Vehicle air conditioning units market in Germany

Earlier Report Observations

The market for vehicle air conditioning units in Germany began the period at a high of over 15 million units in 2018. This level was supported by the full application of EU Directive 2006/40/EC, which banned high-global-warming-potential refrigerants in new vehicles from that model year, requiring automakers to install compliant systems. Concurrently, the penetration of air conditioning in new cars reached 92%, reflecting entrenched consumer demand for comfort features. However, market volume then entered a sustained contraction, declining by more than half to under 7 million units by 2021. This downturn coincided with a period of industry adjustment and preparatory discussions for the forthcoming, more stringent F-Gas Regulation, which created a transitional environment for manufacturers and suppliers.

A decisive recovery commenced in 2022, with the market expanding to over 13 million units by 2024. The primary driver was the implementation of the new F-Gas Regulation (EU) 2024/573, which enforced stricter installation, maintenance, and certification requirements from 2024, stimulating demand for systems using approved low-GWP refrigerants. This regulatory push was amplified by the revised Passenger Car Energy Labeling Ordinance (Pkw-EnVKV), introducing new efficiency labels that influenced vehicle purchasing decisions. Furthermore, the launch of federal funding for energy-efficient cooling and air conditioning systems in March 2024 provided direct financial incentives for adopting advanced, compliant technologies.

The market structure evolved alongside this growth, characterized by intensified import competition notably from Italy, which increased supply diversity. Domestically, production of air conditioning units surged by 75% in 2024, indicating robust industry capacity expansion in response to regulatory and demand signals. New mandatory certification rules for workshop technicians also took effect, formalizing service standards and supporting the market for compliant maintenance.

Production vehicle air conditioning units in Germany

In value, 2017-2020, M $ US

Germany's production of vehicle air conditioning units declined for the second consecutive year. In 2020, output was valued at 577.7 million US dollars, marking an 18.5% decrease compared to the previous year. Production peaked in 2018 at 760.6 million US dollars, which represented a 2.8% increase from 2017. Over the period from 2017 to 2020, production fell by 21.9%, equivalent to an annualized decline of 7.9%.

Annual dynamics of production in Germany in value, 2017-2020, M $ US

In kind, 2017-2020, K unit

Vehicle air conditioning unit production in Germany declined for the third consecutive year. In 2020, Germany produced 3,643 thousand units, reflecting a sharp decrease of 27.4% compared to the prior year. From 2017 to 2020, production dropped by 49.4%, with a compound annual growth rate of -20.3%.

Annual dynamics of production in Germany in kind, 2017-2020, K unit

Exports vehicle air conditioning units from Germany

Exports in kind, K unit

After a two-year rise, exports of vehicle air conditioning units from Germany declined. In 2020, export volume was recorded at 15,099 thousand units, which is 12.2% lower than in 2019. Exports reached their highest point in 2019 at 17,193 thousand units, following a significant increase of 25.4% in 2018. Over the period from 2017 to 2020, exports grew by 15.1%, with a compound annual growth rate of 4.8%.

Annual dynamics of product's exports from Germany in kind, 2017-2020, K unit

From 2017 to 2020, China, Sweden, and Austria were the main destinations for Germany's vehicle air conditioning unit exports in kind. China accounted for 32.9% of exports, Sweden for 18.3%, and Austria for 7.1%. Together, these three countries absorbed 58.3% of total exports.

Structure of product's exports in kind by countries, 2017-2020

World map of product's exports from Germany in kind, 2017-2020

Exports in value, M $ US

After a two-year improvement, Germany's exports of vehicle air conditioning units in value terms declined. In 2020, exports were valued at 364.9 million US dollars, representing a 6.5% reduction compared to 2019. The highest value was recorded in 2019 at 390.4 million US dollars, following a substantial increase of 29.1% in 2018. Between 2017 and 2020, exports increased by 28.7%, equating to an annualized growth rate of 8.8%.

Annual dynamics of product's exports from Germany in value, 2017-2020, M $ US

In the period from 2017 to 2020, the leading destinations for Germany's vehicle air conditioning unit exports in value terms were China, Sweden, and France. China accounted for 36.8% of exports, Sweden for 16.2%, and France for 6.8%. Collectively, these three countries represented 59.7% of total export flows.

Structure of product's exports in value by countries, 2017-2020

World map of product's exports from Germany in value, 2017-2020

Imports vehicle air conditioning units to Germany

Imports in kind, K unit

Imports of vehicle air conditioning units into Germany declined for the second consecutive year. In 2020, Germany imported approximately 19,562 thousand units, showing a solid decline of 17.6% compared to 2019. Imports peaked in 2018 at 25,672 thousand units, which included a 4.0% increase from 2017. Over the period from 2017 to 2020, imports decreased by 20.7%, with a compound annual growth rate of -7.4%.

Annual dynamics of product's imports to Germany in kind, 2017-2020, K unit

From 2017 to 2020, Czechia, Slovakia, and Italy were the top suppliers of vehicle air conditioning units to Germany in kind. Czechia accounted for 68.5% of imports, Slovakia for 7.6%, and Italy for 7.4%. Their combined share reached 83.5% of total imports.

Structure of product's imports in kind by countries, 2017-2020

World map of product's imports to Germany in kind, 2017-2020

Imports in value, M $ US

Germany's imports of vehicle air conditioning units in value terms declined for the second consecutive year. In 2020, imports were valued at 271.0 million US dollars, indicating a strong drop of 13.3% from 2019. The maximum value was recorded in 2018 at 371.2 million US dollars, which included a 4.8% increase from 2017. The largest decline occurred in 2019 at 15.8%. Between 2017 and 2020, imports decreased by 23.5%, equating to an annualized decline of 8.5%.

Annual dynamics of product's imports to Germany in value, 2017-2020, M $ US

In the period from 2017 to 2020, Czechia, Slovakia, and Italy were the main sources for Germany's vehicle air conditioning unit imports in value terms. Czechia accounted for 65.2% of imports, Slovakia for 7.8%, and Italy for 7.1%. Together, these three countries represented 80.0% of total import flows.

Structure of product's imports in value by countries, 2017-2020

World map of product's imports to Germany in value, 2017-2020