Europe HVAC Drives Market

Europe HVAC Drives Market Size

The Europe HVAC Drives market was estimated at USD 1.47 billion in 2024. The market is expected to grow from USD 1.53 billion in 2025 to USD 2.59 billion in 2034, at a CAGR of 6% according to latest report published by Global Market Insights Inc.

The HVAC drives market in Western Europe is consequentially changing as businesses and homes begin seeking smarter options for energy management and comfort. There is a greater focus on efficiency throughout Europe, not just to save money but also because of stricter environmental standards and sustainability goals. Drivers, which control the speed and performance of HVAC systems, have found themselves at the forefront of this movement. With the ability to modify systems for real-time demand, this flexibility reduces unnecessary usage and prolongs equipment life. Europe is appealing for added flexibility with varying climates and aging housing stock leading to challenges in heating, ventilation, and cooling.

Manufacturers are quickly responding to a market which is increasingly reliant on reliability and digital intelligence. Connectivity options, remote monitoring, and compatibility with building management systems are not considered an option anymore but an expectation. Furthermore, end-users expect more advanced technological functionality to be integrated with a product that is simple and easy to put in practice with minimal technical knowledge. There is a tangible urgency towards low-carbon buildings resulting in HVAC drives being a solid key driver of a green certificate. Of course, for the EU to meet its directives there too must be very tangible pressures from governing bodies.

The competition is intense throughout the market. Global companies and regional specialists of differing products are fighting for share, but differentiation is increasingly becoming challenging.

Europe HVAC Drives Market Trends

The European HVAC drives industry is experiencing change fueled by various regulatory needs, technology, and consumer demands. These trends are combined to create a market for variable frequency drives and motor control solutions for heating, ventilation, and air conditioning systems across Europe.

• Energy Efficiency Requirements: There will be significant deployment of high efficiency HVAC Drives due to strict EU regulations and ambitious climate goals. These mandatory federal obligations are based on reducing energy use, operating and/or owning costs, and a building's carbon footprint.
  
• Digital Transformation and IoT: HVAC drives are seeing a growing number of applications within building management systems and IoT platforms. This creates opportunities for remote diagnostics, predictive maintenance, and more controlled systems. The result of this connectivity is increased operational intelligence, improved fault detection, and increased overall efficiency of automation.
  
• Driven Decarbonization Efforts and Electrification: The push for decarbonization promotes the transition to electrification of heating and cooling solutions, particularly utilizing heat pumps. HVAC drives are key to a heat pump compressor or fan operating efficiently. This will continue to help align with the overall climate neutrality goal for Europe and building less reliant on fossil fuels.
  
• Focus on Indoor Air Quality (IAQ): Increased awareness of indoor air quality in the post pandemic world has driven up demand for more control with regards to ventilation. HVAC drives allows for optimal air flow, which means an ideally controlled environment.
  
• Regulatory Compliance & Standards: Evolving EU directives, like the Ecodesign requirements, continually raising the bar for drive performance and motor efficiency. Compliance drives manufacturers to innovate and ensure their products meet stringent standards. This ensures market competitiveness and environmental stewardship.
  

Europe HVAC Drives Market Analysis

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Based on type, the market is divided into chillers, air handling units, pumps, cooling tower fans, and ventilation fans. The chillers segment generated a revenue of USD 500 million in 2024.

• The chillers segment is the largest and most significant part of the HVAC drives market due to their need for large scale cooling applications. Chillers are used in virtually all commercial buildings, industrial settings and data centers where temperature control is essential.
  
• The same environment also gives rise to equipment that is expected to run efficiently at heavy cooling loads, and this is where drives can be used as chillers operate at variable speed, optimize energy inputs and down running costs. Energy efficiency obviously continues to be a top of mind issue across Europe and the function of drives as a supporting element for chillers complements its sustainability and regulatory mandate for compliance- making drives an essential part of any modern HVAC system.
  
• A further benefit to this already positive circumstance is the associated advancements in-chiller technology. Manufacturers have been utilizing - in some cases already superior controls and connectivity to allow for chillers to interface with building management systems.
  
• As urbanization progresses and high-performance buildings emerge, chillers remain the central cooling platform for most systems - the compatibility of HVAC drives will keep these products demand in line with each market segment.
  

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Based on power rating, the market is segmented into less than 10kW, 10-100kW, more than 100kW. The actuators segment accounted for 55% of the Europe HVAC drives market share in 2024.

• The HVAC drives market is predominantly represented by the 10–100 kW category of drives, as this range perfectly supports medium to large-scale processes, which make up a relatively high percentage of installations throughout Europe. These power ranges would perform suitably for commercial properties, hospitals, shopping sites, and industrial plants where HVAC systems need to deal with larger loads without excessive sizing in the opposite direction.
  
