Germany has seen a significant rise in air conditioning production since 2019
In the past five years, Germany has witnessed a notable surge in demand, production, and imports of air conditioners. This growth can be attributed to rising global temperatures, urbanization, and a growing consumer focus on indoor comfort and energy efficiency [1].
Demand Increase
The global air conditioning market reached a staggering USD 124.6 billion in 2024, with Germany being no exception. Despite challenges such as high electricity prices and tax burdens on electric technologies, air conditioning units remain a priority for German households [2].
Production Trends
While exact German domestic production volumes were not detailed, the market is heavily influenced by R&D investment in smart, energy-efficient systems. German consumers and industries prefer advanced, eco-friendly appliances with AI, IoT capabilities, and compliance with environmental regulations [1].
Import Dynamics and Top Exporters
Germany imports significant volumes of air conditioning units and components, primarily from major global exporters. China, South Korea, Japan, and increasingly Southeast Asian countries dominate the export market due to their large manufacturing bases and competitive pricing [1]. However, specific import volume data for Germany is not explicitly provided in the available reports.
Additional Context
The European push for sustainability and energy efficiency, including phasing out harmful refrigerants and promoting energy-efficient appliances, shapes Germany’s demand and product characteristics [1][4]. The electricity pricing environment in Germany, with high taxes on electricity compared to gas, somewhat discourages electrification of appliances but does not significantly reduce air conditioner demand due to mandatory comfort needs [2].
Interestingly, in 2024, Sweden accounted for 10.4 percent of the imported air conditioners in Germany, while Italy accounted for 25 percent. It's worth noting that China's exporters accounted for 13.7 percent of the imported air conditioners in Germany in the same year [1].
Between 2019 and 2024, production of air conditioners in Germany increased by 75.1 percent, with around 317,000 units being produced annually. The total value of imported air conditioners in Germany increased from 2019 to 949 million euros in 2024. It's important to note that the highest value of imported air conditioners in Germany was achieved in 2023, amounting to 957 million euros [2].
In contrast, Germany's exports of air conditioners decreased by 2.8 percent to a value of 713 million euros in 2024 [2]. Despite the decrease in exports, the value of air conditioners produced in Germany increased by 34.4 percent from 2019 to 2024, reaching 1.5 billion euros [2].
In summary, Germany's air conditioning market has experienced significant growth in demand and imports, driven by climate factors and urbanization. Imports predominantly stem from China and other Asian manufacturing hubs, with domestic production focusing on advanced, energy-efficient products that comply with Europe’s ecological standards [1][2].
The surge in Germany's air conditioning market increases the demand for finance, as the market reached USD 124.6 billion globally in 2024, with a notable increase in imports from major exporters such as China and Southeast Asian countries [1]. Moreover, given the rise in the production of air conditioning units, particularly those with smart, energy-efficient systems, the German industry is likely to substantially invest in research and development (R&D) within the finance and energy sectors [1].
