• Heat pump upswing in China

Heat pump upswing in China

Heat pump upswing in China: A look at the market leader

China is the world leader in heat pump technology

China has established itself as the global market leader in the manufacture and installation of heat pumps. In 2020, more than a third of heat pumps installed worldwide came from China. In the following year, the market recorded a further increase to 12.5 million units sold. This success is partly due to the close connection between the heat pump and split air conditioning industries, in which China is also a leader.

Technological advances and global expansion

Chinese companies such as Midea and Haier are among the market leaders in the heat pump sector. Midea, known for its takeover of the German robotics manufacturer Kuka, is expanding rapidly in Europe and is building a new plant in northern Italy focussing on heat pumps.

Challenges and opportunities for European manufacturers

European companies face challenges when competing with Chinese companies that benefit from state aid. German manufacturers are focussing on technological advances and reducing manufacturing costs in order to remain competitive. Nevertheless, it is difficult for them to gain a foothold in the Chinese market, particularly due to the strong local industry and structural differences in the Chinese property market.

Summary

China's dominance in the heat pump market is a significant part of its strategy to reduce dependence on coal-fired heating and improve air quality. This trend presents both challenges and opportunities for the global market and for European companies in particular