European heat pump sales decline by 23% in 2024

Sales of heat pumps in 13 European countries fell by an average of 23% in 2024 compared to the previous year, according to preliminary figures from the European Heat Pump Association (EHPA).

The countries evaluated include Austria, Belgium, Denmark, Finland, France, Germany, Italy, Netherlands, Norway, Poland, Portugal, Sweden, UK

Around two million heat pumps were sold in these countries, which account for approximately 85% of the European market, down from 2.6 million in 2023. The decline has slowed the transition from fossil fuel heating to heat pumps, bringing the total installed stock to about 26 million.

The EHPA attributes the drop to three main factors: reduced government support schemes, economic difficulties linked to the cost-of-living crisis, and the relatively low cost of subsidised gas.

The decline has led to job losses in the sector, with at least 4,000 positions cut and more than 6,000 others affected. This follows significant investment in production capacity in recent years to support European energy security and reduce reliance on Russian gas.

Among the 13 countries analysed, Belgium saw the sharpest decline in sales, down 52%, followed by Germany with a 48% drop. The UK was the only country to experience growth, with sales increasing by 63%, which the EHPA attributes to government support schemes.

Commenting on the release, Heat Pump Association, chief executive, Charlotte Lee says:

“The statistics from Europe highlight the important role of Government in providing policy certainty to support sustained heat pump market growth.

“In the UK, 2024 saw healthy growth in hydronic heat pump sales, in part due to stable policy support such as the Boiler Upgrade Scheme and Energy Company Obligation, and an increasing number of heat pumps being installed in new build housing. However, to sustain and strengthen this level of growth and encourage further investment in UK manufacturing and in growing a skilled and competent workforce, there needs to be a clear, credible heat decarbonisation transition plan published by the Government which includes a detailed heat pump installation pathway, supported by policy and regulatory change.

“The swift publication of the Government’s response to the Future Homes and Building Standards consultation, regulation updates to implement the changes to permitted development rights for air source heat pumps along with meaningful action taken to reduce the price of electricity relative to gas are essential for supporting continued growth in the UK heat pump market.”

Paul Kenny, director general of the European Heat Pump Association:

“The heat pump sector is down but far from out. Consumers want clean heat and comfortable homes, and they want to support European jobs and energy independence. As soon as they can see it’s possible thanks to supportive EU and national policies, and taxes which penalise fossil fuels not people, they show this by turning to heat pumps.”

For more details on the EHPA’s data visit: https://www.ehpa.org/news-and-resources/press-releases/heat-pump-sales-drop-23-in-2024-leading-to-thousands-of-european-job-losses/

For more details on the HPA visit: www.heatpumps.org.uk