Building conversations up with... Kristian Strand, President of Danfoss Climate Solutions.
Kristian Strand is President of Danfoss Climate Solutions, which holds leading positions in energy-efficient heating and cooling technologies for industry, the built environment, and the cold chain. He is also a member of the Danfoss Group Executive Team (GET).
Kristian brings more than 20 years of experience in the heating, cooling, and refrigeration industries, and a total of 36 years of diverse experience across multiple industries and countries. Throughout his career, he has consistently driven sustainable business performance and delivered lasting results.
BUILD UP (BUP): As heat pumps move from a niche technology to a mainstream option for both new builds and renovations, is the market growing at a sustainable pace, or is it outstripping the capacity of today’s infrastructure, and where do you see the key bottlenecks?
KRISTIAN STRAND (KS): Heat pumps are certainly no longer a niche technology; they are a mature, proven solution that has been deployed at scale in many markets for years. The industry is ready, and the product range is broad enough today to serve both new buildings and renovation projects, from compact residential systems to larger commercial and industrial applications.
On market growth, I would say it is not outstripping today’s capacity in a structural sense. Manufacturers, supply chains, and installers have already expanded significantly, and the sector has the technical capability to support further growth. The bigger question is not whether the technology can scale, but how fast the ecosystem around it can adapt.
The main bottlenecks are now much more about skills, installation capacity, and execution on the ground than about the technology itself. We need more trained installers, stronger vocational pathways, and better support for the broader HVAC and construction workforce. In parallel, a predictable regulatory environment is required. One that is not built on subsidising growth but on creating the right framework conditions that support heat pump growth, such as attractive electricity prices.
BUP: Heat pumps rely on real-time digital monitoring and control to reach peak efficiency, yet advanced building energy management systems (BEMS) are still not standard across much of Europe. How does this digital gap affect real-world heat pump performance, and what strategies could help overcome it?
KS: The best heat pump, no matter how efficient it is, will not deliver its potential if the system is not correctly sized, installed, and operated. In practice, especially in renovations, we often see underperformance driven by issues like poor sizing, incorrect installation, or suboptimal operating settings. Even with advanced controls, if, for example, the hydronic network is not balanced or the system is not properly commissioned, the heat pump cannot reach its efficiency potential. That leads to higher electricity use, reduced comfort, and a weaker business case for the customer. To ensure strong real-world performance, we need to take a system-wide approach, which does not look at the heat pump in isolation, and where digital monitoring and controls ensure continued optimisation of the operation.
BUP: Digitalisation is a key pillar of the Green Deal. How can real-time data and internet of things (IoT) in heating networks help shift the industry from reactive to predictive maintenance, and what role can they play in closing the performance gap in energy-efficient buildings?
KS: Digitalisation is indeed a key pillar of the Green Deal, and real-time data and IoT are what let us shift from reactive to predictive maintenance. By continuously monitoring temperatures, pressures, and flow, and using analytics to detect early signs of failure, we can schedule maintenance before breakdowns occur, reducing downtime and costs. The same data also help close the performance gap in energy-efficient buildings, where actual performance often falls short of design due to poor controls, design issues, or commissioning. Solutions like our Leanheat® Building, powered by AI and IoT, use real-time data from thousands of buildings to continuously optimise heating, reduce energy use by 5–10%, cut peak loads by around 20%, and enable proactive, data-driven maintenance. In short, IoT and real-time data turn heating networks and buildings into intelligent assets that are more efficient, more reliable, and better aligned with the Green Deal’s decarbonisation goals.
BUP: With much of Europe’s building stock still relying on high-temperature systems, how far does this constrain heat pump deployment, and can digital balancing and hydronic optimisation help compensate, or is deep renovation still required?
KS: High-temperature systems in Europe’s existing building stock may, in some cases, indeed constrain heat pump deployment, because heat pumps are most efficient at lower flow temperatures. However, modern heat pumps can already reach 60–65 °C, and some can go up to 70–75 °C, which is sufficient for many renovated buildings. Hydronic balancing and digital optimisation are critical here: they ensure the right amount of water is delivered where it’s needed, allow heat pumps to operate at lower flow temperatures, and significantly improve efficiency. In many cases, this means deep renovation is not strictly required. Over 80% of existing heating systems have huge optimisation potential, and balancing is central to that. Still, in some very poorly insulated buildings, deep renovation may remain the most effective route. As so often, there is no one-size-fits-all solution. The key is to combine the solutions at hand, from correct sizing and installation to smart controls, and, where needed, targeted building upgrades.
BUP: As Europe moves towards its 2030 and 2050 climate targets, should technical standards move beyond product-level metrics such as EN 14825 (SCOP) towards a more holistic approach that includes the impact of building automation and control systems (BACS) and optimised hydronic balancing?
KS: In an ideal world, technical standards should indeed move beyond product-level metrics such as EN 14825 (SCOP) and towards a more holistic approach that also includes the impact of BACS and optimised hydronic balancing. SCOP is a valuable, standardised way to compare products under defined test conditions, but it does not reflect how the system performs in a real building, where controls, balancing, and system design heavily influence efficiency.
To meet Europe’s 2030 and 2050 climate targets and follow the direction set by the Energy Performance of Buildings Directive (EPBD), standards should reflect the whole system, not just an individual equipment, and reward advanced control components, digital balancing, and integrated optimisation solutions.
