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Midea Strengthens Its Global Footprint in Heat Pump Sector

Midea Group is making waves in the global heat pump industry, with its Vice President, Peter Guan, sharing positive insights in a recent exclusive interview with JARN, a reputed Japanese publication focused on heating, ventilation, and air conditioning (HVAC) systems. During this enlightening discussion, Guan elaborated on the promising growth potential in the air-to-water heat pump market, particularly in Europe, while also highlighting emerging opportunities in North America and Australia.

Breakthrough Technology for Sustainability

As recognized by the MIT Technology Review as one of the top breakthrough technologies of 2024, heat pump technology is crucial in reducing global reliance on fossil fuels and promoting carbon neutrality. Guan anticipates a robust market revival over the next two years, underpinned by technological advancements, supportive policies, and increasing consumer awareness.

Midea Building Technologies (MBT), a key segment under the Midea Group umbrella, is at the forefront of the development of heat pumps, especially within Europe. The company has been actively expanding its operations in the air-to-water heat pump market throughout the region for several years.

Europe: A Thriving Hub for Heat Pump Development

The European Union has implemented significant policies to encourage the adoption of heat pumps. Initiatives such as the Net Zero Industry Act streamline approval processes,access to financing, and training for labor. Countries such as Germany, France, and Poland have expanded their subsidy frameworks, amplifying opportunities for market recovery and growth, according to Guan.

Moreover, the European Heat Pump Association aims to deploy nearly 10 million heat pumps by 2029 as part of its acceleration program, with air-to-water systems accounting for over half of this total. The commercial heat pump market is projected to experience a compound annual growth rate (CAGR) of 12%, reaching an impressive 1.15 billion euros by 2028.

Strategies for Market Leadership

To leverage Europe’s growth potential, MBT has instituted several strategic initiatives aimed at strengthening localized operations. The establishment of a European research and development center is focused on creating products tailored to local market needs, responding to changing customer demands. Collaborative efforts with distributors have bolstered both online and offline marketing campaigns, raising consumer awareness about the advantages of heat pumps across residential and commercial sectors. In the last two years alone, over 700 heat pump displays have been revamped in stores.

Participation in industry events has further amplified MBT’s market influence. At the Chillventa 2024 exhibition, MBT, in collaboration with French company Trace Software, launched the Super Advisor tool, an energy consumption management system called iEasyEnergy. This innovative software connects photovoltaic systems, home batteries, and heat pumps, achieving remarkable energy self-sufficiency rates of 80-90%. Such technology significantly enhances the accuracy and cost-effectiveness of household energy management solutions.

Additionally, MBT is focused on workforce development, operating 32 training centers across European nations, including Italy, Germany, Hungary, and Poland, to train qualified heat pump installers. The company has also strengthened its industrial chain through acquisitions, such as the purchase of Clivet in 2016, and has recently invested over 60 million euros in new manufacturing and research facilities to foster future growth.

Expanding Reach in North America and Australia

Beyond Europe, MBT is making significant strides 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 25% increase in U.S. supplies projected for 2023. In Australia, heat pump adoption is anticipated to rise by 40% by 2030, propelled by government initiatives like the National Climate Change Adaptation Framework.

MBT has tailored its offerings to these markets, launching high-performance heat pumps and water heaters that meet regional demands. With a focus on technology, service differentiation, and post-sale support, the company is poised to fortify its global competitiveness.

Commitment to Innovation and Sustainability

MBT dedicates 5% of its annual sales revenue to research and development, ensuring the sustained leadership of its products. The company operates six R&D centers and 93 training centers globally, enabling rapid responsiveness to market needs while maintaining top-notch services.

"The global heat pump industry is experiencing rapid growth, driven by technological advancements and favorable policies," stated Peter Guan. “As consumers increasingly prioritize sustainability, this sector presents significant opportunities. Our strategic focus on Europe and other regions positions us as a driving force behind the transformational growth of this critical industry."

For more information, visit Midea Building Technologies.