The vast majority of air to water heat pumps installed in Europe are assembled in Europe, new data from the European Heat Pump Association representing over two-thirds of the market by number of units sold reveals. This compares to only around 10% which are assembled in China.
Last month, the European Commission released its ‘Industrial Accelerator Act’, which aims to boost clean tech manufacturing in Europe, including of heat pumps.
The proposed Act says hydronic heat pumps must originate in the EU three years after it enters into force, and the European Heat Pump Association’s (EHPA) new data shows the sector already has a strong European manufacturing base.
EHPA asked its members where the heat pumps they sold in Europe were manufactured; the captured results represent around 70% of the air to water market, by number of units sold. For monoblocs, 80-90% were assembled in Europe against 5-10% in China*. 90-100% of indoor units were assembled in Europe, 5-10% in China. Assembly of these types of units have the highest value-add in the heat pump supply chain. For the outdoor units of the heat pump, around 40-50% were assembled in Europe, under 5% in China, 40-50% elsewhere.
Paul Kenny, director general of the European Heat Pump Association said:
“Want products ‘made in Europe’? The heat pump sector’s already delivering. But its 300 factories could produce over three times more heat pumps if the demand was there.
“Governments must be encouraged to remove taxes from the electricity bill and put in place clear support for heat pump consumers – measures we know are crucial for spurring demand,” said Kenny.
Europe has capacity to produce 8 million heat pumps a year, up from 2.5 million today. This would massively reduce our exposure to volatile gas price spikes which are set to drive inflation upwards. The fact that heat pumps are part of the Industrial Accelerator Act confirms they are seen as a sector key to European energy independence and strategic autonomy.
The most recent sales figures, released by EHPA on 2 March, show that across 16 countries heat pump sales grew in 2025 by 11%. This can clearly be linked to governments starting to tackle electricity tax levels and put in place longer term support.
The Industrial Accelerator Act will be discussed and potentially amended by EU Member States and the EU Parliament before being finalised.
Contact:
Sarah Azau,
Communications & events director
sarah.azau@ehpa.org
