Europe Hydronic Heat Pump Market Size - By Product, Analysis, Share, Growth Forecast, 2024 - 2032

Europe Hydronic Heat Pump Market Size

Europe hydronic heat pump market size was valued at USD 11.1 billion in 2023 and is estimated to grow at a CAGR of 20.7% from 2024 to 2032. Rapid development of energy efficient building infrastructure and increasing urbanization have accelerated the demand for energy-efficient space heating and cooling systems, complementing the business landscape.
 

Rising energy consumption and focus to reduce emissions from building infrastructure has accelerated heat pump deployment driven by favorable policies and financial rebates by the authorities. For instance, in December 2023, the European Performance of Buildings Directive was revised. The updated directive outlines strategies to reduce carbon emissions in building stock and sets objectives for refurbishing about 16% of the region’s lowest-performing non-domestic building infrastructure by 2030.
 

Europe Hydronic Heat Pump Market Trends

Europe hydronic heat pump market is experiencing significant growth owing to the increasing demand for hot water and space heating along with expansion and development of building infrastructure. Rising adoption of reliable and energy-efficient technologies in residential and commercial establishments and growing focus on improving energy efficiency in buildings is set to augment the industry growth. Stringent emissions regulations and favorable initiatives promoting heat pump deployment are further bolstering the industry outlook. For instance, in May 2024, Fifteen European Union member states released a collaborative document urging the European Commission to prioritize the decarbonization of heating and cooling systems. This initiative aims to enhance the EU's energy independence and support the achievement of its 2040 climate objectives.
 

Europe Hydronic Heat Pump Market Analysis

Air to water segment is set to grow over USD 59 billion through 2032. Increasing demand for efficient heating, cooling, and hot water solutions in buildings along with shifting consumer preference toward energy efficient solutions and ambient comfort will complement the business landscape. Ongoing technological advancements including improvements in heat pump design, use of eco-friendly refrigerants, and development of enhanced control systems will augment the air to water heat pump deployment.
 

The hydronic ground source heat pump market is set to grow on account of increasing demand for advanced heat pump units and paradigm shift towards energy-efficient heating and cooling systems. Stringent regulations aimed at improving building energy efficiency, coupled with the introduction of favorable financial incentive schemes, will accelerate the product deployment. Furthermore, growing environmental concerns, focus on energy efficiency, increased adoption of advanced technologies, and efforts to reduce carbon emissions are significantly influencing the industry landscape.
 

Germany hydronic heat pump market is set to grow over USD 27.5 billion by 2032. Rising construction of new buildings and the consistent demand for temperature control, are driving the adoption of hydronic heat pumps. Favorable regulatory landscape toward adoption of clean energy technologies along with government initiatives and beneficial schemes have accelerated the product deployment. For instance, in January 2024, The German Heat Pump Association (BWP) reported that the government implemented new revised financial incentives for installation of heat pumps. Property owners are now eligible for a maximum subsidy of USD 24,000 (EUR 21,000) when installing a heat pump, while funding is accessible to all, higher grants are available for low-income households.
 

Rapid adoption of low-carbon technologies, along with stringent emissions regulations and robust building energy efficiency standards, is propelling the business landscape. Additionally, evolving consumer preferences and attractive financial incentives are playing crucial roles in shaping the Germany heat pump industry dynamics.
 

Europe Hydronic Heat Pump Market Share

Key players in the Europe hydronic heat pump market are actively pursuing strategic partnerships, alliances and mergers & acquisitions to strengthen their industry presence and enhance their technological development. These initiatives enable companies to combine resources, introduce advanced technologies, and launch innovative products. Through collaborations, firms can conduct joint research and development projects and expand their market reach. Mergers and acquisitions allow companies to consolidate their positions, acquire new capabilities, and gain a competitive edge over the others.
 

Europe Hydronic Heat Pump Market Companies

Major players operating across the industry include:

• Carrier
• Clivet
• Daikin
• Frost Italy
• Johnson Controls
• Kensa Heat Pumps
• LG Electronics
• Lochinvar
• Mitsubishi Electric
• Panasonic
• Radiant Bruciatori
• Samsung
• Stiebel Eltron
• Thermia Heat Pumps
• WaterFurnace
   

Europe Hydronic Heat Pump Industry News

• In March 2024, Panasonic's HVAC division plans to launch three new commercial A2W heat pump models in September 2024. These units, using natural refrigerants, are designed for multidwelling and light commercial properties. The new models expand Panasonic's product range, offering higher heating capacities of 20, 25, and 30 kilowatts, complementing their existing 3-16 kW lineup. This expansion aims to meet a wider range of customer needs in various establishments including multidwelling units, offices, stores, and other light commercial establishments.
   
• In December 2023, Corab has launched a new residential brine-water heat pump series. These units can provide domestic hot water and handle cooling and heating tasks, reaching temperatures up to 65°C. The series includes three models with thermal power ratings of 8 kW, 12 kW, and 16 kW. Each model offers different performance metrics, with seasonal coefficients of performance (SCOP) varying between low and high-temperature operations. The units
  demonstrate efficient operation, with coefficient of performance (COP) values ranging from 4.3 to 4.5 across the series.
   

The Europe hydronic heat pump market research report includes in-depth coverage of the industry with estimates & forecast in terms of “’000 Units” and “USD Million” from 2021 to 2032 for the following segments:

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Market, By Product

• Air to water
• Ground to water

The above information has been provided for the following regions and countries:

• Austria
• Norway
• Denmark
• Finland
• France
• Germany
• Italy
• Switzerland
• Spain
• Sweden
• UK
• Netherlands