The heat pump market will grow to 14 million installed units in Europe by 2030, of which around 10 million will be hydronic heating systems, Daikin experts estimate. This means that 7 out of 10 homes in Europe will be equipped with a heat pump, compared with 2 out of 10 today, most of which will be hydronic systems. Romania is in line with growth trends, with sales tripling in the last year, and Daikin Romania specialists expect the upward trend in sales to continue into 2023.
Daikin, the market leader in heat pump technology, has installed 1.2 million hydronic heat pumps in Europe from 2006 to date and is supporting accelerated market growth through continuous investment in innovative products and expanding manufacturing capabilities.
Over the next few years, Daikin plans to triple European heating production and expects this business segment to become one of the main drivers of revenue growth. Thus, starting in 2024, Daikin will start production in a new factory in Poland, which will become the largest in Europe, and will start installing its newest range of heat pumps, Altherma 4, which was showcased during ISH 2023, the largest international event in HVAC technologies.
As governments become proactive about long-term sustainability and begin to implement strategies to achieve carbon neutrality, heat pumps are gaining an increasing share of the European heating market. One of the smartest heating technologies available today, heat pumps provide the most cost-effective mix of high efficiency, lowest running costs, unique comfort and durability, making them four times more efficient than traditional alternatives.
The heat pump market, which grew at a steady pace from 2010 to 2020, has accelerated amid the introduction of the Green Deal and under the influence of the REPowerEU plan, reaching 1.6 million installed units in 2022. The upward trend will continue in the coming years, point out Daikin experts, who estimate that up to 3.5 million heat pumps will be installed annually, given the continuing trend to move away from gas. Beyond the context of the long-term strategic vision adopted by the European Commission on climate impact, an important driver for increased demand for heat pumps is the replacement of existing heating plants.
“Heat pumps are one of the key technologies driving the energy transition in Europe, so in many European markets, governments are offering attractive incentives and subsidies to make it easier for homeowners to replace their old heating systems running on oil and gas or other polluting fossil fuels. Daikin is consolidating its leading position in the heat pump market, both by investing in the expansion of production capacities and by increasing the number of new jobs, while the new factory in Poland will help us to respond promptly to the growing demand of the local market, offering the Romanian consumer quality products made in Europe”, says Daniel Vasile, Managing Director of Daikin Romania.
Daikin is one of the pioneers of air-to-water heat pump technology in Europe, with the market launch of Daikin Altherma in 2006, a sustainable solution driving the market towards renewable heating. As a key player in heat pumps for new builds, Daikin has steadily expanded its range to cater for the replacement market, becoming the market leader in heat pump technology.
With more than 90 years of experience in designing and manufacturing innovative heating and cooling technologies, Daikin is expanding its range of such systems with the Altherma 3 R MT in 2023, with the launch of the Daikin Altherma 4 scheduled for next year. Among many other cutting-edge features, this new range has a modern outdoor design and smart control function. The new Altherma 4 heat pump, showcased for the first time at Daikin’s stand during ISH 2023, is fully developed and manufactured in Europe, ensuring flexibility in the installation process.
By 2025, Daikin will extend its existing production capacities in Belgium, the Czech Republic and Germany with a significant investment in the construction of its first manufacturing site in Poland, which will become operational in 2024 and produce residential heat pumps. From 2025 onward, the production capacity of this factory alone will be one million heat pumps annually, making it Daikin’s largest manufacturing site in Europe.
“With this new manufacturing site we are moving forward with our proximity strategy, which means that all heating products sold in Europe are also manufactured in Europe. We have 13 production facilities in Europe, 90 offices, 3,000 people at our customers’ service every day and 61 training centers. We have a training center within a 200 kilometer radius across Europe, and this proves that we are also close to our installers. Our aim is to increase safety standards in the industry, and a first step in this direction is the introduction of the Stand by Me – Certified Partner network, a new European-wide support and guidance program that builds further on our tradition of a strong, European-wide network of highly professional installers and technicians”, adds Patrick Crombez, General Manager for Heating and Renewable Energy at Daikin Europe.
Globally, Daikin has 89,000 employees and recorded total sales of approximately 23.7 billion euros in the 2021 fiscal year (April 21 – March 22).