Daikin Europe responds to massive heat pump demand
Daikin Europe is responding to the rapid growth in interest in heat pumps, by investing in production and innovation capacity, warehousing and logistics and increased training for installers and service technicians across the EMEA region.
Patrick Crombez, General Manager Heating and Renewables at Daikin comments, “Switching our heating systems to heat pumps represents a historical transformation to low-carbon heating, with benefits for climate change but also healthier living environments. We are proud to lead this transformation in Europe.”
Daikin Europe’s business unit ‘Heating & Renewables’ is growing fast and – as the European market leader in this category – is outperforming the European heat pump category growth.
“For us 2021 has been a turning point for heat pumps”, says Patrick Crombez. “Consumers and policy makers have never been more eager to decarbonize heating systems.“
Over the past decade, the European market for heat pumps has grown at a strong pace, with an annual growth rate of 10% (CAGR) from 2011 to 2020, resulting in the expected installation of 1 million heat pumps in 2021.
In the coming years, Daikin – in line with other industry experts – anticipates a sharp acceleration in heat pump adoption. By 2030, it expects 4 million heat pumps will be installed each year, representing an annual growth rate (CAGR) of 20%.
At that point, 1 out of 3 heating systems installed will be a heat pump, up from 1 out of 10 in 2020. While this represents steep growth compared to recent years, the company considers this the minimum to ensure a move to a decarbonized residential heating market in Europe.
Patrick Crombez: ”From all available data, it is clear that heat pump adoption is hitting an inflection point this year and the already robust growth of the category will only accelerate.”
A key driver for heat pump growth has been the introduction of legislation governing new builds in many European countries, ranging from general regulations in France such as RT2012 (which sets a new minimum standard for thermal insulation of dwellings), to a ban on combustion boilers in the Netherlands.
Additionally, incentives in France, Germany and Italy have successfully increased the appeal of heat pumps in the replacement- and renovation market.
At the same time, heat pump technology has evolved to make heat pumps an attractive option: the arrival of ‘high temperature’ heat pumps means existing fossil fuel boilers can be replaced without the need to update or modify existing radiators.
In the coming years market leader Daikin intends to more than triple its European heating production and expects their heating business to become one of the key pillars of Daikin’s revenue by 2025.
As fossil fuel-based residential heating is a major contributor to greenhouse gas emissions, this transformation will allow Europe to achieve its ambitious emissions reduction targets for 2030.
Patrick Crombez states, “The coming years will be pivotal in decarbonizing the heating of residential and commercial buildings. It’s a truly historical transition that will contribute to a stable climate, safer and healthier homes, and more affordable energy bills. We are proud and we could not be more excited to take the lead in this transition in Europe.”