USD 9.96 billion
Geothermal Heat Pumps Market Size, Share, Growth Analysis, By Type(Closed Loop, Horizontal, Vertical, and Open Loop), By Application(Residential, Commercial, and Industrial), By Region - Industry Forecast 2024-2031
Report ID:
SQMIG20I2125 |
Region:
Global |
Published Date: February, 2024
Pages:
157
|Tables:
64
|Figures:
71
Geothermal Heat Pumps Market Insights
Geothermal Heat Pumps Market size was valued at USD 9.96 billion in 2021 and is poised to grow from USD 10.73 billion in 2022 to USD 19.416 billion by 2030, growing at a CAGR of 7.7% in the forecast period (2023-2030).
The geothermal heat pumps market has experienced steady growth as a sustainable and energy-efficient heating and cooling solution. Geothermal heat pumps (GHPs), also known as ground source heat pumps, utilize the Earth's constant temperature to provide efficient space conditioning. This technology capitalizes on the fact that underground temperatures remain relatively stable throughout the year, making it a reliable and cost-effective alternative to traditional HVAC systems. The market's growth is attributed to several factors. First, GHPs significantly reduce energy consumption and greenhouse gas emissions compared to conventional heating and cooling methods. This aligns with global efforts to address climate change and transition toward more sustainable practices.
The rising energy costs have driven consumers and businesses to seek long-term cost savings through energy-efficient technologies, further boosting the demand for GHPs. Government incentives, tax credits, and environmental regulations have also played a pivotal role in market expansion. Various countries have introduced policies that encourage the adoption of renewable energy solutions, including geothermal heat pumps, by offering financial incentives and subsidies. These incentives make GHP systems more financially accessible and appealing to a broader range of consumers. Moreover, advancements in geothermal technology, including improved heat exchangers, refrigerants, and control systems, have enhanced the efficiency and reliability of GHPs. This has increased their attractiveness to both residential and commercial sectors.
US Geothermal Heat Pumps Market is poised to grow at a sustainable CAGR for the next forecast year.
Market snapshot - 2024-2031
Global Market Size
Largest Segment
Residential
Fastest Growth
Residential
Growth Rate
7.7% CAGR
Global Geothermal Heat Pumps Market ($ Bn)
Country Share for Asia Pacific Region (%)
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Geothermal Heat Pumps Market Segmental Analysis
The global geothermal heat pumps market is segmented on the basis of type, application, and region. By type, the market is segmented into closed loop, horizontal, vertical, open loop. By application, the market is segmented into residential, commercial, industrial. By region, the market is segmented into North America, Europe, Asia Pacific, Middle East and Africa, and Latin America.
Geothermal Heat Pumps Market Analysis By Type
In the geothermal heat pumps market, the closed loop segment dominates the market due to its higher efficiency, environmental friendliness, and versatility. Closed loop systems circulate a water-based solution through a closed underground loop, transferring heat to or from the earth to provide heating and cooling. These systems circulate a water or antifreeze solution through a closed loop of pipes buried underground, utilizing the earth's stable temperature to efficiently heat or cool buildings.
On the other hand, the fastest-growing segment in the geothermal heat pumps market is the open loop system. This growth is attributed to its simplicity and cost-effectiveness. Open Loop systems use groundwater as a direct heat exchange medium, allowing for efficient heat transfer. Their installation process is relatively straightforward, and they can be more suitable for certain geographical regions. As sustainability and energy efficiency gain prominence, the open loop segment is witnessing rapid adoption, especially in areas where groundwater resources are accessible, making it a key driver of market expansion.
Geothermal Heat Pumps Market Analysis By Application
The dominant segment in the geothermal heat pumps market is the residential application. Geothermal heat pumps are increasingly adopted in residential buildings for space heating and cooling due to their energy efficiency, reduced carbon emissions, and long-term cost savings. Homeowners are attracted to the consistent and reliable heating and cooling provided by geothermal systems, making them a popular choice for residential applications.
On the other hand, the fastest-growing segment is the commercial application. As businesses and organizations strive to meet sustainability goals and reduce operational costs, geothermal heat pumps are being integrated into commercial buildings, such as offices, schools, hotels, and retail spaces. The scalability of geothermal systems makes them suitable for larger commercial buildings, and the potential for energy savings and environmental benefits is driving the rapid adoption of geothermal heat pumps in the commercial sector.
Global Geothermal Heat Pumps Market By Application
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Geothermal Heat Pumps Market Regional Insights
The global geothermal heat pumps market is analyzed based on its regional presence, which includes North America, Europe, Asia Pacific, Middle East and Africa, and Latin America. Asia-Pacific holds a dominant position, driven by factors such as increasing urbanization, rising energy demand, and efforts to reduce carbon emissions. APAC countries, particularly China and Japan, have been aggressively adopting geothermal heat pumps for efficient heating and cooling solutions in both residential and commercial sectors. The abundant geothermal resources in the region further contribute to its dominance.
