The 2024 Forecast

Innovations and Strategies for Success

As we anticipate a market upswing during 2024, Grundfos is gearing up to meet increasing demand with a range of innovative solutions to help you streamline your product portfolio, and digital advancements intended to cut the carbon footprint of our products.

Streamlining Production Processes

Despite recent market challenges, our Global Sales Director, Søren Vejen Jensen, remains optimistic about a rebound within the next six months. Grundfos stands ready to assist businesses in streamlining their production processes through modularisation. Our dedicated experts and hydronic-system knowledge enable us to optimize and streamline production, minimizing assembly time and costs and thereby lowering the selling price — all while maintaining top-notch quality at a competitive price point.

“We’re working nonstop on paving the way for the market upturn and supporting any positive trends, primarily by staying at the forefront of competitive solutions. Our focus is on how to advance the market’s return – and we can help you speed up the renewal of your product portfolio through integration and modularisation, which can save a lot of cost for you and your customers.” – Søren Vejen, Global Sales Director

Readiness to adapt

The year 2023 was marked by unpredictability and a downturn in the market, particularly evident in the boiler and heat pump sectors. Looking ahead, uncertainties persist, with unclear market conditions and regulatory impacts looming.

“The demand-side of the market has been affected throughout all of Europe and Asia by the slowdown. Our focus therefore needs to be geared for an extremely market driven 2024, where we need to be able to handle a hopefully rising demand later in the year.” – Majbrith Pleth Thomsen, Director of Demand & Order Management

While the EU is set to adopt the Energy Performance of Buildings Directive early in 2024, its full implementation in national legislation may not occur until late 2025, limiting its immediate effect on the market. Additionally, the postponement of the EU heat pump action plan and delays in national policies, such as Germany’s fossil fuel boiler ban, further contribute to market ambiguity. In the UK, the introduction of the Clean Heat Market Mechanism in Q2 is anticipated to impact boiler and heat pump sales differently, with potential cost implications. However, the overall market effect remains uncertain, despite a slight increase in heat-pump funding applications.

Despite shorter-term market fluctuations, the long-term trajectory towards energy transition remains intact, with EU legislation driving initiatives like the EU Green Deal. These legislative measures, expected to take full effect from 2025 onwards, include directives aimed at enhancing energy performance, efficiency, and renewable energy adoption in the building sector.