Market news, 14 February 2025
EHPA: Heat Pump Sales Fall 23% in 2024
Date:
20 February 2025
Sales of heat pumps declined by an average of 23% across 13 European countries in 2024 compared to the previous year, according to preliminary data from the European Heat Pump Association (EHPA). A total of 2 million units were sold in these markets, down from 2.6 million in 2023, slowing the transition from fossil fuels to heat pump technology.
The downturn has led to significant job losses, with at least 4,000 positions cut and over 6,000 more affected. The sector, which employs around 170,000 people across Europe, had expanded production capacity in 2022 and 2023 to strengthen energy security and reduce dependence on Russian gas. However, much of this capacity is now underutilized.
National experts attribute the decline to three main factors: changes in government support schemes that have unsettled consumer confidence, a sluggish economy amid a cost-of-living crisis, and the low price of subsidized gas.
“The heat pump sector is down but far from out,” said Paul Kenny, director general of the EHPA. “Consumers want clean heat and comfortable homes, and they want to support European jobs and energy independence. As soon as they can see it’s possible thanks to supportive EU and national policies, and taxes which penalize fossil fuels not people, they show this by turning to heat pumps.”
Kenny called on the European Commission and national governments to take action, including prioritizing heat pumps in the upcoming Clean Industrial Deal to support Europe’s clean tech industry.
Among the 13 countries analyzed, Belgium and Germany experienced the sharpest declines, with sales dropping by 52% and 48%, respectively. The United Kingdom was the only exception, with heat pump sales rising by 63%, driven by supportive government policies.
The countries included in the EHPA analysis are Austria, Belgium, Denmark, Finland, France, Germany, Italy, Netherlands, Norway, Poland, Portugal, Sweden, and the UK.
The downturn has led to significant job losses, with at least 4,000 positions cut and over 6,000 more affected. The sector, which employs around 170,000 people across Europe, had expanded production capacity in 2022 and 2023 to strengthen energy security and reduce dependence on Russian gas. However, much of this capacity is now underutilized.
National experts attribute the decline to three main factors: changes in government support schemes that have unsettled consumer confidence, a sluggish economy amid a cost-of-living crisis, and the low price of subsidized gas.
“The heat pump sector is down but far from out,” said Paul Kenny, director general of the EHPA. “Consumers want clean heat and comfortable homes, and they want to support European jobs and energy independence. As soon as they can see it’s possible thanks to supportive EU and national policies, and taxes which penalize fossil fuels not people, they show this by turning to heat pumps.”
Kenny called on the European Commission and national governments to take action, including prioritizing heat pumps in the upcoming Clean Industrial Deal to support Europe’s clean tech industry.
Among the 13 countries analyzed, Belgium and Germany experienced the sharpest declines, with sales dropping by 52% and 48%, respectively. The United Kingdom was the only exception, with heat pump sales rising by 63%, driven by supportive government policies.
The countries included in the EHPA analysis are Austria, Belgium, Denmark, Finland, France, Germany, Italy, Netherlands, Norway, Poland, Portugal, Sweden, and the UK.
