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Geothermal Heat Pump Market Size - By Product (Open Loop, Closed Loop, Pond Loop), By Application (Residential, Commercial {Educational Institutes, Healthcare, Retail, Logistics & Transportation, Offices, Hospitality}) & Forecast, 2024 – 2032

  • Report ID: GMI370
  • Published Date: May 2023
  • Report Format: PDF

Geothermal Heat Pump Market Size

Geothermal Heat Pump Market was valued at USD 4.3 billion in 2023 and is estimated to observe 4.4% CAGR from 2024 to 2032.

 

Geothermal Heat Pump Market

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Rising environmental concerns and government initiatives in the construction industry to limit the carbon emissions are the prime factors influencing the product deployment worldwide. In addition, the government's regulation of energy-efficient practises to lessen carbon footprints worldwide will also improve the prospects for the sector. The aforementioned factors are therefore expected to accelerate industry growth in the upcoming years.

 

The global geothermal heat pump market scenario will be boosted by growing concerns catering energy security and environmental sustainability along with changing trends for infrastructure based on the bioeconomy. The prognosis for the industry will also be influenced by favourable government policies and protocols that aim to reduce carbon emissions. The global ductless heat pump industry is poised to surpass USD 21 Billion by 2032.
 

COVID-19 Impact

The COVID-19 pandemic has caused a global economic crisis in numerous regions, which has caused a slight delay in the implementation of ground source heat pumps, especially for commercial applications. Post lockdown, owing to high recreational activities and building operations resumption, the product penetration in all application improved significantly due to high space heating demand. Additionally, various government introduced mandatory norms favouring the deployment of renewable technologies, thereby catering to the heat pump market growth.
 

For instance, according to the energy efficiency classification of buildings from A to G, the European Commission has recommended required energy efficiency requirements for both existing and new construction. As a result, the prognosis for the industry will be boosted by a supportive regulatory environment and swift building refurbishment for smart & efficient space heating.
 

Geothermal Heat Pump Market Trends

Increasing prevalence of heat pump that uses the stable temperature of the ground or water to heat and cool buildings, providing an energy-efficient and environmentally friendly alternative to traditional heating and cooling systems is proving beneficial for the geothermal heat pump market growth. Growing concern for the environment and the need to reduce carbon emissions is one of the major factors influencing the business outlook.

 

Geothermal heat pumps produce fewer greenhouse gas emissions compared to traditional heating and cooling systems, making them a popular choice for eco-conscious individuals and organizations, thereby augmenting the product deployment across residential & commercial applications. In addition, exponential increase in the availability of incentives and rebates offered by governments and utility companies is the other major factor swaying the product adoption.

 

These incentives help reduce the upfront cost of installing a geothermal heat pump, making them more affordable for homeowners and businesses. Furthermore, advances in technology and increased competition in the market have made ground sourced heat pumps more efficient and cost-effective, further contributing to their popularity and expediating the geothermal heat pump market development.

 

Geothermal Heat Pump Market Analysis

Geothermal Heat Pump Market Size, By Product, (USD Billion), 2022 - 2032

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The closed loop segment is predicted to observe about 4.3% growth rate through 2032, attributed to increasing awareness of environmental issues, growing demand for advance HVAC systems, and the rising need to reduce carbon emissions. Major factors boosting the geothermal heat pump deployment includes high efficiency, low energy consumption, and low operating & maintenance costs. The system uses antifreeze to transport ground warmth to the heat pump through a subterranean pipeline to generate heat. Key businesses are concentrating on plant integration to close the gap between the supply and demand for these products along with various government funded schemes & manufacturer incentive plans.

 

For instance, in summer 2021, Vermont introduced a growth incentive for the geothermal or ground source heat pump industry market since it will be vital to achieving decarbonization targets. Incentives for homeowners can encourage the use of the product in order to reduce greenhouse gas emissions, thereby benefitting the business scenario by 2032.

 

Geothermal Heat Pump Market Revenue Share, By Application, 2023

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Structural renewal of households and mounting demand for HVAC systems will boost the industry growth. Growing demand for renovating and restoring traditional heating & cooling systems, commercial application is anticipated to occupy a prominent position across the application sector. Product usage will witness an increasing espousal trend led by its ability to seamlessly interface with HVAC systems in both existing and newly constructed government buildings. In addition, increasing funding for product renovation will hasten the business environment. Product innovation coupled with surging demand for energy efficient GHP systems for residential application will further augment the market growth.
 

North America Geothermal Heat Pump Market Size, (USD Billion), 2022 - 2032

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North America geothermal heat pump market is anticipated to reach over USD 3.6 billion by 2032. Rising demand for space heating equipment’s which are eco-friendly and sustainable when compared to their alternatives including fossil fuel-based heating products specially in the U.S. geothermal heat pump sector will complement the industry scenario. However, the Canadian GHP market will witness a significant growth in upcoming years owing to high requirement for new building construction sector.

