ShareEuropean Heat Pump Market Enters Recovery Phase
Europe’s heat pump market is showing signs of recovery after the 2023-2024 period. Rising gas prices, concerns over energy security, and European Union climate policies have all contributed to the penetration of heat pump technologies.
According to the European Commission, heat pumps continue to be viewed as a central part of Europe’s clean energy transition because they have higher energy efficiency than traditional gas boilers and can reduce dependence on imported fossil fuels [1]. The heating and cooling sector accounts for around 50% of all energy consumed in the EU [2], underlining the importance of efficient technologies such as heat pumps in the energy transition.
Market trends and recent developments
As per the European Commission, heat pumps are roughly three to five times more energy efficient than gas boilers and are crucial to achieving the EU’s carbon neutrality goals by 2050[1].1 Despite installations falling from 2.8 million units in 2022 to 2.11 million in 2024, preliminary data from thirteen EU member states showed that the market grew again in 2025, with sales rising to 2.34 million units [1].1 At the global level, heat pump capacity increased by around 29% between 2019 and 2023, with China (32%), the European Union (25%), and the United States (24%) representing the largest share of installed capacity. Countries in Northern Europe, namely Sweden and Finland, continue to lead Europe to heat pump adoption relative to population size [3].
Recent publications indicate that the rebound accelerated in early 2026. In France, sales of air-to-water pumps increased by 6.6% in the first quarter of the year, and sales of air-to-air models increased by 25% [4]. The European Heat Pump Association also reported that overall heat pump sales in the first quarter of 2026 increased by 17% as compared to the same period in 2025 [2]. Rising fossil fuel prices following the geopolitical instability in the Middle East have further encouraged consumers to switch away from gas heating systems [5].
Beyond simply heating, reversible heat pumps can also cool homes during the growingly intense European heatwaves, as the continent continues to experience record-breaking temperatures every year, being the fastest-warming continent on Earth [4]. Heat pumps can, therefore, provide a dual solution with one equipment, supporting the electrification of heating while serving the rapidly increasing demand for space cooling.
Policy Support and Deployment Challenges
Despite these positive changes, several challenges remain. High upfront investment costs remain a major obstacle, particularly for households and small businesses [1]. In addition, fragmented policy frameworks across countries create regulatory complexity, while shortages of trained installers and technicians slow down deployment. To address this issue effectively, the European Commission launched the Heat Pump Accelerator Platform in 2025 which brought together policymakers, researchers, and industry leaders to accelerate deployment across Europe [2].This initiative also stresses the need for better consumer awareness, installer training, and sustainable long-term policy support [2]. Policy measures such as tax incentives, green financing instruments, and improved regulatory alignment are increasingly being identified as key enabler to accelerate adoption.
The market recuperation in Europe’s heat pump sectors is a sign that encourages the market to keep moving ahead, while additional efforts to address the costs, skills, and policy challenges remain important factors influencing future deployment.
Sources
[1] European Commission. “Heat Pumps.” Accessed 27 May 2026. https://energy.ec.europa.eu/topics/energy-efficiency/heat-pumps_en.
[2] Eurostat. “Heating and cooling from renewables gradually increasing”. 3 February 2023. https://ec.europa.eu/eurostat/web/products-eurostat-news/w/ddn-20230203-1#:~:text=Energy%20for%20heating%20and%20cooling,of%20biomass%20and%20heat%20pumps).
[3] European Commission. “The Heat Pump Accelerator Platform.” Accessed 27 May 2026. https://energy.ec.europa.eu/topics/energy-efficiency/heat-pumps/heat-pump-accelerator-platform_en.
[4] European Commission. “Europe’s warming accelerates beyond global trend, new Copernicus data shows”. https://wmo.int/media/news/western-europe-has-hottest-june-record.
[5] Liam Gilliver. “Can Heat Pumps Cool Down Your Home and How Do They Compare to Air Conditioning Units?” Euronews. Accessed May 27, 2026. https://www.euronews.com/2026/05/26/can-heat-pumps-cool-down-your-home-and-how-do-they-compare-to-air-conditioning-units.