Domestically manufactured heat pumps accounted for 32,920 of the 98,345 units sold in the UK in 2024, representing one-third of total factory gate sales, according to new data from the Heat Pump Association (HPA). This marks a 40% increase compared to 2023.
The rise reflects the growing contribution of UK-based manufacturing to the country’s clean heating transition. The UK Government’s Clean Energy Industries Sector Plan, released in June, identifies heat pumps as a key growth sector, projecting that the heating and cooling industry could generate £4.8 billion [approx. USD 5.8 billion] annually by 2050, including £900 million [approx. USD 1.1 billion] from exports.
The Institute for Public Policy Research notes that the UK’s existing expertise in boiler and HVAC manufacturing offers a strong base for scaling heat pump production, due to shared engineering skills, components, and supply chains.
The HPA highlighted the role of the Heat Pump Investment Accelerator, a £30 million [approx. USD 36 million] initiative aimed at supporting major UK investments in heat pump and component manufacturing. Two projects have so far secured nearly £10 million [approx. USD 12 million] under this programme. The HPA is awaiting further details on the expected second phase of the initiative, as outlined in the Industrial Strategy.
However, the HPA emphasised that continued growth depends on market confidence. Key factors include the timely rollout of the Future Homes and Buildings Standard and addressing the UK’s electricity-to-gas price ratio, which remains a barrier to wider heat pump adoption.
The data was released to mark Heat Pump Day, an initiative recognising the role of heat pumps in Europe’s energy transition. The European Heat Pump Association (EHPA) continues to advocate for clearer, long-term policy frameworks to sustain market demand.
Charlotte Lee, Chief Executive of the HPA, stated: “As the heat pump market in the UK matures, it’s great to see the sector investing in on-shoring supply chains to increase resilience and responsiveness. Confidence in the market is crucial to secure further investment, and we call on the Government to publish the Future Homes and Building Standard without delay. This no-regrets step clearly sets the direction for the heating transition, and shouldn’t be underestimated in its importance to strengthen the supply chain.”
Minister for Energy Consumers Martin McCluskey added: “These figures show the clean power mission in action, with skilled, homegrown jobs in the clean technologies of the future. The British public have shown record demand for heat pumps as more and more families take up our offer of a £7,500 grant. Which is why, to help meet the growing demand, we have already committed almost £10 million to boost homegrown heat pump production in the UK.”
Paul Kenny, Director General of EHPA, said: “This new UK data is yet more proof that confidence and a stable market are crucial to ensure the local demand that drives local production. Europe has 300 heat pump manufacturing sites and 433,000 jobs in the sector, and this great base can be strengthened further with steady subsidy schemes and energy taxation that reassure consumers.”
