Europe Industrial Heat Pump Market, Opportunity, Growth Drivers, Industry Trend Analysis and Forecast, 2025-2034
Description
Europe Industrial Heat Pump Market was valued at USD 295.9 million in 2024 and is estimated to grow at a CAGR of 6.3% to reach USD 548.6 million by 2034.
Market growth is fueled by Europe’s stringent climate policies, rising energy costs, and a strong push toward industrial decarbonization. Increasing reliance on renewable heating solutions, government subsidies, and technological innovations in high-temperature heat pumps are accelerating adoption across industries including food processing, chemicals, pharmaceuticals, and district heating. Industrial heat pumps offer industries the dual benefits of energy efficiency and carbon reduction, making them central to Europe’s clean energy transition. By recovering and reusing waste heat from industrial processes, these systems significantly reduce energy bills while meeting EU climate neutrality targets. Additionally, the ability to operate at higher temperature ranges (up to and beyond 200°C) makes them suitable for heavy industries traditionally reliant on fossil fuels.
Air source heat pumps segment is anticipated to witness a CAGR of 5.8% by 2034. These heat pumps are gaining traction across the region owing to their relatively low installation costs and adaptability across industrial sectors. With increasing energy efficiency regulations and carbon reduction goals, industries are adopting these systems for low-temperature process heating. Their scalability and ease of integration make them ideal for retrofitting existing facilities.
The market for up to 500 kW industrial heat pumps segment held was valued at USD 91.9 million in 2024 owing to government incentives promoting electrification and energy-efficient technologies. Stringent carbon reduction policies and financial support schemes are rising energy which in turn are pushing industries to invest in heat pump technology to lower operational expenses. Additionally, manufacturers are focusing on developing modular and scalable systems to cater to various industrial applications, ensuring adaptability across multiple sectors.
Germany Industrial Heat Pump Market generated USD 37.3 million in 2024 owing to the robust government incentives, advanced manufacturing sectors, and large-scale investments in renewable heating infrastructure. Germany Bundesförderung für Energieeffizienz in der Wirtschaft (EEW) program provides grants and loans to industries adopting energy-efficient heat pump technologies. Scandinavian countries, with their cold climates and established district heating networks, are also rapidly scaling up heat pump adoption.
Key players shaping the Europe Industrial Heat Pump Market include Atlas Copco AB, Carrier, Daikin Applied Europe S.p.A., Danfoss, Mitsubishi Electric Corporation, Trane Technologies International Limited, Siemens Energy, GEA Group Aktiengesellschaft, AGO GmbH Energie + Anlagen, MAN Energy Solutions, Hybrid Energy AS (Johnson Controls), Heliotherm Wärmepumpentechnik Ges.m.b.H., and Thermax Limited. Major companies are investing in R&D for high-temperature and natural refrigerant-based systems, expanding manufacturing footprints, and forming partnerships to strengthen their market presence. With growing regulatory support, industrial modernization, and rising awareness of sustainable energy practices, the Europe Industrial Heat Pump Market is set to play a critical role in achieving the continent’s long-term climate and energy goals.
Market growth is fueled by Europe’s stringent climate policies, rising energy costs, and a strong push toward industrial decarbonization. Increasing reliance on renewable heating solutions, government subsidies, and technological innovations in high-temperature heat pumps are accelerating adoption across industries including food processing, chemicals, pharmaceuticals, and district heating. Industrial heat pumps offer industries the dual benefits of energy efficiency and carbon reduction, making them central to Europe’s clean energy transition. By recovering and reusing waste heat from industrial processes, these systems significantly reduce energy bills while meeting EU climate neutrality targets. Additionally, the ability to operate at higher temperature ranges (up to and beyond 200°C) makes them suitable for heavy industries traditionally reliant on fossil fuels.
Air source heat pumps segment is anticipated to witness a CAGR of 5.8% by 2034. These heat pumps are gaining traction across the region owing to their relatively low installation costs and adaptability across industrial sectors. With increasing energy efficiency regulations and carbon reduction goals, industries are adopting these systems for low-temperature process heating. Their scalability and ease of integration make them ideal for retrofitting existing facilities.
