Industry Statistics and Trends
Steam & Air Conditioning Supply in Europe key trends
A surge in natural gas prices had a knock-on effect on district heating and cooling networks.
A significant amount of district heating is generated by burning fossil fuels, such as natural gas. The pass-through of soaring natural gas prices following Russia's invasion of Ukraine led to a jump in revenue.
Large-scale heat pumps play an important role in the industry's growth prospects.
The integration of renewable energy sources, like large-scale heat pumps, will be increasingly key as the industry positions itself as a key contributor to decarbonisation objectives.
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Steam & Air Conditioning Supply in Europe
Industry Revenue
Total value and annual change from 2012-2030. Includes 5-year outlook.
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Steam & Air Conditioning Supply in Europe market size (2020-2025)
Industry revenue has grown at a CAGR of 5.6 % over the past five years, to reach an estimated €101.8bn in 2025.
Trends and Insights
Long-term contracts help to protect revenue from big fluctuations
- As Europe has diversified its energy mix away from Russian fossil fuels, the price of key inputs, most notably natural gas, has tumbled. According to data published by the European Commission, annual average wholesale natural gas prices fell by around two-thirds in 2023, with a further 14.6% decline recorded in 2024.
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Steam & Air Conditioning Supply in Europe outlook (2025-2030)
Market size is projected to grow over the next five years.
Stringent environmental policy is set to drive uptake of district heating and cooling networks
- National and EU-level climate plans, such as Fit for 55 and REPowerEU, require significant decarbonisation of heating and cooling, promoting district heating and cooling systems over fossil fuel boilers. New directives like the Energy Efficiency Directive and Energy Performance of Buildings Directive also promote the integration of district energy into urban planning. According to Brussels-based EU trade association EuroHeat & Power, district heat network capacity is expected to increase by 80% at EU level by 2030. Meanwhile, the UK’s Climate Change Committee estimates that around 18% of the UK’s heat consumption could be supplied through heat networks by 2050.
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Revenue
€101.8bn
Employees
678k
Wages
€X.Xbn
European Leaders & Laggards
Top 5 Countries
Bottom 5 Countries
* CAGR values are for the years 2020-2025.
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Biggest companies in the Steam & Air Conditioning Supply in Europe
| Company | Market Share (%)
2025 | Revenue (€m)
2025 | Profit (€m)
2025 | Profit Margin (%)
2025 |
|---|---|---|---|---|
Veolia Environnement SA | 45,421.9 | 2,828.2 | 6.2 | |
Electricite de France SA | 115,634.0 | 14,379.0 | 12.4 | |
Électricité de France SA | 158,798.0 | 18,543.0 | 11.7 |
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Steam & Air Conditioning Supply in Europe
Products & Services Segmentation
Industry revenue broken down by key product and services lines.
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Top Questions Answered in this Report
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What is the market size of the Steam & Air Conditioning Supply industry in Europe in 2025?
The market size of the Steam & Air Conditioning Supply industry in Europe is €101.8bn in 2025.
How many businesses are there in the Steam & Air Conditioning Supply industry in Europe in 2025?
There are 16,433 businesses in the Steam & Air Conditioning Supply industry in Europe, which has declined at a CAGR of 1.0 % between 2020 and 2025.
Has the Steam & Air Conditioning Supply industry in Europe grown or declined over the past 5 years?
The market size of the Steam & Air Conditioning Supply industry in Europe has been growing at a CAGR of 5.6 % between 2020 and 2025.
What is the forecast growth of the Steam & Air Conditioning Supply industry in Europe over the next 5 years?
Over the next five years, the Steam & Air Conditioning Supply industry in Europe is expected to grow.
What does the Steam & Air Conditioning Supply industry in Europe include?
Fossil heated air and water and Renewably heated air and water are part of the Steam & Air Conditioning Supply industry in Europe.
Which countries have the most businesses in the Steam & Air Conditioning Supply industry in Europe?
The European country with the most businesses in the Steam & Air Conditioning Supply industry is Russia.
How competitive is the Steam & Air Conditioning Supply industry in Europe?
The level of competition is low and steady in the Steam & Air Conditioning Supply industry in Europe.
