U.S. Geothermal Heat Pump Market Analysis

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.