Trends and key drivers

A warmer climate with recurring heatwaves is driving increased demand in the air conditioning segment. The installation of heat pumps and air conditioning in homes is becoming more common, especially in Europe, where only 19 percent of homes have air conditioning compared to 90 percent in the USA, according to estimates by the International Energy Agency (IEA). The growing middle class in warmer continents, such as Asia and Africa, is increasingly demanding comfort cooling, which several studies link directly to an improved quality of life.

Greenhouse gas emissions need to be reduced rapidly to slow down climate change in line with the goals of the Paris Agreement. Emissions of fluorinated gases from refrigerants affect the climate, which means that the industry bears a great deal of responsibility. The market is changing, as more end customers upgrade or replace existing technology. Large parts of Europe are at the forefront of the transition, especially the Nordic region. Demand for natural refrigerants from other non-European markets is increasing and is driven by regulatory developments; an important milestone was reached in 2022 when the USA adopted the Kigali Amendment to the Montreal Protocol.

Beijer Ref is a world leader in the development of its own manufactured green products that help accelerate the market’s transition to sustainable refrigeration technology based on natural refrigerants.

Pressure to reduce the use of fossil energy sources and rising energy prices are driving a shift toward energy-efficient HVAC solutions, such as heat pumps. The transition is underway in both residential and commercial premises, which require smart, environmentally friendly, and design-oriented HVAC systems. This shift is driven in part by increased electricity production through solar cells and wind turbines, combined with regulatory requirements for renewable energy. Within Europe, the need for change is particularly pronounced in the United Kingdom, Benelux, and France. Furthermore, the USA is also moving in the same direction.

With the help of the market’s widest distribution network, Beijer Ref offers sustainable and energy-efficient HVAC solutions for all types of properties. Since the group anticipated the technology shift toward increased electrification at an early stage, it has worked proactively to influence the supply chain’s product range to offer energy-efficient HVAC units based on electricity.

The need for refrigeration systems in supermarkets, restaurants, and hotels, among others, is relatively insensitive to fluctuations in the economy, because good refrigeration is essential for extending the life of food. However, the need for end-users to reduce emissions of fluorinated gases is driving investment in new, environmentally friendly technologies. At the same time, increasing e-commerce is creating new demands for refrigeration systems. When food is bought online, refrigeration technology is necessary for transport and new distribution centers.

Beijer Ref is responding to the increased demand for refrigeration technology by offering one of the market’s widest ranges of products and solutions that address these changing needs. An increased level of responsiveness and digitalized purchasing processes contribute to an efficient supply chain.

Installers of HVAC and refrigeration systems operate in a traditional industry that has largely been characterized by close contact with local distributors. However, digitalized processes create opportunities for streamlining purchasing and logistics, as well as simplifying the purchasing process for customers, who can order goods online.

With the centralized development of platforms for digital sales, the group’s subsidiaries can add digital sales as a complement to physical sales. The focus is on developing digital tools that deepen customer relationships and create new business opportunities, for example, through loyalty programs and automated proposals. In parallel with this, Beijer Ref is working on consolidating its business systems to increase synergies in purchasing and logistics.