On the other hand, Europe stands out as the fastest-growing segment in the geothermal heat pumps market. European countries, including Germany, Sweden, and the Netherlands, have been embracing renewable energy technologies, which has led to substantial growth in the geothermal heat pumps market. Favorable government policies, incentives, and a strong emphasis on sustainability have accelerated the adoption of geothermal heat pumps in Europe. The region's commitment to reducing greenhouse gas emissions and achieving energy independence continues to drive the rapid expansion of the geothermal heat pumps market, making it a pivotal growth area for industry players and investors.
Global Geothermal Heat Pumps Market By Geography
- Largest
- Fastest
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Geothermal Heat Pumps Market Dynamics
Geothermal Heat Pumps Market Drivers
Environmental Concerns and Sustainability:
- The increasing focus on reducing carbon emissions and transitioning to cleaner energy sources has driven the geothermal heat pumps market. Geothermal systems are highly efficient and utilize the Earth's natural heat, resulting in lower greenhouse gas emissions and reduced reliance on fossil fuels for heating and cooling. Governments and organizations worldwide are promoting sustainable energy solutions, leading to incentives and policies that favor geothermal heat pump adoption.
Energy Efficiency and Cost Savings:
- Geothermal heat pumps offer significant long-term cost savings due to their high energy efficiency. They can provide both heating and cooling, consuming less electricity compared to traditional HVAC systems. Consumers and businesses are drawn to geothermal heat pumps because of their potential for reduced energy bills over time, making them an attractive investment.
Geothermal Heat Pumps Market Restraints
High Initial Costs:
- The installation of geothermal heat pump systems involves higher upfront costs compared to conventional heating and cooling systems. The need for drilling and underground infrastructure adds to the initial expenses, which can deter some potential adopters, especially in regions where alternative heating and cooling solutions are perceived as more affordable in the short term.
Geological and Site Limitations:
- Geothermal heat pump systems require specific geological conditions and site suitability for efficient operation. Areas with limited access to suitable geothermal resources may face challenges in adopting these systems. Geological constraints, such as insufficient ground heat or inadequate space for drilling, can limit the feasibility of geothermal heat pumps in certain locations, potentially restricting market growth.
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Geothermal Heat Pumps Market Competitive Landscape
The global geothermal heat pumps market is characterized by intense competition among key players striving to capitalize on the growing demand for energy-efficient heating and cooling solutions. Industry leaders dominate with their extensive product portfolios and established market presence. The companies invest heavily in research and development to enhance system efficiency and environmental sustainability. Regional players, such as WaterFurnace International and Climatemaster, focus on catering to specific markets and cultivating strong local partnerships. As renewable energy gains prominence, new entrants and startups are also entering the market, driving innovation and pushing for cost-effective geothermal heat pump solutions. The competitive landscape is evolving as companies vie to deliver cutting-edge technologies and meet the rising global demand for sustainable HVAC solutions.
Geothermal Heat Pumps Market Top Player’s Company Profile
- Modine Manufacturing Company (U.S.)
- Bosch Thermotechnik GmbH (Germany)
- Green Planet Supply Technologies (India)
- Enel Spa (Italy)
- First Gen (Philippines)
- Ormat Technologies (U.S.)
- Reykjavik Energy (Iceland)
- Innergex (Canada)
- ClimateMaster Inc. (U.S.)
- Waterfurnace (U.S.)
- Ochsner Health (Germany)
- Mitsubishi Electric Corporation (Japan)
- Wolf (Germany)
- Viessmann Manufacturing Company Inc. (Canada)
- Max Weishaupt GmbH (Germany)
- OCHSNER (U.S.)
Geothermal Heat Pumps Market Recent Developments
- In January 2023, Daikin Industries announced plans to invest $1 billion in geothermal heat pump manufacturing in the United States. This investment is expected to help Daikin meet the growing demand for geothermal heat pumps in North America.
- In February 2023, Carrier Corporation acquired Helical Focus, a leading provider of geothermal heat pump technology. This acquisition is expected to give Carrier a stronger position in the geothermal heat pump market.
- In March 2023, Bosch Thermotechnology announced the launch of its new geothermal heat pump line, the Bosch Compress 7000i. This new line of geothermal heat pumps is designed to be more efficient and easier to install than previous models.
- In April 2023, the International Energy Agency (IEA) released a report on the potential of geothermal heat pumps to decarbonize the heating and cooling sector. The report found that geothermal heat pumps could play a significant role in reducing greenhouse gas emissions from the heating and cooling sector.
- In May 2023, the United States Department of Energy (DOE) announced funding for a new project to develop a geothermal heat pump that can operate at lower temperatures. This project is expected to help make geothermal heat pumps more affordable and accessible for homeowners.
