The market for heat pumps in Europe cooled significantly last year. According to preliminary data from the European Heat Pump Association (EHPA), sales declined in ten out of 13 recorded countries by an average of 23 percent compared to 2023. Around 85 percent of the continental market is affected; the total number of newly installed systems decreased from 2.6 million to around 2.0 million. Although the European stock grows to a total of 26 million pumps, the shift from fossil fuels to electric heating has noticeably lost momentum. The largest losses were recorded in Germany: Sales there almost halved from over 437,000 to about 228,000 units, a decrease of 48 percent. In absolute numbers, this was the largest decline in Europe. France ranks second with a decrease of 175,000 sold systems. In percentage terms, only Belgium fared worse, where heat pump sales dropped by 52 percent.

The EHPA cites three main reasons according to national industry experts: regulatory and funding uncertainty, a weakening economy combined with high living costs, and still low - partly subsidized - natural gas prices. In nine other countries, including Italy, the Netherlands, and Sweden, markets also reported declining figures. Only three countries recorded slight or significant increases: While Portugal and Austria experienced only minimal boosts, the United Kingdom stood out with an increase of 63 percent and an additional 38,000 units sold. The reason for this is comprehensive government grant increases, which only apply until the end of 2024.

Nevertheless, the German heat pump industry hopes for a revival in 2025, provided that announced government subsidies are not cut.