Booming market growth
The heat pump market in Europe has been growing steadily up to 2022, driven by increased awareness of the need to transition to more sustainable heating and cooling solutions. Since beginning of 2022 however, the market accelerated very fast driven by rising gas prices during 2022. Even if the gas prices are now back to similar level as before, the market growth is still ongoing, creating new opportunities for products and innovation in the years to come.
The European Union target is to replace fossil fuel with renewable energy sources in the heating and cooling sector and therefore many countries in Europe are addressing the energy transition with relevant measures. For example, the United Kingdom and France have announced ban on oil and gas boilers from 2025. That will make the demand for heat pumps even higher.
The European Heat Pump Association (EHPA) forecasts continuous growth for the coming years and heat pump manufacturers are investing in new production lines to meet growing demand. The total announced investment to be executed over the next 3 years, sums up to nearly 5 billion Euros. Some of the larger manufacturers are expecting to more than triple their existing factory output by investing more than 1 billion Euros in their new factories.