News in cooperation with eceee.org

First drop in sales: Honeymoon is over for Europe’s heat pump industry

(EurActiv, 27 Feb 2024) Europe’s heat pump industry is flagging and has been forced to cut, or temporarily freeze, 3,000 jobs following investments into production capacity that overshot demand growth.

“In 2023, we saw sales fall for the first time in 15 years,” Jozefien Vanbecelaere, head of EU affairs at the European Heat Pump Association (EHPA), said in a press call on Tuesday (27 February). 

Based on 2023 sales data from 14 countries that make up 90% of the European heat pump market, units sold went down by 5% from 2022, she explained.

Heat pumps, that work with ambient air to efficiently heat homes and have been described as “reverse fridges”, are central to EU efforts to slash consumption of natural gas and supplant fossil heaters as the dominant source of heat.

European heat pump producers who had invested hoping for a boom in demand have been cutting jobs in response – 3,000 in total so far.

Japanese manufacturer Daikin cut 500 jobs in Belgium. Vaillant, the German heat pump maker, sent 100 workers into “Kurzarbeit” in late 2023, a scheme where working hours are reduced and the government steps in to ensure workers remain remunerated. 

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EurActiv, 27 Feb 2024: First drop in sales: Honeymoon is over for Europe’s heat pump industry