District Heating in Germany Germany: Germany’s heating landscape is reshaping, with heat pumps and district heating now dominating new residential developments. Heat pumps have become the primary heating choice in new single-family and two-family homes, with three-quarters now equipped with these systems. In newly built apartments, heat pumps have outpaced gas heating since 2022, while district heating has become the second most common solution, particularly in cities like Ha

HVAC and AI Home Systems UAE: LG Electronics is strengthening its business domain in the Middle East through expanded B2G transactions, announcing a strategic partnership with Expo City Dubai for the construction of a smart city. The agreement builds on discussions from the Korea-UAE business roundtable focused on AI technologies, application services, and enhanced cooperation in developing AI and energy infrastructure. Expo City Dubai is developing a 3.5-square-kilometer sma

India’s Air Conditioning Industry: From Import Dependence to a Self-Reliant Manufacturing Hub India's air conditioning industry is undergoing a significant transformation. Due to rising consumer demand and government initiatives like the Production Linked Incentive Scheme for Air Conditioning and Components and the Make in India campaign, companies are increasingly prioritizing local manufacturing and expanding their production capacity. India's AC market, once heavily relian

Nordic Climate Group Expands into United Kingdom and Ireland Through Strategic Acquisitions UK/Ireland: Nordic Climate Group is expanding into the United Kingdom and Ireland via three strategic acquisitions with combined revenue exceeding EUR 50 million, establishing itself as the market leader in Ireland and securing a starting position in the UK. This expansion builds on the Group’s growth in the Nordics and the Netherlands and strengthens its presence in key sectors includ

AC Makers Brace for Q4 Demand Recovery in India Following Monsoon and GST Slowdown India: Room air-conditioner sales were impacted by a prolonged monsoon and muted retail demand, offsetting the GST reduction from 28% to 18%, with companies now targeting a recovery in the Q4 of FY26. Blue Star reported strong sales earlier in the season, but demand later slowed, leaving inventory at around 65 days of sales versus the ideal 45 days. Voltas noted subdued retail offtake due to th

UK Government Seeks Views on Alternative Low-Carbon Heating Technologies UK: The UK government has opened a consultation to gather evidence on alternative low-carbon heating technologies beyond heat pumps and heat networks. While heat pumps and heat networks remain central to the UK’s decarbonisation strategy, the government aims to identify additional solutions suitable for different types of buildings to ensure consumer choice. The consultation forms part of wider efforts t

Johnson Controls-Hitachi Reports Wider Quarterly Loss Amid Seasonal Weakness India: Johnson Controls-Hitachi Air Conditioning India Ltd. reported a larger loss in the second quarter of FY26, with its net result declining to INR 399.6 million (USD 4.79 million / EUR 4.54 million) compared with a loss of INR 300.5 million (USD 3.38 million/ EUR 2.95 million) in the same period last year. The company recorded modest growth in quarterly revenue, but demand softened sharply durin

Swegon Group Appoints Interim CEO Following Leadership Transition Sweden: Swegon Group has announced that its current Chief Executive Officer (CEO), Andreas Örje Wellstam, will move to the role of Chief Investment Officer at Investment AB Latour, the company’s owner. In response, the Board of Directors has appointed Eva Karlsson as interim CEO, effective 1 February 2026. Karlsson currently serves as Vice President of the Business Area Air Handling, Cooling & Heating and previ

Scottish Government Withdraws Green Heating Legislation Again Scotland: The Scottish government has withdrawn its proposed legislation on low-carbon heating systems for a second time this year. The heat in buildings bill, initially developed by former green minister Patrick Harvie, aimed to support the transition from gas boilers to alternatives such as electric heat pumps. The original proposal was abandoned earlier in the year due to concerns that it could increase fuel pov

Beijer Ref Acquires Two HVAC/R Distributors in the United States USA: Beijer Ref has acquired Key Refrigeration Supply and Dennis Supply Company, two HVAC/R wholesale distributors based in the United States with a combined annual turnover of approximately SEK 800 million (about USD 74 million). Key Refrigeration Supply, founded in 1999 and headquartered in North Kansas City, Missouri, operates six branches across Kansas and Missouri, supporting the company’s presence in exist

