Europe Heating Equipment Market - Growth, Trends, COVID -19 Impact, and Forecasts (2022 - 2027)

The Europe Heating Equipment Market is segmented By Type (Boilers/Radiators/Other Heaters, Heat Pumps), by End User (Residential, Commercial, Industrial) and Country.

Market Snapshot

Europe Heating Equipment Market
Study Period: 2020-2027
Base Year: 2021
CAGR: 5.6 %

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Market Overview

The Europe heating equipment market is expected to grow at a CAGR of 5.6% over the forecast period (2022-2027). The government regulations concerning energy efficiency and the increasing requirement for energy-efficient heating systems are providing thrust to the market growth in the developed European regions, particularly in the United Kingdom, Germany, and France.

  • The government of Germany is aggressively promoting the rapid development and integration of renewable and efficient heating technologies through new laws, and attractive incentives are the factors further driving the demand for the heating equipment market in the region.
  • Moreover, according to UNIDO, the Manufacturing production in European industrialized economies rose by 22.8% in the second quarter of 2021 relative to the same period in 2020, after a growth of 2.8% in the previous quarter. This growth in manufacturing production is projected to create demand for boilers and other heating equipment during the forecast period. However, the implementation of stringent government regulations toward environmental pollution is hindering the heating equipment market growth.
  • In order to lower the carbon footprint with integrated heat pump solutions, the companies are working closely. In October 2021, Mitsubishi Power Europe and Johnson Controls came together to develop an integrated heat pump solution for a power plant conversion in Stuttgart-Munster, Germany, operated by EnBW Energie Baden-Wurttemberg AG. The two companies will be working closely together, combining the heat pump manufacturing expertise of Johnson Controls and the technological know-how of Mitsubishi Power Europe and also offering integrated heat pump solutions for industrial applications, ensuring the highest reliability, efficiency, and smart systems.
  • The Covid-19 pandemic has adversely affected the heating equipment market, particularly boilers in the region. Also, the outbreak has resulted in the shutdown of many manufacturing facilities, which significantly impacted the production of boilers. Further, consumer demand was also affected for industrial boilers due to the lockdowns imposed by the government. The ease of the covid-19 restriction has boosted the manufacturing sector, which will likely add demand for heating equipment during the forecast period.

Scope of the Report

Heating equipment are the equipments designed to supply heat for different operations and are used in various residential, commercial, and industrial applications which includes boilers, radiators, heat pumps, and other. The industrial end-user includes food and beverage, oil and gas, pharmaceutical, chemical industries, etc. Europe Heating Equipment Market is segmented By Type (Boilers/Radiators/Other Heaters, Heat Pumps), by End User (Residential, Commercial, Industrial) and Country.

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Key Market Trends

Heat Pumps is Expected to Hold Significant Share

  • Heat pumps are widely used not only for heating purposes but also for cooling. They are mechanical heat transfer devices that collect low-grade heat from any source and then upgrade it to distribute it at a high temperature. The heat pumps find applications in the residential as well as industrial sectors. The industrial applications include the paper, food and beverage, chemical, automotive, mechanical, and textile industries.
  • In Germany, the VAT on heat pumps and energy efficiency products has been removed, and 0% or low-cost loans for installation are being offered through the National Infrastructure Bank and other tax incentives as in Italy, which has further increased the sales and installation of heat pumps in Germany.
  • The government of the UK has already set a target of installing 600,000 per year by 2028 to reduce the UK’s reliance on fossil fuels and help fight global warming. Further, in April 2022, the boiler upgrade scheme was launched, which will provide up to EUR 6,000 grant funding for people to install a heat pump (air or ground source) that will cover 90,000 homes.
  • Furthermore, in October 2021, Ireland announced the plan to install 600,000 heat pumps by 2030, among which 400,000 will be in existing buildings. The plan is part of a new EUR 12.9 billion fund that the Irish government has allocated for the Department of the Environment, Climate and Communications (DECC) by the end of the decade as part of the revision of the country's National Development Plan (NDP) 2021-2030.
  • Moreover, BASF and MAN Energy Solutions have entered into a strategic partnership to pursue the construction of an industrial-scale heat pump at the BASF site in Ludwigshafen. This project intends to contribute to reducing greenhouse gas emissions, establishing low-CO2 technologies in chemical production, and reducing the site’s natural gas consumption. The planned large-scale heat pump will enable steam production using electricity from renewable energy, tapping waste heat from the cooling water system at BASF as a thermal energy source.
Europe Heating Equipments Market

