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UK Heat Pump Market 2025: Stats, Growth & Outlook

The UK heat pump market is growing, but faces challenges. Here's the current state of the industry, government targets, and what 2025 holds.

๐Ÿ“… 18 March 2025โฑ 7 min read
UK Heat Pump Market 2025: Stats, Growth & Outlook

Current UK Heat Pump Installations

The UK installed approximately 80,000 heat pumps in 2024, a significant increase on previous years but still far below the government's target of 600,000 annual installations by 2028. Compared to European leaders like Norway (which installs heat pumps in 60% of homes) and Sweden, the UK lags significantly.

The Government's 2028 Target

The UK government's Heat and Buildings Strategy sets a target of 600,000 heat pump installations per year by 2028. Achieving this requires a dramatic acceleration from current rates. The Boiler Upgrade Scheme, increased training for installers, and manufacturing investment are all part of the strategy.

Why the UK Is Behind

Several factors have slowed UK heat pump adoption:

  • High electricity-to-gas price ratio (currently ~4:1 vs European average 2:1)
  • Large proportion of older, poorly-insulated housing stock
  • Limited public awareness and installer capacity
  • Consumer inertia โ€” "my boiler works fine"
  • Upfront cost despite grants

Positive Trends

Despite these challenges, positive trends are emerging: heat pump prices are falling as manufacturing scales up, installer training programmes are expanding, new tariffs designed for heat pumps improve the economics, and public awareness is growing. The BUS grant has made heat pumps accessible to hundreds of thousands of homeowners.

The Road Ahead

The Future Homes Standard (requiring new homes to be low-carbon ready from 2025) will drive heat pump installations in new builds. The challenge remains retrofitting the 27 million existing gas-heated homes. This represents a massive market opportunity for heat pump engineers and installers.

Tags:

UK heat pump marketheat pump statisticsheat pump growthUK heating decarbonisation

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