Related Industries
This industry is covered in 37 countries
- Steam & Air Conditioning Supply in Greece
- Steam & Air Conditioning Supply in Romania
- Steam & Air Conditioning Supply in Italy
- Steam & Air Conditioning Supply in the UK
- Steam & Air Conditioning Supply in Sweden
- Steam & Air Conditioning Supply in Norway
- Steam & Air Conditioning Supply in Germany
- Steam & Air Conditioning Supply in Latvia
- Steam & Air Conditioning Supply in Croatia
- Steam & Air Conditioning Supply in Germany
- Steam & Air Conditioning Supply in Austria
- Steam & Air Conditioning Supply in France
- Steam & Air Conditioning Supply in the Netherlands
- Steam & Air Conditioning Supply in Belgium
- Steam & Air Conditioning Supply in Estonia
- Steam & Air Conditioning Supply in Lithuania
- Steam & Air Conditioning Supply in Bosnia & Herzegovina
- Steam & Air Conditioning Supply in Iceland
- Steam & Air Conditioning Supply in Europe
- Steam & Air Conditioning Supply in Luxembourg
- Steam & Air Conditioning Supply in Russia
- Steam & Air Conditioning Supply in Hungary
- Steam & Air Conditioning Supply in Switzerland
- Steam & Air Conditioning Supply in Poland
- Steam & Air Conditioning Supply in Slovakia
- Steam & Air Conditioning Supply in Denmark
- Steam & Air Conditioning Supply in Slovenia
- Steam & Air Conditioning Supply in Spain
- Steam & Air Conditioning Supply in Portugal
- Steam & Air Conditioning Supply in Czechia
- Steam & Air Conditioning Supply in Turkey
- Steam & Air Conditioning Supply in Ireland
- Steam & Air Conditioning Supply in Serbia
- Steam & Air Conditioning Supply in Finland
- Steam & Air Conditioning Supply in North Macedonia
- Steam & Air Conditioning Supply in Bulgaria
Table of Contents
About this industry
Industry definition
Companies in this industry produce and distribute heated or chilled water and air that is used for heating or cooling, energy generation and other purposes. The industry includes district heating and cooling producers as well as network operators.
Related Terms
District HeatingAir ConditioningMonopolyWhat's included in this industry?
Fossil heated air and waterRenewably heated air and waterCooled air and waterCompanies
Veolia Environnement SAElectricite de France SAÉlectricité de France SAIndustry Code
353 - Steam and air conditioning supply in Europe
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Performance
Key Takeaways
Long-term contracts help to protect revenue from big fluctuations
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Revenue Highlights
Trends
- Revenue
- 2025 Revenue Growth
- Revenue Volatility
Employment Highlights
Trends
- Employees
- Employees per Business
- Revenue per Employee
Business Highlights
Trends
- Businesses
- Employees per Business
- Revenue per Business
Profit Highlights
Trends
- Total Profit
- Profit Margin
- Profit per Business
Current Performance
Charts
- Revenue in the Steam & Air Conditioning Supply in Europe industry (2012 -2030)
- Employees in the Steam & Air Conditioning Supply in Europe industry (2012 -2030)
- Business in the Steam & Air Conditioning Supply in Europe industry (2012 -2030)
- Profit in the Steam & Air Conditioning Supply in Europe industry (2012 -2030)
Analysis
What's driving current industry performance in the Steam & Air Conditioning Supply in Europe industry?
Outlook
Analysis
What's driving the Steam & Air Conditioning Supply in Europe industry outlook?
Volatility
Analysis
What influences volatility in the Steam & Air Conditioning Supply in Europe industry?
Charts
- Industry Volatility vs. Revenue Growth Matrix
Life Cycle
Analysis
What determines the industry life cycle stage in the Steam & Air Conditioning Supply in Europe industry?
Charts
- Industry Life Cycle Matrix
Products and Markets
Highlights
Trends
- Largest Market
- Product Innovation
Key Takeaways
Natural gas is the major energy source for heating. There is an energy shift from hard coal and lignite, to renewables like heat pumps and geothermal heating across the continent.
Products and Services
Charts
- Products and Services Segmentation
Analysis
How are the Steam & Air Conditioning Supply in Europe industry's products and services performing?
Analysis
What are innovations in the Steam & Air Conditioning Supply in Europe industry's products and services?
Major Markets
Charts
- Major Market Segmentation
Analysis
What influences demand in the Steam & Air Conditioning Supply in Europe industry?