Industrial Applications is Expected to Hold Major Rate

  • The heating equipments are widely used in industrial applications. The demand for steam boilers is increased from various end-user industries in the countries such as Germany, France, Italy, etc. Also, an increase in the production activities and a rise in the expansion projects with construction activities are propelling the demand for boilers.
  • The manufacturing companies are investing in the new manufacturing facility in the region, which is projected to create demand for heating equipment such as steam boilers and heat pumps. For instance, in March 2022, Bayer plans to invest EUR 1.4 billion in its pharmaceutical production sites in Bergkamen, Berlin, Leverkusen, Weimar, and Wuppertal in the coming years.
  • Furthermore, in May 2022, Ecotone specializing in organic and plant-based alternatives in Europe, announced a EUR 20 million investment in its plant-based beverage production site located in Badia Polesine, Northern Italy. With this investment, the company is creating a new production line and being one of the largest plant-based drinks producers in Europe.
  • The vendors in the market are coming up with innovative solutions as the demand for technologically advanced, energy-efficient, and environmentally friendly heating equipment for industrial applications is increasing. For instance, the Austrian technology company ecop Technologies GmbH has developed a rotation heat pump based on a 1-phase thermodynamic cyclic process that is intended for use in high-scale industrial projects. This rotation heat pump uses an inert gas which the company describes as with global warming zero potential, widely available, inexpensive, and not posing any security issues.
Europe Heating Equipment Market

Competitive Landscape

The Europe heating equipment market is highly fragmented as the demand for heating equipment is increasing with the growing demand from industrial and commercial sectors across the globe. The key players in the market like Daikin Industries Ltd., Robert Bosch GmbH, Mitsubishi Electric Europe B.V, and others, are continuously innovating new products and rising activities such as mergers and acquisitions and capacity expansion, further increasing the competition.

  • January 2022 - Swedish utility Vattenfall and Dutch heating and hot water systems provider Feenstra have launched in the Netherlands a high-temperature heat pump solution for existing single-family homes that is claimed to be an easy replacement for traditional gas central heating boilers.
  • January 2022 - British Gas has launched a new air source heat pump and is starting installations in the Southwest before rolling out nationwide. Heat pumps are a highly efficient heating system, generating more than three units of heat output for every unit of electricity they use.

Recent Development

  • October 2021 - German manufacturer GEA has launched the RedGenium, a new ammonia/NH3 (R717) heat pump capable of producing 95°C (203°F) heat. It is equipped with an XHP reciprocating compressor, the largest in GEA’s Grasso V ammonia compressor series, giving it almost double the capacity compared to the company’s previous models.
  • July 2021 - Daikin Europe has introduced its second-generation domestic hot water heat pump, the Daikin Altherma M HW, which has five different operating modes and does not use fossil fuels. Its compact design and tank of 200 or 260L, making it suitable for homes where domestic hot water is needed for up to three or four people.

Table of Contents


    1. 1.1 Study Assumptions and Market Definition

    2. 1.2 Scope of the Study




    1. 4.1 Market Overview

    2. 4.2 Industry Attractiveness - Porters Five Force Analysis

      1. 4.2.1 Bargaining Power of Suppliers

      2. 4.2.2 Bargaining Power of Buyers/Consumers

      3. 4.2.3 Threat of New Entrants

      4. 4.2.4 Threat of Substitutes

      5. 4.2.5 Intensity of Competitive Rivalry

    3. 4.3 Industry Value Chain Analysis

    4. 4.4 Assessment of Impact of COVID-19 on the Market


    1. 5.1 Market Drivers

      1. 5.1.1 Growing Demand for Energy Efficient Heating System

      2. 5.1.2 Technological Advancements in Heating Equipments

    2. 5.2 Market Challenges

      1. 5.2.1 Stringent Government Regulations TowardS Environmental Concern


    1. 6.1 By Type

      1. 6.1.1 Boilers/Radiators/Other Heaters

      2. 6.1.2 Heat Pumps

    2. 6.2 By End-user

      1. 6.2.1 Residential

      2. 6.2.2 Commercial

      3. 6.2.3 Industrial

    3. 6.3 By Country

      1. 6.3.1 Europe

        1. United Kingdom

        2. Germany

        3. France

        4. Spain

        5. Eastern Europe

        6. Benelux

        7. Russia & CIS and Other Countries


    1. 7.1 Company Profiles

      1. 7.1.1 Daikin Industries Ltd.

      2. 7.1.2 Robert Bosch GmbH

      3. 7.1.3 Mitsubishi Electric Europe B.V

      4. 7.1.4 Danfoss A/S

      5. 7.1.5 Valliant Group

      6. 7.1.6 Alfa Laval AB

      7. 7.1.7 Carrier Global Corporation

      8. 7.1.8 Lennox International Inc

      9. 7.1.9 Ariston Thermo SpA

      10. 7.1.10 BDR ThermeaGroup

    2. *List Not Exhaustive


**Subject to Availability

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Frequently Asked Questions

The Europe Heating Equipment Market market is studied from 2020 - 2027.

The Europe Heating Equipment Market is growing at a CAGR of 5.6% over the next 5 years.

Daikin Industries Ltd., Robert Bosch GmbH, Mitsubishi Electric Europe B.V, Danfoss A/S, Valliant Group are the major companies operating in Europe Heating Equipment Market.

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