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Midea Expands Global Footprint in Heat Pump Market

In a recent exclusive interview with JARN, a leading Japanese publication in the HVAC industry, Peter Guan, Vice President of Midea Group and President of Midea Building Technologies (MBT), shared insights on the evolving global heat pump market. He expressed optimism regarding the growth prospects in the European air-to-water (ATW) heat pump market and highlighted promising opportunities in North America and Australia.

Heat Pumps: A Revolutionary Technology for Sustainability

Recognized as one of the top ten breakthrough technologies of 2024 by MIT Technology Review, heat pump technology is a pivotal innovation aimed at reducing global reliance on fossil fuels and achieving carbon neutrality. Guan believes that an active market recovery can be anticipated in the next two years, driven by technological advancements, supportive policies, and increasing consumer awareness.

As a key division of Midea Group specializing in HVAC systems, MBT is at the forefront of implementing heat pumps worldwide, especially in Europe. The company has been actively expanding its presence in the ATW heat pump market over the last several years.

Europe: A Dynamic Center for Heat Pump Development

The European Union is vigorously promoting the adoption of heat pumps through decisive policy frameworks. Initiatives such as the Net-Zero Industry Act streamline permitting processes, offer financial support, and provide workforce training. Countries like Germany, France, and Poland have instituted extensive subsidy mechanisms that Guan believes will stimulate market recovery and growth.

Additionally, the European Heat Pump Association aims to accelerate heat pump production under its Heat Pump Accelerator Programme with a target of installing around 10 million heat pumps by 2029, over 5 million of which will be ATW units. The industrial heat pump market is expected to grow at a compound annual growth rate (CAGR) of 12%, reaching €1.15 billion by 2028.

Market Leadership Strategies

To fully leverage growth opportunities in Europe, MBT has implemented strategic measures aimed at bolstering local production. By establishing a significant European R&D center, MBT focuses on developing products tailored to local needs, ensuring adaptability to changing market demands. Collaboration with distributors has facilitated both online and offline marketing campaigns, raising consumer awareness of the benefits of heat pumps for residential and industrial applications. Over the past two years, more than 700 showrooms showcasing heat pumps have been upgraded in stores.

Participation in industry events has further strengthened MBT's market presence. At the Chillventa 2024 exhibition, MBT, in partnership with French company Trace Software, introduced the Super Advisor—a software tool for the iEasyEnergy energy management system that integrates photovoltaic systems, home battery storage, and heat pumps, enabling impressive self-sufficiency levels (80–90%). This software markedly enhances the accuracy and economic efficiency of energy management solutions in homes.

MBT also prioritizes workforce development, operating 32 training centers in countries such as Italy, Germany, Hungary, and Poland, to train skilled heat pump installers. Furthermore, MBT has strengthened its industry supply chain through acquisitions, including Clivet in 2016, and recent investments exceeding €60 million in new manufacturing and R&D facilities to ensure future growth.

Expanding into North America and Australia

Beyond Europe, MBT is also broadening its footprint in North America and Australia. According to the International Energy Agency, the North American heat pump market is expected to grow by over 50% by 2030, with a projected 25% increase in shipments in the U.S. by 2023. Similarly, Australia is forecasted to see a 40% rise in heat pump usage by 2030, driven by government initiatives such as the National Climate Change Adaptation Framework.

MBT has tailored its offerings for these markets, introducing high-performance heat pumps and water heaters that meet regional requirements. By emphasizing technology, service differentiation, and after-sales support, MBT aims to strengthen its competitive edge globally.

A Focus on Innovation and Sustainability

MBT dedicates 5% of its annual sales revenue to R&D, ensuring sustained leadership in product development. The company boasts six R&D centers and 93 training centers worldwide, allowing rapid responses to market demands and high service levels.

"The global heat pump industry is rapidly evolving due to technological advancements and favorable policies," shared Guan. "As consumer priorities increasingly shift towards sustainability, the industry presents significant opportunities. Our strategic efforts in and beyond Europe enable us to drive transformational growth in this critical sector."

For more information, visit Midea Building Technologies.