European Heat Pump Market Shows Modest Recovery Amid Ongoing Challenges

European Heat Pump Market Shows Modest Recovery Amid Ongoing Challenges

Europe: The European heat pump market has recorded a modest recovery in early 2025, with sales increasing across several countries compared to the same period last year, as per European Heat Pump Association (EHPA) latest data. However, overall confidence in the sector remains below the peak levels seen in 2022. The slow development of the market attributed the slower momentum to policy uncertainty, inconsistent subsidy schemes, and higher electricity prices relative to gas, all of which continue to influence consumer decisions and investment in heating technologies. 

EHPA also points out that the industry also faces challenges linked to a slowdown in building renovations and new housing developments. Analysts suggest that stable policies, fairer electricity pricing structures, and simplified incentive frameworks are essential for sustaining market growth. Strengthening these structural elements could help the heat pump sector regain steady expansion, supporting Europe’s clean energy goals while contributing to job creation and manufacturing resilience across the region. 

Source: European Heat Pump Association (EHPA)