Global Geothermal Heat Pumps Market Insights Forecasts to 2033

• The Global Geothermal Heat Pumps Market Size was Valued at USD 11.95 Billion in 2023
• The Market Size is Growing at a CAGR of 5.89% from 2023 to 2033
• The Worldwide Geothermal Heat Pumps Market Size is Expected to Reach USD 21.18 Billion by 2033
• Europe is Expected to Grow the fastest during the forecast period.

The Geothermal Heat Pumps Market Size is Anticipated to Exceed USD 21.18 Billion by 2033, Growing at a CAGR of 5.89% from 2023 to 2033. Market expansion is expected to be driven by the growing need for renewable energy sources as well as strong government support in the form of incentives, subsidies, and other financial benefits.

GEOTHERMAL HEAT PUMPS MARKET REPORT OVERVIEW

A geothermal heat pump is a type of heating and cooling system for buildings that uses a heat pump to move heat from the ground and utilize the relatively consistent temperatures of the earth throughout the year. Throughout the forecast period, market expansion is expected to be driven by the growing need for renewable energy sources as well as strong government support in the form of incentives, subsidies, and other financial benefits. Global energy consumption has increased dramatically as a result of fast industrialization and population growth.

The ecology is gravely harmed by the rising use of fossil fuels like coal, oil, and natural gas for heating purposes. It is anticipated that growing public awareness of greenhouse gas emissions and climate change can increase demand for energy-efficient products and technology. Additionally, it is anticipated that government laws and emission requirements would boost demand in the industrial and residential sectors for energy-saving products like geothermal heat pumps, consequently fostering market expansion.  

The United States government has implemented laws that are conducive to the installation of heat pumps, including personal tax credits and direct incentives for product installation. Increasing energy efficiency in all sectors of the economy is one of the main goals set forth by governments worldwide. Throughout the forecast period, market expansion is anticipated to be driven by the growing need for renewable energy sources as well as strong government support in the form of subsidies, incentives, and other financial benefits.  

Geothermal heat pumps with ENERGY STAR certification consume 61% less energy than a typical model, saving users close to $830 a year and over $9,500 over the course of the product's 15-year lifespan. Include water-to-water GHPs as well. These systems use indoor refrigerant-to-water heat exchangers to offer space conditioning and/or household water heating.

Report Coverage

This research report categorizes the market for the geothermal heat pumps market based on various segments and regions forecasts revenue growth and analyzes trends in each submarket. The report analyses the key growth drivers, opportunities, and challenges influencing the geothermal heat pumps market. Recent market developments and competitive strategies such as expansion, product launch, and development, partnership, merger, and acquisition have been included to draw the competitive landscape in the market. The report strategically identifies and profiles the key market players and analyses their core competencies in each sub-segment of the geothermal heat pumps market.

DRIVING FACTORS:

“Growing acceptance of geothermal energy is going to expand market growth”

The need for electricity has increased due to rising crude oil costs and the depletion of fossil fuel sources, as electricity is anticipated to be the primary energy source driving global growth in the future. In the age of sustainability, governments and consumers alike find conventional methods of generation to be highly polluting. Therefore, renewable energy has become a well-liked substitute and has experienced a sharp rise in popularity quickly.  

RESTRAINING FACTORS

“High installation costs initially could restrict the development in sales of geothermal heat pumps”

The high expense of installing geothermal heat pump systems and the general lack of public awareness or trust in its advantages are two main barriers that could restrict the growth of the market.

Market Segmentation

The global geothermal heat pumps market share is classified into type and application.

Which segment is expected to hold the largest share of the global geothermal heat pumps market during the forecast period?

The closed-loop segment is expected to hold the largest share of the global geothermal heat pumps market during the forecast period.

Based on type, the global geothermal heat pumps market is classified into open loop and closed loop. The closed-loop type segment is expected to hold the biggest market share during the projected time frame. The closed-loop geothermal heat pump makes use of numerous underground loops made of connected pipes, through the pipe, water or an antifreeze solution is continuously flowing and geothermal heat is absorbed by the solution. The majority of closed-loop geothermal heat pumps circulate water or a combined water-glycol solution via a closed loop that is either submerged in water or buried in the ground. The closed loop is often constructed of high-density polyethylene tubing. Between the heat pump's refrigerant and the closed-loop antifreeze solution, a heat exchanger facilitates the transmission of heat. One kind of closed-loop system is called direct exchange; instead of using a heat exchanger, it pumps the refrigerant through horizontal or vertical copper tubing buried in the ground.

