening their portfolios in the Germany HVAC market to serve the needs of the commercial, industrial, and clean environment sectors, while the cooling segment is engaged in a similar activity. As an instance, on April 8, 2025, Caverion Germany bought the Schulz Lufttechnik GmbH company, a leading expert in ventilation, air conditioning, clean room, and filtration technology, bringing its capacity to provide complete HVAC R solutions to the next level including ventilation, air filtration, cooling, and clean room setups. This is a clear indication that the demand for complete ventilation and cooling systems without the simple air conditioning component is going up most of all in industrial, medical, and commercial facilities. As a result, the ventilation & cooling sectors are getting deeply involved in the implementation of new strategies, which include significant capital infusion, consolidation, and rapid maturation as companies evolve to tackle challenging building requirements and meet stricter air quality and climate control regulations.
By type of implementation, new buildings hold large share of revenue
The German construction market is increasingly equipping new buildings with state-of-the-art HVAC systems designed from the outset to integrate heating, cooling, ventilation, and energy-efficient solutions, which is significantly fueling revenue in the Germany HVAC market. Like the Daikin Europe N.V., at ISH 25 in Frankfurt, March 2025, the company presented its most recent heat pump and HVAC R technology, which included the newly launched "Altherma 4" residential heat pump series and commercial VRV/VRF systems, explicitly addressing new-build residential and commercial properties. These all-in-one HVAC solutions take the installation in new developments to another level, thus granting energy-efficient heating and cooling right from the start - a win for the builders and developers who are looking to comply with tightening energy efficiency and sustainability requirements by increasing their uptake.
Considering the vast presence of old buildings in Germany, the demand for retrofitting is on the rise. This rising trend in the Germany HVAC market is spurred by homeowners and building managers, focused on replacing the obsolete heating and ventilating systems with new and efficient HVAC R solutions. A leading example is the ebm papst Group, which in 2025 introduced the AxiBlade.Perform fans (EC technology axial fans), ideal for chillers, air conditioning, and ventilation systems, making them a preferred choice for retrofitting existing HVAC installations. By delivering energy-efficient, plug-and-play replacement parts that meet the soon-to-be-eu efficiency standards companies make retrofitting more attractive and affordable thus speeding up the process of modernization of the German building stock that is getting older and older.
By user, residential sector shows significant growth rate
Residential heating leads the demand in the Germany HVAC market attributed to the increasing number of heat pump story as the new houses are constructed. One such example in 2025, more than 69.4% of new residential buildings completed in Germany used a heat pump as their primary heating source, which is a significant growth compared to the year before. The change highlights the fact that homeowners and developers prefer low carbon, energy efficient heating, thus cutting down the usage of gas boilers. The demand for the heating segment is set to soar as more new homes are equipped with heat pumps which in turn stimulates the growth of the market.
Meanwhile, in the commercial and industrial segment, providers across the Germany HVAC market are consolidating to deliver comprehensive, large-scale solutions. For instance, in August 2025, Johnson Controls International plc completed the sale of its Residential and Light Commercial HVAC business, including its global joint venture with Hitachi Global Life Solutions (JCH), to Robert Bosch GmbH. This acquisition allows Bosch to expand its capabilities across heating, cooling, ventilation, and light-commercial HVAC, enabling the company to provide integrated HVACR solutions for large commercial buildings, industrial complexes, and light-commercial projects in Germany.
By Region, North Rhine-Westphalia shows notable growth
North Rhine-Westphalia, as the industrial and commercial heartland of Germany, is witnessing an escalating demand for the sophisticated HVAC-R systems in hospitals, data centers, and industrial facilities. To cater to this demand, companies are merging to improve their capabilities and extend their service areas. Just to illustrate, on 28 July 2025, VINCI Energies took over Zimmer & Hälbig, a company that is a specialist in the engineering, installation, and maintenance of advanced HVAC-R systems. This move is pivotal in offering more integrated solutions that allow efficient delivery of large-scale projects and, consequently, market growth across the whole of North Rhine-Westphalia is getting stimulated.