 

 The rising demand for reliable, and high-quality infrastructure in Canada owing to high standard of living will further sway the product requirement in both residential & commercial application segment. These parameters, along with favorable standards to encourage the establishment of net zero-emission buildings, will encourage the use of GHPs across the country.

 

Europe heat pump market is estimated to amass USD 1.5 billion by 2032. The rising funding towards building infrastructure along with migration of people towards from remote to urban area and strong economic growth. In addition, mounting efforts to reduce the dependency of fossil fuel energy resources along with rapidly developing residential infrastructure will further complement the regional business landscape. In Europe, Germany heat pump industry is likely to cross USD 2 billion by 2030.

 

Geothermal Heat Pump Market Share

Some of the major players operating in the geothermal heat pump industry are

  • Viessmann
  • Weishaupt Group
  • Trane
  • Vaillant Group
  • STIEBEL ELTRON GmbH & Co. KG
  • Danfoss
  • Modine Manufacturing Company
  • Mitsubishi Materials Techno Co.
  • Daikin
  • NIBE Energy Systems Ltd
  • Carrier
  • Bard HVAC
  • OCHSNER
  • Bryant Heating & Cooling Systems
  • WaterFurnace International Inc.
  • FINN GEOTHERM UK Limited
  • Kensa Heat Pumps
  • De Dietrich

 

These players focus on strategic partnerships, new product launch & commercialization for market expansion. Furthermore, these players are heavily investing in research that allows them to introduce innovative products and garner maximum revenue in the market.

 

Geothermal Heat Pump Industry News:

  • In March 2023, Viessmann introduced new range of geothermal heat pumps, Vitocal 222-G for residential space & water heating applications. The new series of heat pumps will be available in the heating output ranging from 5.8 kW to 10.4 kW with maximum flow temperature of 65°C.This innovative product launch helped the company to increase their product portfolio and enhance their business revenue.
     
  • In November 2022, Dandelion Energy raised USD 70 million in Series B1 funding to expand & enhance their geothermal heat pump operation across the U.S. The company has tripled their commercial operations in the year 2022 backed by U.S. US government’s Inflation Reduction Act, which provides tax credits and other financial incentives for homeowners adopting heat pump technology. This strategic along with financial aid will further improve the transition of geothermal heat pump in the U.S. market, thereby augmenting the business landscape.
     

This geothermal heat pump market research report includes an in-depth coverage of the industry with estimates & forecast in terms of volume in Units and revenue in USD Million 2019 to 2032, for the following segments:

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Market, By Product

  • Open loop
  • Closed loop
    • Vertical
    • Horizontal
  • Pond loop

Market, By Application

  • Residential
  • Commercial
    • Healthcare
    • Retail
    • Logistics & transportation
    • Offices
    • Hospitality
    • Others

The above information is provided for the following regions and countries:

  • North America
    • U.S.
    • Canada
  • Europe
    • Austria
    • Norway
    • Denmark
    • Finland
    • France
  • Asia Pacific
    • China
    • Japan
    • Australia
    • South Korea 
  • Middle East & Africa
    • Saudi Arabia
    • Turkey
    • South Africa
  • Latin America
    • Brazil
    • Mexico
    • Argentina

 

Authors: Ankit Gupta, Shashank Sisodia

Frequently Asked Questions (FAQ) :

The market size of geothermal heat pump crossed USD 4.3 billion in 2023 and is predicted to be worth more than USD 6.2 billion by 2032, due to growing environmental concerns and an increased emphasis on limiting carbon emissions from the construction sector..

The overall industry share from the closed loop segment is expected to expand at 4.3% CAGR from 2024 to 2032, credited to the high efficiency, low energy consumption, and low operating & maintenance costs associated with closed loop heat pumps.

North America geothermal heat pump sector is anticipated to reach more than USD 3.6 billion by 2032 due to an accelerating shift from fossil fuel-based heating products toward eco-friendly and sustainable heating technologies.

Prominent companies in the geothermal heat pump industry are Weishaupt Group, Viessmann, Trane, STIEBEL ELTRON GmbH & Co. KG, Vaillant Group, Danfoss, Mitsubishi Materials Techno Co., Modine Manufacturing Company, NIBE Energy Systems Ltd, Daikin, Carrier, Bard HVAC, Bryant Heating & Cooling Systems, OCHSNER, and others.

Geothermal Heat Pump Market Scope

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Premium Report Details

  • Base Year: 2023
  • Companies covered: 18
  • Tables & Figures: 443
  • Countries covered: 17
  • Pages: 350
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