European data from the European Heat Pump Association (EHPA) shows that the heat pump sector in Europe is largely domestically produced, with around 70% of air-to-water units manufactured in Europe and only 5-10% in China for monoblocs and indoor units largely produced in Europe (90-100%). Outdoor units are 40-50% European-made. The EU’s Industrial Accelerator Act, proposed by the European Commission, seeks to boost clean-tech manufacturing in Europe, including heat pumps, and requires hydronic heat pumps to be EU-originating three years after the Act enters into force. EHPA’s data, covering about two-thirds of the market, indicate Europe has the capacity to produce about 8 million heat pumps annually, up from 2.5 million today, which could reduce exposure to volatile gas price spikes driving inflation. EHPA notes 300 factories could triple output if demand expands and calls on governments to cut electricity taxes and provide strong consumer support to spur demand. EHPA’s latest sales figures show 11% growth across 16 countries in 2025, attributed to electricity tax reforms and longer-term support. The Act will be discussed and possibly amended by EU Member States and the EU Parliament before finalisation, signaling continued policy attention to energy independence and strategic autonomy in Europe.
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