Despite a recent slowdown in the residential heating market, Daikin remains optimistic about the long-term growth of heat pumps in Europe. At ISH 2025, the company presented its refrigerant strategy, reinforcing its commitment to supporting the EU’s decarbonization goals. Daikin is showcasing new low-carbon heating and cooling solutions, including the Daikin Altherma 4 generation and CO₂ VRV systems, aimed at various building types.
Heat Pump Market Growth Despite Economic Challenges
Carl Lievens, General Manager Residential SBU at Daikin Europe, emphasized the company's confidence in heat pump expansion, stating, “We are committed to supporting Europe’s 2030 climate goals and believe in long-term heat pump growth despite the current market slowdown. With a projected market growth of 250% by 2030, Daikin will be at the forefront of heat pump adoption in the coming years.”
Although heat pump systems have become mature and reliable alternatives to fossil-fuel-based heating, the market is currently facing economic hurdles. High upfront costs and electricity prices are slowing residential adoption, while regulatory variations across Europe add complexity. The sector has already experienced job losses, with over 4,000 positions cut across Europe in 2024.
Nonetheless, the EU’s continued push for decarbonization, through initiatives such as the Fit for 55 Package, the Energy Performance of Buildings Directive (EPBD), and the upcoming Emissions Trading System (ETS2) expansion in 2027, is expected to drive future demand. Patrick Crombez, (Deputy) General Manager at Daikin Europe’s Environment Research Centre, stressed the importance of policy measures, stating, “Decisive action, including phasing out incentives for fossil fuels, stronger new-build regulations, and implementing renewable heating standards, will increase the replacement rates of fossil-fuel-based solutions by low-carbon heat pumps. Adopting the right policies and incentives today will bring the path to full decarbonization by 2050 within reach.”
Flexible Refrigerant Strategy for Decarbonization
Refrigerants play a key role in the energy efficiency and climate impact of heating systems. Daikin emphasized that selecting the right refrigerant is crucial for optimizing performance across different applications and climate conditions.
“By carefully selecting the most balanced refrigerant for each application, we prioritize energy efficiency, affordability, and safety throughout the entire product lifecycle, from production and installation to maintenance and decommissioning,” said Lievens. “Meanwhile, we consider the European regulations on F-gases. We are committed to advocating for the flexibility of refrigerant choices: there is no one-size-fits-all solution to help decarbonize heating.”
New Innovations at ISH 2025
Daikin is showcasing a range of new heating and cooling technologies at ISH 2025, including:
- Daikin Altherma 4 H on R290 and Daikin Altherma 4 X on R454C for residential heating
- VRV systems using CO₂ as a refrigerant
- A new chiller model on R290
- Future alternatives for R-32 residential air-to-air heat pumps, including a multisplit system using R-454C and a low-capacity single split system using R-290
With its refrigerant strategy and technological innovations, Daikin aims to drive the transition toward low-carbon heating solutions in Europe, aligning with the EU’s climate objectives.