France Heat Pump Market

France Heat Pump Market Insights Forecasts to 2035

• The France Heat Pump Market Size Was Estimated at USD 3,298.9 Million in 2024.
• The France Heat Pump Market Size is Expected to Grow at a CAGR of Around 11.2% from 2025 to 2035.
• The France Heat Pump Market Size is Expected to Reach USD 10,600.9 Million by 2035.

According to a research report published by Decisions Advisors, the France Heat Pump Market size is anticipated to reach USD 10600.9 million by 2035, growing at a CAGR of 11.2% from 2025 to 2035. The France heat pump market is driven by increasing electricity costs and growing interest in electric heating systems that are energy efficient, and because of growing concern over global climate change, there is a corresponding growth in demand for low-emission and energy-efficient technologies for either new construction or renovations. Continued improvements in technology and the capabilities of heat pumps to provide both heat and air conditioning have contributed to their rapid growth across France.

Market Overview

The France heat pump market refers to the industry that consists of the production, distribution, and maintenance of heat pump systems used to provide heating/cooling for residential, commercial, and industrial spaces within France. Heat pump technologies found in this market include air source, ground source, and hybrid heat pumps and have been affected by factors including but not limited to national energy policies, building codes, growing consumer preference for efficiency in heating, and the trend towards incorporating lower carbon and renewable energy sources.

The large portion of France's population experiencing energy vulnerability and inadequate indoor thermal conditions indicates a high level of social and health impact from the heat pump market. According to INSEE, there are approximately 17.4% of French households, or nearly 5 million people, classified as energy vulnerable, including many who have poorly insulated homes or employ less efficient means of heating their homes. Approximately half of the households classified as energy vulnerable are single older adults, who tend to be more susceptible to the adverse health impacts of living in homes with cold indoor temperatures and have higher healthcare costs. Surveys indicate that approximately 20 percent of households respond with “cold” when asked how they feel at their present location. There are a substantial number of research studies that demonstrate a correlation between this type of home environment (poor indoor comfort) and a measure of poor health status, such as chronic respiratory illness and mental illness. Further research investigation of the relationship between temperature and death has shown that for people living in urban areas in France, being exposed to suboptimal indoor temperature environments leads to an increased likelihood of premature death. Collectively, this data indicates that there is an ongoing demand for reliable and efficient heating/cooling solutions, such as heat pumps and similar technologies. This is important for reducing the consumption of energy and minimizing negative effects on the environment, as well as improving the quality of life and increasing comfort levels for vulnerable groups within the general population through improved public health.

Report Coverage

This research report categorizes the market for the France heat pump market based on various segments and regions, and forecasts revenue growth and analyses trends in each submarket. The report analyses the key growth drivers, opportunities, and challenges influencing the France heat pump market. Recent market developments and competitive strategies, such as expansion, product launch, development, partnership, merger, and acquisition have been included to draw the competitive landscape in the market. The report strategically identifies and profiles the key market players and analyses their core competencies in each sub-segment of the France heat pump market.  

Driving Factors

In France, the heat pump sector is experiencing fantastic growth due to a combination of government policies that promote energy efficiency and decarbonization, along with the availability of attractive subventions and tax rebates. As a result, as more and more people rely on heat pumps as their primary source of heat and cooling, and because heat pump technology has advanced, the heat pump market in France is expected to continue its strong growth. Additionally, many new construction and renovation projects are required to meet the energy efficiency requirements under France law. Although the high initial cost of heat pumps and the reliance on government incentives could continue to impact adoption rates, heat pumps are likely to become increasingly common as the best alternative for sustainably heating and cooling homes in France.

Restraining Factors

High initial installation costs hold back the French heat pump market. The older and poorly insulated building types make it difficult to install heat pumps, and some users are reluctant to change their heating source from gas or oil boilers. Heat pumps may not operate efficiently at very low ambient temperatures, and heat pump systems require more installation space than may exist in urban environments. As a result, these variables are limiting the heat pump adoption rate, even with increasing consumer demand.

Market Segmentation

The France heat pump market share is categorized by technology, application, and operation type.  

• The air source segment accounted for the largest market share in 2024 and is expected to grow at a significant CAGR during the forecast period.

The France heat pump market is segmented by technology into air source, water source, geothermal, and others. Among these, the air source segment accounted for the largest market share in 2024 and is expected to grow at a significant CAGR during the forecast period. The air source’ segmental growth is driven by its lower installation costs, ease of integration into existing buildings, and versatility for both heating and cooling. Additionally, technological advancements have improved efficiency even in colder climates, making it suitable for a wide range of residential and commercial applications. Strong government incentives for renewable heating systems further encourage adoption, while increasing awareness of energy efficiency and sustainability supports its expanding market share.

