[Global Report] Europe, which used to wave off air conditioners, opens wallets due to heatwave

[Financial News] Europeans, who had previously avoided air conditioners for various reasons such as price, house structure, and regulations, have changed their minds due to the record-breaking heatwave. With a surge in air conditioner purchases among the younger generation, the presence or absence of air conditioning is expected to become a source of social and political conflict in the future.
Switzerland's largest online retailer, Digitec Galaxus, announced on the 2nd (local time) through its website that air conditioner sales in Europe last month increased by 223% compared to the same period last year, setting a new monthly sales record. Among the products sold, the highest number, 33%, were low-cost models priced between 100 and 300 Swiss francs (approximately 17 to 51 thousand won). By age group, consumers aged 35-44 (31%) and 25-34 (29%) mainly purchased. Consumers under the age of 25 increased from 4% in 2023 to 7% this year.
Europe, which is located at a higher latitude than Korea, traditionally has a low air conditioner penetration rate. On the 2nd, CNN in the United States pointed out that the air conditioner penetration rate in European households is on average 20%, which is lower than the United States (about 90%). The penetration rates in the UK and Germany are 5% and 3%, respectively. CNN noted that in the past, even when heatwaves hit Europe, they did not last long, unlike recent trends, so the demand for air conditioners was low. Additionally, Europeans considered air conditioners a kind of 'luxury' due to high electricity costs. The fact that there are many old stone buildings that make installation difficult, and numerous environmental regulations related to outdoor unit heat, were also obstacles to the spread of air conditioners.
However, according to the Copernicus Climate Change Service (C3S) under the European Union (EU), last month's average temperature in Western Europe was the highest ever recorded at 20.49 degrees. British researchers, including Imperial College London, estimated that approximately 2,300 people died from the heat in 12 cities in Western Europe from the 23rd of last month to the 2nd of this month.
In response, Marine Le Pen, a member of the French National Assembly who effectively leads the far-right party National Rally (RN), raised the air conditioning issue by attacking French President Emmanuel Macron on social media on the 30th of last month. She predicted the implementation of a nationwide cooling equipment deployment plan, saying that while the French people are fighting the heat, "the Macron government enjoys well-cooled vehicles and offices."
If European countries rush to distribute air conditioners, there are opportunities for Korean appliance companies. However, fierce competition is expected as the current global air conditioner market is dominated by Japan's Daikin, China's Midea, and the United States' Carrier.
pjw@fnnews.com Park Jong-won Reporter