On the other hand, Bavaria accounts for a substantial share of the Germany HVAC market owing to the increasing deployment of low-carbon heating systems in new buildings and those that are being retrofitted. This rise in demand is largely due to stringent energy-efficiency standards and ambitious decarbonisation targets. As a result of this, manufacturers are ramping up production and introducing advanced technologies. For example, in 2025, Viessmann made the decision to increase its heat-pump production capacity at its Allendorf plant to be able to meet the growing demand for eco-friendly heating in the residential and commercial sectors in the region. This move ensures a reliable supply of modern, energy-efficient heat pumps, hence facilitating the transition to the use of low-carbon heating solutions in Bavaria.
Major Germany HVAC market players are substantially increasing the HVAC production capacity to keep up with the elevated demand for heat pumps. One of such instances is Daikin Europe N.V., which is expanding its heat pump production lines in Germany to not only double but triple the output of the plant by 2025, thus being able to keep the supply stable throughout residential and commercial sectors. While on the other hand, Bosch Home Comfort Group is making massive investments into its development and production network in Europe and is not only broadening but also upgrading its product line to be able to integrate the smart homes with heating, ventilation, and air conditioning.
Also, the top HVAC companies in Germany are coming up with minimal carbon and refrigerant-efficient systems to be in line with strict energy and environmental regulations. The new generation “Altherma 4” heat pumps and the CO₂ based VRV systems by Daikin is just one of the upcoming projects that Daikin is working on to show that their main concern is the production of eco- friendly heating and cooling solutions. Such strategies are a source of manufacturers’ long-term viability and at the same time, they support the growth of the Germany HVAC market while simultaneously reducing carbon emissions.
Bosch GmbH was established in 1886 in Germany and has emerged to be a major worldwide provider of technology and services, which focuses on mobility solutions, industrial technology, and building technology. The company is most notable for its innovations in energy-efficient HVAC systems and smart-home integration, serving the needs of residential and commercial markets.
Established in 1921, and with its headquarters in Tokyo, Japan, Mitsubishi Electric Corporation is a one of the leading global electronics and electrical equipment companies. It designs and implements HVAC cutting-edge solutions including VRF systems and energy-efficient air conditioners that are of both commercial and residential applications all over the world.
Established back in 1883 and the head office being located in Lund, Sweden, Alfa Laval AB is a global provider of heat transfer, separation, and fluid handling solutions. The HVAC portfolio of the company consists of the most advanced heat exchangers and cooling technologies that can be used in the industrial, commercial, and energy sectors.
Established in 1918, and headquartered in Osaka, Japan, Panasonic Holdings Corp. is a multinational electronic company that also engages in the manufacturing of a variety of HVAC products. Among the company’s initiatives are energy-efficient air conditioners, heat pumps, and ventilation systems designed for residential and commercial applications.
*Please note that this is only a partial list; the complete list of key players is available in the full report. Additionally, the list of key players can be customized to better suit your needs.*
Other players in the market include Vaillant GmbH, Johnson Controls-Hitachi Air Conditioning Company, Systemair AB, Carrier Global Corp., Ariston Holding N.V., and Kingspan Group Plc (Colt International GmbH), among others.
Explore the latest trends shaping the Germany HVAC Market 2026-2035 with our in-depth report. Gain strategic insights, future forecasts, and key market developments that can help you stay competitive. Download a free sample report or contact our team for customized consultation on Germany HVAC market trends 2026.
Upto 15% Off
USD
$2499 $2249
$3999 $3599
$4999 $4249
$5999 $5099
*While we strive to always give you current and accurate information, the numbers depicted on the website are indicative and may differ from the actual numbers in the main report. At Expert Market Research, we aim to bring you the latest insights and trends in the market. Using our analyses and forecasts, stakeholders can understand the market dynamics, navigate challenges, and capitalize on opportunities to make data-driven strategic decisions.*
Get in touch with us for a customized solution tailored to your unique requirements and save upto 35%!