•  Drives made in this range will enable the ability to use energy more efficiently and at the same time will tend to run more consistently and perform reliably, making them a prevalent and preferred option for energy efficient, sustainable projects. These types of drives will often achieve a good value versus cost balance compared to large process drives, and are therefore often the first choice for most mid-range applications.
  
• Another aspect of this range's dominance is versatility. By its nature, these drives support multiple types of HVAC equipment, including chillers, pumps, and fans, which are very common in centralized systems. Many building owners and operators are now focused on energy savings, while also adhering to strict new EU legislation to support energy alignment as a priority. This range of drives affords appropriate scalability and intelligent control options without having to implement complexity or cost faced with very high-capacity drives.
  
• In addition, manufacturers are now working in this space, integrating new technologies for such advancements in smart capabilities including remote monitoring and predictive maintenance, continuing to strengthen the appeal and attractiveness of this range. The combination of flexibility, efficiency, and technology make this range of drives assured and ready for HVAC opportunities to fix or expand.
  
• Manufacturers are also innovating within this range by integrating smart technologies like remote monitoring and predictive maintenance, further enhancing their appeal. This combination of adaptability, efficiency, and technological advancement ensures the 10–100 kW segment remains the backbone of HVAC drive adoption in Europe.
  

Based on the distribution channel, the Europe HVAC Drives market is segmented into direct sales and indirect sales. Indirect sales dominates the market with highest market share.

• Currently, the most widely used method of sales in Europe for HVAC drives is the indirect sales channel. The widespread of indirect sales is largely due to its extensive network of distributors, resellers and retailers giving manufacturers an opportunity to reach a large customer base.
  
• Where indirect sales channels are best in responding to requirements from small and medium sized enterprises (SMEs) and regional markets, indirect sales channels are also able to provide local support and local availability for sales. Moreover, indirect sales channels often provide additional value-added services to end use, such as installation plus after sales support, etc. 
  
• Conversely, the direct sales channel is significant in regards of responsibility for large-scale projects and high-value client accounts. Manufacturers utilize direct sales to ensure communication is direct with customers, to factor bespoke/human elements into the sales process, as well as have responsibility for outcome, price, and service.
  
• Direct sales is beneficial for complex projects requiring integrated/human HVAC drives and solutions, whilst at the same time closer working relationships are developed between manufacturers and client/facilities managers rarely seen for other types of sales methods. 
  
• As with other distribution channels and methods of sale, indirect and direct sales channels provide an element of vendor experience to their clients and end use for the independent sale channel. Both distribution channels are significant and complementary in terms of the level of responsibility for manufacturers and differences in the HVAC drives channel in Europe.
  
• While indirect sales provide market penetration to the full, direct sales are responsible for higher-level, niche, and specialized project/client cases. Together, we both create a distribution channel of balance during responsive product placements, and vendor experiences, to market.
  

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Germany leads the 22% share of HVAC Drives market in 2024 and is expected to grow at 5.5% CAGR during 2025 to 2034, due to its established industrial base and leadership in energy efficiency, with a particularly large manufacturing base, commercial buildings, and more complex buildings that require high performance HVAC systems.

• German regulations emphasize sustainability and low energy use, which develop a natural demand for drives that facilitate HVAC optimized operations; Germany also employs smart building technologies greatly ahead of other European countries, and this is aligned with the government's goal of reaching its climate targets set by the European Union, which makes Germany the largest market in Europe for this type of technology.
  
• France is the second largest market with government funding available to modernize building infrastructure and promote green construction, particularly in light of the regulatory focus on reducing carbon emissions and enhancing energy performance in both residential and commercial sectors, where more HVAC drives are integrated.
  
• Government support and funding also grow in sectors such as hospitality, healthcare and retail, with industry-wide focuses on climate control that demand precise climate conditions. Although France does not have the same depth of industries like Germany illustrated, France's government regulations and government modernizing incentives ensure that they are progressing in the European HVAC drives market.
  

Europe HVAC Drives Market Share

ABB.is leading with 14% market share. ABB Ltd., Siemens AG, Danfoss A/S, Schneider Electric SE, Yaskawa Europe GmbH hold around 40%, indicating moderately fragmented market concentration. These prominent players are proactively involved in strategic endeavors, such as mergers & acquisitions, facility expansions & collaborations, to expand their product portfolios, extend their reach to a broad customer base, and strengthen their market position.

