The heat pump market is showing a slight yet uneven recovery this year. Sales in 13 European countries* increased by 9% on average in the first six months of 2025, compared to the same time period in 2024.
In the first half of 2024, 898,000 heat pumps were sold. This went up to 980,000 in the first half of 2025.
Despite this slight rebound, overall market confidence is still lower than in the record sales year of 2022. Progress is constrained by policy uncertainty and reduced incentives, according to national experts.
The sector continues to face challenges which put consumers off, like shifting national subsidy schemes, a cost of living crunch and higher electricity prices compared to gas. What’s more, there is an ongoing slowdown in building renovations as well as in new-build homes.
If supported by the structural reforms still missing in many markets – including predictable policies, the shifting away of taxes on electricity bills and streamlined incentives schemes – the European heat pump market can return to sustainable growth. This will consolidate its key role in Europe’s clean energy transition, as well as its role boosting European manufacturing, jobs and energy security.
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*Austria, Belgium, Denmark, Finland, France, Germany, Italy, Netherlands, Norway, Portugal, Spain, Switzerland, Sweden.
