Europe Air Source Heat Pump Market Size & Share 2025 – 2034

Report ID: GMI2854
   |
Published Date: December 2024
 | 
Report Format: PDF/Excel/Dashboard/Platform

Download Free PDF

Explore our licensing options:

Europe Air Source Heat Pump Market Size

The Europe air source heat pump market was valued at USD 16.9 billion in 2024 and is set to register at a CAGR of over 17.8% from 2025 to 2034. The rapid development of sustainable building infrastructure, coupled with population growth and ongoing urbanization, has driven the demand for energy-efficient heating and cooling systems.
 

Europe Air Source Heat Pump Market

Various nations have experienced a significant increase in energy consumption to meet space heating and hot water needs. Furthermore, rising adoption of ambient and low-temperature heating alternatives, along with paradigm shift towards advanced technologies will complement the industry landscape.
 

Europe Air Source Heat Pump Market Trends

Europe air source heat pump industry is experiencing significant growth owing to rising demand for efficient space heating, cooling and hot water solution along with supportive legislative frameworks and financial incentive programs encouraging the adoption of energy efficient systems. Stringent energy efficiency mandates toward enhancing the performance of building infrastructure and focus to reduce carbon emission will positively influence the business dynamics.
 

Europe Air Source Heat Pump Market Analysis

Europe Air Source Heat Pump Market Size, By Product, 2022 - 2034 (USD Billion)

The air to water segment is anticipated to cross over USD 58 billion by 2034. Rising demand for hot water, space heating & cooling in both commercial and residential buildings along with shifting consumer preference toward advanced technological systems will influence the business dynamics. Stringent mandates toward reducing emissions coupled with refurbishment of existing buildings and favorable initiatives by respective authorities promoting the adoption of energy efficient systems will augment the air to water heat pump deployment.
 

Europe Air Source Heat Pump Market Revenue Share, By Application, 2024

The residential air source heat pump market is anticipated to witness a CAGR of over 17.5% through 2034, due to increased consumer interest in energy-efficient home heating and rapidly increasing residential infrastructure. Implementation of rigorous energy efficiency standards along with focus on enhancing the energy efficiency of residential building infrastructure will positively influence the business dynamics.
 

Germany Air Source Heat Pump Market Size, 2022 - 2034 (USD Billion)

Germany air source heat pump market is set to cross USD 17 billion by 2034. Increasing population and urbanization rates, ongoing expansion of building infrastructure and growing demand for space heating and hot water in colder areas, are driving the industry growth. Furthermore, governments have introduced beneficial schemes, including rebates, tax credits, and incentive schemes, to promote the adoption of energy-efficient technologies further stimulating the industry outlook.
 

Stringent emission reduction mandates along with ongoing adoption of renewable systems and focus on enhancing the energy efficiency of building infrastructure will positively influence the business dynamics. For instance, from January 2024, new developments must install heating systems using 65% renewable energy. Existing buildings and those outside new development areas have transition periods until 2026 or 2028, depending on the municipality's size. These rules align with municipal heating plans and encourage a shift towards more sustainable energy sources in residential and commercial buildings across the country.
 

Europe Air Source Heat Pump Market Share

Europe Air Source Heat Pump Market Company Market Share Analysis, 2024

Europe air source heat pump industry is expanding due to the rising demand for efficient space heating and hot water solutions. This growth is propelled by increasing energy consumption and the implementation of strict energy efficiency regulations. In response, manufacturers and suppliers are redirecting their research and development investments to enhance and broaden their product lines. Additionally, industry participants are making new investments to integrate sustainable technological platforms, signifying a notable progression in the sector.
 

Europe Air Source Heat Pump Market Companies

Major manufacturers operating across the industry comprises of:

  • Aira
  • Bosch
  • Carrier
  • Clade
  • Daikin
  • Glen Dimplex
  • Global Energy
  • Gree
  • LG
  • Lochinvar
  • Mitsubishi Electric
  • Nibe
  • Panasonic
  • Samsung
  • Stiebel Eltron
  • Swegon
  • Trane
  • Vaillant
  • Viessmann
  • Waterkotte
     

Europe Air Source Heat Pump Industry News

  • In November 2024, Wondrwall, a UK based company, has recently unveiled a new residential heat pump system. This air source heat pump integrates with the company's AI-driven Home Energy Management System, aiming to improve heating efficiency and reduce costs. The company claims the system can significantly lower heating bills compared to standard heat pumps. The product uses propane as a refrigerant and comes in two models. It operates with a maximum power input of 3.5 kW and has a sound power level of 60 dB(A). The system's efficiency, measured by its coefficient of performance, varies based on water temperature settings, ranging from 3.06 to 4.77.
     
