Europe residential heat pump market forecast to reach $71.2 billion by 2035

  • ResearchAndMarkets.com added a report covering Europe’s residential heat pump market.
  • Market value is projected to rise from $11.2 billion in 2025 to $71.2 billion by 2035.
  • Air source heat pumps represented 95.2% of the market, according to the report.

The Europe residential heat pump market was valued at USD 11.2 billion in 2025 and is projected to reach USD 71.2 billion by 2035, expanding at a compound annual growth rate of 20.3%, according to a report added to ResearchAndMarkets.com's offering. Adoption is being supported by demand for energy-efficient space heating, cooling and domestic hot water, government subsidies and tax incentives, decarbonization policies, stricter building standards, elevated household energy costs and the replacement of fossil-fuel heating systems. Air source heat pumps accounted for 95.2% of the market and are forecast to grow at a 20.8% CAGR through 2035. Single-family housing generated USD 6.6 billion in 2025 and is expected to grow at a 19.8% CAGR through 2035. Germany's market reached USD 1.9 billion in 2025. The report covers technology, housing segments, country markets, regulation, competition, company strategies and forecasts across Europe, with a forecast period of 2025-2035 and 132 pages. Continued policy support, technological progress and investment in installation capacity are identified as central to the market's long-term expansion.

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