Air Source Heat Pump Sales in Europe and Opportunity Analysis

Air Source Heat Pump Sales Outlook for Europe (2024 to 2034)

As per the latest research report published by Fact.MR, sales of air source heat pumps in Europe are approximated at US$ 16.21 billion in 2024 and are projected to increase at a CAGR of 7.9% to reach US$ 34.68 billion by the end of 2034.

Installed outside the house, these pumps provide interior space heating and cooling in opposite climates, heating water in milder climates efficiently. High demand for air source heat pumps in Europe is primarily due to the region’s cold climate in most countries. High need for products that help people alter the interior atmosphere of their homes is fuelling the demand for air source heat pumps in the region.

Sales growth is also being driven by rapidly advancing designs and efficient temperature control features of heat pumps. While the European region goes through long winters and short summers, air source heat pumps keep managing the warmth of the interiors with their advanced mechanism.

Another factor that’s driving demand for air source heat pumps is their longer life span, which saves money and enhances sustainability. The average lifespan is between 14 to 15 years, which makes these pumps a better alternative that heaters and air conditioners. The longer shelf life makes these machines the first choice for people residing in extreme weather conditions.

In addition to their financial and technological benefits, these devices also contribute to reducing carbon emissions because air source heat pumps efficiently convert energy into heat. The ability to reverse the heating process to provide cooling during summer makes this a win-win situation for end users.

Report Attribute	Details
Air Source Heat Pump Sales in Europe (2024E)	US$ 16.21 Billion
Forecasted Sales (2034F)	US$ 34.68 Billion
Demand Growth (2024 to 2034)	7.9% CAGR
Commercial Air Source Heat Pump Sales (2024E)	US$ 6.74 Billion
Air to Water Air Source Heat Pump Demand Growth (2024 to 2034)	7.8% CAGR
Key Companies Profiled	Vaillant Group; Swegon Group AB; Trane; NIBE Industrier AB; Viessmann; A.O. Smith; Daikin Europe N.V.; Carrier; Bosch Thermotechnology Ltd; Rheem Manufacturing Company; Finn Geotherm UK Limited; STIEBEL ELTRON GmbH & Co.

Why are Sales of Air Source Heat Pumps Rising Rapidly in Europe?

“Supportive Government Programs for Air Source Heat Pump Manufacturers”

The economy and logistical structures face several challenges due to harsh cold climatic conditions in Europe. Therefore, the governments around the region support businesses that help them reduce carbon emissions. Air source heat pump vendors get subsidies to increase their performance and the saved capital gets invested in research and development programs.

High product adoption pushes the government to ease the approval norms while providing business loans to innovative vendors for business expansion. Besides, the incentive programs governments also offer for contractual collaborations such as product installation in public establishments including schools and government hospitals, which is increasing the profits of key market players.

“Complex Weather Conditions Driving Demand for Advanced and Reliable Temperature Controlling Devices”

There are several uncertainties surrounding the growth of the air source heat pump demand in Europe. Fact.MR responds to the question of why it is now crucial for vendors to understand and evaluate the European market independently. The region, with complex weather and topography, has led to extreme climate conditions that damage people’s health and end up affecting the tourist economy at a larger base. Therefore, efficient cooling and heating devices are in high demand in the region.

“Rising Inclination towards Clean Energy Technologies Promoting Sales of Eco-friendly Air Source Heat Pumps”

Adoption of sustainable technologies that deliver work with efficiency is high in Europe. Constant fluctuations in weather conditions coupled with the advent of innovative air source heat pumps that come up with additional equipment and can be installed outside the user’s residence are pushing the market growth in Europe.

What is Hampering Sales of Sir Source Heat Pumps to Some Extent?

“High Product & Installation Cost and Presence of Several Alternatives”

Air source heat pumps are costly and their installation charges are also high. This limits the sales growth of air source heat pumps to some extent. The proliferation of other clean energy technologies such as solar heating and district heating, coupled with their rapid integration across a range of capacity applications may also impede the demand for air source heat pumps to some extent in Europe.

Country-wise Analysis

Why are Air Source Heat Pump Manufacturers Thriving in Germany?

“High Focus on Energy-Efficient Residential Infrastructure Driving Sales of Sustainable Air Source Heat Pumps”

Attribute	Germany
Market Value (2024E)	US$ 1.92 Billion
Growth Rate (2024 to 2034)	7.9 % CAGR
Projected Value (2034F)	US$ 4.12 Billion

• According to the European Heat Pump Association, Germany witnessed record demand for heat pumps in 2022.

High demand for energy-efficient air conditioning technologies, disparities in the taxes on electricity compared to gas, and growing private and public investments to address space heating needs are augmenting the sales of air source heat pumps in Germany.

Will Government Programs Push Adoption of Air Source Heat Pumps in the United Kingdom?

“Boiler Upgrade Scheme Pushing Sales of Air Source Heat Pumps”

Attribute	United Kingdom
Market Value (2024E)	US$ 1.57 Billion
Growth Rate (2024 to 2034)	8.1% CAGR
Projected Value (2034F)	US$ 3.4 Billion

Increase in government-funded heat pump grants is supporting the United Kingdom market growth. The United Kingdom residents are enjoying the government’s Boiler Upgrade Scheme. Under this scheme, one can get a grant to cover part of the cost of replacing fossil fuel heating systems with a heat pump or biomass boiler.

