Panasonic: Europe’s heat pump market returns to growth
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.
Busting the cold climate myth
Sales across 21 European countries rose 13% 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.
A proven solution for 30 million homes
Enrique Vilamitjana, Managing Director, 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.”
Europe’s heat pump market breakdown: Germany, France, and beyond
The momentum is visible market by market. Germany saw sales grow 50% in 2025, with heat pumps accounting for half of all new heating systems sold for the first time, while Denmark grew 36%. 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 bn in energy import costs in 2025, savings that ultimately reach the households and businesses that own them.
Electrification Action Plan
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.
European Heat Pump Association
Paul Kenny, Director General, European Heat Pumps Association, surmised that every heat pump installed is another bolt in the door of European energy security, and Europeans know it.
He commented, “The EU and governments’ job is to make turning to residential, commercial and industrial heat pumps as easy and affordable as possible. The forthcoming EU Electrification Action Plan – and its future implementation at national level – will be pivotal to making this happen.”
(Editor’s note: According to the CSO, Ireland has an estimated 83 heat pumps per thousand households and overall sales of 37,600 heat pump units in 2025, bringing Ireland’s cumulative installed stock to over 153,500 units)