United Kingdom Heat Pumps Market Size & Share Analysis - Growth Trends & Forecasts (2025 - 2030)

The United Kingdom Heat Pumps Market is Segmented by Product Type (Air-Source Heat Pumps, Ground/Water Source Heat Pumps), Installation Type (Retrofits, New Buildings), and End-User Vertical (Commercial, Residential, Industrial). The Market Sizes and Forecasts are Provided in Terms of Value (USD) for all the Above Segments.

United Kingdom Heat Pumps Market Size & Share Analysis - Growth Trends & Forecasts (2025 - 2030)

United Kingdom Heat Pumps Market Size

United Kingdom Heat Pumps Market Summary
Study Period 2019 - 2030
Base Year For Estimation 2024
Forecast Data Period 2025 - 2030
Historical Data Period 2019 - 2023
CAGR 11.10 %
Market Concentration Low

Major Players

United Kingdom Heat Pumps Market Major Players

*Disclaimer: Major Players sorted in no particular order

Compare market size and growth of United Kingdom Heat Pumps Market with other markets in Technology, Media and Telecom Industry

Automation

Digital Commerce

Electronics

Information Technology

Media and Entertainment

Security & Surveillance

United Kingdom Heat Pumps Market Analysis

The United Kingdom Heat Pumps Market is expected to register a CAGR of 11.1% during the forecast period.

The various government regulations and initiatives are fueling the demand for the heat pump market. Further, the increasing demand for energy-efficient solutions is driving the demand for the heat pump market.

  • The global energy crisis is driving an increase in demand for heat pumps, thereby bringing energy security and climate benefits. As per IEA, global heat pump sales grew by 15% in 2021, twice the average of the past decade, led by the European Union, where they rose by around 35%. Sales in 2022 are further expected to hit a record level, especially in Europe, as some countries have witnessed double sales growth in the first half of 2022 as compared to the first half of 2021.
  • The government is taking various initiatives to boost the deployment of heat pumps in the country. For instance, with an aim to reduce household use of greenhouse gases to net zero by 2050, the UK government has announced to encourage the installation of 600,000 heat pumps a year by 2028.
  • Moreover, to support the transition of households to low-carbon heating, the government is planning to boost the funding of different schemes around the United Kingdom from 2022/23 to 2024/25. The government has planned to invest GBP 450 million (~553.28 million) into the new Boiler Upgrade Scheme, which will provide a grant of GBP 5000 (~ USD 6,147.52) for the installation of an air-source heat pump and GBP 6000 (~USD 7377) for ground source heat pumps. Such initiatives taken by the government are fueling the demand for the heat pump market in the country.
  • Despite the growing inclination to heat pumps, the UK currently depends on gas systems to heat their homes. Estimations suggest that 85% of heating systems operating in the UK are gas boilers, and 1.5 million gas boilers are installed yearly. There are many factors restraining the purchase and distribution of heat pumps in the UK, including low running cost savings, high upfront costs, distribution network inadequacy, etc.
  • The lockdown restrictions and closure of manufacturing plants, including the components, have further fueled the supply shortage trend. These effects were also reflected in the heat pump manufacturing market. However, many of these effects are short-term. Moreover, government precautions in the country to support industrial sectors are helping to revive industry growth.

United Kingdom Heat Pumps Industry Overview

The United Kingdom Heat Pumps Market is highly competitive. An increase in the need for energy-efficient solutions and technological advancements across the country provides lucrative opportunities in the market. Overall, the competitive rivalry among competitors is high. The major vendors operating in the market look for strategic investments to expand their market share. Some of the strategies adopted by them are as follows:

In Nov 2022, Kensa, a UK-based heat pump manufacturer, is upgrading its existing heat pump technology, which may be critical for the country's electricity infrastructure. The company has received funding from the UK Government funding from the Department for Business, Energy and Industrial Strategy (BEIS) to accelerate its development for mass market deployment.

In July 2022, FutraHeat, a UK-based startup, designed a high-temperature heat pump that uses waste heat from industrial processes to generate steam. The heat pump is electrically powered and can operate with zero CO2 emissions when powered by renewable sources.

United Kingdom Heat Pumps Market Leaders

  1. IMS Heat pumps

  2. Vaillant Group

  3. Baxi Heating UK

  4. Worcestor Bosch Group

  5. Viessmann Group

  6. *Disclaimer: Major Players sorted in no particular order
United Kingdom Heat Pumps Market Concentration
Need More Details on Market Players and Competiters?
Download PDF

United Kingdom Heat Pumps Market News

  • May 2024: British Gas, in a bid to bolster the adoption of heat pumps in the UK, has introduced the nation's most competitive rate for heat pumps. This move is part of their broader strategy to make low-carbon technology more accessible. The discounted rate is exclusively offered to British Gas energy customers who acquire an air source heat pump through the company, further incentivizing the shift towards heat pump technology.
  • March 2024: Heat Geek, a sustainable energy startup, secured a significant boost with a EUR 4.3 million seed funding round in 2023, pushing its total funding for the year to €4.9 million. The funding is pivotal in advancing its goal of nationwide home decarbonization through innovative heat pump technology. Transition spearheaded the round, joined by Triple Point Ventures. Noteworthy angel investors, such as Ed Broussard, Rob Harris, Jeff Twentyman, Akta Raja, and Stewart Seigel, along with 15 seasoned Heat Geek enthusiasts from various regions, further bolstered the investment.

