German Heat Pump Market Anticipates 33% Growth in 2025 After Sharp Decline

Industry leaders cite increased demand, government incentives, and policy stability as key drivers for recovery.

The German heat pump market experienced a 46% sales decline in 2024, with only 193,000 units sold compared to the record year of 2023.
Industry forecasts predict a 33% increase in sales for 2025, potentially reaching 257,000 units if current conditions persist.
Government incentives, such as the 'Federal Funding for Efficient Buildings' (BEG) program, are credited with boosting interest, with over 151,000 funding approvals granted in 2024.
Additional measures, like electricity price reductions, could further accelerate market growth, according to the Bundesverband Wärmepumpe (BWP).
The BWP emphasizes the importance of maintaining policies like the Building Energy Act and other renewable energy initiatives to achieve a climate-neutral building sector.