Although many renewables technologies come from Asia, results from the EHPA survey show that the supply chain of air-to-water heat pumps for the European market is largely concentrated within Europe. Over 80% of monobloc units and more than 90% of indoor units are assembled in the region, compared with less than 10% and around 5% that are made in China. For outdoor units, roughly half are assembled in Europe, while under 10% come from China.

The figures are published as the European Commission releases its Industrial Accelerator Act, which aims to strengthen clean technology manufacturing in Europe, including the production of heat pumps. Under the Act, hydronic heat pumps (where water is the heat carrier) will be required to originate in the European Union three years after the legislation enters into force.

Europe currently has the capacity to produce around eight million heat pumps per year, compared with about 2.5 million today. Commenting on the data, Paul Kenny, Director General, EHPA, said Europe’s 300 factories ‘could produce over three times more heat pumps if the demand was there’. He added that governments should remove taxes from electricity bills and introduce clear support measures for heat pump consumers, both of which are ‘crucial for spurring demand’.

European heat pump sales rise 10% in 2025

Heat pump sales across 16 European countries (Austria, Belgium, Czech Republic, Switzerland, Denmark, Spain, Finland, France, Italy, Netherlands, Norway, Poland, Portugal, Sweden, Switzerland and the UK) increased by an average of 11% in 2025, according to preliminary data from the EHPA. Around 2.62 million residential heat pumps were sold, up from 2.38 million in 2024, bringing the total number installed across Europe to approximately 28 million.

Twelve of the 16 countries – including the UK – installed more heat pumps in 2025 than in the previous year. According to the EHPA, this growth reflects governments stabilising subsidy schemes and implementing measures such as reducing tax on power bills. Such policies improve the competitiveness of heat pumps, which consume less energy than fossil fuel boilers.

For example, in Belgium, a combination of new restrictions on fossil fuel heating and a VAT reduction for heat pumps in new buildings contributed to a 7% increase in sales, reaching 111,000 units.  

In the UK, continued policy support through the Boiler Upgrade Scheme and the government’s Warm Homes Plan helped sales rise by 27% to 125,000 units.  

In Germany, heat pumps accounted for almost half of all heat generators sold last year. The EHPA attributes this to growing consumer confidence in the technology and increasing awareness of the role heat pumps can play in strengthening energy security.  

By contrast, sales declined in Poland and France in 2025. The EHPA cited the spread of disinformation about heat pumps in Poland and uncertainty around government budgets and support schemes in France as key factors.

Measured against population size, the biggest markets remain Norway, Finland and Sweden, each recording more than 30 heat pumps sold per 1,000 households. By that measure, Poland and the UK remain among the smallest markets, with fewer than five per 1,000 households.  

The EHPA is also collecting data on large heat pump sales – early indications suggest the market is growing, with increasing numbers of industrial facilities and district heating systems across Europe installing large-scale heat pumps.