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Midea Strengthens Global Presence in Heat Pump Industry

In a recent exclusive interview with JARN, a leading Japanese HVAC industry publication, Peter Guan, vice president of Midea Group and president of Midea Building Technologies (MBT), discussed the promising trajectories in the global heat pump market. Expressing optimism, Guan highlighted the significant growth expected within the air-to-water (ATW) heat pump market, particularly in Europe along with opportunities emerging in North America and Australia.

Heat Pumps: A Revolutionary Technology for Sustainability

Acknowledged as one of the ten revolutionary technologies of 2024 by the MIT Technology Review, heat pump technology is crucial for reducing global dependency on fossil fuels and advancing carbon neutrality. Guan anticipates a substantial market rebound over the next two years, driven by technological advancements, supportive policies, and increasing consumer awareness.

As a core segment within Midea Group's HVAC portfolio, MBT has been at the forefront of heat pump adoption worldwide, with a strong emphasis on the European market. For several years, Midea has been actively expanding its presence in the ATW heat pump sector across Europe.

Europe: A Thriving Hub for Heat Pump Development

The European Union has implemented robust policies aimed at promoting heat pump adoption. Initiatives such as the 'Net Zero Industry Act' have streamlined approvals, provided financial support, and facilitated workforce training. Key markets, including Germany, France, and Poland, have enhanced their subsidy frameworks, which Guan believes will ignite market recovery and growth.

Moreover, the European Heat Pump Association’s acceleration program aims to deploy close to ten million heat pumps by 2029, with over five million being ATW models. The commercial heat pump market is projected to grow at a compound annual growth rate (CAGR) of 12%, reaching €1.15 billion by 2028.

Market Leadership Strategies

To capitalize on Europe’s growth potential, MBT has rolled out a series of strategic initiatives designed to bolster localized operations. By establishing a European R&D center, MBT focuses on developing products tailored to local demands, ensuring adaptability amidst shifting market requirements.

Collaborations with distributors have enhanced online and offline marketing campaigns, effectively raising consumer awareness regarding the benefits of heat pumps for both residential and commercial applications. Over the past two years, more than 700 heat pump displays have been upgraded.

Participation in trade events has further solidified MBT’s market influence. At the Chillventa 2024 event, MBT collaborated with French company Trace Software to showcase the Super Advisor tool. This energy management system integrates photovoltaic systems, home storage batteries, and heat pumps, achieving an impressive energy self-sufficiency rate of 80% to 90%. Notably, this software significantly improves the accuracy and profitability of domestic energy management solutions.

MBT is equally committed to workforce development, operating 32 training centers in European countries such as Italy, Germany, Hungary, and Poland to train qualified heat pump installers. Concurrently, through strategic acquisitions, including Clivet in 2016, MBT has fortified its supply chain, with recent investments exceeding €60 million in new production and R&D facilities to stimulate future growth.

Expanding Reach in North America and Australia

Beyond Europe, MBT is also increasing its footprint in North America and Australia. According to the International Energy Agency, the North American heat pump market is expected to grow by more than 50% by 2030, with a 25% delivery increase in the United States by 2023. In Australia, heat pump usage is projected to rise by 40% by 2030, propelled by government initiatives such as the national climate change adaptation framework.

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

Commitment to Innovation and Sustainability

MBT dedicates 5% of its annual revenue to R&D, positioning itself as a market leader in product innovation. With six R&D centers and 93 training centers worldwide, MBT can swiftly address market needs while maintaining service excellence.

"The global heat pump industry is experiencing rapid growth, supported by technological advancements and favorable policies," said Guan. “As consumers increasingly prioritize sustainability, the sector presents significant opportunities. Our strategic orientation in Europe and beyond places us well to spur transformative growth in this critical industry.”

For more information, please visit Midea Building Technologies.