Brussels, 22 August 2024
Today, there are over 260 heat pump and component production sites in Europe, as our new map shows, according to the The European Heat Pump Association (ehpa. The sector is a source of jobs and economic opportunities, as well as being essential for Europe’s path to net zero emissions.
To maintain and strengthen its global leadership in clean tech, Europe must ensure that the sector continues to grow steadily throughout the rest of the decade.
Achieving the EU’s goal of 60 million installed heat pumps by 2030 requires an average annual growth rate of around 17%.
Yet, the recent 25% contraction in heat pump sales in 2023 poses a significant risk to this ambition.
The heat pump industry in Europe needs a strong policy framework to operate at capacity.
A slowdown in heat pump sales – and installations – risks jeopardising jobs, regional development and ultimately, Europe’s ability to lead in clean technology, making it imperative for the sector to overcome these challenges and regain momentum.
As we argue in our new report, competitiveness will be key to this upturn, enabling European manufacturers to not only meet domestic demand but also to gain a larger share of the global market.
In order to boost competitiveness, the heat pump sector needs the following measures, explained in more detail in our report:
- A long-term and consistent policy framework, to bring confidence to the sector, investors and consumers
- A fairer electricity to gas price ratio, to make heat pumps a more financially worthwhile investment.
- Reduced production costs in EU
- A centralised collection of market data to monitor installations and market trends
- Discouragement of re-location by setting up funds to target specific industrial needs
- Investment in skills and communication campaigns
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