Heat pump sales grew in Europe in 2020

The market report by the European Heat Pump Association (EHPA) covers 21 European countries. Among those countries, the total heat pump stock currently amounts to 14.86 million units. Between 2019 and 2020, heat pump sales grew by +7.4%.  

 

87% of the European market volume was sold in only ten countries. The five biggest European heat pump markets in 2020 were France (394 129 units sold; -0.7%), Italy (232 834; +12.2%), Germany (140 390; +37.2%), Spain (127 856; -0.2%), and Sweden (107 723; +4.4%). Three countries recorded the highest percentages of increase in sales: Germany (38 040, +37.2%), Italy (25 324, +12.2%) and Poland (18 504, +43.8%). The Nordic countries show the biggest market penetration for heat pumps in the building stock and in the renovation sector. Sales grew in Sweden, Denmark and Finland, while they decreased in Norway where the market is maturing. 

 

Although the EHPA report focuses primarily on heat pumps providing heating or sanitary hot water, the detailed sales volumes for 2020 also include VRF (Variable Refrigerant Flow) units which are designed for heating and air conditioning. 

 

Table. Overview of product types among heat pump sold in 2020 according to the EHPA market report 

 

* A hybrid heat pump is the combination of a heat pump and a fossil fuel-based boiler that has a controller between both heaters.

		Total sales volume	Relative change compared to 2019
Space heating		1 421 585	+9%
	Hydronic distribution   (Air/water, Water/water, Brine/water, Direct expansion/water, Others)	730 723	+18%
	Exhaust air	26 123	+8%
	Air/air with heating function	608 696	+0%
	VRF/VRV	56 043	+2%
Sanitary hot water		185 489	-2%
District heating		6	-82%
Industrial heat pumps		955	+4%
Thermally driven heat pumps		10
Hybrid heat pumps*		11 264	-5%
TOTAL		1 619 309	+7%

 

 

EHPA estimates that the heat pump stock avoided 41.07 Mt of CO₂ emissions in 2020. CO₂ emission savings are calculated by comparing emissions from a heat pump to those of a gas-condensing boiler. 

 

From a labour perspective, the heat pump sector employs a well-educated work force in the areas of R&D, components and heat pump manufacturing, installation (including drilling), service and maintenance. There were about 89 784 employees in the European heat pump industry in 2020. 

 

According to the EHPA, three factors can explain the European heat pump market growth: 

• Technological progress. Heat pumps today cover a wide temperature range, making their installation possible in a much larger share of buildings than a decade ago. 
• Energy transition in the building sector. Policy makers are looking at heat pumps due to the need to accelerate the energy transition in the heating and air conditioning sector. Indeed, building standards limit maximum heat demand per m2, mandate the integration of renewable energy and favour smart buildings. Market development is often facilitated by institutional subsidies. 
• Lower costs. Growing sales numbers result in lower production costs at the component and the product level. Furthermore, the fast decline of the production cost of PV systems also influences the heating market: using self-produced electricity in combination with a heat pump system provides a very low-cost energy source for buildings.