Heatwaves Across Southern Europe Drive AC Demand in Spain and Greece
- brg_news_room
- 2 days ago
- 2 min read
Extended heatwaves across Southern Europe, particularly in Spain and Greece, continue to spike demand for air conditioning, transforming cooling from a luxury to a necessity. The trend persisted in 2025 amid record temperatures in the region. As per BRG estimates, while only about one-third of homes in Spain had air conditioning at the beginning of the last decade, the adoption has surged with continued growth (pandemic year of 2020 being the only exception) to 2024. Greece, meanwhile, is on track to see residential AC ownership more than double its late 2010s level by the end of this decade, reflecting both hotter summers and changing comfort expectations. Electricity demand during the July heatwaves doubled wholesale prices in affected regions of both countries, pushing households and businesses toward efficient solutions.
As a matter of fact, intensifying heatwaves, like those in June-July 2025 causing over 14% electricity spikes and outages, have tripled heat-related deaths and normalized AC use in Mediterranean climates. Cultural shifts, remote work, and younger consumers are viewing AC as an essential home appliance despite high electricity costs, with Southern Europe's hospitality sector leading residential uptake. That said, climate change projections for longer, hotter summers further embed cooling in building standards and consumer habits.
Due to EU efficiency standards, smart ACs are gradually becoming popular in Spain. Newly launched ACs with IoT integration, and AI-driven optimization claim to cut electricity bills amid rising power costs. In fact, demand for inverter-based smart units aligns with smart home growth, offering automation for urban apartments and hotels. Similarly for Greece, sustainability has become the mantra for many consumers prioritising low-GWP refrigerants and connected systems for urban apartment spaces.
Japanese and Korean brands such as Daikin, Fujitsu, Mitsubishi Electric, LG lead both the markets, being perceived for reliability in hot climates. Spain and Greece primarily use R32 (and R290 to a very less extent in ACs) as low-GWP (global warming potential) refrigerants in air conditioners and heat pumps and have more or less transitioned from high-GWP options like R410A. These align with EU-wide adoption in Southern Europe, where Daikin, Mitsubishi and other Asian brands are among the market leaders. R32 offers superior efficiency (up to 10% better than R410A), lower charge volumes, and A2L mild flammability suited for split inverters in urban apartments, balancing cost, and performance amid electricity spikes. On the other hand, R290 excels in heat pumps for its ultra-low GWP, high COP (Coefficient of performance) in hot climates, and natural propane base, ideal for commercial/hotel installs despite stricter safety handling. Both cut direct emissions 76-99% versus legacy HFCs, supporting EU net-zero goals while enabling Asian imports' competitiveness in eco-compliant smart ACs.
Consumers now prefer inverter split ACs with Wi-Fi/smart features, and quiet operation. Residential buyers seek easy-install split units for apartments and even villas. High electricity rates (€0.25/kWh peaks) and summer bills (€80-200/month for villas) steer demand toward high-COP inverters which slashes usage 30-40%. Despite upfront costs, rising incomes and support by certain government incentives support and sustain growth as cooling becomes non-negotiable.
Find out more in our latest edition Eurpean reports.
Source: Himanshu Labroo, BRG Research
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