Europe Residential Heat Pump Market Size - By Product (Air Source, Ground Source, Water Source), By Application (Single Family, Multi Family) & Forecast, 2024 - 2032

Europe Residential Heat Pump Market Size - By Product (Air Source, Ground Source, Water Source), By Application (Single Family, Multi Family) & Forecast, 2024 - 2032

Europe Residential Heat Pump Market Size

Europe Residential Heat Pump Market size was estimated at USD 11.8 billion in 2023 and is set to witness CAGR of 19.3% between 2024 and 2032. Growing demand for energy-efficient heating and cooling solutions along with favorable regulations promoting the adoption of low carbon technologies is set to drive the industry growth.

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Several governments authorities are offering financial incentives, subsidies, to encourage the installation of energy-efficient systems in households. For instance, the German government introduced revised funding opportunities effective from January 1st, 2024. Under these updates, property owners are eligible to receive subsidies of up to USD 22,500 upon installing a heat pump and this funding is accessible to all.
 

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Europe Residential Heat Pump Market Trends

Europe residential heat pump industry will grow on account of shifting focus towards clean energy technologies along with rising demand for energy efficient heating and cooling systems. Varied climate conditions, substantial research and development initiatives and favorable incentives schemes for adoption of heat pump units will accelerate product adoption.

For instance, in October 2023, the UK government increased grants for air source and ground source heat pump installations to about USD 9,400. Moreover, increasing adoption of renewable energy systems, enforcement of strict emission regulations, and the introduction of enhanced technologies aimed at mitigating environmental impact will positively influence the industry outlook.

Europe Residential Heat Pump Market Analysis

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The air source heat pump market across residential applications is projected to surpass USD 58 billion by 2032, on account of rising popularity of energy efficient technologies and increasing demand for space cooling, heating, and hot water solutions. Increased living standards of the population favoring clean energy technologies and emergence of renewable energy building projects, driving the product demand. Additionally, collaborative efforts between private enterprises and governments to deliver efficient heating units in cold climates is set to accelerate product adoption.

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The single family application is set to witness a CAGR of over 18.5% through 2032. Ongoing retrofitting efforts in single-family homes to incorporate energy-efficient solutions and stringent building emission norms are driving product adoption. Increasing income levels of consumers, and shifting preference toward reliable heating, cooling & hot water solutions will accelerate the product adoption. Furthermore, financial incentives provided by government entities for the implementation of renewable energy systems along with stringent regulations aimed at improving energy efficiency that has been a catalyst for increased deployment of heat pumps.

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Germany residential heat pump market is poised to cross USD 19 billion by 2032. Favorable regulatory frameworks, stringent building standards, focus on renewable energy and initiatives to curb emissions contribute to shape the industry dynamics. For instance, in September 2023 the German government introduced German Heating Law, which states that new heating systems installed in new residential developments must operate on a minimum of 65% renewable energy starting from January 2024.

For existing homes in established residential areas, they will need to meet to the 65% renewable energy target by either 2026 or 2028. Moreover, growing residential construction, increasing investments in real estate sector, and rising demand for effective heating and cooling solutions will complement the Germany heat pump industry outlook.

Europe Residential Heat Pump Market Share

Major manufacturers across the Europe residential heat pump industry are prioritizing strategic partnerships, agreements, acquisitions, and the development of innovative new products to enhance their competitive positioning within the market. Various large-scale competitors including Samsung, Carrier, Mitsubishi, Daikin, LG Electronics, and Panasonic, among other, holds majority of the market share across the industry.

Europe Residential Heat Pump Market Companies

The key market players operating across the industry include

• Bosch Thermotechnology Corp.
• Brötje GmbH
• Carrier
• Daikin
• FUJITSU GENERAL
• Glen Dimplex Group
• GREE ELECTRIC APPLIANCES, INC.
• JOHNSON CONTROLS - HITACHI AIR CONDITIONING COMPANY
• Kensa Heat Pumps
• LG Electronics
• Lochinvar
• Master Therm tepelná ?erpadla s. r. o.
• Mitsubishi Electric Corporation
• NIBE INDUSRIER AB
• OCHSNER
• Panasonic Marketing Europe GmbH
• SAMSUNG
• STIEBEL ELTRON GmbH & Co. KG
• Vaillant Group

Europe Residential Heat Pump Industry News

• In March 2024, a team of researchers from Brunel University London introduced an innovative system design for residential heat pumps that utilizes trans critical carbon dioxide as the refrigerant. Moreover, the heat pump integrates additional subsystems including air source heat exchanger equipped with frosting and defrosting capabilities, and heat storage tanks featuring phase change materials.
   
• In March 2024, Kensa introduced a latest ground-source heat pump designed specifically for residential use. the Shoebox NX Ground Source Heat Pump. The product is available in two variants, offering nominal thermal ratings of 3 kW and 6 kW respectively, with a coefficient of performance reaching 4.36. It can generate hot water temperatures of up to 65°C and has the capability to heat water beyond 60°C without requiring an immersion heater, while also offering passive cooling functionality to maintain comfortable indoor temperatures.

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

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Market, By Product

• Air source
• Ground source
• Water source

Market, By Application

• Single family
• Multi family

The above information has been provided for the following countries

• Austria
• Norway
• Denmark
• Finland
• France
• Germany
• Italy
• Switzerland
• Spain
• Sweden
• UK
• Netherlands