Midea Expands Global Presence in Heat Pump Industry with a Positive Market Outlook
In a recent exclusive interview with JARN, a leading Japanese HVAC publication, Peter Guan, Vice President of Midea Group and President of Midea Building Technologies (MBT), shared insights into the evolving global heat pump market. Guan expressed an optimistic perspective regarding the growth potential of air-to-water heat pumps (ATW) in Europe and highlighted promising opportunities in North America and Australia.
Recognized as one of the top 10 breakthrough technologies of 2024 by MIT Technology Review, heat pumps are pivotal for reducing global reliance on fossil fuels and promoting carbon neutrality. Guan anticipates a robust market recovery over the next two years, driven by technological advances, supportive political measures, and increasing consumer awareness.
Europe: A Flourishing Hub for Heat Pump Development
Midea has been actively expanding its presence in the ATW heat pump market across Europe. The European Union has implemented strong policies to advocate for heat pump adoption, including initiatives like the Net-Zero Industry Law, which provides streamlined approvals, financial support, and workforce training. Key markets like Germany, France, and Poland have enhanced their subsidy frameworks, which Guan believes will further stimulate market recovery and growth.
Additionally, the Heat Pump Acceleration Program by the European Heat Pump Association aims to install nearly 10 million heat pumps by 2029, with over 5 million being ATW types. The commercial heat pump market is forecasted to grow at a compound annual growth rate (CAGR) of 12%, reaching €1.15 billion by 2028.
Strategies for Market Leadership
To leverage the growth potential in Europe, MBT has taken several strategic actions to strengthen its local operations. The establishment of a European research and development center allows MBT to create products tailored to local market needs, ensuring adaptability to changing consumer demands. Collaborating with dealers has enhanced both online and offline marketing efforts, increasing consumer awareness of heat pump benefits across residential and commercial applications. In the past two years, over 700 shop-in-shop displays for heat pumps have been upgraded.
Participation in industry events has further solidified MBT's market presence. At Chillventa 2024, MBT, in collaboration with France’s Trace Software, introduced the Super Advisor, an energy management system software tool that integrates photovoltaic systems, home storage, and heat pumps, achieving an impressive energy self-sufficiency rate of 80-90%. This software significantly enhances the precision and cost-effectiveness of home energy management solutions.
Moreover, MBT places great importance on workforce development, operating 32 training centers across European countries like Italy, Germany, Hungary, and Poland to train skilled heat pump installers. In parallel, MBT has expanded its supply chain through acquisitions, such as Clivet in 2016, and has recently invested over €60 million in new production and R&D facilities to drive future growth.
Expanding Presence in North America and Australia
Beyond Europe, MBT is also expanding into 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 the U.S. witnessing a 25% increase in shipments by 2023. In Australia, heat pump usage is projected to rise by 40% by 2030, driven by government initiatives like the National Climate Change Adaptation Framework.
MBT has tailored its offerings to these markets, introducing high-performance heat pumps and water heaters that meet regional specifications. By focusing on technology, service differentiation, and after-sales support, MBT aims to strengthen its competitive advantage globally.
Commitment to Innovation and Sustainability
MBT allocates 5% of its annual revenue to research and development, ensuring consistent product leadership. The company operates six global R&D centers and 93 training centers to facilitate quick market responses while providing outstanding service. "The global heat pump industry is rapidly growing, supported by technological advancements and favorable political frameworks," noted Guan. As consumers place an increasing value on sustainability, the sector presents substantial opportunities. Through its strategic focus in Europe and beyond, MBT is positioned to drive transformative growth in this critical industry.
For further information, visit Midea's Website.
Recognized as one of the top 10 breakthrough technologies of 2024 by MIT Technology Review, heat pumps are pivotal for reducing global reliance on fossil fuels and promoting carbon neutrality. Guan anticipates a robust market recovery over the next two years, driven by technological advances, supportive political measures, and increasing consumer awareness.
Europe: A Flourishing Hub for Heat Pump Development
Midea has been actively expanding its presence in the ATW heat pump market across Europe. The European Union has implemented strong policies to advocate for heat pump adoption, including initiatives like the Net-Zero Industry Law, which provides streamlined approvals, financial support, and workforce training. Key markets like Germany, France, and Poland have enhanced their subsidy frameworks, which Guan believes will further stimulate market recovery and growth.
Additionally, the Heat Pump Acceleration Program by the European Heat Pump Association aims to install nearly 10 million heat pumps by 2029, with over 5 million being ATW types. The commercial heat pump market is forecasted to grow at a compound annual growth rate (CAGR) of 12%, reaching €1.15 billion by 2028.
Strategies for Market Leadership
To leverage the growth potential in Europe, MBT has taken several strategic actions to strengthen its local operations. The establishment of a European research and development center allows MBT to create products tailored to local market needs, ensuring adaptability to changing consumer demands. Collaborating with dealers has enhanced both online and offline marketing efforts, increasing consumer awareness of heat pump benefits across residential and commercial applications. In the past two years, over 700 shop-in-shop displays for heat pumps have been upgraded.
Participation in industry events has further solidified MBT's market presence. At Chillventa 2024, MBT, in collaboration with France’s Trace Software, introduced the Super Advisor, an energy management system software tool that integrates photovoltaic systems, home storage, and heat pumps, achieving an impressive energy self-sufficiency rate of 80-90%. This software significantly enhances the precision and cost-effectiveness of home energy management solutions.
Moreover, MBT places great importance on workforce development, operating 32 training centers across European countries like Italy, Germany, Hungary, and Poland to train skilled heat pump installers. In parallel, MBT has expanded its supply chain through acquisitions, such as Clivet in 2016, and has recently invested over €60 million in new production and R&D facilities to drive future growth.
Expanding Presence in North America and Australia
Beyond Europe, MBT is also expanding into 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 the U.S. witnessing a 25% increase in shipments by 2023. In Australia, heat pump usage is projected to rise by 40% by 2030, driven by government initiatives like the National Climate Change Adaptation Framework.
MBT has tailored its offerings to these markets, introducing high-performance heat pumps and water heaters that meet regional specifications. By focusing on technology, service differentiation, and after-sales support, MBT aims to strengthen its competitive advantage globally.
Commitment to Innovation and Sustainability
MBT allocates 5% of its annual revenue to research and development, ensuring consistent product leadership. The company operates six global R&D centers and 93 training centers to facilitate quick market responses while providing outstanding service. "The global heat pump industry is rapidly growing, supported by technological advancements and favorable political frameworks," noted Guan. As consumers place an increasing value on sustainability, the sector presents substantial opportunities. Through its strategic focus in Europe and beyond, MBT is positioned to drive transformative growth in this critical industry.
For further information, visit Midea's Website.
Topics Consumer Technology）
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