Published on: January 18, 2025 / Update from: January 18, 2025 - Author: Konrad Wolfenstein
Insider tip heat pump? These countries are one step ahead of the rest of the world – Image: Xpert.Digital
More than just a trend: the heat pump is already mainstream in these countries
Which countries are experiencing the fastest growth in the heat pump market?
The heat pump market is experiencing dynamic growth worldwide, driven by the global trend towards sustainable energy solutions, government support programs and the increasing need to replace fossil fuels. Some countries stand out for their particularly rapid growth.
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Leading growth markets
China
China is the world's largest and fastest growing market for heat pumps. In 2023, sales increased by an impressive 12%. This growth is fueled by several factors, including ongoing urbanization, ambitious government programs to reduce coal use and increasing environmental regulations. An additional driver is the growing middle class, which is increasingly relying on energy-efficient and environmentally friendly heating solutions. Due to the Chinese government's “dual carbon” strategy, which aims to achieve carbon neutrality by 2060, heat pumps are increasingly seen as a key technology.
USA
The United States is also experiencing notable growth in the heat pump market, with a compound annual growth rate (CAGR) of over 8%. Particularly in regions with a mild climate such as the south and east of the USA, sales of heat pumps now exceed those of traditional gas heaters. This trend is encouraged by government subsidies, tax incentives and increased energy costs. In addition, more and more real estate developers are investing in sustainable technologies, which is further driving the market.
Germany
In Europe, Germany is one of the pioneers in the area of heat pumps. Despite a slight decline in other parts of Europe, Germany recorded stable growth in this sector in 2023. “Federal funding for efficient buildings” (BEG) and stricter legal requirements for the installation of low-emission heating systems are driving demand. New buildings in particular are increasingly relying on heat pumps as a standard solution. In addition, the discussion about moving away from fossil fuels, especially natural gas, is contributing to the popularity of this technology.
More growing markets in Europe
Other European countries such as Portugal, Belgium, Norway, the Netherlands and Spain are also experiencing increasing demand for heat pumps. These countries benefit from specific funding programs, climatic conditions and a growing acceptance of energy-efficient technologies. In Norway, for example, the market is driven by high electricity prices and a strong focus on electrification.
The Asia-Pacific as a dominant region
The Asia Pacific region plays a central role in the global heat pump market. With a market share of 53.1% in 2022, the region clearly dominates. In addition to China, Japan and South Korea are also showing strong growth:
Japan
In Japan, over 90% of households are already equipped with heat pumps. This is the result of many years of effort to integrate energy-efficient technologies into everyday life. Demand remains stable, especially for advanced and energy-optimized models.
South Korea
South Korea is seeing growing interest in heat pumps, particularly in the industrial sector. Here, government initiatives and tax advantages promote the use of this technology.
By 2030, 60 million heat pumps are expected to be sold worldwide
Despite the positive development, there are regional differences. Some European countries saw sales decline in 2023. The reasons for this are economic uncertainties, supply chain problems and high acquisition costs. Nevertheless, the long-term forecast for the global market remains extremely optimistic. By 2030, 60 million heat pumps are expected to be sold worldwide.
The increasing urgency to achieve climate goals, coupled with technological advances, will continue to drive the market in the coming years. Heat pumps not only offer environmental benefits, but also long-term economic savings, making them attractive to consumers and businesses alike.
Countries such as China, the USA and Germany are at the forefront of growth in the heat pump market. The market is developing dynamically, supported by political measures, technological innovations and growing environmental awareness. Demand will also continue to rise in the Asia-Pacific region and parts of Europe. Heat pumps are a key component of the energy transition and will play an even greater role in reducing global CO₂ emissions in the coming years.
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