The German heating industry also recorded a marked decline in sales in the first half of 2025. Following the massive 46 per cent collapse in sales in 2024, sales fell by a further 22 % in the first six months of this year to just 296,500 units. If this trend continues, the industry faces its worst annual result in the past 15 years.
Market collapse in gas-based heating systems
After an already weak previous year, the market for oil- and gas-based heating systems fell sharply again by as much as 81 %. Although heat pumps (+55 %) and biomass heating systems (+42 %) recorded percentage gains, the absolute figure of 139,500 heat pumps sold remains well below the Federal Government’s policy target of 500,000 heat pumps installed annually from 2024 onwards.
Uncertainty holds back investment in heating technology and efficiency measures
The Federation of German Heating Industry (BDH) sees persistent consumer uncertainty as the main cause of the market’s continuing weakness. The law currently in force and the revision of the Building Energy Act announced in the coalition agreement leave consumers without certainty for their plans. This is compounded by repeated politically motivated statements about funding terms. As a result of this uncertainty, many people wishing to modernise are holding back from making major investments in new heating technology.
Heating industry under pressure – climate targets at risk
“The current trend is jeopardising not only climate policy targets in the building sector, but also the competitiveness and future viability of a key industry employing around 84,000 people,” warns the BDH. The federation stresses the heating industry’s importance to the German economy, particularly in terms of production and industrial value creation.
BDH calls for swift legal clarity and reliable funding
The BDH is calling on the Federal Government to establish reliable, comprehensible and practical conditions quickly, both in regulatory law and in financial support. Rising revenue from national emissions trading for the building sector provides a solid financial framework. These funds should be used specifically to support climate protection efforts in the building sector. With the right conditions, the heating industry could become an engine for growth and make an above-average contribution to value creation.
Clear the renovation backlog: more than one million upgrades needed each year
According to the dena Building Report, around four million heating systems in Germany are more than 30 years old. To achieve the climate targets, more than one million heating systems would have to be modernised every year with immediate effect. This will require reliable statutory requirements, stable funding conditions and predictable energy costs. Only then will private households have the confidence they need to make forward-looking investments.