  • In April 2024, Daikin Europe released its first propane-based residential heat pump. The Altherma 4 HS-S+ series, scheduled for a fall 2024 launch, will offer four models ranging from 8 to 14kW capacity. This air-to-water system boasts impressive performance, operating in temperatures as low as -28°C and providing water temperatures up to 75°C. The heat pump uses about 1.3kg of propane, with R32 and R454C as alternative refrigerant options. Daikin's initiative aligns with its goal to minimize environmental impact by improving energy efficiency and using refrigerants with reduced global warming potential.
     

This Europe air source heat pump market research report includes in-depth coverage of the industry with estimates & forecast in terms of “’000 Units” and “USD Million” from 2021 to 2034, for the following segments:

Market, By Product

  • Air to Air
  • Air to Water

Market, Application

  • Residential
    • Single Family
    • Multi Family
    • Residential, By Product
      • Domestic Hot Water Heat Pump
      • Room Heat Pump
  • Commercial
    • Education
    • Healthcare
    • Retail
    • Logistics & Transportation
    • Offices
    • Hospitality
    • Others

The above information has been provided for the following countries:

  • Austria
  • Norway
  • Denmark
  • Finland
  • France
  • Germany
  • Italy
  • Switzerland
  • Spain
  • Sweden
  • UK
  • Netherlands
Authors: Ankit Gupta, Divyendu Sharma
Europe Air Source Heat Pump Market Scope
  • Europe Air Source Heat Pump Market Size
  • Europe Air Source Heat Pump Market Trends
  • Europe Air Source Heat Pump Market Analysis
  • Europe Air Source Heat Pump Market Share

Report Content

Chapter 1   Methodology & Scope

1.1    Market definitions

1.2    Base estimates & calculations

1.3    Forecast calculation

1.4    Data sources

1.4.1    Primary

1.4.2    Secondary

1.4.2.1    Paid

1.4.2.2    Public

Chapter 2   Industry Insights

2.1    Industry ecosystem analysis

2.2    Regulatory landscape

2.3    Industry impact forces

2.3.1    Growth drivers

2.3.2    Industry pitfalls & challenges

2.4    Growth potential analysis

2.5    Porter's analysis

2.5.1    Bargaining power of suppliers

2.5.2    Bargaining power of buyers

2.5.3    Threat of new entrants

2.5.4    Threat of substitutes

2.6    PESTEL analysis

Chapter 3   Competitive Landscape, 2024

3.1    Introduction

3.2    Strategic dashboard

3.3    Innovation & sustainability landscape

Chapter 4   Market Size and Forecast, By Product, 2021 – 2034 (USD Million, ‘000 Units)

4.1    Key trends

4.2    Air to air

4.3    Air to water

Chapter 5   Market Size and Forecast, By Application, 2021 – 2034 (USD Million, ‘000 Units)

5.1    Key trends

5.2    Residential

5.2.1    Single family

5.2.2    Multi family

5.2.3    Residential, By product

5.2.3.1    Domestic hot water heat pump

5.2.3.2    Room heat pump

5.3    Commercial

5.3.1    Education

5.3.2    Healthcare

5.3.3    Retail

5.3.4    Logistics & transportation

5.3.5    Offices

5.3.6    Hospitality

5.3.7    Others

Chapter 6   Market Size and Forecast, By Country, 2021 – 2034 (USD Million, ‘000 Units)

6.1    Key trends

6.2    Austria

6.3    Norway

6.4    Denmark

6.5    Finland

6.6    France

6.7    Germany

6.8    Italy

6.9    Switzerland

6.10    Spain

6.11    Sweden

6.12    UK

6.13    Netherlands

Chapter 7   Company Profiles

Don't see your key competitors?

The companies listed in this report are a curated selection - not the full competitive universe.

Our market revenue calculations use a bottom-up methodology that accounts for all players across all regions - including manufacturers, distributors, and specialists not individually profiled. The profiles section spotlights strategically significant players; it does not define the scope of our market sizing.

Your competitive landscape may also include

Regional or domestic-only leaders not in the global top tier
Distributors and channel partners who control market access
Emerging disruptors, startups, or adjacent-industry entrants
Niche players focused on a specific application or end-use

Free customization - up to 20% of report value

Need specific data? Request customization and get the insights tailored to your exact requirements.

For inquiries regarding discounts, bulk purchases, or customization requests, please contact us at [email protected]