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Europe's 'air conditioner boom' impossible despite 40-degree heatwaves; installation costs reach $7,000
🇰🇷 South Korea /Disasters & Emergencies

Europe's 'air conditioner boom' impossible despite 40-degree heatwaves; installation costs reach $7,000

From Dong-A Ilbo · () Korean

Translated from Korean, summarized and contextualized by DistantNews.

At a glance

News Named sources Context piece
  • Europe is experiencing record heatwaves, but air conditioner sales are not booming due to high costs and strict installation regulations.
  • Installation can cost up to 10 million won (approximately $7,000 USD) due to a shortage of technicians and complex procedures.
  • Companies like Samsung and LG are focusing on the business-to-business (B2B) market and eco-friendly heat pumps rather than direct-to-consumer sales.

Europe is grappling with record-breaking heatwaves, with temperatures soaring in many regions. However, this extreme weather has not translated into a significant boom for air conditioner sales. The primary obstacles are the exorbitant installation costs and a complex web of regulations that make purchasing and installing units a daunting task for consumers.

The European air conditioner business conditions are very challenging, making the entry barrier for the B2C sector high.

— Industry officialExplaining the difficulties faced by companies in the European consumer air conditioner market.

In some areas, installing an air conditioner involves navigating up to seven regulatory steps. The shortage of skilled installation technicians, coupled with the need for specialized equipment like cranes and the necessity of modifying building structures, drives up costs. Reports indicate that installation alone can cost as much as 10 million Korean won (approximately $7,000 USD), a price point far beyond the reach of many individual consumers.

In the past, heatwave issues have quickly subsided, so demand has not exploded to extreme levels.

— Industry officialCommenting on the cyclical nature of demand for air conditioners in Europe.

This challenging market environment explains why major manufacturers like Samsung Electronics and LG Electronics are concentrating their efforts on the business-to-business (B2B) sector and the market for high-efficiency, eco-friendly heat pumps. While portable air conditioners offer a temporary, albeit expensive, solution for some, they face stiff competition from Chinese manufacturers. The companies are strategically targeting new buildings and commercial facilities with advanced cooling and heating systems.

We are mainly supplying high-value-added cooling and heating systems for new buildings and commercial facilities through B2B transactions.

— Industry officialDescribing the strategic focus of companies like Samsung and LG in the European market.

Heat pumps are being promoted as a key solution for Europe's transition to carbon neutrality by 2050. These systems can provide both cooling and heating, utilizing electricity to transfer thermal energy efficiently. They offer significant environmental benefits, with LG Electronics data suggesting up to a 90% reduction in carbon dioxide emissions compared to traditional fossil fuel boilers. The European heat pump market is projected to grow substantially, reaching an estimated $125 billion USD by 2034.

Europe aims for carbon neutrality by 2050, making eco-friendly heating and cooling systems like heat pumps crucial for market penetration.

— Industry officialHighlighting the importance of sustainable technology in the European market strategy.
DistantNews Editorial

Originally published by Dong-A Ilbo in Korean. Translated, summarized, and contextualized by our editorial team with added local perspective. Read our editorial standards.

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