International Trade
Highlights
- Total Imports into Europe
- Total Exports into Europe
Heat maps
- Industry Concentration of Imports by Country
- Industry Concentration of Exports by Country
Data Tables
Value and annual change (%) included
- Number of Imports and Exports by European Country (2025)
Geographic Breakdown
Business Locations
Heat maps
- Share of Total Industry Revenue by Region (2025)
- Share of Total Industry Enterprises by Region (2025)
- Share of Total Industry Employment by Region (2025)
- Share of Total Industry Wages by Region (2025)
Industry Geographic Breakdown
Data Tables
Values and annual change provided for 37 European countries:
- Revenue (2025)
- IVA (2025)
- Enterprises (2025)
- Employment (2025)
- Exports (2025)
- Imports (2025)
Competitive Forces
Highlights
Trends
- Concentration
- Competition
- Barriers to Entry
- Substitutes
- Buyer Power
- Supplier Power
Key Takeaways
Serving a more limited geographical area limits operating scope. The majority of steam and air-conditioning suppliers are country or region specific and the building of district heating systems can require lots of planning and investment, which limits expansion.
Supply Chain
Charts
Buyer and supply industries
Companies
Market Share
Charts
- Industry Market Share by Company (2020-2025)
Companies
Data Tables
Top 11 companies by market share:
- Market share (2025)
- Revenue (2025)
- Profit (2025)
- Profit Margin (2025)
Data Tables
- Countries of operation for Veolia Environnement SA
- Countries of operation for Electricite de France SA
- Countries of operation for Électricité de France SA
- Countries of operation for Daikin Industries Ltd
- Countries of operation for Robert Bosch GmbH
- Countries of operation for Carrier Global Corporation
- Countries of operation for E.ON SE
- Countries of operation for Engie SA
- Countries of operation for Danfoss AS
- Countries of operation for Vattenfall AB
- Countries of operation for Fortum Oyj
External Environment
Highlights
Trends
- Regulation & Policy
- Assistance
Key Takeaways
Regulations on cooling and heating systems vary from country to country. Most European countries regulate the design and set requirements for energy-related products and legislation curbing emissions are more prevalent.
External Drivers
Analysis
What demographic and macroeconomic factors impact the Steam & Air Conditioning Supply in Europe industry?
Financial Benchmarks
Highlights
Trends
- Profit Margin
- Average Wage
- Largest Cost
Key Takeaways
Regulations make it mandatory for certain areas to have district heating. Thanks to their monopoly-like position in many areas, the companies can generate relatively high and more profit.
Cost Structure
Charts
- Share of Economy vs. Investment Matrix
-
Industry Cost Structure Benchmarks:
- Marketing
- Depreciation
- Profit
- Purchases
- Wages
- Rent
- Utilities
- Other
Analysis
What trends impact cost in the Steam & Air Conditioning Supply in Europe industry?
Key Ratios
Data tables
- IVA/Revenue (2015-2030)
- Imports/Demand (2015-2030)
- Exports/Revenue (2015-2030)
- Revenue per Employee (2015-2030)
- Wages/Revenue (2015-2030)
- Employees per Establishment (2015-2030)
- Average Wage (2015-2030)
Country Benchmarks
European Leaders & Laggards
Data Tables
Top and bottom five countries listed for each:
- Revenue Growth (2025)
- Business Growth (2025)
- Job Growth (2025)
European Country Performance
Data Tables
Rankings available for 37 countries. Statistics ranked include:
- IVA/Revenue (2025)
- Imports/Demand (2025)
- Exports/Revenue (2025)
- Revenue per Employee (2025)
- Wages/Revenue (2025)
- Employees per Establishment (2025)
- Average Wage (2025)
Structural Comparison
Data Tables
Trends in 37 countries benchmarked against trends in Europe
- Concentration
- Competition
- Barriers to Entry
- Buyer Power
- Supplier Power
- Volatility
- Capital Intensity
- Innovation
- Life Cycle
Key Statistics
Industry Data
Data Tables
Including values and annual change:
- Revenue (2015-2030)
- IVA (2015-2030)
- Establishments (2015-2030)
- Enterprises (2015-2030)
- Employment (2015-2030)
- Exports (2015-2030)
- Imports (2015-2030)
- Wages (2015-2030)
Methodology
Where does IBISWorld source its data?
IBISWorld is a world-leading provider of business information, with reports on 5,000+ industries in Australia, New Zealand, North America, Europe and China. Our expert industry analysts start with official, verified and publicly available sources of data to build an accurate picture of each industry.
Each industry report incorporates data and research from government databases, industry-specific sources, industry contacts, and IBISWorld's proprietary database of statistics and analysis to provide balanced, independent and accurate insights.
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