Policy Drivers and Market Demand

• Carbon Neutrality Goals: The EU aims to reduce emissions by 55% by 2030. Heat pumps, as a core technology for replacing fossil fuel heating, will continue to receive increasing policy support.

• REPowerEU Plan: The goal is to deploy 50 million heat pumps by 2030 (currently around 20 million). The market is expected to experience accelerated growth by 2025.

• Subsidy Policies: Countries like Germany, France, and Italy offer subsidies for heat pump installations (e.g., up to 40% in Germany), driving end-user demand.

• The European heat pump market was valued at approximately €12 billion in 2022 and is projected to exceed €20 billion by 2025, with an annual compound growth rate of over 15% (stimulated by the energy crisis and policy incentives).
• Regional Differences: Northern Europe (e.g., Sweden, Norway) already has a high penetration rate, while Southern Europe (Italy, Spain) and Eastern Europe (Poland) are emerging as new growth areas.

Technical Trends

• High Efficiency and Low-Temperature Adaptability: There is a strong demand for heat pumps capable of operating below -25°C in the Northern European market.

• Intelligent and Integrated Systems: Integration with solar energy and energy storage systems, as well as support for smart home controls (e.g., optimization of energy consumption through apps or AI algorithms).