Heat pump sales drop in Europe for first time in a decade

In 2023, heat pump sales in Europe experienced a decline for the first time in ten years, leading manufacturers to immediately reduce workforce.

The European Heat Pump Association (EHPA) reports that in 2023 sales decreased by 5% from 2.77 million to 2.64 million in 2022 across 14 countries, accounting for 90% of the European market.

Sales declined most sharply in Finland (42%) Italy (32%), and Poland (46%). Germany, one of the six EU nations where the market expanded in 2023, saw a 59% increase in sales; yet, this growth was insufficient to counteract the overall decline.

Towards the end of 2023, quarterly sales decreased in many of the countries that experienced overall growth. Analysts in the market predict that this declining trend will last well into 2024.

Already, the downturn is causing manufacturers to slash employment. According to EHPA calculations, the current stated adjustments will affect close to 3,000 people.

As petrol costs declined, interest rates increased, and national policy measures shifted, heat pump sales in Europe declined. Specifically, in the wake of the energy crisis brought on by Russia's invasion of Ukraine in 2022, governments expanded their support for individuals who invested in heat pumps; but, a large portion of that funding was curtailed or eliminated last year.

Furthermore, the European Commission has postponed until "a time to be decided" the publication of the EU's Heat Pump Action Plan, which was supposed to assist the industry and be released in early 2024.

Source: European Heat Pump Association (EHPA)