The European air source heat pump market has been on a lucrative growth path over the past few years owing to the significant increase in the deployment of energy efficient heating systems in residential and commercial premises.Countries have recently committed to reducing greenhouse gas emissions as part of the Paris Climate Agreement and other intergovernmental initiatives related to climate change.This has led to increased deployment of high-efficiency heating systems, such as air source heat pumps, in various verticals in European countries.Listed below is the progress of the European air source heat pump industry in several countries on the European continent:
In new residential and commercial buildings in Germany, real estate contractors are increasingly using heat pumps as standard heating systems.Air-source heat pumps and water-source heat pumps have recently become the most popular forms of home heating in Germany due to the rapid advances in design, availability and efficiency of these devices.In fact, the country’s heat pump association recently confirmed that heat pumps surpassed gas heaters for the first time in 2017, according to estimates published by the Federal Statistical Office.The installation of heat pumps in residential buildings has increased by around 43% – a factor that continues to drive trends in the German air source heat pump industry.
At the same time, careful attention should be paid to the regulations being introduced by the German government, which have a positive impact on the national air source heat pump market landscape.In order to increase the share of renewable energy in the heating system, the German Federal Ministry for the Environment, Nature Conservation, Building and Nuclear Safety developed the Renewable Energy Heating Act.Apparently, the bill mandates that owners of new residential buildings utilize renewable energy for their space and hot water needs.In addition, the bill allows other U.S. states to allocate a specific portion of their budget to speed up the installation of air-source heat pumps in older residential buildings.Needless to say, regulations such as the Renewable Energy Heat Act will certainly drive the profitability of the European air source heat pump industry in the future.
In addition to developing various regulatory frameworks, European governments have been providing financial incentives to companies in the field of energy efficiency in the transport, household and commercial sectors.For example, Norway’s Enova SF provides investments to promote a unique energy system with high energy efficiency and greater flexibility.Government businesses owned by the National Department of Climate and Environment also provide financial assistance to build new or expand existing district cooling and heating infrastructure.Clearly, the impact of Enova SF’s numerous initiatives in new energy will help Norwegian industry to build a high-grade energy-efficient infrastructure across the country in the coming years.In addition, national renewable energy policy targets have been focused on district heating systems, such as air source heat pumps in the residential sector.The Norwegian air source heat pump market’s compensation size is expected to exceed USD 600 million by 2024 on the back of a stringent regulatory structure and increasing investments in sustainable development in the residential and commercial sectors.
To significantly reduce carbon emissions levels and meet its renewable energy targets, the UK government has developed a scheme called the Renewable Heat Incentive (RHI).Under the scheme, residents of the country will receive quarterly cash payments for seven years if they have or have previously installed renewable energy technology in their homes.The government expects the RHI scheme will encourage businesses, communities and homeowners to switch from traditional heating systems to more environmentally friendly and energy efficient heating solutions such as air source heat pumps.In addition, the RHI scheme is expected to contribute significantly to the country’s target of generating nearly 12% of its heat from renewable energy sources by 2020 – an ambitious target that will subsequently drive the expansion of the UK air source heat pump market.
Considering the above-mentioned regulatory framework, numerous financial assistance initiatives, and preferential policies related to renewable energy in states and countries of the African continent, the growth prospects of the European air source heat pump industry appear to be very optimistic.In fact, according to a research report by GMI, the revenue size of the European air source heat pump market is expected to exceed USD 7 billion by 2024.