Geothermal Heat Pumps Key Market Trends
Sustainability and Energy Efficiency:
- One key trend in the geothermal heat pumps market is the growing emphasis on sustainability and energy efficiency. As global awareness of climate change and environmental concerns increases, there is a significant shift towards cleaner and more sustainable heating and cooling solutions. Geothermal heat pumps utilize the Earth's natural heat to provide heating and cooling, reducing greenhouse gas emissions and energy consumption compared to traditional HVAC systems. This trend is driving both residential and commercial consumers to adopt geothermal heat pumps as a viable and eco-friendly alternative, leading to increased market demand.
Government Incentives and Policies:
- Another important trend is the influence of government incentives and policies on the geothermal heat pumps market. Many governments around the world are implementing incentives, subsidies, and regulations to promote the adoption of renewable energy technologies, including geothermal heat pumps. These incentives can include tax credits, rebates, grants, and favorable financing options. Such policies not only reduce the upfront cost barrier for consumers but also create a favorable market environment for manufacturers and installers. As governments continue to prioritize renewable energy and climate goals, the geothermal heat pumps market is expected to experience sustained growth driven by these supportive policies.
Geothermal Heat Pumps Market SkyQuest Analysis
SkyQuest’s ABIRAW (Advanced Business Intelligence, Research & Analysis Wing) is our Business Information Component types team that Collects, Collates, Correlates, and Analyzes the Data collected by means of Primary Exploratory Research backed by robust Secondary Desk research.
According to our global geothermal heat pumps market analysis, the increasing emphasis on energy efficiency and sustainable heating and cooling solutions are considered key growth drivers. These systems harness the Earth's natural heat to provide environmentally friendly temperature regulation for residential, commercial, and industrial spaces. The market is driven by factors such as rising awareness of renewable energy sources, government incentives, and the need to reduce carbon emissions. Geothermal heat pumps offer long-term cost savings due to their high energy efficiency and relatively low operating expenses. They are particularly advantageous in regions with stable geothermal resources. However, market growth is hindered by installation complexities, upfront costs, and limited public understanding of geothermal technology. As renewable energy adoption accelerates, the geothermal heat pumps market is poised for expansion, prompting further technological advancements and increased integration within global efforts to combat climate change.
| Report Metric | Details |
|---|---|
| Market size value in 2023 | USD 9.96 billion |
| Market size value in 2031 | USD 19.416 billion |
| Growth Rate | 7.7% |
| Forecast period | 2024-2031 |
| Forecast Unit (Value) | USD Billion |
| Segments covered |
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| Regions covered | North America (US, Canada), Europe (Germany, France, United Kingdom, Italy, Spain, Rest of Europe), Asia Pacific (China, India, Japan, Rest of Asia-Pacific), Latin America (Brazil, Rest of Latin America), Middle East & Africa (South Africa, GCC Countries, Rest of MEA) |
| Companies covered |
|
| Customization scope | Free report customization with purchase. Customization includes:-
|
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Table Of Content
Executive Summary
Market overview
- Exhibit: Executive Summary – Chart on Market Overview
- Exhibit: Executive Summary – Data Table on Market Overview
- Exhibit: Executive Summary – Chart on Geothermal Heat Pumps Market Characteristics
- Exhibit: Executive Summary – Chart on Market by Geography
- Exhibit: Executive Summary – Chart on Market Segmentation
- Exhibit: Executive Summary – Chart on Incremental Growth
- Exhibit: Executive Summary – Data Table on Incremental Growth
- Exhibit: Executive Summary – Chart on Vendor Market Positioning
Parent Market Analysis
Market overview
Market size
- Market Dynamics
- Exhibit: Impact analysis of DROC, 2021
- Drivers
- Opportunities
- Restraints
- Challenges
- Exhibit: Impact analysis of DROC, 2021
- SWOT Analysis
KEY MARKET INSIGHTS
- Technology Analysis
- (Exhibit: Data Table: Name of technology and details)
- Pricing Analysis
- (Exhibit: Data Table: Name of technology and pricing details)
- Supply Chain Analysis
- (Exhibit: Detailed Supply Chain Presentation)
- Value Chain Analysis
- (Exhibit: Detailed Value Chain Presentation)
- Ecosystem Of the Market
- Exhibit: Parent Market Ecosystem Market Analysis
- Exhibit: Market Characteristics of Parent Market
- IP Analysis
- (Exhibit: Data Table: Name of product/technology, patents filed, inventor/company name, acquiring firm)
- Trade Analysis
- (Exhibit: Data Table: Import and Export data details)
- Startup Analysis
- (Exhibit: Data Table: Emerging startups details)
- Raw Material Analysis
- (Exhibit: Data Table: Mapping of key raw materials)
- Innovation Matrix
- (Exhibit: Positioning Matrix: Mapping of new and existing technologies)
- Pipeline product Analysis
- (Exhibit: Data Table: Name of companies and pipeline products, regional mapping)
- Macroeconomic Indicators
COVID IMPACT
- Introduction
- Impact On Economy—scenario Assessment
- Exhibit: Data on GDP - Year-over-year growth 2016-2022 (%)
- Revised Market Size
- Exhibit: Data Table on Geothermal Heat Pumps Market size and forecast 2021-2027 ($ million)
- Impact Of COVID On Key Segments
- Exhibit: Data Table on Segment Market size and forecast 2021-2027 ($ million)
- COVID Strategies By Company
