Global heat pump sales fell by about 2% in 2025. Sales in China and Japan were largely flat, while Europe saw a strong return of demand. Sales in the United States declined.

In China1, heat pump sales stayed broadly stable. Reversible air conditioners (used as primary heating equipment) make up about half the Chinese heat pump market, and while record-breaking sales of air conditioners supported strong demand in the first half the year, they fell sharply in the second half. Sales of air-to-water and hot water heat pumps, which make up the remainder of the market, remained at similar levels to 2024.

In Europe, annual sales rose by 11%, marking the first year of growth since 2022. This recovery was largely driven by Germany, where sales in the first half of the year increased by 55%. It was also the first year that heat pumps outsold gas boilers in the country. However, in France, Europe’s largest heat pump market, sales declined moderately.

In the United States, heat pump sales fell by around 13% in 2025. As of 2025, all heat pumps manufactured in the United States had to use A2L refrigerants, which may have boosted sales in 2024 as manufacturers rushed older models to the market. At the same time, shortages of refrigerants contributed to lower sales in 2025. A slowdown in new housing construction is also likely to have contributed to the decline. Even so, heat pumps still outsold gas boilers for the fourth year in a row.

In Japan, sales remained similar to 2024 levels. While absolute sales of heat pump water heaters did not increase, the market share relative to gas water heaters did, indicating an ongoing structural shift.