Category-wise Analysis

Why are Air to Air Heat Pumps Widely Preferred in Europe?

“Dual Air Conditioning Qualities of Air to Air Heat Pumps”

Attribute	Air to Air Heat Pumps
Segment Value (2024E)	US$ 10.15 Billion
Growth Rate (2024 to 2034)	7.9% CAGR
Projected Value (2034F)	US$ 21.79 Billion

Air to air heat pumps are expected to hold 62.6% of the European market share in 2024. Air to air heat pumps perform significantly well as an efficient medium of providing heat in a residential or commercial space. Demand for air to air heat pumps is high due to their unique features. These pumps offer warm room temperatures in the winter season while in the summer season, they provide cool temperatures. This characteristic is driving demand for air to air heat pumps in Europe.

Air to water heat pumps are also anticipated to exhibit a high growth during the forecast period. The growth is attributed to the increasing integration capabilities along with the hydronic underfloor heating systems. These systems provide efficient heating without any higher carbon emissions while the design of these pumps keeps on changing for better heating.

Countries such as Switzerland and France adopt air to water heat pumps at a high rate as they face the long winters. Water is a necessity and in polar regions of Europe, the adoption of any tool for water heating becomes important. Some people use heaters to heat the water while an efficient environment-friendly way to heat water is through the air source heat pump.

The product delivers better results than its alternatives due to its integration capability with hydronic underfloor heating systems and radiators to take control of the temperature of any radius. Thus, these factors are pushing the sales of air to water heat pumps in Europe.

Why are Manufacturers Earning More from Commercial Air Source Heat Pumps?

“High Tourism Activities Augmenting Sales of Commercial Air Source Heat Pumps”

Attribute	Commercial Air Source Heat Pumps
Segment Value (2024E)	US$ 6.74 Billion
Growth Rate (2024 to 2034)	7.8% CAGR
Projected Value (2034F)	US$ 14.32 Billion

Commercial air source heat pumps are also widely employed in Europe. From learning spaces to healthcare, retail, hospitality, and office spaces, the application of commercial heat pumps is increasing in the European region. Longer winters demand a constant supply of hot water and air in the healthcare system to protect patients from any illness caused by winter waves. Europe which is well-known for its nature tourism and ecotourism witness high tourist visits every year.

Most of these tourists are not comfortable with the extremely cold streams and require hot air and water pumps to settle in. Hence, the hospitality sector consumes a large portion of the European market. Schools and colleges also widely install air source heat pumps to protect their students and other faculties from the chilling winter. Therefore, the high number of entities under the commercial segment makes it large and consumes most air source heat pumps in Europe.

Comparative Analysis of Adjacent Markets

Air Source Heat Pump Sales in Europe :

Attribute	Air Source Heat Pump Sales in Europe
Growth Factor	Continuous climate changes in the European region along with harsh winter streams are pushing people to adopt efficient air conditioning technologies such as air source heat pumps for living spaces.
Opportunity	Introduction of advanced motor systems and product designs for better heating and cooling ergonomics will boost the profits of air source heat pump manufacturers.
Key Trend	Government regulations on commercial as well as personal spaces on the use of AC and high energy-consuming heaters necessitating people to adopt heat pumps to drive sustainability.

Industrial Solar Heater Sales in Europe :

Attribute	Industrial Solar Heater Sales in Europe
Growth Factor	Commercial solar water heating systems offer high performance at low cost, making them the first choice for entities such as hospitals, hotels, hostels, and commercial spaces.
Opportunity	Introduction of subsidies and tax cuts for industries that adopt solar energy technologies will create lucrative opportunities for solar heater producers.
Key Trend	The Paris Agreement to collectively undertake innovative and concerted efforts to achieve temperature goals is driving the sales of solar heaters in European countries.

Competitive Landscape

The European market has a strong presence of prominent companies delivering the best heating and cooling solutions for the end users. The key market players are focused on improving the overall efficiency while experimenting with the materials used. To further strengthen their position in the region, the market players are implementing strategies such as mergers & acquisitions, and partnerships & collaborations.

• In January 2023, Daikin Europe N.V. introduced its next-generation air-to-water heat pumps – the 'Daikin Altherma 4 series', at ISH 2023, the world’s leading trade fair for HVAC + Water.

Fact.MR provides detailed information about the price points of key manufacturers of air source heat pumps positioned across Europe, sales growth, production capacity, and speculative technological expansion, in the recently updated market report.

Segmentation of Air Source Heat Pump Study in Europe

• By Product :

  • Air to Air Heat Pumps
  • Air to Water Heat Pumps

• By Application:

  • Residential
    • Single Family
    • Multi Family
  • Commercial
    • Education
    • Healthcare
    • Retail
    • Logistics & Transportation
    • Offices
    • Hospitality
    • Others

• By Country :

  • Germany
  • Italy
  • France
  • Spain
  • United Kingdom
  • Nordic
  • Russia
  • BENELUX
  • Rest of Europe