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Industry Trends
European Heat Pump Market size exceeded USD 14 billion in 2021 and is projected to expand at CAGR of over 8% from 2022 to 2030. This growth is attributed to the rising inclination toward energy-efficient systems with lower carbon footprint.
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Regional governments in Europe are encouraging the adoption of renewable energy systems for use in heating and cooling operations. Increased concerns associated with climate change and the efforts to reduce dependence on fossil fuels to run heating & cooling systems in Europe will augment heat pumps installation. Various government-led initiatives are focusing on mitigating the use of fossil fuels across different applications.
Technological advancements in different heat pump systems will transform the European heat pump market outlook. Rapidly increasing demand for low carbon space heating and cooling technologies coupled with large-scale heat pump deployment targets and initiatives will boost the industry dynamics. Growing focus on sustainable technologies, renewable energy sources, and carbon footprint limiting systems can offer new opportunities for manufacturers.
The high initial cost associated with the installation of a heat pump system is a major factor restraining the market growth. The availability of renewable heating technologies may affect consumer behavior and subsequently obstruct the product deployment. Conventional heat pump technologies present several functional limitations in very low-temperature conditions.
| Report Coverage | Details |
|---|---|
| Base Year: | 2021 |
| Market Size in 2021: | 14.1 Billion (USD) |
| Forecast Period: | 2022 to 2030 |
| Forecast Period 2022 to 2030 CAGR: | 8.2% |
| 2030 Value Projection: | 29.1 Billion (USD) |
| Historical Data for: | 2018 to 2021 |
| No. of Pages: | 330 |
| Tables, Charts & Figures: | 526 |
| Segments covered: | Product, Application |
| Growth Drivers: |
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| Pitfalls & Challenges: |
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Low installation & maintenance costs will spur the industry expansion
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Europe air source heat pump market revenue surpassed more than USD 13 billion in 2021, credited to rising inclination toward affordable and user-friendly space heating systems. These products offer various benefits such as low deployment cost, low maintenance requirements, compact size, and flexible installation.
Favorable government incentives to drive residential deployment of heat pumps
In terms of application, the segment is classified into commercial, and residential. The demand from residential sector will witness substantial growth over the assessment timeline, with the surging deployment of advanced heat pumps in domestic applications across Europe. Large-scale investments in the residential construction will complement the industry growth. The government is introducing incentives encouraging the integration of low emission systems across households, which will influence the product adoption.
UK to emerge as a prominent market for heat pumps
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The UK heat pump market is anticipated to reach USD 550 million by 2030. Multiple government projects and administrative policies will encourage the large-scale deployment of heat pumps systems. For instance, in September 2021, the UK government launched a new Green Heat Network Fund of approximately USD 327 million in England. The Fund was introduced to support the adoption of various clean energy technologies including heat pumps, thereby enhancing the demand for the product in the region.
Product developments to strengthen the industry outlook
Key players operating in the European heat pump market are Daikin, Panasonic Corporation, NIBE Industrier, A. O. Smith, TOSHIBA CORPORATION, Systemair AB, Vaillant Group, STIEBEL ELTRON GmbH & Co. KG, Trane, Carrier A.B., Swegon Group AB, Lochinvar, GREE ELECTRIC APPLIANCES, INC., Glen Dimplex Group, Bosch Thermotechnology Ltd., Viessman, Mitsubishi Electric Corporation, LG Electronics, Lennox International Inc., Finn Geotherm UK Limited, and SAMSUNG.
The companies are adopting different strategic initiatives for expanding the product portfolio and to develop of novel products through partnerships and investments. For instance, in April 2022, Carrier said it would invest around USD 16 million to construct a new R&D Center of Excellence in Italy. Set to begin operations by the end of 2023, the new facility will develop advanced hydrogen-ready boilers, heat pumps, and IoT-based solutions for residential and commercial applications in Europe.
Impact of COVID-19 on the heat pump market in Europe
The outbreak of Covid-19 pandemic had a slightly negative impact on the industry. Stringent government regulations to curb the spread of coronavirus with a series of lockdowns and capacity restrictions in manufacturing units hampered the construction sector. Various residential construction projects were temporarily shut down, which reduced the installation of heat pumps. Over the coming years, gradual rise in infrastructure development and increasing government efforts to promote energy-efficient buildings will offer lucrative scope for heat pump technology providers.
This market research report on Europe heat pump includes in-depth coverage of the industry with estimates & forecast in terms of “Units” & “USD Million” from 2018 to 2030, for the following segments:
Market, By Product
- Air Source
- By Application
- Residential
- Commercial
- By Application
- Ground Source
- By Application
- Residential
- Commercial
- By Application
- Water Source
- By Application
- Residential
- Commercial
- By Application
Market, By Application
- Residential
- Commercial
The above information has been provided for the following regions and countries:
- Europe
- Austria
- Norway
- Denmark
- Finland
- France
- Germany
- Italy
- Switzerland
- Spain
- Sweden
- UK
- Netherlands
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