Daikin: Expects the hydronic heat pump market to grow to 10 million in the next seven years

With the introduction of the Daikin Altherma 4 and significant investments in European production capacity, Daikin is ready to take advantage of the heat pump market growth

Daikin Europe is ready to take advantage of the expected rapid growth in the European heat pump market. By 2030, Daikin expects the market to grow to 14 million heating systems, of which 10 million will be hydronic heat pumps. As an early adopter of heat pump technology and a pioneering player in promoting heat pumps as a sustainable solution, Daikin has installed 1.2 million hydronic heat pumps in Europe since 2006 and is more than ready to face the increasing demand. At ISH 2023, Daikin shows that its growth story doesn’t stop there: the market leader in this segment will launch the new Daikin Altherma 4 in 2024 and will upscale its production capacity continuously in the coming years. Daikin has a strong local anchorage in Europe, with further expansion of local production capacity and an investment in a new manufacturing site in Poland, which will become its largest in Europe.

A heat pump in 70% of European homes by 2030

European member states are increasingly making a move to decarbonise the heating market. The hydronic heat pump market has grown at a steady pace between 2010 and 2020. Following the introduction of the Green Deal and under the influence of the REPowerEU plan, the current heat pump market boomed to 1.6 million heat pumps in 2022 and will further grow to 3.5 million with the continuing trend to move away from gas.

Together with the expected increased replacement rate, Daikin expects the European heating market to grow to 14 million by 2030, of which 10 million will be hydronic heat pumps. This means that an incredible seven out of 10 heating systems will be a heat pump. It is currently two out of 10.

Daikin is ready to take on the booming heating market

Daikin is an early adopter of hydronic heat pump technology in Europe with the introduction of Daikin Altherma in 2006. It has since then played a pioneering role in promoting heat pumps as a sustainable solution, driving the market towards renewable heating. As a key player in heat pumps for new builds, Daikin has extended its range to cater for the replacement market as well. This results in a market-leading position and 1.2 million heat pumps installed across Europe.

And the growth story continues: Daikin launches the Daikin Altherma 3 R MT in 2023, and the new Daikin Altherma 4 range is scheduled for 2024. This heat pump contains a new outdoor design and a smart control function, amongst other cutting-edge features. It will be fully developed and manufactured in Europe, ensuring maximum freedom of installation. These products are showcased at the Daikin stand during ISH 2023.

By 2025, Daikin will extend production capacity, thanks to expansion in existing manufacturing sites in Belgium, the Czech Republic and Germany. Alongside this, there is also a significant investment in a new manufacturing site in Poland, expected to open in 2024. From 2025 onwards, the production capacity of this factory alone will be one million heat pumps annually, making it the biggest manufacturing site for Daikin in Europe.

Patrick Crombez, General Manager Heating & Renewables at Daikin Europe: “The investments in European production capacity is a prime example of Daikin’s proximity strategy. Daikin has always strived to develop and manufacture its products as close as possible to the markets that we serve. We are locally present in all aspects: we have 13 production facilities in Europe, 90 offices, 3000 people at your service every day, and 61 training centres. We have a training centre within a 200km radius throughout Europe. This proves that we are also close to our installers: it is our aim to strive for increasing safety standards in the industry. That’s why Daikin introduces the Stand by Me – Certified Partner network: a new European-wide support and guidance programme that builds further on our tradition of a strong and European-wide network of highly professional installers and technicians.”

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