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Europe Heat Pump Compressors Market size was valued at USD 4.6 billion in 2023 and the industry is set to grow at CAGR of 18.9% up to 2032. Increasing demand for space heating & cooling, favorable government initiatives and paradigm shift towards the adoption of low-carbon technologies will complement the industry landscape.
For instance, from October 2023, the UK government amended its Boiler Upgrade Scheme, providing grants of USD 9,600 to install air or ground source heat pump. This initiative aims to facilitate the transition from fossil fuel heating to low-carbon alternatives. Moreover, ongoing research & development initiatives to introduce advanced heat pumps that boast superior operational efficiency and reduced energy consumption with low emissions will further shape the business dynamics.
Report Attribute | Details |
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Base Year: | 2023 |
Europe Heat Pump Compressors Market Size in 2023: | USD 4.6 Billion |
Forecast Period: | 2024 – 2032 |
Forecast Period 2024 – 2032 CAGR: | 18.9% |
2024 – 2032 Value Projection: | USD 22.7 Billion |
Historical Data for: | 2021-2023 |
No. of Pages: | 80 |
Tables, Charts & Figures: | 14 |
Segments covered: | Product, Type, and Country |
Growth Drivers: |
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Pitfalls & Challenges: |
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Europe heat pump compressors industry is set to grow owing to favorable initiatives by authorities to upgrade from conventional heating systems to cleaner, sustainable alternatives, along with financial incentives such as tax rebates and grants, toward adoption of heat pump systems. For instance, in May 2024, the Danish Energy Agency (Energistyrelsen) has rolled out new subsidies aimed at boosting residential heat pump installations. Homeowners can now receive a grant of over USD 2,500 for installing air-to-water heat pumps, and USD 4,000 for opting for liquid-to-water heat pumps. Moreover, accelerating investment in environmentally friendly and low-emission heating and cooling solutions along with stringent energy efficiency standards will further augment the business landscape.
The air source segment is anticipated to grow over USD 22 Billion in 2032. Rising demand for reliable and efficient space heating, cooling and hot water solutions across residential and commercial applications coupled with growing inclination toward energy efficiency and reducing carbon emissions is augmenting the product demand. The ease of installation, cost-effectiveness and versatile operations along with ongoing technological advancements by key manufacturers to introduce enhanced heat pump systems are further driving the air source heat pump industry growth.
Ground source heat pump compressors segment is anticipated to witness significant momentum owing to growing emphasis on reducing carbon emissions and rising adoption of these systems in residential and commercial applications for space heating and cooling. Government grants across various nations supporting the deployment of these units will accelerate their adoption.
Scroll heat pump compressors market is set to grow at a CAGR of over 21% through 2032. Rising adoption of heat pump systems across residential, commercial establishments driven by increasing focus on decarbonization and demand for innovative compressor units with high Coefficient of Performance ratings, will complement the industry growth. Manufacturers are continuously improving the efficiency and performance of scroll compressors, enabling them to be more adaptive to the requirements of the end-users and HVAC system designers, augmenting the scroll heat pump compressors business dynamics.
Germany heat pump compressors market is anticipated to grow over USD 7 billion by 2032. Variations in climatic conditions, focus on energy efficient building infrastructure, government support including subsidies and tax benefits for adoption of low carbon technologies have positively influenced the industry landscape. For instance, in January 2024, the German government revised funding options for heat pump installations, as reported by BWP. Property owners are eligible for a maximum subsidy of over USD 23,300 for heat pump installation. Moreover, increasing demand for heating & cooling solutions, growing urbanization, and increasing adoption of heat pumps in residential and commercial buildings are augmenting Germany heat pump industry outlook.
Major manufacturers are strengthening their market presence by pursuing strategic collaborations, partnerships, and mergers & acquisitions to enhance their competitive edge over the others. Carrier, SAMSUNG, Daikin and Danfoss, Panasonic and CAREL INDUSTRIES S.p.A. hold the major market share across the Europe heat pump compressors industry.
Key players operating across the industry comprise of:
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Market, By Product, 2021 – 2032 (‘000 Units & USD Million)
Market, By Type, 2021 – 2032 (‘000 Units & USD Million)
The above information has been provided for the following countries: