The European Air Source Heat Pump (ASHP) market was valued at USD 16.30 billion in 2024 and is projected to reach USD 54.07 billion by 2033, growing at a CAGR of 14.25%. The market is driven by stringent environmental regulations, rising energy costs, and consumer awareness of energy-efficient technologies. ASHPs are gaining popularity as a renewable and cost-effective alternative to traditional fossil fuel-based systems.
Residential applications dominate the market, accounting for around 65% of total installations, driven by retrofitting of existing homes and government incentives. Germany, France, and Sweden are leading the adoption of ASHPs, with countries like the UK and Italy also expected to see significant growth.
The market is driven by the need to decarbonize the building sector, with ASHPs offering a cleaner and more efficient alternative to traditional heating systems. Key players in the market include Bosch Thermotechnology, Carrier, and LG Electronics, among others.
Despite challenges such as high initial installation costs and performance limitations in colder climates, the market is expected to grow steadily, driven by government initiatives, consumer awareness, and technological advancements. The report segments the market by product, application, and country, providing an in-depth analysis of the European ASHP market.