Recent data on European heat pump sales reveals market trends

European heat pump sales have shown some volatility and complexity in the recent past, according to the latest market data. Data from the European Heat Pump Association (EHPA) shows that while the European heat pump market showed strong growth in 2022, with sales reaching an all-time high of 3 million units, up 38 per cent year-on-year, the market is entering 2023 with some challenges.

Specifically, heat pump sales in Europe's 14 major countries (which account for 90% of Europe's sales) were 2,639,500 units in 2023, a year-on-year decline of 4.5%, which is the first time in 10 years that sales have declined. Among them, Germany, an important country in the European heat pump market, saw its heat pump sales of 356,000 units in 2023, which, while growing by more than 50 per cent for the second consecutive year, fell sharply in the first quarter of 2024, with total sales of 46,000 units, compared with sales of 96,500 units during the same period of 2023, a drop of 52 per cent.

This trend is also reflected in the performance of some heat pump manufacturers. For example, Japan's Daikin Industries reported annual sales of 4.3953 trillion yen (about 28 billion euros) for the year ending 31 March 2024, an increase of 10% over the previous year. However, its turnover fell by about 6 per cent to just €4.9 billion due to lower sales of residential heat pumps at its European subsidiary Daikin Europe NV. Daikin reported that the European market for all types of heat pumps contracted.

Meanwhile, China, the world's largest producer of air-source heat pumps, is also concerned about the performance of its heat pump products in the European market. According to the General Administration of Customs (GAC), from January to June 2024, the cumulative export value of China's heat pumps and components dropped by 21.63% year-on-year. However, it is worth noting that compared to the first quarter, heat pump exports in the second quarter of 2024 showed significant improvement. In addition, the rapid progress of China's heat pump industry in terms of technological innovation and industry chain integration has made it more competitive in the international market.

Despite certain market challenges, heat pumps, as a heating device that efficiently utilises low-grade thermal energy, continue to play an important role in Europe's clean energy transition and sustainable development strategy. European governments are also continuing to introduce policies to encourage consumers and businesses to use clean energy devices such as heat pumps. For example, Germany and other EU countries have reduced VAT to 0% in order to encourage private users to purchase and install solar energy systems, further boosting market demand for heat pumps and other equipment.

Looking ahead, with the acceleration of the global energy transition and the importance countries attach to renewable energy and environmental protection technologies, the heat pump market still has a greater potential for development. However, at the same time, enterprises also need to pay close attention to market dynamics, strengthen technological innovation and industry chain integration, in order to cope with the challenges brought by market competition and policy adjustments.