The Germany air source
heat pump market is expected to be driven by increasing public awareness of the
increased carbon footprint caused by fossil fuel combustion. The increased
greenhouse gas emissions have resulted in an increase in pollution and global
warming. This combination of factors will encourage the use of electric heat
pumps as the primary technology for reducing emissions in heating applications,
which is expected to drive market growth during the forecast period.
An air source heat pump
is a device used for transferring heat from one place to another using electricity.
Heat is not produced by heat pumps. instead, they shift and distribute heat to
warm or cool a particular area.
Green energy management
systems and technologies have come into greater emphasis as a means of
addressing environmental challenges. Such measures are expected to produce
profitable chances for the expansion of the heat pump market in the region. For
instance, the year 2022 witnessed record-sales for heat pumps in Germany. According
to the Federation of the German Heating Industry (BDH), the country delivered
25% more new heat pumps in the first half of 2022. The raw numbers increased
from 76,500 to 96,000, and the market share of heat pumps surged from 17 to 21%.
However, the Federation
of German Heating Industry, which has 121 member companies that produce heating
systems and their components, they are contributing approximately 90% sales generated
by the heating industry in Germany. Similarly, in Europe it represents 60%
sales generated by the heating industries. This means that the German heating
industry will grow in both technological and commercial terms during the
Companies are offering new
innovative products to attract customers and increase their market presence.
Manufacturers are focusing on the development of new products to fulfill the
demand of the customers. For example, in March 2021, LG Electronics introduced
its Home Energy Package in Germany. To deliver heat and energy to residential
buildings and small businesses, the hybrid system includes a heat pump, a PV
system, and battery storage. Similarly, in 2022, Daikin has announced to expand
heat pump production capacity in Germany. The company is expected to quicken
the growth of its local production capacity with this new investment.
Furthermore, in August 2022,
STIEBEL ELTRON GmbH & Co. KG announced a USD594 million investment to
expand its heat pump manufacturing activities to produce more than 80,000 units
by the end of 2022. This investment strategy was designed to strengthen the
company's market presence and production capabilities throughout the region.
Increased Spending on Infrastructure Projects to Boost the Market
Based on application, the Germany heat pump market for residential and
commercial sectors is predicted to grow, because new federal government has
invested in infrastructure projects. For instance, according to the Global
Construction Survey, the construction industry in Germany is expected to grow
by 11.1% to reach USD273,564 million in 2022.
completed the construction of 293,393 dwellings in 2021, and the
Federal Government has set a goal of constructing 400,000 new homes in Germany which
increases the demand for energy conservation projects to reduce the energy
waste, avoid greenhouse gas emissions and is cost effective. Hence, the government has
significantly increased affordable housing subsidies in order to meet the energy conservation
initiatives, which is expected to drive the market demand
during the forecast period.
Increasing Demand for Energy Efficient Products
The primary advantage of using an air-source heat pump is its energy
efficiency. German market for electric heat pump systems is supported by
increased energy consumption and a growing need for energy-efficient solutions.
According to data from the Energy Information Administration, the nation's
overall consumption of electricity was 535.14 TWh in 2021, which led to a
greater emphasis on energy efficiency. The use of heat pumps as an alternative
to gas heaters to reduce expenses on energy is expected to drive market growth.