Midea Strengthens Global Presence in the Heat Pump Industry with Optimistic Market Outlook
FOSHAN, China, Dec. 12, 2024 /PRNewswire/ -- 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), shared insights into the evolving global heat pump market. Guan expressed optimism about the growth prospects of the European air-to-water (ATW) heat pump market and noted promising opportunities in North America and Australia.
Heat Pumps: A Breakthrough Technology for Sustainability
Recognized as one of the 10 Breakthrough Technologies of 2024 by MIT Technology Review, heat pump technology is a pivotal innovation in reducing global reliance on fossil fuels and advancing carbon neutrality. Guan anticipates a strong market recovery over the next two years, driven by technological advancements, supportive policies, and increasing consumer awareness.
As a core HVAC segment of Midea Group, MBT has been at the forefront of advancing heat pump adoption globally, particularly in Europe. For several years, the company has actively expanded its ATW heat pump market presence across the region.
Europe: A Thriving Hub for Heat Pump Development
The European Union has introduced robust policies to promote heat pump adoption. Initiatives such as The Net Zero Industry Act offer streamlined approvals, financial support, and workforce training. Major markets, including Germany, France, and Poland, have enhanced subsidy frameworks, which Guan believes will stimulate market recovery and growth.
Additionally, the European Heat Pump Association's Heat Pump Accelerator Programme aims to deploy nearly 10 million heat pumps by 2029, with ATW heat pumps comprising over 5 million units. The commercial heat pump market is projected to grow at a Compound Annual Growth Rate (CAGR) of 12%, reaching 1.15 billion euros by 2028.
Strategies for Market Leadership
To capitalize on Europe's growth potential, MBT has implemented a series of strategic measures to enhance localized operations.
With the establishment of a European R&D centre, MBT is focusing on developing products tailored to local needs, ensuring adaptability to shifting market demands.
Collaborations with distributers have bolstered both online and offline marketing campaigns, increasing consumer awareness of the advantages of heat pumps in residential and commercial applications. Over the past two years, more than 700 heat pump shop-in-shop displays have been upgraded.
Participation in industry events has further strengthened MBT's market influence. At Chillventa 2024, MBT partnered with France's Trace Software to introduce the Super Advisor, a software tool for the iEasyEnergy energy management system, which integrates photovoltaic systems, home storage batteries, and heat pumps, achieving an impressive energy self-sufficiency rate of 80-90%. The software significantly improves the precision and cost-effectiveness of household energy management solutions.
MBT also prioritizes workforce development, operating 32 training centres across European countries such as Italy, Germany, Hungary, and Poland to train qualified heat pump installers.
Meanwhile, through acquisitions, including Clivet in 2016, MBT has enhanced its industry chain, with recent investments exceeding 60 million euros in new production and R&D facilities to drive future growth.
Expanding Footprint in North America and Australia
Beyond Europe, MBT is also expanding its scope 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 the U.S. seeing a 25% rise in shipments by 2023. In Australia, heat pump use is projected to increase by 40% by 2030, driven by governmental initiatives such as the National Climate Change Adaptation Framework.
MBT has tailored its offerings to these markets, introducing high-performing heat pumps and water heaters to meet regional demands. By emphasizing technology, service differentiation, and after-sales support, MBT aims to solidify its competitive edge globally.
Commitment to Innovation and Sustainability
MBT allocates 5% of its annual sales revenue to R&D, ensuring consistent product leadership. The company operates six R&D centres and 93 training centres worldwide, enabling swift market response and maintaining service excellence.
"The global heat pump industry is growing rapidly, supported by technological advances and favourable policies," Guan said. "As consumers increasingly prioritize sustainability, the industry offers significant opportunities. Our strategic focus in Europe and beyond positions us to drive transformative growth in this critical sector."
For more information, please visit: https://mbt.midea.com/global
SOURCE Midea Building Technologies
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