Europe’s heat pump market returns to growth, shielding millions of homes from volatile energy prices

01/07/2026

Panasonic Heating & Cooling Solutions is highlighting new figures from the European Heat Pump Association (EHPA) that show how far the technology has come across Europe. With 29.3 million residential heat pumps now installed and sales returning to growth in 2025, millions of households are already heating and cooling their homes with far less exposure to the fossil fuel price swings that follow global events.

 

Sales across 21* European countries rose 13 per cent in 2025 to reach 2.9 million units, a clear signal of renewed confidence among homeowners and installers. The strongest adoption is happening in some of the continent’s coldest climates. Norway now has 650 heat pumps for every 1,000 households and Finland more than 540, the highest densities anywhere in Europe, putting to rest the long-held myth that the technology struggles in low temperatures.

 

Enrique Vilamitjana, Managing Director of Panasonic Heating & Cooling Solutions Europe and a member of the EHPA Board of Directors, commented, “What these figures show is that heat pumps have moved from promise to proven. Nearly 30 million European homes are already heating and cooling themselves with less exposure to volatile fuel prices, and that number grew again last year. As a member of the EHPA board, I see the policy debate every day, but the real story is in those homes. Our job now is to make that choice easy for the next 30 million.”

 

The momentum is visible market by market. Germany saw sales grow 50 per cent in 2025, with heat pumps accounting for half of all new heating systems sold for the first time, while Denmark grew 36 per cent. France remains Europe’s largest market, with 528,000 units sold and around seven million now installed, followed by Italy with 423,000 sold. Collectively, EHPA estimates that Europe’s installed heat pumps avoided around €9.7 billion in energy import costs in 2025, savings that ultimately reach the households and businesses that own them.

 

With the European Commission preparing the Electrification Action Plan, an upcoming proposal to speed up electrification and address the price of electricity compared to gas, and member states being encouraged to reduce tax and VAT on heat pumps and electricity, the conditions are in place for further growth. Panasonic continues to invest across its European network to help installers and homeowners make the switch to efficient, lower-carbon heating and cooling.


For the EHPA market data and press release, visit https://ehpa.org/news-and-resources/press-releases/. For more information on Panasonic’s heating, cooling and refrigeration solutions, visit https://aircon.panasonic.eu/.


*The 21 countries are Austria, Belgium, Czechia, Denmark, Finland, France, Germany, Italy, Lithuania, Netherlands, Poland, Portugal, Slovakia, Spain, Sweden, the United Kingdom, Norway and Switzerland. Plus, three additional countries, Ireland, Hungary and Estonia, from which EHPA assumed their 2024 sales remained flat in 2025.