European heat pump customers face ‘fragmented’ installation journey

Apricum says in a new white paper that despite rising demand for combined energy systems with heat pumps in Europe, the installation process remains fragmented and difficult for customers.

Customers in Europe's heat pump market face a complex and fragmented installation process, according to a white paper by Berlin-based cleantech advisory firm Apricum.

The paper outlines trends, challenges, and opportunities in the heat pumps sector. It said demand is rising for combined systems featuring heat pumps, solar, battery storage, and home energy management.

When deployed together, these technologies can cut annual energy costs by up to 75%, the paper said, while also creating opportunities to reduce costs or generate revenue by participating in electricity markets.

However, Apricum noted that the customer journey with heat pumps is currently “complex, fragmented and contains risks of low heat pump performance due to poor planning and installation quality.”

The white paper identifies several pain points across the heat pumps installation journey for a customer, including difficulty comparing models, brands and efficiency ratings, the complexity of the planning process and issues around financing, government incentives, installation and operation of the heat pumps.

Apricum added that while end-customers traditionally acquired heat pumps via local installers focused on heating and cooling solutions, players of different archetypes, such as utilities, advanced installers and heat pump manufacturers, are now building integrated energy solutions aimed at enhancing customer journeys.

The advisory firm said these players are employing advanced business models, while pointing out that heating is shifting from asset ownership to service-based models with varying degrees of risk-sharing and performance.

It said that heat pump manufacturers, advanced installers and utilities should develop a competitive offering and establish partnerships with other players to protect their market share in the future.

Nikolai Dobrott, managing partner at Apricum, said the heat pumps sector is “at a turning point … for manufacturers, installers, utilities, and investors, success will depend on collaboration, innovation, and strategic alignment.”

In February, the European Heat Pump Association said that sales of heat pumps across the 13 main European markets, which make up around 85% of the continent's total market, fell by an average of average of 23% year on year in 2024.