The market for up to 500 kW industrial heat pumps segment held was valued at USD 91.9 million in 2024 owing to government incentives promoting electrification and energy-efficient technologies. Stringent carbon reduction policies and financial support schemes are rising energy which in turn are pushing industries to invest in heat pump technology to lower operational expenses. Additionally, manufacturers are focusing on developing modular and scalable systems to cater to various industrial applications, ensuring adaptability across multiple sectors.
Germany Industrial Heat Pump Market generated USD 37.3 million in 2024 owing to the robust government incentives, advanced manufacturing sectors, and large-scale investments in renewable heating infrastructure. Germany Bundesförderung für Energieeffizienz in der Wirtschaft (EEW) program provides grants and loans to industries adopting energy-efficient heat pump technologies. Scandinavian countries, with their cold climates and established district heating networks, are also rapidly scaling up heat pump adoption.
Key players shaping the Europe Industrial Heat Pump Market include Atlas Copco AB, Carrier, Daikin Applied Europe S.p.A., Danfoss, Mitsubishi Electric Corporation, Trane Technologies International Limited, Siemens Energy, GEA Group Aktiengesellschaft, AGO GmbH Energie + Anlagen, MAN Energy Solutions, Hybrid Energy AS (Johnson Controls), Heliotherm Wärmepumpentechnik Ges.m.b.H., and Thermax Limited. Major companies are investing in R&D for high-temperature and natural refrigerant-based systems, expanding manufacturing footprints, and forming partnerships to strengthen their market presence. With growing regulatory support, industrial modernization, and rising awareness of sustainable energy practices, the Europe Industrial Heat Pump Market is set to play a critical role in achieving the continent’s long-term climate and energy goals.
Table of Contents
205 Pages
- Chapter 1 Methodology
- 1.1 Research design
- 1.1.1 Research approach
- 1.1.2 Data collection methods
- 1.1.3 Base estimates and calculations
- 1.1.4 Key trends for market estimates
- 1.2 Market definitions
- 1.3 Forecast model
- 1.4 Primary research and validation
- 1.5 Some of the primary sources (but not limited to)
- 1.6 Data mining sources
- Chapter 2 Industry Insights
- 2.1 Industry ecosystem analysis
- 2.2 Regulatory landscape
- 2.2.1 International Standards
- 2.2.2 Europe
- 2.2.2.1 Energy Efficiency Directive
- 2.2.2.2 Heat Pumps and EU targets
- 2.2.3 National Certification Requirements
- 2.2.3.1 Heat Pump KEYMARK certification
- 2.2.3.2 Europe Heat Pump Association (EHPA) Testing Standards
- 2.2.3.2.1 Fit-for 55 Package
- 2.2.3.3 Key Laws
- 2.2.3.4 The Net-Zero Industry Act
- 2.2.3.5 EU Heat pump Action Plan
- 2.2.3.6 Critical Raw Materials Act requirements for HVAC products
- 2.2.3.7 Renewable Energy Directive (Revised)
- 2.2.3.8 New Energy Efficiency Directive
- 2.2.3.9 EU Directive 2010/75/EU, 2010
- 2.2.3.10 Energy efficiency directive (2012/27/EU, amended by 2018/2002/EU)
- 2.2.3.11 Heat Pumps and EU targets
- 2.2.3.12 Energy Efficiency Plan 2011
- 2.2.3.13 Horizon 2020 and Horizon Europe
- 2.2.3.14 InvestEU
- 2.2.3.14.1 Price subsidy for heat pumps
- 2.2.3.14.2 Existing support schemes for large heat pumps
- 2.2.3.14.3 Energy Concept - The Energy Strategy
- 2.2.4 List of major industrial heat pump subsidy programmes across key geographies
- 2.2.4.1 UK
- 2.2.4.1.1 Heat Pumps Ready Programme
- 2.2.4.1.2 RePowerEU Plan
- 2.2.4.1.3 The Renewable Heat Incentive Scheme Regulations
- 2.2.4.1.4 CRC Energy Efficiency Schemes
- 2.2.4.1.5 Installation standards
- 2.2.4.1.6 Heat Pump Ready Programme
- 2.2.4.1.7 The UK's National Energy Efficiency Action Plan
- 2.2.4.1.8 CRC Energy Efficiency Schemes
- 2.2.4.2 Ireland
- 2.2.4.2.1 The Renewable Heat Incentive Scheme Regulations
- 2.2.4.2.2 The Heat Pump Association of Ireland
- 2.2.4.2.3 Excise duty on electricity used by heat pumps, electric boilers and data centers will decrease
- 2.2.4.3 Finland
- 2.2.4.3.1 Existing support schemes for large heat pumps
- 2.2.4.3.2 Tax incentives to boost research & development efforts
- 2.2.4.3.3 Excise duty on electricity used by heat pumps, data centers will decrease.