- Exhibit: Analysis on key strategies adopted by companies
MARKET DYNAMICS & OUTLOOK
- Market Dynamics
- Exhibit: Impact analysis of DROC, 2021
- Drivers
- Opportunities
- Restraints
- Challenges
- Exhibit: Impact analysis of DROC, 2021
- Regulatory Landscape
- Exhibit: Data Table on regulation from different region
- SWOT Analysis
- Porters Analysis
- Competitive rivalry
- Exhibit: Competitive rivalry Impact of key factors, 2021
- Threat of substitute products
- Exhibit: Threat of Substitute Products Impact of key factors, 2021
- Bargaining power of buyers
- Exhibit: buyers bargaining power Impact of key factors, 2021
- Threat of new entrants
- Exhibit: Threat of new entrants Impact of key factors, 2021
- Bargaining power of suppliers
- Exhibit: Threat of suppliers bargaining power Impact of key factors, 2021
- Competitive rivalry
- Skyquest special insights on future disruptions
- Political Impact
- Economic impact
- Social Impact
- Technical Impact
- Environmental Impact
- Legal Impact
Market Size by Region
- Chart on Market share by geography 2021-2027 (%)
- Data Table on Market share by geography 2021-2027(%)
- North America
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- USA
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Canada
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Europe
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- Germany
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Spain
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- France
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- UK
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of Europe
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Asia Pacific
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- China
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- India
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Japan
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- South Korea
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of Asia Pacific
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Latin America
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- Brazil
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of South America
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Middle East & Africa (MEA)
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- GCC Countries
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- South Africa
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of MEA
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
KEY COMPANY PROFILES
- Competitive Landscape
- Total number of companies covered
- Exhibit: companies covered in the report, 2021
- Top companies market positioning
- Exhibit: company positioning matrix, 2021
- Top companies market Share
- Exhibit: Pie chart analysis on company market share, 2021(%)
- Total number of companies covered
Methodology
For the Geothermal Heat Pumps Market, our research methodology involved a mixture of primary and secondary data sources. Key steps involved in the research process are listed below:
1. Information Procurement: This stage involved the procurement of Market data or related information via primary and secondary sources. The various secondary sources used included various company websites, annual reports, trade databases, and paid databases such as Hoover's, Bloomberg Business, Factiva, and Avention. Our team did 45 primary interactions Globally which included several stakeholders such as manufacturers, customers, key opinion leaders, etc. Overall, information procurement was one of the most extensive stages in our research process.
2. Information Analysis: This step involved triangulation of data through bottom-up and top-down approaches to estimate and validate the total size and future estimate of the Geothermal Heat Pumps Market.
3. Report Formulation: The final step entailed the placement of data points in appropriate Market spaces in an attempt to deduce viable conclusions.
4. Validation & Publishing: Validation is the most important step in the process. Validation & re-validation via an intricately designed process helped us finalize data points to be used for final calculations. The final Market estimates and forecasts were then aligned and sent to our panel of industry experts for validation of data. Once the validation was done the report was sent to our Quality Assurance team to ensure adherence to style guides, consistency & design.
Analyst Support
Customization Options
With the given market data, our dedicated team of analysts can offer you the following customization options are available for the Geothermal Heat Pumps Market:
Product Analysis: Product matrix, which offers a detailed comparison of the product portfolio of companies.
Regional Analysis: Further analysis of the Geothermal Heat Pumps Market for additional countries.
Competitive Analysis: Detailed analysis and profiling of additional Market players & comparative analysis of competitive products.
Go to Market Strategy: Find the high-growth channels to invest your marketing efforts and increase your customer base.
Innovation Mapping: Identify racial solutions and innovation, connected to deep ecosystems of innovators, start-ups, academics, and strategic partners.
Category Intelligence: Customized intelligence that is relevant to their supply Markets will enable them to make smarter sourcing decisions and improve their category management.
Public Company Transcript Analysis: To improve the investment performance by generating new alpha and making better-informed decisions.
Social Media Listening: To analyze the conversations and trends happening not just around your brand, but around your industry as a whole, and use those insights to make better Marketing decisions.
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