Quilt Expands Availability of Ductless Heat Pumps to Canada Canada: Quilt has launched its ductless heat pump offering in Canada following its expansion across 15 states in the United States. The company stated that its system is designed to provide an efficient option for residential heating and cooling. The rollout marks Quilt’s entry into the Canadian market, where it aims to offer an alternative to existing home heating systems. The product is now available in five provin

Armstrong International Increases Planned Heat Pump Production Capacity in Belgium Belgium: Armstrong International has revised its expansion plan for its manufacturing site in Herstal, Belgium, doubling its intended annual production capacity for industrial high-temperature heat pumps from 50 MW to 100 MW by 2027. The update follows continued momentum in industrial decarbonisation and support from the European Commission’s Innovation Fund, which intends to allocate EUR 1 bil

Watts Water Technologies Completes Acquisition of Superior Boiler USA: Watts Water Technologies Inc. has completed its acquisition of Superior Boiler, a company that designs and manufactures steam and hot water boilers and related equipment for commercial, institutional and industrial use. Superior’s product range includes firetube, watertube and condensing boilers, and the company reports annualised sales of about USD 60 million. The transaction was funded using available ca

UK Government Expands Boiler Upgrade Scheme to Cover Air-to-Air Heat Pumps and Heat Batteries UK: The UK Government has expanded its Boiler Upgrade Scheme to include air-to-air heat pumps and heat batteries, offering households more options to decarbonise their heating. Previously, the scheme provided grants of GBP 7,500 (approximately USD 9,450) for the installation of air-source or ground-source heat pumps. Under the new rules, households can now claim a grant of GBP 2,500

BITZER and MEHITS Form Joint Venture for Integrated System Development Germany: BITZER and MEHITS have established a new joint venture, BITZER MEHITS Advanced Solutions GmbH, to strengthen their collaboration of more than 25 years. The venture will operate as a research and development centre, with a focus on aligning compressor and component development more closely with MEHITS system design. MEHITS, part of the Mitsubishi Electric Group, will contribute its expertise in sys

Navien Enters the US Heat Pump Water Heater Market with a New Stainless Steel Tank Model USA: Navien has entered the heat pump water heater market with the launch of its NWP 500 model, marking a shift from its established focus on tankless gas water heaters and boilers. The new model is fully electric and includes a stainless steel tank and an in-house manufactured recirculation pump, features adapted from the company’s existing gas water heater technologies. This product rep

Sustainability GERMANY: NIBE Industrier AB’s interim report for the third quarter of 2025 indicates a continued market recovery, with sales rising to SEK 29,841 million (US$ 3.1 million) and operating profit strengthening to SEK 2,865 million (US$303 million). Despite headwinds from political uncertainty and currency volatility, the company has sustained solid performance, supported by its broad international footprint and disciplined cost control. The heat pump market in Eur

India’s PLI Scheme for White Goods India: The government received commitments worth US$ 215.7 million from 13 companies under the production linked incentive scheme for air conditioner and LED component manufacturing. Over half of the applicants were MSMEs, highlighting their increasing participation in the domestic supply chain. Nine companies will invest US$ 204.7 million in key air conditioner components such as compressors, motors, copper tubes and control assemblies, whi

Voltas India: Voltas posted a 76.3% drop in consolidated net profit to US$ 3.5 million in Q2 FY26, compared to US$ 14.9 million a year earlier. Revenue from operations fell 10.37% to US$ 264.5 million as the cooling business was impacted by a weaker summer season and GST related demand deferment. The company unitary cooling products segment, which includes room air conditioners, declined 23.2% to US$ 136.9 million due to muted retail demand and higher channel inventory follow

A.O. Smith US: A. O. Smith has signed a definitive agreement to acquire Leonard Valve Company for US$ 470 million, subject to adjustments, with the transaction expected to close in the first quarter of 2026 following regulatory approvals. After accounting for estimated tax benefits, the all-cash deal is valued at US$ 412 million. Leonard Valve and its Heat-Timer brand supply digital and thermostatic mixing valves and boiler control systems used in commercial and institutional