The European HVAC&R market 2020

On 6 January 2020, Eurovent Market Intelligence (EMI) began its latest annual data collection, which has been providing manufacturers with information on the European HVAC sector market since 1994. With more than 300 manufacturers and15 products, and representativeness rates often exceeding 80%, the statistical branch of Eurovent has become the benchmark for HVAC market data. 

Regarding the market for fan coil units, rooftops, chillers and air handling units, 2019 was an excellent year for the entire profession, with growth rates around 10% throughout Europe, unheard of since the 2008-2009 crisis. Among the countries that recorded the strongest growth, we find+20% for the United Kingdom, +15% for the Benelux, +13% for France, +10% for Poland and +9% for Italy and Spain. Conversely, the countries that were seen as traditionally more resistant to the crisis had more moderate growth: +6% "only" for Germany, +4% for Norway, +3% for Denmark and +1% for Sweden. Among those–very rare– who recorded a decline, we find Portugal with -3%, the Czech Republic with -4%and the Baltic countries with -5%. Turkey registers a spectacular drop around -25%, due to the crisis that is happening there, with the devaluation of the Turkish lira, the increase in private and external debt, rising unemployment and rising energy prices (gas, electricity). Regarding Russia, European exports to this country only increased by 5%, due to a stronger preference for local production, and moved to CIS countries with an increase of 24%.

A strong slowdown is expected for 2020, but the year should not end in red, however. Indeed, the first two quarters are expected to record sharp declines in orders, but the uncertainties that currently surround the world (Brexit, Sino-American trade war, etc.) should subside during the year. If we add to this oil prices which should remain at a relatively low level, we can expect a slight recovery by the end of 2020. In Turkey, barring major political deterioration, increasing tourist attendance and the resumption of export should also help alleviate the crisis.

The deadline for the collections is February 14, 2020; all manufacturers wishing to have more details on the European HVAC&R market should contact Eurovent Market Intelligence before this date (at statistics@eurovent-marketintelligence.eu).