1 Jul 2026, Wed

Explained: Why is Europe becoming the world’s largest air conditioner market where 80% of the houses do not have AC?

The temperature in countries like France, Germany, Spain and Italy has gone above 40 degrees Celsius. France’s national temperature index reached 29.8 degrees Celsius, the highest figure since measurements began in 1947. On June 28, the temperature in Germany’s eastern city of Köchen was recorded at 41.7 degrees Celsius, while in Palluia in western France the temperature reached 43.8 degrees Celsius. But there is a big problem amidst this heat that only 20% of the houses in Europe have air conditioners. Despite this, Europe is becoming the world’s largest emerging AC market. After all, why is AC so rare in Europe and yet how is it becoming the market king?

Why is there so much shortage of AC in European homes?

According to the International Energy Agency (IEA), there are 5 major reasons for this shortage:

1. Earlier it was not so hot

In America and Japan, about 90% of people’s homes have AC. That means 80% of the population of Europe does not have AC and they are living without AC in this scorching heat. Summers in Northern Europe used to be very mild. Vincent Vigui, a researcher at the Center for International Research on Environment and Development in Paris, said, ‘Until now, in the climate of the 20th century and earlier, there was no need for air conditioning in most parts of France, because both winter and summer were mild. This is changing with climate change. Earlier the summer season was limited only to July-August and the average temperature remained below 27 degrees Celsius, so there was no need for AC.

2. Houses were not built to extract heat

Old houses in Europe were built keeping long winters in mind. Thick walls, small windows and a design that keeps the heat inside. Many buildings are very old and it is not easy to install AC in them. Apart from this, there are strict rules on historical and heritage buildings. Installation of external AC unit is not allowed in these. Thierry, an electrician from France, said that he is getting so much demand for ’emergency’ AC installation that he is worried.

3. Very high electricity prices

Electricity prices in Europe are about two and a half times higher than in America. In 2024, the price of industrial electricity in the EU was about two and a half times that of the US. The cost of running an AC is out of the reach of many European families.

4. Installation costs and permit hassles

The cost of installing AC in Europe is very high. It is more than 1,000 euros (about Rs 90,000). In many places, to install AC, permission from the landlord is required and many strict rules have to be followed.

5. Environmental concerns and political debate

There is a big political and social debate going on in Europe regarding AC. According to the United Nations Environment Program (UNEP), cooling will account for 10% of all greenhouse gas emissions by 2050. Many people fear that large-scale use of ACs will deepen the climate crisis.

AC penetration in Europe varies greatly from country to country. According to IEA:

  • More than 50% of homes in Italy have AC, which has almost doubled since 2013.
  • About 40% of the houses in Spain have AC.
  • In France, 28% of houses and only 13% of apartments have AC.
  • Only 6% of the houses in Germany have AC.
  • In Britain only 4% of the houses have AC.

According to IEA, the number of ACs has increased by almost half in the last 10 years. Annual sales are now 30% more than 5 years ago.

How much did sales jump this year?

This heatwave of 2026 has taken AC sales to record levels:

  • Carrefour (large French retail chain): By 6:30 pm on June 29, 2026, 30,000 AC units had been sold. This is ‘a thousand times more than a normal day’. Carrefour said that last week the sales of ACs, fans and coolers increased by 1,000% compared to normal.
  • Amazon: Last week, AC sales almost doubled compared to the same period in 2025. Sales increased after June 19.
  • JD.com (Joybuy- European online platform): Between June 19-25, AC sales increased almost 40 times compared to the first week of June. Sales of media portasplit increased by approximately 42 times, sales of floor fans increased by more than 80 times and sales of neck fans increased by more than 120 times.
  • Media (Chinese company): Sales of portable split ACs designed for Europe are expected to reach 2 lakh units in 2026, doubling from 2025. This model has been completely sold out in Germany, France, Netherlands and Britain. Sales through the media’s German e-commerce channels rose 37% year-on-year in May, while those in Spain and France increased 108%.
  • Samsung (South Korea): Europe recorded double-digit sales growth in the first half. This includes major markets like Italy, Spain and France. A company spokesperson said, ‘With temperatures expected to rise further from June, we expect continued demand during the peak cooling season.’
  • TCL: AC sales in Western Europe grew 27% year-on-year in Q2. In Northern Europe and France the increase was 300%, while in Spain there was a 100% increase.
  • China’s exports: Domestic AC exports from China to Western European countries increased by 9.7% in the first five months of 2026. The growth in mobile AC category was more than 70%. Many Chinese companies said that consumers in Western European markets are standing in queues to buy ACs. Stock is running out in offline stores and the demand is much higher.
  • Xiaomi: Foot traffic at the Paris store increased 84% and total sales increased 79% in the week of June 21-28.
  • Alibaba (Spain, Sweden, Belgium): AC orders in Spain almost doubled in June, while wholesale orders for fans increased by 378% in Sweden and 114% in Belgium.
  • Speedle (Chinese platform): In June, tremendous growth was seen in the European market in cooling categories like mobile AC, ice maker, electric fan. In Britain, sales of ice makers increased 10 times, while in Germany and France, fans and cooling gadgets are being sold three times more every week. There was a year-on-year increase of 4.6 times in Germany and 3 times in France.

How many ACs will there be in Europe by 2050?

According to IEA, the number of AC units in the EU could double from 2019 to 275 million by 2050. According to another IEA estimate, about 130 million AC units will be installed in the EU by 2030 and this number may quadruple by 2050.

What is the debate in Europe about AC?

In Europe the AC debate is most heated in France. According to a report in NYMag, this heatwave has fueled ‘a fierce political debate’:

  • Right wing (Marine Le Pen): Are advocating installation of ACs with subsidy on a large scale. They argue that this is necessary for the safety of the elderly and weaker sections.
  • Left or Green Party: Traditionally, people are against AC, but now the Green Party has also admitted that ‘now air conditioning has become necessary to some extent.’

According to experts, the debate in France has come down to whether people are ‘for’ or ‘against’ ACs, while the real question is how to make buildings better suited to the hot climate. At the same time, the European Union has refused to jump into this debate.

So will AC alone be able to keep the European cool?

World Health Organization (WHO) Director General Tedros Adhanom Ghebreyesus has warned, ‘Europe is the fastest warming continent in the world, which is warming at twice the rate of the global average.’ He told that currently 15 crore people are living in extreme heat in Europe and since June 21, more than 1,300 deaths have occurred across Europe. There have been at least 1,000 deaths in France alone.

Google Trends data shows that in June 2026, search interest for air conditioners reached a record high in Britain, Germany and France. The search index in Britain increased from 10 in 2022 to 100 in 2026, in Germany from 16 to 100 and in France from 18 to 100.

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