Europe Heat Pump Market Size
The Europe Heat Pump Market was worth $16.5 billion in 2023 and is expected to expand at a rate of 19.2% per year from 2024 to 2032. The market is growing because of good government regulations and incentives, as well as standards for energy efficiency. Governments are raising the minimum energy performance standards for heating systems. They want to replace old heating systems that use fossil fuels with newer, more efficient, and better for the environment options like heat pumps.
A number of European countries are actively encouraging people to use heat pumps by giving them money in the form of grants and subsidies. These programs are meant to minimize the upfront cost for both homeowners and businesses, making heat pump systems more cost-effective. Germany is especially notable since it offers large subsidies through its Market Incentive Program (MAP) for renewable energy sources, such as heat pumps. For example, these subsidies can pay for up to 35% of the cost of installing a home in Berlin, which makes it a lot easier on the homeowner's wallet.
| Report Attribute | Details |
|---|---|
| Base Year | 2023 |
| Europe Heat Pump Market Size in 2023 | USD 16.5 Billion |
| Forecast Period | 2024 to 2032 |
| Forecast Period 2024 to 2032 CAGR | 19.2% |
| 2032 Value Projection | USD 82.1 Billion |
| Historical Data for | 2021 to 2023 |
| No. of Pages | 90 |
| Tables, Charts & Figures | 42 |
| Segments covered | Product, Application, & Region |
| Growth Drivers |
|
| Pitfalls & Challenges |
|
Europe Heat Pump Market Trends
The European Union has put in place strict rules to cut down on carbon emissions and encourage the use of renewable energy sources. The Renewable Energy Directive (RED) and the Energy Performance of Buildings Directive (EPBD) are examples of directives that require member states to make buildings more energy efficient and utilize more renewable energy. This is good for the heat pump business. These rules frequently mandate new buildings to have heating systems that save energy, which is why heat pumps are becoming more popular.
To get people to use heat pumps, many European governments have offered financial incentives including grants and subsidies. These incentives lower the initial costs for individuals and businesses, which makes heat pump systems more affordable. Germany, for instance, gives a lot of money to renewable energy projects through its Market Incentive Program (MAP). This includes heat pumps.
Europe Heat Pump Market Analysis
The air source heat pump market is expected to reach more than $80 billion by 2032, depending on the product. People are buying more air source heat pumps because they know more about the benefits of renewable heating solutions and because energy prices are going up and people are worried about the environment. ASHPs are quite popular in homes since they are easy to install and can heat and chill at the same time.
The Europe residential heat pump market will grow at a rate of roughly 19% per year until 2032, depending on the use. Heat pumps cut down on the amount of energy that homes use, which lowers utility bills. For example, air source heat pumps can be 300 to 400% efficient, which means they can make three to four units of heat for every unit of power they need. This kind of efficiency means that heat pumps will save households a lot of money over time, making them a good investment.
By 2032, the German heat pump sector is expected to be worth more than $27.5 billion. More people in Germany are becoming conscious of environmental issues and are more committed to sustainability, which is pushing up the demand for eco-friendly heating solutions. As people want to lessen their carbon footprints, heat pumps are becoming more popular since they are efficient and have less of an impact on the environment. The heat pump market is growing because more and more people want to live in a way that is good for the environment.
Also, the use of smart technologies and the Internet of Things (IoT) is changing the heat pump market in the country. Smart heat pumps work with home automation systems, so people can regulate and keep an eye on their heating systems from anywhere.
Europe Heat Pump Market Share
Some of the biggest companies in the European heat pump market are Carrier, Finn Geotherm UK Limited, NIBE Industrier AB, Trane Technologies International Limited, Vaillant Group, and Viessmann. These businesses are working to stay ahead of the competition by focusing on new ideas, forming strategic relationships, and putting money into new transmission projects.
Europe Heat Pump Market Companies
Major key players operating across the Europe heat pump industry are
- Aira
- Bosch Thermotechnology Corp.
- Carrier
- Daikin
- Finn Geotherm UK Limited
- FUJITSU GENERAL
- Glen Dimplex Group
- GREE ELECTRIC APPLIANCES, INC.
- Kensa Heat Pumps
- LG Electronics
- Mitsubishi Electric Corporation
- NIBE Industrier AB
- Panasonic Marketing Europe GmbH
- SAMSUNG
- STIEBEL ELTRON GmbH & Co. KG
- Swegon Group AB
- Systemair AB
- TOSHIBA EMEA
- Trane Technologies International Limited
- Vaillant Group
- Viessmann
- WOLF GmbH
Europe Heat Pump Industry News
- In March 2024, the European Commission has approved a USD 1.1 billion Italian initiative aimed at supporting investments in the production of equipment essential for advancing the transition to a net-zero economy, in accordance with the Green Deal Industrial Plan. This is anticipated to increase the demand for energy efficient heat pump in the country, thereby contributing to the market growth.
- In January 2024, Aira has raised over USD 158 million in a Series B financing round, led by Swedish institutional investors Altor and Kinnevik, along with Singaporean investment fund Temasek. In addition, the company has secured a USD 15 million grant from the Polish government to establish a heat pump manufacturing facility in Wroclaw, Poland, aimed at serving the residential market, which in turn will contribute to the overall market growth.
This Europe heat pump market research report includes an in–depth coverage of the industry with estimates & forecast in terms of volume ‘000 Units’ and revenue in ‘USD Million’ from 2021 to 2032, for the following segments
Market, By Product
- Air Source
- Residential
- Commercial
- Ground Source
- Residential
- Commercial
- Water Source
- Residential
- Commercial
Market, By Application
- Residential
- Commercial
The above information has been provided for the following countries
- Austria
- Norway
- Denmark
- Finland
- France
- Germany
- Italy
- Switzerland
- Spain
- Sweden
- UK
- Netherlands
Related Reports
FAQ'S
For a single, multi and corporate client license, the report will be available in PDF format. Sample report would be given you in excel format. For more questions please contact:
Within 24 to 48 hrs.
You can contact Sales team (sales@marketinsightsresearch.com) and they will direct you on email
You can order a report by selecting payment methods, which is bank wire or online payment through any Debit/Credit card, Razor pay or PayPal.
Discounts are available.
Hard Copy