Increase in investment in heat pumps from 2020 to 2021
Average increase in residential electricity price globally from 2020-2021
Countries surveyed where natural gas makes up more than 50% of their energy mix for heating
Electrified heating investment by region
Investment in heat pumps saw an increase of almost 10.5% from 2020 to 2021, nearing $53 billion. In seven years, the sector grew nearly 80%, with investment ramping up significantly since 2016. The US and Japan remain the top players globally. The US alone accounted for a third of the investment in the world in 2021 and has invested at least $1 billion annually in electrified heating since 2016. Japan is the second-largest market in terms of investment in the buildings sector, with $6 billion in 2021. Among European markets, France, Germany, Finland, Italy and Spain are the largest investors in electrified heating.
Average residential electricity price per region
Energy bills for households have risen substantially over the past few years mainly due to Covid-19 and higher natural gas prices. Average residential electricity prices had a compound annual growth rate of 1% from 2010 to 2020, but this jumped to 6% from 2020 to 2021.
Average residential natural gas price per region
Europe is highly reliant on gas as an energy source. The previously low price of gas had encouraged the widespread use of this technology in the region’s heating sector. However, the increase in natural gas prices and the uncertainty surrounding gas imports from Russia has prompted Europe to adopt measures to become less dependent on this fuel. Average residential natural gas prices had a compound annual growth rate of 3% from 2010 to 2020, rising to 6% from 2020 to 2021.