Heat Pumps
Accelerating growth across the European heat pump market
Heat pumps are the most cost-effective alternative low-carbon solution for the electrification and decarbonization of heating and cooling in residential, commercial and industrial buildings. Unlike traditional systems such as gas boilers that generate heat through combustion, heat pumps are driven by electricity and efficiently transfer heat from the ground, air, or water into buildings for heating and can also reverse this process for cooling purposes.
The International Energy Agency (IEA) reports that heat pumps must meet nearly 20% of building heating needs by 2030 to align with climate goals. The EU aims to have 60 million heat pumps installed cumulatively by 2030. The technology is acknowledged as an important lever to decarbonize heat and to secure Europe’s energy supply. The speed of adoption of heat pumps will likely differ per country and will be driven by several factors:
- The relation between retail electricity and gas prices
- Regulatory mechanisms – such as installation obligations or subsidies
- The unit economics of a heat pump– especially the high upfront cost
- The efficiency of heat pumps to convert electricity into heat
Several strategic shifts shape the corporate heat pump player landscape currently. For instance, heat pumps cleantech companies extend their product offering with heat pumps and bundle their heat pump offering with solar PV, energy storage and EV charging solutions. Integrated solution providers such as Enpal or 1KOMMA5° and utilities provide solutions that are interconnected and interoperable by energy management software. This enables the optimization and monetization (in electricity markets) of the flexibility potential of the assets. Emerging start-ups drive innovation with the help of software and partners (e.g., Tado◦ and Panasonic), challenging HVAC giants that are established in the market. Manufacturers and installers are encouraged to innovate their business models, expanding beyond traditional hardware-only into broader service offerings.
The industry is also witnessing a surge in M&A activities, with incumbents like Carrier’s €12 billion acquisition of Viessmann Climate Solutions significantly boosting its European market influence. Amongst start-ups, capital raises are expected, such as Dutch market-leading heat pump player Quatt that raised €25 million Series A funding in July 2024. Overall, given the EU demand and market dynamics, we can anticipate more acquisitions and capital raises across Europe.
Our services
Transaction Advisory
Strategy Consulting
How we help
Apricum’s team of heat pump experts delivers specialized strategic consulting and M&A advisory services across all subsectors and technology platforms within the heat pump industry. By leveraging a robust global network and deep industry insights, Apricum identifies high-value opportunities, optimizes market entry and expansion strategies, and facilitates capital acquisition to address complex market challenges. Through rigorous market analysis, advanced financial modelling, and expert guidance in mergers and acquisitions, project financing, and strategic partnerships, Apricum empowers clients to drive sustainable growth, improve competitive advantage, and thrive in the rapidly evolving clean energy landscape.
Who we help
Heat pump solution providers (pure play and integrated)
Heat pump manufacturing companies
Software providers
Utilities
Private equity firms and other investors
EXPLORE OUR heating sector news
Coefficient of Performance
Heat pumps are significantly more efficient than gas-fired boilers or electrical heating – as measured by their seasonal coefficients of performance (COP)
Heat Pumps
The EU aims to have 60 million heat pumps installed by 2030 cumulatively – requiring (more than) doubling of today’s installed base
%
Fast growing cleantech sector
Europe’s heat pump annual installations would be required to grow at a CAGR of 14% until 2030 to meet the EU’s ambitions
Strategic thinking and deep technical knowledge covering the full spectrum of heat pump technologies
Nikolai Dobrott
Founder & CEO, Head oF Apricum's HEat Pump PRACTICE
“With beneficial governmental incentives and shifting consumer demand, there has never been a better time to develop your business in the heat pump market. Our strategic expertise and transaction execution proficiency will help you make the right strategic decisions that enable you to grow your business while helping to mitigate climate change in the residential and commercial heating space.” get in touch
CLIENTS WHO HAVE BENEFITTED FROM OUR EXPERTIZE IN HEAT PUMP TECHNOLOGY
“With Apricum’s deep expertise…we were able to make an informed decision…”
“Apricum helped HV during our SPV DD in assessing the quality of Enpal’s SPVs. With Apricum’s deep expertise we were able to holistically look at both the technical and financial quality of Enpal’s portfolio and make an informed decision with regard to an investment into Germany’s largest residential PV installer.”
“Overall extremely impressed by Apricum.”
“Overall extremely impressed by Apricum. As an ex-McKinsey person, I think Apricum brings every bit of the management consulting toolbox into the project, on top of an industry depth in the day-to-day team that is truly impressive and rare in the consulting world.”
“…versatility that you find rarely among consultants.”
“The team demonstrated the highest level of competence down from the minute technical details of photovoltaic production processes up to an excellent understanding of the industry dynamics and the key strategic implications – a versatility that you find rarely among consultants. From day one, they brought their comprehensive sector knowledge to the table. Their reports were very focused without limitations on necessary detail. They served the objective of our engagement very well.”