Between 2014 and 2022, annual heat pump sales in these 14 countries grew from 0.7 million to 2.8 million units. However, sales fell to 2.6 million in 2023 and further declined to 2 million in 2024. The downturn has had economic consequences, including the loss of at least 4,000 jobs and reduced working hours for over 6,000 employees.
Germany and France saw the most significant declines, with Germany’s sales dropping by 209,000 units (48%) and France by 173,000 units (39%). In contrast, the UK experienced a 63% increase in sales, adding 38,000 units.
Several factors contributed to the decline, including regulatory uncertainty, delayed subsidies, and high electricity prices relative to gas in some markets. Countries such as Belgium and Poland faced particularly challenging economic conditions, with inflation and high interest rates discouraging investment in heat pump technology.
EHPA emphasizes that heat pumps are critical for decarbonizing heating and cooling, reducing reliance on imported fossil fuels, and enhancing energy security. The association calls for stable long-term policies, including subsidy consistency, competitive electricity pricing, and regulatory clarity.
To reverse the downward trend, EHPA urges European policymakers to strengthen policies within the Electrification Action Plan and the upcoming Heating and Cooling Strategy. These measures, the report suggests, could protect jobs, safeguard European leadership in clean technology, and accelerate the transition to sustainable heating solutions.