In 2025, the Germany HVAC market reached an approximate value of USD 5.11 Billion.
The market is projected to grow at a CAGR of 5.00% between 2026 and 2035.
The market is assessed to witness a healthy growth in the forecast period to reach around USD 8.32 Billion in 2035.
The different end uses of HVAC in the market include residential, commercial, and industrial.
The different types of implementations of HVAC include new constructions and retrofits.
The different equipment types considered in the market report are heating, ventilation, and cooling.
The major regions in the market include North Rhine-Westphalia, Bavaria, and Baden-Württemberg.
The key players in the market include Robert Bosch GmbH, Mitsubishi Electric Corporation, Alfa Laval AB, Panasonic Holdings Corp., Vaillant GmbH, Johnson Controls-Hitachi Air Conditioning Company, Systemair AB, Carrier Global Corp., Ariston Holding N.V., Kingspan Group Plc (Colt International GmbH), and other regional and international manufacturers.
Key strategies driving the market include rapid adoption of energy-efficient and smart HVAC systems, partnerships to expand technological capabilities, increased investments in heat pumps and renewable-integrated solutions, and the development of sustainable products aligned with Germany’s climate-neutral building goals.
The major challenges that the Germany HVAC market faces include high installation and upgrade costs, evolving regulatory compliance requirements, shortage of skilled HVAC technicians, and supply chain delays affecting the availability of components and finished systems.
Explore our key highlights of the report and gain a concise overview of key findings, trends, and actionable insights that will empower your strategic decisions.
| REPORT FEATURES | DETAILS |
| Base Year | 2025 |
| Historical Period | 2019-2025 |
| Forecast Period | 2026-2035 |
| Scope of the Report |
Historical and Forecast Trends, Industry Drivers and Constraints, Historical and Forecast Market Analysis by Segment:
|
| Breakup by Equipment |
|
| Breakup by Implementation Type |
|
| Breakup by End Use |
|
| Breakup by Region |
|
| Market Dynamics |
|
| Competitive Landscape |
|
| Companies Covered |
|
Datasheet
One User
USD 2,499
USD 2,249
tax inclusive*
Single User License
One User
USD 3,999
USD 3,599
tax inclusive*
Five User License
Five User
USD 4,999
USD 4,249
tax inclusive*
Corporate License
Unlimited Users
USD 5,999
USD 5,099
tax inclusive*
*Please note that the prices mentioned below are starting prices for each bundle type. Kindly contact our team for further details.*
Flash Bundle
Small Business Bundle
Growth Bundle
Enterprise Bundle
*Please note that the prices mentioned below are starting prices for each bundle type. Kindly contact our team for further details.*
Flash Bundle
Number of Reports: 3
20%
tax inclusive*
Small Business Bundle
Number of Reports: 5
25%
tax inclusive*
Growth Bundle
Number of Reports: 8
30%
tax inclusive*
Enterprise Bundle
Number of Reports: 10
35%
tax inclusive*
How To Order
Select License Type
Choose the right license for your needs and access rights.
Click on ‘Buy Now’
Add the report to your cart with one click and proceed to register.
Select Mode of Payment
Choose a payment option for a secure checkout. You will be redirected accordingly.
Gain insights to stay ahead and seize opportunities.
Get insights & trends for a competitive edge.
Track prices with detailed trend reports.
Analyse trade data for supply chain insights.
Leverage cost reports for smart savings
Enhance supply chain with partnerships.
Connect For More Information
Our expert team of analysts will offer full support and resolve any queries regarding the report, before and after the purchase.
Our expert team of analysts will offer full support and resolve any queries regarding the report, before and after the purchase.
We employ meticulous research methods, blending advanced analytics and expert insights to deliver accurate, actionable industry intelligence, staying ahead of competitors.
Our skilled analysts offer unparalleled competitive advantage with detailed insights on current and emerging markets, ensuring your strategic edge.
We offer an in-depth yet simplified presentation of industry insights and analysis to meet your specific requirements effectively.
Share