Why is China the Largest Producer of Heat Pumps?

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.

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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 , 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 to 35% in , 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 , there were over 800 domestic heat pump enterprises, but the top 10 accounted for over 70% of the market share.

International Competitive Comparison

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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 .

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 heat pump installation target (60 million units) in progress, Chinese enterprises' cost advantages and technological iteration capabilities will further enhance their global market share.

According to the latest report from the International Energy Agency (IEA), in , China's heat pump export capacity exceeded 10GW, accounting for approximately half of the global total, making it the world's largest heat pump exporter.

Meanwhile, Chinese-manufactured heat pumps account for nearly 40% of the global installation volume, far exceeding the combined share of the European Union (15%) and the United States (20%). This not only reflects an advantage in production capacity but also underscores the technical recognition and brand trust enjoyed by Chinese heat pump products in the global market.

AMITIME is precisely one of the most representative enterprises in this global industrial chain. From the export of its first device to Norway in to its products now covering more than 70 countries and regions worldwide, AMITIME has always demonstrated its professional standards and international influence.

Why do world-renowned brands increasingly choose to cooperate with Chinese heat pump enterprises? One of the answers lies in the strong, complete, and mature manufacturing system – driven by the dual engines of "cost efficiency" and "consistency in quality".

According to calculations by several international energy research institutions, the manufacturing costs of Chinese heat pump equipment are generally lower than those in European and American markets – approximately 50% lower than in the United States and 40%-60% lower than in Europe. China controls over 95% of the global heat pump compressor production capacity, boasting strong self-sufficiency in components. Moreover, heat pumps share core manufacturing processes with products like air conditioners, forming a highly mature vertically integrated supply chain. For AMITIME, these systematic industrial dividends not only translate into more competitive price advantages but also ensure that every piece of equipment leads internationally in terms of delivery efficiency, quality consistency, and reliability.

In the highly competitive European market with extremely stringent standards, AMITIME has never opted for "low-price breakthroughs" but has adhered to the path of "establishing itself through technology and letting products speak for themselves". As early as more than a decade ago, AMITIME foresightedly laid out a product system using the environmentally friendly refrigerant R290 and independently developed a "micro-bubble anti-leakage structure", effectively solving the long-standing industry challenges regarding energy efficiency and safety.

In terms of water tank manufacturing, its "duplex steel circumferential seam welding" technology has significantly enhanced corrosion resistance and service life. At the system control level, it has achieved full-link independent research and development, covering core algorithms, energy efficiency management, multi-language interaction, and remote cloud-based operation and maintenance, fully benchmarking international high-end brands. Currently, AMITIME's products have passed multiple stringent certifications such as the EU Keymark, EHPA, UK MCS, and North American UL/ETL, and possess full-category, full-process international delivery capabilities.

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