Why residential segment is the most dominating throughout the forecast period?

“The residential segment is dominating the market due to rising demand for energy-efficient products intended for space heating, cooling, and hot water generation”

Based on the application, the global heat pumps market is classified into residential, commercial, and industrial. Growing consumer demand for energy-efficient goods for space heating, cooling, and hot water production propelled the residential application segment to the top of the market. One of the most profitable industries is the residential one, which is anticipated to drive demand for geothermal heat pumps. The demand for GHP in the residential sector is expected to increase due to favorable government programs and tax incentives granted on the installation of energy-saving products. Because of the cold, GHP is especially used for heating in northern nations.

Regional Segment Analysis of the Global Geothermal Heat Pumps Market

• North America (U.S., Canada, Mexico) 
• Europe (Germany, France, U.K., Italy, Spain, Rest of Europe)
• Asia-Pacific (China, Japan, India, Rest of APAC)
• South America (Brazil and the Rest of South America) 
• The Middle East and Africa (UAE, South Africa, Rest of MEA)

Which region is expected to hold the largest share of the geothermal heat pumps market over the forecast period?

“Asia-Pacific region is holding the highest share of the global geothermal heat pumps market during the forecast period”

Asia Pacific is starting to emerge as the market leader for geothermal heat pumps. Growing environmental consciousness, government incentives, and soaring energy demands are what propel the region's leadership. Geothermal heat pumps are being used by rapidly urbanizing nations like China and India to provide effective heating and cooling in crowded locations. Government assistance and technical developments have sped up market expansion. Furthermore, Asia Pacific's position as a major player in the geothermal heat pump market is further cemented by the growth of geothermal heat pumps from residential to commercial and industrial applications, supporting the region's aims for sustainability and energy efficiency.

Why Europe is growing at the fastest CAGR in the global geothermal heat pumps market?

The region's broad acceptance of geothermal heat pumps is a result of its strong dedication to sustainability and renewable energy. Supportive laws and regulations that encourage energy efficiency, such as incentives, have fueled market expansion. Leading European technology companies are improving the efficiency and performance of geothermal heat pump systems. Europe's residential and commercial sectors are turning more and more to geothermal heat pumps for economical and environmentally friendly heating and cooling solutions as there is a growing emphasis on lowering carbon emissions and energy usage.

Competitive Analysis:

The report offers the appropriate analysis of the key organizations/companies involved within the global geothermal heat pumps market along with a comparative evaluation primarily based on their product offering, business overviews, geographic presence, enterprise strategies, segment market share, and SWOT analysis. The report also provides an elaborative analysis focusing on the current news and developments of the companies, which includes product development, innovations, joint ventures, partnerships, mergers & acquisitions, strategic alliances, and others. This allows for the evaluation of the overall competition within the market.

List of Key Companies

• Carrier
• ClimateMaster, Inc.
• Bard HVAC
• OCHSNER
• Maritime Geothermal
• Robert Bosch LLC
• Dandelion
• Spectrum Manufacturing
• Stiebel Eltron
• Ingersoll Rand (Trane)
• Vaillant Group
• Viessmann
• Glen Dimplex
• Daikin
• NIBE
• Others

Key Market Developments

• In February 2024, building data from NREL's Energy Use Load Profiles and ORNL's GHP system modeling tool were used to create co-simulations of the nation's building stock and electric power systems by ORNL's buildings and electrification researchers in collaboration with the National Renewable Energy Laboratory, or NREL.
•  

Key Target Audience

• Market Players
• Investors
• End-users
• Government Authorities 
• Consulting And Research Firm
• Venture capitalists
• Value-Added Resellers (VARs)

Market Segment

This study forecasts revenue at global, regional, and country levels from 2020 to 2033. Spherical Insights has segmented the global geothermal heat pumps market based on the below-mentioned segments: 

Global Geothermal Heat Pumps Market, By Type

• Open Loop
• Closed Loop

Global Geothermal Heat Pumps Market, By Application

• Residential
• Commercial
• Industrial

Global Geothermal heat pumps Market, By Regional

• North America
  • US
  • Canada
  • Mexico
• Europe
  • Germany
  • Uk
  • France
  • Italy
  • Spain
  • Russia
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Australia
  • Rest of Asia Pacific
• South America
  • Brazil
  • Argentina
  • Rest of South America
• Middle East & Africa
  • UAE
  • Saudi Arabia
  • Qatar
  • South Africa
  • Rest of the Middle East & Africa