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Steam & Air Conditioning Supply in the UK - Market Size, Industry Analysis, Trends and Forecasts (2025-2029)

John Griffin John Griffin London, United Kingdom Last Updated: June 2025 SIC UK-D353

Revenue

£101.8bn

2025-26

£105.8bn

Past 5-Year Growth

Profit

£X.Xbn

Employees

678k

Businesses

16,433

Wages

£X.Xbn

Steam & Air Conditioning Supply in the UK industry analysis

The Steam and Air Conditioning Supply industry in Europe is evolving rapidly, driven by a shift towards sustainable energy solutions and diversification away from traditional fossil fuels. Rising temperatures and urbanisation, combined with policy support for district heating and cooling networks, having driven increased uptake of industry services in recent years. Revenue is forecast to increase at a compound annual rate of 5.6% over the five years through 2025, reaching €101.8 billion.

Trends and Insights

  • 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.
  • 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.
  • 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.
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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 the United Kingdom in 2025?

The market size of the Steam & Air Conditioning Supply industry in the United Kingdom is £101.8bn in 2025.

How many businesses are there in the Steam & Air Conditioning Supply industry in the United Kingdom in 2025?

There are 16,433 businesses in the Steam & Air Conditioning Supply industry in the United Kingdom, which has declined at a CAGR of 1.0 % between 2020 and 2025.

Has the Steam & Air Conditioning Supply industry in the United Kingdom grown or declined over the past 5 years?

The market size of the Steam & Air Conditioning Supply industry in the United Kingdom has been growing at a CAGR of 6.8 % between 2020 and 2025.

What is the forecast growth of the Steam & Air Conditioning Supply industry in the United Kingdom over the next 5 years?

Over the next five years, the Steam & Air Conditioning Supply industry in the United Kingdom is expected to grow.

What does the Steam & Air Conditioning Supply industry in the United Kingdom include?

Fossil heated air and water and Renewably heated air and water are part of the Steam & Air Conditioning Supply industry in the United Kingdom.

How competitive is the Steam & Air Conditioning Supply industry in the United Kingdom?

The level of competition is low and steady in the Steam & Air Conditioning Supply industry in the United Kingdom.

Everything you need in one report

  • Reliable market estimates from 2015-2030
  • Competitive analysis, industry segmentation, financial benchmarks
  • Powerful SWOT, Porter’s Five Forces and risk management frameworks
  • Online membership platform with PDF, Word, Excel and PPT exports

Table of Contents

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.

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External Drivers

Analysis

What demographic and macroeconomic factors impact the Steam & Air Conditioning Supply in the UK 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.

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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 the UK 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.

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