Europe Air to Water Heat Pump Market Size By Application (Residential, Commercial, Industrial), Industry Analysis Report, Growth Drivers & Forecast Opportunities, 2023 - 2032

 Market Size

Europe Air to Water Heat Pump Market size surpassed USD 10 billion in 2022 and is projected to observe 19.7% CAGR from 2023 to 2032 due to the growing demand for efficient space heating technologies coupled with the accelerating development across buildings infrastructure. The global market for air to water heat pump is likely to cross USD 113.5 billion by 2032.
 

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The increasing requirement for energy efficient units in residential and commercial establishments along with continuous shift from existing heating systems towards low carbon systems will augment the industry growth. Furthermore, significant variation in the climatic conditions in several countries attributed by the elevating pollution and global warming levels along with increasing demand for enhanced technological heat pump systems have led to accelerate the product deployment in the region.
 

An Air to Water Heat Pump (ATW) or hydronic heat pump is a kind of air source heat pump technology, which works by extracting warmth from the air outside and using it for heating purposes. The ability of these systems to deliver various operational advantages consisting of cost-effectiveness, reliable operations, and high efficiency, is set to further propel the Europe air to water heat pump market landscape.
 

Increasing measures to support the shift towards energy-efficient alternatives in  various verticals and combat climate change, the respective administrations have enacted a wide of regulations. Furthermore, ongoing technological innovations to develop advanced units with enhanced installation flexibility & operational advantages will further influencing the industry dynamics.

COVID- 19 Impact

The COVID-19 epidemic has had a significant influence on the region's economic and industrial growth. The various governments and authorities enacted stringent lockdown rules resulting in the temporary or permanent cessation of manufacturing operations. As a result, lack of human resources, scarcity of raw materials and labor shortages disrupted supply chain network, and infrastructure development projects. However, the industry players have presented new initiatives to keep a check on pandemic induced implications on the production outputs and supply chain networks, positively catering to the Europe air to water heat pump market growth. In addition, encouraging administrative programs to boost transition towards low carbon alternatives with advance technological systems is set to counterbalancing the demand for air to water heat pump.

Europe Air to Water Heat Pump Market Trends

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Growing inclination to reduce the dependency on fossil fuels in  the European region has significantly increased the demand for clean and sustainable heat pump systems. The Europe air to water heat pump market will witness a significant upsurge owing to the government legislation mandating the replacement of prevailing heating systems from sustainable heating solutions to limit the GHG emissions. For instance, In June 2022, Daikin Europe launched a new range of its Daikin Altherma 3 M heat pump systems within small capacity range with 4 kW, 6 kW, and 8 kW options. This new line of R-32 monobloc air to water heat pump systems are predominantly focused on smaller homes with optimized functional design and enhanced performance.

Ongoing advancements for a decarbonized economy supported by the legislative energy policies & incentives constitute the key shaping factor of the industry expansion. The surge in the demand for high-level flexibility and comfort along with growing refurbishment activities will further augment the industry development.

Europe Air to Water Heat Pump Market Analysis

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Residential application of the air to water heat pump market in Europe is set to witness a significant uptake on account of growing urban population and the stern government initiatives to boost the toward energy conservation. The rising need for compact & efficient heating technologies stimulated by shifting living standards are set to significantly spur the product deployment trends in domestic applications. Moreover, presence of encouraging financial policies including tax rebates, fundings, and subsidy programs to support domestic users to shift from conventional systems will further cater to the business statistics.

The commercial applications will observe appreciable momentum on account of changing climatic conditions along with introduction of stern building energy performance standards by national and regional regulatory authorities. The rapidly growing service sector has been a vital factor impacting the penetration of commercial complexes and other establishments. On the contrary, the demand for heat in other commercial segments come majorly from colleges/universities, offices, and government/military services. Moreover, growing living standards of people, rising disposable income together with accelerating demand for efficient space heating and hot water in domestic and commercial structures will further enhance the product demand.

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Germany air to water heat pump market crossed a valuation of USD 0.9 billion in 2022 and is anticipated to observe substantial growth till 2032. Developing commercial & residential infrastructure along with robust economic conditions in the nation is set to influence the industry outlook. Favorable government policies along with introduction of financial plans by the government including, financial aids, subsidies and tax benefits are few parameters encouraging the product usage.

Additionally, in January 2023, the German government has suggested adjustments to its rebate programme in order to encourage the use of sustainable heating. The revised regulations now encompass heat pumps that use natural refrigerants. With a basic subsidy rate of 25%, the programme pays up to 40% of the expenses of purchasing and installing heat pumps. There is also a subsidy incentive ranging from 5% to 10% depending on the type of heat pump used to replace outdated, inefficient heating systems. In addition, the initiatives by the government to promote green buildings infrastructure along with shifting focus toward limiting carbon emissions from the households and commercial buildings will garner the Germany heat pump industry overview.

Europe Air to Water Heat Pump Market Share

Key manufacturers in the Europe air to water heat pump market include:

•  Carrier
• Daikin
• NIBE Industrier AB
•  Trane Technologies International Limited
•  LG Electronics
•  A.O. Smith
• Vaillant Group
•  TOSHIBA
• Panasonic Marketing Europe GmbH
•  FUJITSU GENERAL
• Glen Dimplex
• WOLF
• Systemair AB
•  STIEBEL ELTRON GmbH & Co. KG
• SAMSUNG
• Aermec S.p.A.
   

Key industry participants functioning in the business landscape is focusing on initiating new strategic alliances & partnerships along with focus on investments and manufacturing capacities to fortify their market presence. Moreover, in March 2023, Bosch Thermotechnology Corp. commenced its oldest manufacturing facility that manufactures hot water storage tanks for various products, located in Eibelshausen. The company has initiated heat pump manufacturing in this facility which further expanded the existing production network in Sweden, Aveiro, Tranås and Portugal. The company also declared that it would invest a total of more than USD 740 million in heat pump business by the year 2025.

Europe Air to Water Heat Pump Industry News

• In March 2023, Panasonic announced that it will speed up growth strategy for hydronic systems and air to water heat pump business in the Europe. For that, the company announced an investment of more than USD 600 million including over USD 376 million to strengthen the heat pumps business, and USD 113 million for acquiring Systemair's AC business. As a part of this strategy, Panasonic will invest an additional of UD 113 million for its manufacturing facility located in Czech Republic for the production capacity of air to water heat pumps

   

   
• In January 203, Daikin introduced next generation Altherma 3 series air to water heat pump systems at the ISH trade fair 2023, held in Brussels. The company will also unveil its Daikin Altherma 4 air-to-water heat pumps that offers enhanced performance along with application flexibility. Daikin has been progressively investing in both manufacturing sites and product development all over the European region. This launch expanded the company’s product portfolio in air to water heat pump systems and is set to strengthen its market presence in the Europe air to water heat pump industry.

   

   

This Europe air to water heat pump market research report includes in-depth coverage of the industry with estimates & forecast in terms of “’000 Units” & “USD Million” from 2019 to 2032 for the following segments:

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Market, By Application

• Residential
  • Single family houses
  • Multi-family houses
  • By Product
    • Domestic hot water pump
    • Room heat pump
• Commercial
  • Education
  • Healthcare
  • Retail
  • Logistics & transportation
  • Offices
  • Hospitality
  • Others

The above information has been provided for the following countries:

• Europe
  • Austria
  • Norway
  • Denmark
  • Finland
  • France
  • Germany
  • Italy
  • Switzerland
  • Spain
  • Sweden
  • UK
  • Netherlands
  • Poland
  • Belgium
  • Slovakia
  • Ireland
  • Czech Republic