Geothermal Heat Pump Market Size By Product (Open Loop, Closed Loop (Vertical, Horizontal)), By Application (Residential, Commercial (Government Center, Office Buildings, Educational Institutes)), Industry Analysis Report, Regional Outlook (U.S., Canada, Sweden, Germany, France, Finland, Austria, Netherland, China, South Korea, Japan, Switzerland), Price Trends, Competitive Market Share & Forecast, 2017 – 2024
Published Date: April 2017 | 200 Pages | Report ID: GMI370 Report Format: PDF
Geothermal Heat Pump Market size for 2016 was valued over USD 80 billion and is set to exceed 110 GWt by 2024.
Europe Geothermal Heat Pump Market Size, By Product, 2016 & 2024 (MWt)
Growing demand for efficient and cost effective space conditioning system from residential and commercial sectors will positively drive the geothermal heat pump market size. Volatile fuel prices along with measures towards energy conservation will further stimulate the business landscape. Ability to reduce the electricity bill by 30 to 60 % when compared to traditional heating and cooling systems will make its adoption favorable among other available alternatives. These systems are more efficient when compared with high-efficiency gas furnaces and conventional whole-house air conditioners.
Favorable government initiatives including financial supports, rebates, federal income tax credit, subsidies and renewable heat incentives to encourage the adoption of renewable energy will fuel the geothermal heat pumps market share by 2024. UK implemented the Renewable Heat Incentive program to provide financial support for generating renewable heat, based on annual meter reading of commercial building for 20 years.
Stringent regulations to reduce greenhouse gas emission along with growing concern to maintain fossil fuel sustainability will boost the global geothermal heat pump market growth. In Europe, under 2030 climate and energy framework, EU underlined target to cut greenhouse gas emission by 47% from 1990 level. The directive also emphasis on renewable energy utilization to 27% of total energy consumption by 2030. System ability to cut five tons of carbon dioxide per year over electric heating system will further complement the business outlook.
Geothermal Heat Pump Market, By Product
Closed loop geothermal heat pump market is predicted to witness growth over 8% owing to its reliability and low maintenance & operating cost. These systems consist of antifreeze liquid in underground piping loops, which helps to transfer the ground temperature to GHP. Vertical installation is preferred over horizontal loop owing to its less space requirement.
Low installation cost and ability to reduce the heat transfer loss are some key features which will propel open loop market by 2024. These systems are suitable for tenant finish installation. It uses underground water for heating and cooling applications.
Geothermal Heat Pump Market, By Application
Rapid urbanization along with government initiatives to promote sustainable energy will foster residential geothermal heat pump market share. In 2017, Governor Andrew announced to invest USD 15 million for rebate program to encourage development of renewable heating and cooling system in New York city. This program will also help to achieve its target to reduce GHG emission by 40% by 2030 from 1990 level. Ability to reduce carbon footprint and lower monthly energy bill may further boost the product demand. In Whisper valley over 7000 homes installed ground source heat pump to reduce their electricity bills.
Increasing infrastructure spending along with rising focus towards adoption of efficient building envelope will drive the commercial market. Growing flexible system demand which can easily integrate with existing HVAC system in existing and new constructed building architecture will further complement the business landscape.
Geothermal Heat Pump Market, By Region
U.S. geothermal heat pump market size for 2016 was valued over USD 20 billion. Availability of constant shallow ground temperature throughout the country will boost the product demand. According to EPA, the geothermal systems help to cut 44% of energy consumption when compared with other available alternatives.
Growing focus towards development of renewable energy with aim to reduce environment pollution will drive the China market share. In 2016, China government announced to triple its geothermal energy consumption to 72.1 million ton of coal equivalent by 2020 when compared with current levels.
Germany geothermal heat pumps market accounted for over 15% of Europe share in 2016. Increasing spending towards green building infrastructure with growing demand for heating & cooling system may positively impact the industry growth. Retrofitting and replacement of existing systems are also analyzed as key regional drivers. In 2016, Germany federal government announced to invest over USD 250 billion on infrastructure.
Competitive Market Share
Key players in geothermal heat pump market are MODINE, NIBE, Danfoss, Robert Bosch, Carrier, Trane, Kensa Heat Pumps, Bryant Heating & Cooling Systems, Finn Geotherm, WaterFurnace, Stiebel Eltron, Bard HVAC, Glen Dimplex, Vaillant Group, Ecoforest, Green Planet Supply Technologies, Maritime Geothermal and Viessmann Manufacturing.
The industry is highly fragmented in nature and as a part of strategy witnessed collaborations to increase its regional presence and enhance customer portfolio. In September 2016, NIBE acquired the British-owned Enertech Group with an objective to expand its global presence.
Geothermal Heat Pump Industry Background
Geothermal heat pump uses the hot temperature of the ground as the exchange medium for heating or cooling applications. They are characterized by heat pump units, air delivery system and ground heat exchanger component. A heat exchanger to transfer thermal energy between the ground and the living area. A blower is used to force the conditioned air into the building and a condensing unit accommodates the refrigeration cycle. Depending on latitude, temperature of earth ranges from 45°F to 75°F. This temperature is higher than the air during the winter and lesser than the air in the summer.
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