European Ventilation Market Returns to Growth in 2025

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Following several years of contraction, the European ventilation market returned to growth in 2025. Based on the latest update of the 15 recently published BRG Ventilation reports, demand for several ventilation products increased modestly. Overall sales increased despite a further decline in new housing completions. Growth in the residential replacement market and non-housing segment offset continued weakness in residential new-build activity.

While demand for most ventilation products weakened in line with lower housing completions, central heat recovery ventilation products recorded growth. This divergence reflects the ongoing shift in product mix within new residential construction, with conventional ventilation-only systems increasingly being replaced by central heat recovery ventilation solutions. At the same time, mechanical ventilation remains absent in some markets, particularly in one- and two-family homes that continue to rely on natural ventilation. Nevertheless, more advanced ventilation solutions are steadily gaining market share. Central heat recovery ventilation systems are often selected alongside hydronic heat pumps in new homes. As heat pump penetration continues to increase, the addressable market for heat recovery ventilation is expanding accordingly. According to the latest completion forecasts, the new housing segment appears to have reached its cyclical low point. The rate of decline is expected to moderate in 2026 before returning to growth from 2027 onwards.

Replacement demand strengthened in 2025, with most ventilation product categories recording solid growth. Most replacement sales are driven by the substitution of failed equipment, although there is also a growing trend towards upgrading older systems with more energy-efficient alternatives. Cross-category product upgrades remain relatively limited due to cost and technical installation requirements. However, some countries mandate higher-efficiency ventilation systems as part of major refurbishment projects. In these cases, central heat recovery ventilation, local heat recovery ventilation, or advanced central extract-supply systems with demand control may be installed to meet minimum energy performance requirements. Although these upgrade-driven sales remain modest compared with the substantial replacement volumes of unitary fans and inline duct fans, they represent a growing opportunity. Replacement demand is expected to remain modest in 2026, with a stronger recovery forecast from 2027 onwards.

Air handling unit sales continued to contract across most European markets, including the UK, the Netherlands, Germany, France, Belgium, and Hungary. Growth recorded in Spain, Sweden, Turkey, Italy, and Austria was insufficient to offset these declines. Many countries continue to adjust to the downturn in non-residential investment that began in 2023 in response to broader macroeconomic challenges. Non-residential investment activity is now showing early signs of recovery, which is expected to support air handling unit sales from 2026 onwards. Despite lower air handling unit sales in 2025, the overall non-housing segment expanded modestly. Growth was primarily driven by central heat recovery ventilation systems, heat pump ventilation solutions, unitary fans, and inline duct fans.

Find out more in our latest edition European Ventilation reports.

Source: Arthur Hannert, BRG Research

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