The main market challenges in the future include enhancing performance and raising consumer awareness.
New analysis from Frost & Sullivan (buildingtechnologies.frost.com), European Heat Pumps Markets, finds that the market earned revenues of over $4.35 billion in 2008 and estimates this to reach $7.67 billion in 2015. The application markets covered in this research are commercial, residential, public, and industrial.
"The European heat pumps market has sustained due to the introduction of both new Europe-wide as well as national legislation, which provide added incentives to consumers to adopt heat pumps," says Frost & Sullivan Research Analyst Akhil Sivanandan. "Therefore, the market is set to continue on its trajectory of steady growth."
Several European Union (EU)-wide as well as local legislatives drive this market. The Energy Performance of Buildings Directive has had a significant impact across Europe, resulting in local legislation in countries such as France and Germany supporting the use of heat pumps through subsidies and similar incentives.
The market received a boost in December 2008 with the passing of the '20-20-20' climate change package by the European parliament. The short-term implication of this will be an increased number of incentives for the use of heat pumps in the EU nations over the next three years. In the long term, the directive is likely to lay the foundation for self-sustained growth in several new markets.
Being a new market, the heat pumps market has suffered from limited consumer awareness. Except for a few established markets such as Germany and the Scandinavian region, there still is a major lack of awareness among consumers about the benefits of heat pumps.
"End users, developers, designers and builders are apprehensive about switching from traditional technologies such as gas heating and oil central heating to the newer technology of heat pumps," explains Sivanandan. "They believe that the technology is unproven and are unsure of its advantages."
In regions lacking clarity on incentives for the adoption of heat pumps, the change in attitude among customers towards this technology will be gradual. To ensure a higher degree of adoption, consumers need to be convinced about the benefits and advantages of the technology.
"Manufacturers and concerned entities have tried to increase awareness through localised advertising campaigns with moderate success," concludes Sivanandan. "Instead, manufacturers should work in tandem with governments and local authorities in awareness campaigns and workshops for local installers, engineers and home-owners, to ensure success."
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European Heat Pumps Markets / M35D