- 2.2.4.4 Denmark
- 2.2.4.4.1 Incentive round for electric heat pump
- 2.2.4.5 Germany
- 2.2.4.5.1 Price subsidy for heat pumps
- 2.3 Industry impact forces
- 2.3.1 Growth drivers
- 2.3.1.1 Positive outlook toward renewable sector
- 2.3.1.2 Surging demand for space heating
- 2.3.2 Industry pitfalls & challenges
- 2.3.2.1 High upfront cost
- 2.4 Growth potential analysis
- 2.5 Porter's analysis
- 2.6 PESTEL analysis
- Chapter 3 Competitive Landscape, 2025
- 3.1 Introduction
- 3.2 Strategic dashboard
- 3.2.1 Mitsubishi Electric Corporation
- 3.2.1.1 Product development
- 3.2.2 Panasonic Corporation
- 3.2.2.1 Partnership
- 3.2.2.2 Product showcase
- 3.2.2.3 Reward programme
- 3.2.2.4 Expansion
- 3.2.2.5 Production facility
- 3.2.2.6 Investment
- 3.2.2.7 Acquisition
- 3.2.2.8 Manufacturing facility
- 3.2.2.9 Acquisition
- 3.2.3 DAIKIN Applied Europe S.p.A.
- 3.2.3.1 Acquisition
- 3.2.3.2 Exhibition
- 3.2.3.3 Facility expansion
- 3.2.3.4 Acquisition
- 3.2.3.5 Business expansion
- 3.2.4 GEA Group Aktiengesellschaft
- 3.2.4.1 Installation/supply
- 3.2.5 Carrier
- 3.2.5.1 Product development
- 3.2.5.2 Acquisition
- 3.2.5.3 Investments
- 3.2.5.4 Expansion
- 3.2.6 Oilon Group Oy
- 3.2.6.1 Partnerships
- 3.2.6.2 Contract
- 3.2.7 MAN Energy Solutions
- 3.2.7.1 Partnership
- 3.2.7.2 Collaboration
- 3.2.7.3 Contract
- 3.2.7.4 Installation/supply
- 3.2.8 Piller Blowers & Compressors GmbH
- 3.2.8.1 Business expansion
- 3.2.9 Trane
- 3.2.9.1 Collaboration
- 3.2.9.2 Project
- 3.2.9.3 Acquisition
- 3.2.10 Danfoss
- 3.2.10.1 Acquisition
- 3.2.11 Other Strategies
- 3.3 Innovation & sustainability landscape
- 3.3.1 Mitsubishi Electric Corporation
- 3.3.2 Daikin Applied Europe S.p.A.