Europe HVAC Drives Market Companies

Major players operating in the Europe HVAC Drives market are:

• ABB Ltd.
• Danfoss A/S
• Delta Electronics (EMEA)
• Eaton (Power Quality Division)
• ebm-papst Group
• Emerson (Control Techniques / Leroy-Somer Drives)
• Fuji Electric Europe GmbH
• Invertek Drives Ltd. (UK)
• Mitsubishi Electric Europe B.V.
• Rockwell Automation (Allen-Bradley)
• Schneider Electric SE
• Siemens AG
• WEG Electric Corp.
• Yaskawa Europe GmbH
• Ziehl-Abegg SE

• Schneider Electric is global specialist in energy management and automation with digital solutions that can increase efficiency and sustainability. Schneider Electric has designed its HVAC drives for optimizing building performance with maximum energy efficiency and minimizing environmental impact. Schneider Electric has a strong position in the HVAC drive market because of its robust EcoStruxure platform, breadth of technology offerings, and strong channel to market distribution.
  
• Yaskawa is a global leader in the manufacturing of inverters, servo drives, motion controllers, and industrial robots. Yaskawa's high performance HVAC drives provide precise and reliable motor control which can result in significant energy savings across multiple building applications. Yaskawa has a strong presence in the European market space because of its advanced business technology, product quality, and existing partnerships with strong OEM partners.
  
• ABB stands as a global leader in electrification, motion, and process automation technologies. The company has a complete portfolio of HVAC drives to improve energy efficiency and performance in pumps, fans, and compressors in buildings.  With its breadth of portfolio, innovation in technology, and strength of global reach, ABB has a leading position in the HVAC drive space including multiple commercial and industrial applications.
  
• Siemens is a multinational leader focused on intelligent infrastructure, digital industries, and mobility. Their HVAC drives provide precise control of the motors in buildings for ventilation, air conditioning, and heating while providing comfort through energy use. Siemens has a strong position due to integrated solutions for smart buildings, strong R&D efforts, and an extensive customer base across Europe. 
  
• Danfoss is a global leader focused on solutions that increase machine productivity, lower emissions, and electrification. Their high efficiency dedicated HVAC drives are recognized for their reliability and ability to integrate into the building management system. Due to its focus on drives for HVAC applications, innovative technology, and commitment to sustainability, Danfoss is a strong competitor.
  

Europe HVAC Drives Industry News

• In March 2024, Siemens AG inked a deal to acquire the industrial drive technology division of ebm-papst, a move involving around 650 personnel. This acquisition bolsters Siemens' foothold in factory automation, broadens its range of intelligent battery-driven solutions for intralogistics, and taps into its expansive global sales network for enhanced market penetration.
  
• In November 2024, ABB rolled out the ACS8080, a medium-voltage air-cooled drive boasting an impressive efficiency of up to 98% and slashing harmonic distortion by nearly 50%. This innovation positions ABB to seize opportunities in the industrial HVAC retrofit sector, boost energy efficiency, facilitate predictive maintenance via advanced diagnostics, and bolster cybersecurity measures for applications in European buildings.
  
• In February 2024, Danfoss debuted the Alsmart Universal Controller platform tailored for HVAC systems. This platform features modular I/O, adheres to IEC 61131-3 programming standards, and incorporates IEC 62443-4-2 cybersecurity measures. These advancements empower Danfoss to offer remote commissioning and fleet oversight, champion green building initiatives, and ensure seamless cloud-to-component connectivity for smart projects across Europe.
  
• In April 2024, ABB attained A2L and A3 refrigerant safety conformity for its key drive models, aligning with the IEC/UL 60335-2-40 standard. This milestone paves the way for European OEMs to transition to low-GWP refrigerants, curtail system integration expenses, alleviate ignition safety apprehensions, and hasten adherence to the continent's shifting environmental mandates.
  
• In July 2025, Danfoss rolled out enhancements to the VLT HVAC Drive FC 102, integrating features like airflow and climate regulation, filter oversight, and compliance reporting in line with EN16798 standards. These upgrades empower Danfoss to offer energy savings tailored to demand, simplify installations, enable real-time monitoring for proactive maintenance, and deepen integration with management systems in Europe's smart buildings.
  

The Europe HVAC Drives market research report includes in-depth coverage of the industry with estimates & forecasts in terms of revenue (USD Billion) and volume (Thousand Units) from 2021 to 2034, for the following segments:

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Market, By Product Type

• Chillers (Compressors motor drives)
• Air handling units
• Pumps
• Cooling tower fans
• Ventilation fans

Market, By Power Rating

• Less than 10kW
• 10-100kW
• More than 100kW

Market, By Installation

• New construction
• Replacement/Retrofit

Market, By End Use

• Commercial buildings
• Industrial facilities
• Data centre
• Institutional buildings

Market, By Distribution Channel

• Direct sales
• Indirect sales

The above information is provided for the following countries:

• Germany
• France
• United Kingdom
• Italy
• Spain
• Netherlands
• Sweden
• Poland
• Belgium
• Austria
• Rest of Europe