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Heat Pump Market size in Germany worth $2 Bn by 2030

  • Published Date: November 24, 2022

Germany Heat Pump Market size is set to surpass USD 2 billion by 2030, according to a new research report by Global Market Insights Inc.

Increasing strong demand for energy-efficient systems and rising energy consumption will be the prominent factors bolstering electric heat pump system demand in Germany. Based on statistics from the Energy Information Administration, in 2021, total power consumption in the country was 535.14 TWh, resulting in an increased focus on energy efficiency. Furthermore, the development of sustainable building infrastructure and rapid urbanization will amplify the adoption of heat pumps as an alternative to gas heaters to reduce energy costs.

Emphasis on tech innovations to proliferate optimized air-source heat pump production

Germany heat pump market from the air source product segment is poised to register significant gains during the forecast period, given the low installation costs, optimized performance, and space heating capabilities. Technological innovations to develop advanced units with high flexibility and operational characteristics have also gained momentum. According to a study from the IEA HPT TCP (Heat Pumping Technologies Technical Collaboration Program), air-to-water (ATW) air source heat pump systems that utilize propane have enhanced energy efficiency over other counterparts. The study has also shown that these high-tech units are being extensively deployed in the German heat pump market.

The region has also witnessed robust demand for ambient temperatures across commercial and residential establishments. These factors, along with the shifting preference toward tech-powered heating and cooling systems, are expected to escalate the use of air-source heat pumps across the nation.

Browse key industry insights spread across 180 pages with 43 market data tables & 33 figures & charts from the report, “Germany Heat Pump Market Size By Product (Air Source, Ground Source, Water Source), By Application (Residential {Single Family, Multi Family}, Commercial {Educational Institutes, Healthcare, Retail, Logistics & Transportation, Offices, Hospitality}), COVID-19 Impact Analysis, Application Potential, Competitive Market Share & Forecast, 2022 – 2030”, in detail along with the table of contents:

Increased spending on commercial infrastructure projects to boost heat pump adoption

Based on the application, the Germany heat pump market from commercial segment is predicted to depict a commendable growth rate through 2030, as a result of the introduction of stringent building codes. According to European Commission figures, new building standards limit primary energy use to 75 kWh/sq. m./year for non-residential buildings. The report cites that this emission reduction target will contribute to the popularity of heat pumps as an energy-efficient alternative to heating and cooling systems in commercial buildings.

Likewise, the rise in foreign investment in the service sector and the flourishing economic structures will facilitate heat pump developments. Across the country, the establishment of commercial infrastructures such as hotels, hospitals, and universities has also gained ground. As per the TOPHOTEPROJECTS construction database, nearly 360 new hotels are slated to be opened across Germany over the years ahead. These factors, alongside the escalating construction expenditures, will foster the installation of heat pumps across the commercial sector.

Strategic manufacturing investments to outline industry landscape

Key participants operating in the heat pump market in Germany are Bosch Thermotechnology Corp., Solarbayer GmbH, Viessmann, Glen Dimplex Group, Daikin, Mitsubishi Electric Corporation, Systemair AB, Swegon Group AB, and Johnson Controls. These companies are focusing on strategic investments and manufacturing expansions to reinforce their presence in the industry. For instance, in May 2022, Bosch invested over USD 296 million in its heat pump manufacturing business in Germany. The transaction was intended to strengthen the firm’s manufacturing base, increase its customer base, and extend production across the nation.

Authors: Ankit Gupta, Divyendu Sharma