Europe’s growing need for air conditioning is no longer just a seasonal trend. It is a structural shift caused by rising temperatures. As heatwaves become more frequent and intense across the continent, cooling is becoming a necessity. The International Energy Agency estimates that demand for air conditioning in Europe is likely to double by 2050, as climate change increases the need for cooling across the region.
The growing demand for air conditioning comes as Europe tackles another spell of extreme heat. According to the World Health Organisation, Europe is the fastest-warming continent, heating at twice the global average rate. WHO Director-General Tedros Adhanom Ghebreyesus said more than 1,300 excess deaths have been recorded since June 21 due to high temperatures, while around 150 million people are living under extreme heat conditions. The WHO has warned that what were once considered “once-in-a-generation” heatwaves are now becoming an almost annual occurrence.
The changing climate is also reshaping Europe’s air-conditioner market. The region’s imports of room air conditioners have climbed steadily over the past decade, rising from $5.47 billion in 2016 to $10.59 billion in 2025.
China continues to dominate Europe’s air-conditioner imports, accounting for 45.7 per cent of total imports in 2025, followed by Thailand with 15.1 per cent. India’s presence remains small, with a 0.5 per cent share of the market.
The sharp rise in cooling demand is also beginning to reshape export opportunities. Industry expertssay the unprecedented heatwaves have prompted Indian air-conditioner manufacturers to explore the European market, which has traditionally relied less on cooling than regions such as North America and Asia.
While the opportunity is expanding, penetrating the market will not be easy, as Chinese and South Korean manufacturers currently dominate Europe’s AC imports and enjoy a production cost advantage. Industry officials also note that Indian manufacturers will need to meet stringent European quality and energy-efficiency standards before scaling exports.
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