U.S. Geothermal Heat Pump Market - By Product (Open Loop, Closed Loop {Vertical, Horizontal}, Pond Loop), By Application (Residential, Commercial {Government Centers, Office Buildings, Educational Institutes, Healthcare, Hospitality}), & Forecast, 2024 - 2032

U.S. Geothermal Heat Pump Market Size

U.S. Geothermal Heat Pump Market size valued at USD 2.5 billion in 2023 and is set to register at a 3.7% CAGR from 2024 to 2032. Exponential demand for clean & sustainable energy solutions coupled with prevailing federal investments will drive the market development.

Major factors driving the growth of geothermal heat pump industry is the growing concern in the residential and commercial building application segment to support environmental awareness along with lowering energy expenditures. In addition, prevailing government regulations, tax incentives, and rebates for installing geothermal heat pumps will accelerate industry expansion. Growing regulations on environmental sustainability and energy security, in conjunction with paradigm change towards residential and commercial infrastructures based on the bioeconomy, will affect the U.S. geothermal heat pump market. The prognosis for the business will also be boosted by a rise in consumer awareness of the need to cut carbon emissions and by supportive governmental frameworks and processes.
 

Geothermal heat pump or ground source heat pump (GSHP) operates as a central cooling or heating system, which works by circulating heat from or to ground. It uses the constant earth temperature as the exchange medium instead of outside air temperature.
 

Presence of a wide variety of other heat pump technologies including air source heat pumps and water source heat pumps may act as a restraining factor for the U.S. geothermal heat pump market deployment. In addition, the market outlook is expected to be favored by increasing demand for HVAC systems, the urbanization-driven acceleration of house construction, and burgeoning investments in technology advancements.
 

Increasing research & development initiatives for the product development and introduction of new tax credits & regimes to boost the product deployment will favor the overall geothermal heat pump industry in the U.S. Increasing energy security concerns along with exponentially increasing energy consumption across the country will fuel the U.S. geothermal heat pump industry dynamics. Rapid investment for the geothermal technological development along with steep expansion across the renewable energy sector is forecast to lay favorable grounds for the U.S. geothermal heat pump market dynamics. Moreover, government inclination supported by continuous product innovation coupled with surging demand for energy efficient GHP systems for residential application is slated to influence the market demand.
 

COVID- 19 Impact

The COVID-19 pandemic has triggered an economic crisis in numerous regions with states including California, Texas, Florida, New York, and Illinois having the highest number of COVID-19 affected cases as of March 10th, 2022. This has resulted in a slight delay in commercial applications and halted various residential & commercial building construction projects. However, the condition has improved after the lockdown period when building operations and leisure activities resumed. Similarly, the confinement of the population to their homes has increased product demand during the pandemic owing to a high need for space heating & cooling, thereby increasing product adoption.
 

U.S. Geothermal Heat Pump Market Trends

The adoption of geothermal/ground source heat pumps in the U.S. is expected to continue to grow over the given timeframe owing to increasing consumer awareness pertaining to their benefits including declines installation cost of the product. As the country continues to prioritize renewable energy sources and reduce its reliance on fossil fuels, GHPs are likely to play an increasingly important role in the heating and cooling of homes and buildings. In addition, product advantage including high efficiency & low operating cost are the major factors swaying the business landscape. The regional government has introduced various energy-efficiency directives and energy norms to achieve the renewable targets. Such ta regimes will increase the product deployment across residential application, thereby contributing to the overall market scenario.
 

U.S. Geothermal Heat Pump Market Analysis

The closed-loop U.S. geothermal heat pump market is predicted witness 4% gains up to 2028. Energy conservation, high heating & cooling output, and low operation & maintenance costs are propelling the product demand. Energy efficiency measures along with renewable targets to reduce GHG emissions by 2050 will impact the industry dynamics.
 

In addition, the lowering of the federal tax credit from 26% to 22%, i.e., ground source heat pumps that are to be installed in 2023, is anticipated to positively stimulate the industry scenario. Favorable incentives for homeowners coupled with long-term heating & cooling benefits for homeowners will fuel U.S. geothermal heat pump market. The ability of closed-loop systems to circulate an anti-freeze solution via underground piping that transfers the ground temperature to the geothermal heat pump will make the system adoption preferable.
 

Commercial application is estimated to hold a substantial position in terms of revenue across the industry owing to increasing demand for restoring & refurbishing traditional heating & cooling systems. Newly built government buildings coupled with the product’s ability to integrate with various HVAC systems will offer product penetration in the commercial industry. Technological advancements in line with new product launches by key players will further accelerate the business outlook. Product innovations along with improved design techniques to make the heating system quiet & compact for commercial & residential applications will further augment the U.S. geothermal heat pump market potential.
 

The East North Central geothermal heat pump market size crossed USD 550 million in 2022. Volatile fossil fuel prices along with rising product adoption owing to energy-efficient heating & cooling systems from residential and commercial establishments across cold & warm climatic regions respectively will complement the business scenario. In addition, rising electricity bills coupled with product efficiency to reduce up to 44% of electricity consumption compared to other technologies including air-source technology will propel the U.S. geothermal heat pump market scenario.
 

Rising focus to maintain energy security will thereby reduce carbon footprints along with strong economic growth, which will sway the Northeast geothermal heat pump industry revenue share. Additionally, extensive availability of consistent shallow ground temperature, especially in the Scranton/Wilkes-Barre areas along with private investments will further augment the overall U.S. geothermal heat pump industry landscape.
 

The South Atlantic ground source heat pump market will witness significant growth in the upcoming years owing to the increasing residential & commercial building sectors, especially in Florida, Georgia, and North Carolina. As per U.S. Census, the population of Florida between 2010 and 2020 has accelerated by 2.7 million residents. The said parameters in addition to favorable government norms to encourage the establishment of net zero-emission buildings will boost the use of ground source heat pumps across the country.
 

U.S. Geothermal Heat Pump Market Share

The major market players are focusing on strategic partnerships and collaborations, new product launch along with mergers and acquisitions to gain their competitive edge over the others. Leading market players across the U.S. geothermal heat pump market include:

• Viessmann
• Trane
• Danfoss
• Modine Manufacturing Company
•  Mitsubishi Materials Techno Co
•  Daikin
• Carrier
• Bard HVAC
• Nortek Global HVAC
•  Bryant Heating & Cooling Systems
•  Dandelion
• De Dietrich
   

U.S. 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 boosting the business landscape.
   

This U.S. geothermal heat pump market research report includes in-depth coverage of the industry with estimates & forecast in terms of ‘000 Units’ & ‘USD Million’ from 2019 to 2032, for the following segments:

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By Product

• Open Loop
• Closed Loop
  • Vertical
  • Horizontal
• Pond Loop

By Application

• Residential
• Commercial
  • Government Center
  • Office Buildings
  • Educational Institutes
  • Healthcare
  • Hospitality
  • Others

The above information has been provided for the following regions across the U.S.:

• East North Central
• West South Central
• South Atlantic
• North East
• East South Central
• West North Central
• Pacific States
• Mountain States