Why the heat pump market grows throughout Europe

Alongside this, we have seen a number of initiatives in recent years, particularly in France, Germany and Italy, aimed at promoting heat pumps in the replacement market, accompanied by government incentives at both national and local levels. At the same time, the technology has developed to help make heat pumps an attractive option. For example, the arrival to the market of optimised ‘high temperature’ heat pumps² enables the replacement of existing combustion boilers without the need to update or modify existing radiators. ​

A key step to decarbonising heat is to actively increase the replacement rate of heating systems.  Doubling this replacement rate is a minimum requirement to be on track with reaching the “Fit for 55” targets. ​

If this is realised, we would expect a significant increase of the number of heating systems replaced, up to possibly 11 million heating systems per year by 2030. ​

Several European countries are implementing incentive initiatives prompting European citizens to install heat pumps giving consumers easier access to sustainable and efficient heating. Sometimes it is also combined with boiler-scrappage schemes. For example: ​

• In Italy, the super Eco bonus has seen tremendous success and has been extended to 2022. ​

• In the UK, the Clean Heat Grant incentive will be put in place in 2022 to support heat pump installations in UK households. Later in 2024 it is expected that gas boilers will be banned in Scotland new builds, with the rest of the UK intending to follow in 2025 ​

• In France, incentives schemes have been running for some years now with the latest France – “Maprimerenov” launched in 2020. This helps both consumers and the industry (installers, job creation, investment,..) to engage in a strong growing economy  ​

• Comparable initiatives are being launched or under discussion in most of the EU markets ​

Towards 2030 heat pumps are seen as the solution that has an immediate effect on CO2 emission in residential homes, with relatively easy individual decision making and installation.  ​

Alternative technologies are being developed, like 100% hydrogen boilers, biomass fuelled boilers, are expected to gain some interest in selected areas, however their importance will remain limited on a pan-European scale. District heating is expected to grow in selected areas, especially with an expanding implementation of local district heating networks.  District heating often involves infrastructure works and investments, and is less easy to implement, especially  in the case of (individual) replacement of heating systems.  ​

It becomes clear that, in the long term, different heating solutions will exist in Europe. The drive to renewable heat will materialise through a mix of solutions, of which one might become more dominant than the other, depending on the country & geographical location.  ​

We have 14 manufacturing locations throughout Europe, with five of them dedicated to heat pump production. Overall manufacturing output amounts to about 1,5 million heat pumps in 2021 (covering all applications, whether residential, commercial, industrial). This shows an increase of about 170% in the past 5 years. This growth was reached through optimization of the existing facilities, increase of production lines and increased productivity, without adding new production entities. Our hydronic heat pumps are entirely produced in our EU factories. Their share of total EU production has increased to over 20% (5% in 2017). 

We have a growing network of over 30 warehouses allowing us to easily deliver across Europe and beyond.  It is our aim to increase this number thereby reducing delivery distance to customers, irrespective whether they are installers, wholesalers or end users.

Over the years we have created a fully integrated stock & warehouse management approach, where inventories were moved from the sales subsidiaries and transferred to a new, leaner distribution structure allowing us to be in full control. The advantages of such changes  are overall lower stocks, better service and lower logistics costs.

We deliver an average of 100.000 m3 to customers per month, representing 71.000 deliveries on a daily basis. Even with the challenges the COVID-19 crisis presented to us and our partners, our network remained strong and we were able to support each and every customer throughout the pandemic.

We ensure that our customers and service technicians (whether buying direct or indirect) receive the right support and guidance. 

We believe it is key to provide the appropriate training, which we organise on a continuous basis in our 54 training centres across Europe, Middle East and Africa, delivering starter courses on installation of heat pumps and direct expansion technology, to advanced troubleshooting courses and service controls on new products.  While we have seen an exponential increase in online training during 2020, we are making a gradual move to hybrid training courses, where part can be followed online, and then reinforced with workshops in our training centres. In 2020 the number of online trainees quadrupled, while in 2021  the participants to classroom training is picking up again. Altogether, online and physical, in 2020 the number of trainees has doubled.

Once trained, refresher courses are available, and furthermore, our Stand By Me online support platform and e-Care app means our service technicians are supported in all facets of the job they have to do at all times.​