European Heat Pump Market size exceeded USD 14 billion in 2021 and is projected to expand at CAGR of over 8% from 2022 to 2030. This growth is attributed to the rising inclination toward energy-efficient systems with lower carbon footprint.
Regional governments in Europe are encouraging the adoption of renewable energy systems for use in heating and cooling operations. Increased concerns associated with climate change and the efforts to reduce dependence on fossil fuels to run heating & cooling systems in Europe will augment heat pumps installation. Various government-led initiatives are focusing on mitigating the use of fossil fuels across different applications.
Technological advancements in different heat pump systems will transform the European heat pump market outlook. Rapidly increasing demand for low carbon space heating and cooling technologies coupled with large-scale heat pump deployment targets and initiatives will boost the industry dynamics. Growing focus on sustainable technologies, renewable energy sources, and carbon footprint limiting systems can offer new opportunities for manufacturers.
The high initial cost associated with the installation of a heat pump system is a major factor restraining the market growth. The availability of renewable heating technologies may affect consumer behavior and subsequently obstruct the product deployment. Conventional heat pump technologies present several functional limitations in very low-temperature conditions.
Europe Heat Pump Market Report Coverage
Low installation & maintenance costs will spur the industry expansion
Europe air source heat pump market revenue surpassed more than USD 13 billion in 2021, credited to rising inclination toward affordable and user-friendly space heating systems. These products offer various benefits such as low deployment cost, low maintenance requirements, compact size, and flexible installation.
Favorable government incentives to drive residential deployment of heat pumps
In terms of application, the segment is classified into commercial, and residential. The demand from residential sector will witness substantial growth over the assessment timeline, with the surging deployment of advanced heat pumps in domestic applications across Europe. Large-scale investments in the residential construction will complement the industry growth. The government is introducing incentives encouraging the integration of low emission systems across households, which will influence the product adoption.
UK to emerge as a prominent market for heat pumps
The UK heat pump market is anticipated to reach USD 550 million by 2030. Multiple government projects and administrative policies will encourage the large-scale deployment of heat pumps systems. For instance, in September 2021, the UK government launched a new Green Heat Network Fund of approximately USD 327 million in England. The Fund was introduced to support the adoption of various clean energy technologies including heat pumps, thereby enhancing the demand for the product in the region.
Impact of COVID-19 on the heat pump market in Europe
The outbreak of Covid-19 pandemic had a slightly negative impact on the industry. Stringent government regulations to curb the spread of coronavirus with a series of lockdowns and capacity restrictions in manufacturing units hampered the construction sector. Various residential construction projects were temporarily shut down, which reduced the installation of heat pumps. Over the coming years, gradual rise in infrastructure development and increasing government efforts to promote energy-efficient buildings will offer lucrative scope for heat pump technology providers.
Post time: Nov-18-2022