United Kingdom Heat Pumps Market Report - Table of Contents

1. INTRODUCTION

  • 1.1 Study Deliverables
  • 1.2 Study Assumptions

2. RESEARCH METHODOLOGY

3. EXECUTIVE SUMMARY

4. MARKET INSIGHTS

  • 4.1 Market Overview
  • 4.2 Industry Attractiveness - Porter's Five Forces Analysis
    • 4.2.1 Threat of New Entrants
    • 4.2.2 Bargaining Power of Buyers/Consumers
    • 4.2.3 Bargaining Power of Suppliers
    • 4.2.4 Threat of Substitute Products
    • 4.2.5 Intensity of Competitive Rivalry
  • 4.3 Industry Value Chain Analysis
  • 4.4 Assessment of Impact of COVID-19 on the market

5. MARKET DYNAMICS

  • 5.1 Market Drivers
    • 5.1.1 Recovering Office Space Demand and HVAC Retrofits
    • 5.1.2 Government Regulations and Initiatives
  • 5.2 Market Restraints
    • 5.2.1 Presence of Cheaper Legacy Technologies
    • 5.2.2 Semiconductor Industry Shortages

6. MARKET SEGMENTATION

  • 6.1 Product Type
    • 6.1.1 Air-source Heat Pump
    • 6.1.2 Ground/Water-source Heat Pump
  • 6.2 Installation Type
    • 6.2.1 Retrofits
    • 6.2.2 New Buildings
  • 6.3 End-User Vertical
    • 6.3.1 Commercial
    • 6.3.2 Residential
    • 6.3.3 Industrial

7. COMPETITIVE LANDSCAPE

  • 7.1 Company Profiles
    • 7.1.1 IMS Heat pumps
    • 7.1.2 Vaillant Group
    • 7.1.3 Baxi Heating UK
    • 7.1.4 Viessmann Group
    • 7.1.5 Worcestor Bosch Group
    • 7.1.6 Ideal Boilers
    • 7.1.7 Zehnder Group
    • 7.1.8 Daikin Airconditioning UK Ltd
    • 7.1.9 Danfoss
    • 7.1.10 Kensa Heat Pumps
  • *List Not Exhaustive

8. INVESTMENT ANALYSIS

9. MARKET OPPORTUNITIES AND FUTURE TRENDS

You Can Purchase Parts Of This Report. Check Out Prices For Specific Sections
Get Price Break-up Now

United Kingdom Heat Pumps Industry Segmentation

Heat pumps are machines that transfer heat energy from a heat source to a thermal reservoir, moving heat energy in the opposite direction of spontaneous heat transfer by absorbing heat from a cold space and releasing it into a warmer space. The market for the study defines the revenues generated from the sale of Heat Pumps. Moreover, various end-user industries tracked for market estimations include industrial, commercial, and residential, among others. The market also covers the major factors impacting the growth of the Heat Pumps market in terms of drivers and restraints. The market sizes and forecasts are provided in terms of value (USD) for all the above segments.

Product Type Air-source Heat Pump
Ground/Water-source Heat Pump
Installation Type Retrofits
New Buildings
End-User Vertical Commercial
Residential
Industrial
Need A Different Region or Segment?
Customize Now

United Kingdom Heat Pumps Market Research Faqs

What is the current United Kingdom Heat Pumps Market size?

The United Kingdom Heat Pumps Market is projected to register a CAGR of 11.10% during the forecast period (2025-2030)

Who are the key players in United Kingdom Heat Pumps Market?

IMS Heat pumps, Vaillant Group, Baxi Heating UK, Worcestor Bosch Group and Viessmann Group are the major companies operating in the United Kingdom Heat Pumps Market.

What years does this United Kingdom Heat Pumps Market cover?

The report covers the United Kingdom Heat Pumps Market historical market size for years: 2019, 2020, 2021, 2022, 2023 and 2024. The report also forecasts the United Kingdom Heat Pumps Market size for years: 2025, 2026, 2027, 2028, 2029 and 2030.

United Kingdom Heat Pumps Industry Report

Statistics for the 2025 United Kingdom Heat Pumps market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. United Kingdom Heat Pumps analysis includes a market forecast outlook for 2025 to 2030 and historical overview. Get a sample of this industry analysis as a free report PDF download.