The market for air/air heat pumps (A/A HP) has long been established – it is a global, high volume market selling well-tested products, primarily for cooling applications (and therefore usually referred to as ‘air conditioning’). But based on our recent research under the Electrification of Heat Service we believe there is significant untapped potential for A/A HP to be used for residential heating in Europe. In some market segments, A/A HP could even threaten the incumbent hydronic systems.  

So why do we think the stars are aligning for A/A HP right now in the heating market, when the technology has been around for decades? Three reasons:​

The transition from ‘old’ to ‘new’ heat is disrupting the market in several ways, creating new business models, customer propositions and new technology ecosystems, as well as opening up opportunities for new market players and sales channels. In part one of this two-part blog series, we discussed  how new technology ecosystems and connectivity are shaping the market. 

For this second and final part of the heat blog series we consider customer propositions and new market entrants and how they will impact the heating market. 

The transition from ‘old’ to ‘new’ heat is disrupting the market in several ways, creating new business models, customer propositions and technology ecosystems, as well as opening up opportunities for new market players and sales channels. This two-part blog series will consider how the heat market could evolve and what could be seen in the next few years.

This first part considers heating system functionality and connectivity, value stream diversification and hydrogen for heat. The second will look at customer propositions.

It was an inspiring two days at the Delta-EE European Heat Summit in London last week when close to 100 delegates from across the heating sector were brought together in an exciting programme spanning start-ups to energy giants and topics as diverse as hydrogen networks, smart electric heating controls and heat-as-a-service.

With this year’s Summit, it seems to us at Delta-EE that we have reached a tipping point in the decarbonisation debate. Decarbonising new build across Europe is looking increasingly positive, and though retrofit remains the largest challenge, the Summit demonstrated that there is a wealth of technologies, business models and proposition ideas that – targeted at the right sectors – promise to overcome some of this challenge.

We are at a pivotal time for the heating market in Europe, as the transition from ‘old’ to ‘new’ heat gains traction.

The decarbonisation agenda is finally placing heat at its centre in many markets. The heating market is seeing more disruption than ever before, as new market players compete with the incumbents, new business models and propositions emerge, traditional routes to market are turned on their heads, and technology ecosystems evolve. 

Building on the success of previous events and bringing together key stakeholders in the European heating space, we are holding another Heat Summit this year. The event, taking place in London this September, will focus on several key themes emerging from the transition from ‘old heat’ to ‘new heat’. Read on to find out what we’ll be covering and register for this unmissable event.

Navigating the transition to ‘new heat’