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.