- 3.3.3 Carrier
- 3.3.4 Danfoss
- 3.3.5 Panasonic Corporation
- 3.3.6 Trane Technologies International Limited
- 3.3.7 Siemens Energy
- 3.3.8 AGO GmbH Energy + Anlagen
- 3.3.9 Other innovations
- Chapter 4 Market Size and Forecast, By Product, 2021 - 2034 (Units & USD Million)
- 4.1 Key trends
- 4.2 Air Source
- 4.3 Ground Source
- 4.4 Water Source
- 4.5 Closed Cycle Mechanical Heat Pumps
- 4.6 Open Cycle Mechanical Vapor Compression Heat Pumps
- 4.7 Open Cycle Thermocompression Heat Pumps
- 4.8 Closed Cycle Absorption Heat Pumps
- Chapter 5 Market Size and Forecast, By Capacity, 2021 - 2034 (Units & USD Million)
- 5.1 Key trends
- 5.2 Up to 500 kW
- 5.3 500 kW to 2 MW
- 5.4 2 MW - 5 MW
- 5.5 >5 MW
- Chapter 6 Market Size and Forecast, By Temperature, 2021 - 2034 (Units & USD Million)
- 6.1 Key trends
- 6.2 80°C - 100°C
- 6.3 100°C - 150°C
- 6.4 150°C - 200°C
- 6.5 >200°C
- Chapter 7 Market Size and Forecast, By Application, 2021 - 2034 (Units & USD Million)
- 7.1 Key trends
- 7.2 Industrial
- 7.3 District Heating
- Chapter 8 Market Size and Forecast, By Country, 2021 - 2034 (Units & USD Million)
- 8.1 Key trends
- 8.2 EU
- 8.3 Italy
- 8.4 Germany
- 8.5 France
- 8.6 Poland
- 8.7 Sweden
- 8.8 Spain
- 8.9 Denmark
- 8.10 Austria
- 8.11 Netherlands
- 8.12 Turkey
- 8.13 Belgium
- 8.14 Norway
- 8.15 UK
- 8.16 Switzerland
- Chapter 9 Company Profiles
- 9.1 AGO GmbH Energie + Anlagen
- 9.1.1 Financial data
- 9.1.2 Product landscape
- 9.1.3 Strategic outlook
- 9.1.4 SWOT analysis
- 9.2 Atlas Copco AB
- 9.2.1 Financial data
- 9.2.2 Product landscape
- 9.2.3 SWOT analysis
- 9.3 Carrier
- 9.3.1 Financial data
- 9.3.2 Product landscape
- 9.3.3 Strategic outlook
- 9.3.4 SWOT analysis
- 9.4 Daikin Applied Europe S.p.A.
- 9.4.1 Financial data
- 9.4.2 Product Landscape
- 9.4.3 Strategic outlook
- 9.4.4 SWOT analysis
- 9.5 Danfoss
- 9.5.1 Financial data
- 9.5.2 Product landscape
- 9.5.3 Strategic outlook
- 9.5.4 SWOT analysis
- 9.6 GEA Group Aktiengesellschaft
- 9.6.1 Financial data
- 9.6.2 Product landscape
- 9.6.3 Strategic outlook
- 9.6.4 SWOT analysis
- 9.7 HELIOTHERM Wärmepumpentechnik Ges.m.b.H.
- 9.7.1 Financial data
- 9.7.2 Product landscape
- 9.7.3 SWOT analysis
- 9.8 Hybrid Energy AS
- 9.8.1 Financial data
- 9.8.2 Product landscape
- 9.8.3 SWOT analysis
- 9.9 MAN Energy Solutions
- 9.9.1 Financial data
- 9.9.2 Product landscape
- 9.9.3 Strategic outlook
- 9.9.4 SWOT analysis
- 9.10 Mitsubishi Electric Corporation
- 9.10.1 Financial Data
- 9.10.2 Product landscape
- 9.10.3 Strategic Outlook
- 9.10.4 SWOT analysis
- 9.11 OCHSNER
- 9.11.1 Financial data
- 9.11.2 Product landscape
- 9.11.3 SWOT analysis
- 9.12 Oilon Group Oy
- 9.12.1 Financial data
- 9.12.2 Product landscape
- 9.12.3 Strategic outlook
- 9.12.4 SWOT analysis
- 9.13 Piller Blowers & Compressors GmbH
- 9.13.1 Financial data
- 9.13.2 Product landscape
- 9.13.3 Strategic outlook
- 9.13.4 SWOT analysis
- 9.14 Siemens Energy
- 9.14.1 Financial data
- 9.14.2 Product landscape
- 9.14.3 Strategic outlook
- 9.14.4 SWOT analysis
- 9.15 Spilling Project Partner GmbH & Co.KG
- 9.15.1 Financial data
- 9.15.2 Product landscape
- 9.15.3 SWOT analysis
- 9.16 Thermax Limited
- 9.16.1 Financial data
- 9.16.2 Product landscape
- 9.16.3 SWOT analysis
- 9.17 Trane Technologies International Limited
- 9.17.1 Financial data
- 9.17.2 Product landscape
- 9.17.3 Strategic outlook
- 9.17.4 SWOT analysis
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