• German heat pump manufacturers are making progress

German heat pump manufacturers are making progress

German heat pump manufacturers: status 2024

Challenges and investments

German heat pump manufacturers will face considerable challenges in 2024. Despite ambitious targets set by the German government to install 500,000 heat pumps per year, this mark has not yet been reached. German companies such as Stiebel Eltron, Viessmann, Vaillant and Bosch have had a difficult year in 2023, characterised by a significant drop in demand. Subsidy policy plays a decisive role in demand, and applications for subsidies have recently fallen sharply. Despite major investments in production capacities, the expected rush has failed to materialise and the industry is facing a decline of up to 70 percent.

Competition and market strategies

International competition is strong, especially from Asia. However, German manufacturers continue to innovate and endeavour to defend and expand their market share. New competitors such as the Swedish company Aira, which has ambitious goals and plans to install five million heat pumps in Europe over the next ten years, have also appeared on the market.

Long-term investments and growth plans

Despite the current challenges, German companies are showing their mettle. Stiebel Eltron, for example, is planning to invest around 650 million euros by 2027, while Bosch wants to invest one billion euros in the heat pump market by 2030. Vaillant and Viessmann have also invested hundreds of millions of euros in their production capacities in order to meet the rising demand​​.

Market significance and growth

Overall, demand for heat pumps has increased significantly, which is reflected in a doubling of production in 2022. German manufacturers were able to achieve export surpluses in the same year. Demand remains high, with waiting times of up to 18 months for heat pumps.

Future prospects

With the upcoming legal changes that promote the use of renewable energies in heating systems, the heat pump market is a key element of the energy transition in Germany. Despite the current challenges and strong competition, German manufacturers see long-term growth opportunities and remain determined to strengthen and expand their position on the global market.