China is the country with the highest concentration of heat pump manufacturers globally. The following provides detailed answers from three aspects: industry distribution, cause analysis, and enterprise professionalism.
Why is China the Largest Producer of Heat Pumps?
Policy Drives and Carbon Neutrality Goals
After China proposed its "dual carbon" (carbon peaking and carbon neutrality) goals, heat pumps, as clean heating and cooling technologies, were incorporated into the national energy strategy. Policy subsidies (such as the "coal-to-electricity" project) directly stimulated market demand.
Local governments offered tax incentives and installation subsidies for heat pump projects, accelerating industry expansion.
Huge Market Demand
Domestic Demand: There is an urgent need for clean heating in northern China during winter, making heat pumps a mainstream alternative to coal-fired boilers; refrigeration demand in southern China during summer also drives market growth.
Export Boom: The European energy crisis following the Russia-Ukraine conflict led to a surge in heat pump demand. In 2022, China's heat pump exports grew by over 60% year-on-year, with nearly 80% of the market share in Europe.
Mature Industrial Chain Advantage
China boasts the world's most complete air conditioning and heat pump industrial chain, with localized production capabilities ranging from compressors, heat exchangers, to control systems, significantly reducing manufacturing costs.
Key components (such as Gree's self-developed rotor compressors) have broken foreign monopolies, achieving technology autonomy and control.
Scale Production and Cost Advantage
The scale effect of China's manufacturing industry makes heat pump production costs 30%-50% lower than in Europe, resulting in significant price competitiveness.
Professional Analysis of Chinese Heat Pump Enterprises
Leading Enterprises Reach International Standards
Technology Research and Development: Companies like Gree, Midea, and Haier invest over 5% of their annual revenue in research and development, possessing proprietary ultra-low-temperature heat pump technology (-35°C operation) with a coefficient of performance (COP) exceeding 4.0, surpassing EU standards.
International Certifications: Mainstream enterprises have obtained certifications such as EU CE, US UL, and German TÜV, with products complying with the ErP directive (energy efficiency class A+++).
Market Share: Chinese brands' market share in Europe jumped from 15% in 2020 to 35% in 2023, with Midea and Gree ranking among the top ten in global heat pump sales.
Differentiation Among SMEs
Some small and medium-sized enterprises rely on low-end OEM production, with products meeting only the minimum national standard for energy efficiency (COP 2.4), but remain competitive in price-sensitive markets (e.g., Southeast Asia).
Industry consolidation accelerates; in 2022, there were over 800 domestic heat pump enterprises, but the top 10 accounted for over 70% of the market share.
International Competitive Comparison
European Companies (e.g., Bosch, NIBE): Deep technical accumulation, focusing on high-end markets, but with high production costs and slow expansion.
Japanese Companies (e.g., Daikin, Panasonic): Leading in inverter control and low-temperature heat pumps but with limited market size.
Chinese Companies: Have advantages in cost-effectiveness, delivery speed, and production capacity flexibility, gradually penetrating high-end markets.
Global Heat Pump Industry Landscape
Regional Distribution
China: Accounts for over 70% of global heat pump production capacity and exports over 50% of the total.
Europe: Germany and Italy are traditional manufacturing hubs but rely on the Chinese supply chain (e.g., importing valves from Ningbo).
North America: Dominated by water and ground source heat pumps, with brands like Carrier and Trane leading the commercial market.
Technological Trends
Chinese enterprises are accelerating their layout in frontier areas such as CO₂ refrigerant heat pumps and photovoltaic-driven heat pumps, accounting for 40% of global patents in 2023.
Smart Direction: Remote control through the Internet of Things (IoT), with Midea's M-BMS system already connected to European household energy management platforms.
Conclusion
Largest Producer: China has become the global heat pump manufacturing hub, supported by policy incentives, a full industrial chain advantage, and huge market demand.
Professional Assessment: Leading enterprises have comparable technical strength to international giants, but the industry should beware of low-end overcapacity. When selecting suppliers, focus on energy efficiency levels (e.g., EU EUROVENT certification) and participation in international standard-setting (e.g., IEC Heat Pump Working Group).
Future Outlook: With the EU's 2030 heat pump installation target (60 million units) in progress, Chinese enterprises' cost advantages and technological iteration capabilities will further enhance their global market share.
