[12 Jun, 2025]
The European HVAC market is poised for robust growth, driven by new energy-efficiency regulations, electrification of heating, and a rebound in construction activity. For MEP contractors, installers, and building-automation specialists, now is the perfect time to integrate smart thermostats, IoT HVAC controls, and building energy management systems into your offerings. In this post, we:
Unpack the latest market forecasts for HVAC and construction in Europe (2024–2030)
Highlight technology trends reshaping the industry
Show how CosyClimate’s smart-thermostat solutions fit these trends
Close with a clear call to action to help you get started
Market Size & Growth
Valued at USD 68.8 B in 2024, projected to reach USD 99.3 B by 2030 at a 6.3 % CAGR ▶️ Arizton Europe HVAC Report (source)
The air-conditioning segment is outpacing heating, especially in Southern Europe, driven by more frequent heatwaves and rising comfort expectations.
Regional Highlights
Western Europe accounts for ~56 % of the market, led by Germany, France, and the UK.
Central & Eastern Europe (CEE) is accelerating as governments fund large-scale retrofit and new-build programs.
Growth Drivers
EU Energy Performance of Buildings Directive (EPBD 2024): Near-zero-energy building standards.
IoT-enabled HVAC controls for predictive maintenance and demand-response.
Green financing and subsidies for heat-pump installations.
2024 Downturn & 2025 Recovery
Construction output in the 19 Euroconstruct countries fell by 2.4 % in 2024 due to high interest rates and material costs.
A 0.6 % recovery is expected in 2025, with stronger rebounds in 2026–2027 ▶️ Euroconstruct Conference. (source)
Segment Trends
Residential Renovation: Fueled by NextGenerationEU grants and energy-efficiency incentives.
Non-Residential: Public infrastructure and green-building retrofits are on the rise.
MEP Contractor Opportunity: Growing demand for turnkey solutions that marry HVAC, electrical, plumbing, and advanced building automation.
Modern buildings need more than on/off switches. Smart thermostats deliver:
Precise temperature control (± 0.1 °C) with external sensors
Flexible scheduling: 6-event daily programming, 5+2 or 7-day modes
Multi-protocol connectivity: Wi-Fi, Zigbee, Modbus, KNX
ECO and Holiday modes, plus full remote control via app or web
Energy-usage reporting and demand-response participation
For MEP contractors, these features mean:
Enhanced building performance and EPBD compliance
New service offerings: remote diagnostics and predictive maintenance
Additional revenue streams from energy-management contracts and retrofit programs
Trend | Impact on Thermostat & HVAC Solutions |
---|---|
IoT & Connectivity | Real-time monitoring, OTA firmware updates, BMS integration |
AI & Machine Learning | Learns occupant patterns to optimize set-points and reduce waste |
Natural Refrigerants | CO₂-based systems requiring precise control for efficiency |
Indoor Air Quality | Integrated CO₂, VOC, and PM₂.₅ sensors within HVAC controls |
Circular Economy | Modular thermostats & valves designed for easy upgrade & reuse |
Ready to help your clients embrace energy-efficient HVAC and state-of-the-art smart thermostat solutions?
Download our Smart Thermostat Spec Sheet to explore full technical specs and integration options.
Schedule a Live Demo of CosyClimate’s HVAC control platform—see how easy it is to deploy and manage.
Contact Our Experts for a custom proposal on retrofit or new-build projects. (info@cosyclimate.com, CEO)
“Integrate precision, connectivity, and sustainability into every project—future-proof your buildings with CosyClimate’s smart HVAC controls.”