• The residential segment dominated the market in 2024 and is projected to grow at a substantial CAGR during the forecast period.

The France heat pump market is segmented by application into residential, industrial, commercial, and others. Among these, the residential segment dominated the market in 2024 and is projected to grow at a substantial CAGR during the forecast period. The residential segmental growth is driven by rising demand for energy-efficient and sustainable heating solutions in homes, supported by government subsidies and tax incentives for heat pump installations. Increased awareness of long-term energy cost savings, coupled with stricter building codes and renovations focused on energy efficiency, has further boosted adoption. Additionally, the versatility of heat pumps for both heating and cooling makes them especially attractive for residential use.

• The electric segment held the largest market share in 2024 and is projected to grow at a substantial CAGR during the forecast period.  

The France heat pump market is segmented by operation type into electric and hybrid. Among these, the electric segment held the largest market share in 2024 and is projected to grow at a substantial CAGR during the forecast period. The electric segmental growth is due to its higher efficiency, ease of installation, and suitability for a wide range of residential and commercial applications. Growing consumer demand for energy-efficient and environmentally friendly solutions further supports their adoption. Additionally, technological advancements in electric heat pumps, such as improved performance in colder climates and integration with smart home systems, contribute to the segment’s expanding market share.

Competitive Analysis:

The report offers the appropriate analysis of the key organizations/companies involved within the France heat pump market, along with a comparative evaluation primarily based on their product offering, business overviews, geographic presence, enterprise strategies, segment market share, and SWOT analysis. The report also provides an elaborate analysis focusing on the current news and developments of the companies, which includes product development, innovations, joint ventures, partnerships, mergers & acquisitions, strategic alliances, and others. This allows for the evaluation of the overall competition within the market.   

List of Key Companies

• Carrier Corporation
• Daikin Industries Ltd
• Robert Bosch GmbH
• Lennox International Inc
• Johnson Controls, Inc.
• Midea Group
• Hitachi Ltd
• Ingersoll Rand Inc
• Rheem Manufacturing
• Haier
• Panasonic Holdings Corp
• Danfoss A/S
• Fujitsu Ltd
• LG Electronics
• SAMSUNG
• Others

Key Target Audience

• Market Players
• Investors
• End-users
• Government Authorities 
• Consulting and Research Firm
• Venture capitalists
• Value-Added Resellers (VARs)

Recent Developments

• In March 2025, ETT, a French HVAC manufacturer, is bolstering its European footprint. The company has successfully deployed its innovative solution, merging a condensing boiler with an R32 refrigerant heat pump. This hybrid setup not only optimizes energy consumption but also provides operational flexibility, addressing contemporary economic and environmental challenges.
• In April 2024, Mitsubishi Electric Corporation announced its acquisition of Aircalo, a France-based air conditioning group, bolstering its HVACR capabilities in Europe. This acquisition empowers Mitsubishi to broaden its portfolio of hydronic systems, aligning with the growing demand for eco-friendly heating and cooling solutions aimed at curbing greenhouse gas emissions.

Market Segment

This study forecasts revenue at the France, regional, and country levels from 2020 to 2035. Decisions Advisors has segmented the France Heat Pump Market based on the below-mentioned segments:

France Heat Pump Market, By Technology

• Air Source
• Water Source
• Geothermal
• Others

France Heat Pump Market, By Application

• Residential
• Industrial
• Commercial
• Others

France Heat Pump Market, By Operation Type

• Electric
• Hybrid

Frequently Asked Questions (FAQ)

1. What is the CAGR of the France heat pump market?

The France heat pump market size is expected to grow at a CAGR of around 11.2% from 2024 to 2035.

2. What is the France heat pump market size in 2024?

The France heat pump market size was estimated at USD 3,298.9 million in 2024.

3. What is the projected market size of the France heat pump market by 2035?

The France heat pump market size is expected to reach USD 10600.9 million by 2035.

4. What are the key growth drivers of the France heat pump market?

Rising energy prices make efficient electric heating more attractive and increase demand for low-carbon, energy-efficient solutions in both new buildings and renovations. Technological improvements and the ability of heat pumps to provide both heating and cooling further support their rapid adoption across the country.

5. Which application segment dominated the market in 2024?

The residential segment held the largest market share in 2024.

6. Which technology segment accounted for the largest market share in 2024?

The air source segment accounted for the largest market share in 2024.