Global Geothermal Heat Pump Market Report and Forecast 2024-2032

Global Geothermal Heat Pump Market Outlook

The global market for geothermal heat pump reached a value of about USD 12.46 billion in 2023. The market is further expected to grow at a CAGR of about 7.30% in the forecast period of 2024-2032 to reach a value of around USD 23.50 billion by 2032.

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Europe to be Among the Significant Regional Markets for Geothermal Heat Pump

Europe is projected to be one of the largest regional markets over the forecast period due to favourable government measures aimed at lowering energy use. The booming construction sector is expected to contribute significantly to market growth in the coming years. The rise in expenditure towards ecological construction and surging demand for heating and cooling systems have been the key regional drivers augmenting the market growth. Further, governments around the region emphasise energy efficiency and lower carbon footprints, which is driving the geothermal heat pump market further. Governments of countries such as Germany, the United Kingdom, and France are offering subsidies and pushing the use of GHPs to achieve zero carbon emissions, hence increasing the regional product demand.

The Asia Pacific and North America to Witness Robust Demand for the Product

The Asia Pacific region is expected to register the fastest growth in the global market due to economic conditions, rapid industrialisation, and commercialisation. A strong consumer base in the region has led to a surge in demand for GHP. The region is also one of the most significant manufacturing sectors with a dense population, which is projected to impact the market growth positively. Developing the renewable energy sector in the region, mainly in China, Japan, India, and Australia, will further propel regional growth.

In North America, the United States and Canada have the highest demand for geothermal heat pumps. The increasing demand for water and space heating in North America is expected to drive the expansion of geothermal heat pump market in this region. Demand for innovative heating and cooling solutions is likely to grow as the commercial sector expands. Various government initiatives and rebates for incorporating eco-friendly and energy-saving technologies are projected to augment the demand for upgraded GHPs in the region. There is increasing usage of geothermal heat pumps in Canada due to rising infrastructure development activities and increasing awareness of zero-emission houses among consumers, boosting the region's market growth.

Market Segmentations

The ground heat exchanger, heat pump unit, and air supply system make up a geothermal heat pump, also known as ground source heat pumps. A geothermal heat pump is cost-effective and energy-efficient heating and cooling system that transfers heat from and to the ground. During the summer, a geothermal heat pump extracts heat from a building and transmits it to the ground, where it is cooled. It collects heat from the earth in the winter and transfers it to the building for heating.

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Based on type, the market is segmented into:

• Closed Loop
• Open Loop

The significant applications of the market are:

• Commercial
• Residential
• Industrial

The regional markets for the geothermal heat pump market can be divided into North America, Europe, the Asia Pacific, Latin America, the Middle East and Africa.

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Growing Demand for Energy-Efficient Solutions Augmenting the Market Growth

Rising focus on energy efficiency and favourable government initiatives, such as rebates, subsidies, and financial support, to encourage the adoption of renewable energy sources are the key factors driving the market growth. Consumers are turning to renewable heat sources in response to rising carbon emissions and fluctuating energy prices, which is predicted to drive the product demand internationally. Likewise, increasing consumer awareness about clean energy and government laws regarding emissions and standards are expected to augment the demand for energy-saving products like geothermal heat pumps in the industrial and residential sectors.

Apart from this, the rising fossil fuel prices and rising electricity prices are resulting in a shift of consumer focus toward low-cost energy alternatives, further aiding the growth of the geothermal heat pump market. Due to its low maintenance and low operational cost, there is rising adoption of geothermal heat pumps, which influences the market's growth. Further, the rising use of ground-source heat pumps in residential settings for space heating and hot water generation is likely to propel market growth in the coming years. Suppliers of geothermal heat pumps are employing various techniques to increase sales and services. Dandelion Energy, a well-known home geothermal company, based in the United States, announced in March 2021 that it will now provide its services to the entire state of Connecticut and signed a lease for a 21,000 square foot facility to oversee its operations in this region.

Key Players in the Global Market for Geothermal Heat Pump

The report gives a detailed analysis of the following key players in the global geothermal heat pump market, covering their competitive landscape, capacity, and latest developments like mergers, acquisitions, and investments, expansions of capacity, and plant turnarounds:

• Stiebel Eltron GmbH & Co. KG
• Vaillant Group
• Maritime Geothermal Ltd.
• Bosch Thermotechnology Corp.
• Bard Manufacturing Company, Inc.
• Others

The comprehensive EMR report provides an in-depth assessment of the market based on the Porter's five forces model along with giving a SWOT analysis.

Key Highlights of the Report