The global geothermal heat pump market is expected to grow at a CAGR of around 6.2% during the forecast period of 2023-2030 and is estimated at US$ 14 billion in 2023.
Geothermal heat pumps, also known as ground-source heat pumps, utilize the earth’s constant temperature to provide heating, cooling, and hot water for residential, commercial, and industrial buildings.
Geothermal heat pumps are one of the most environmentally friendly heating and cooling solutions. In the winter, they draw heat from the earth for heating; in the summer, they return any additional heat to it for cooling. They are a sustainable replacement for conventional heating and cooling systems because they harness the earth’s natural heat, which greatly reduces greenhouse gas emissions. Due to their energy efficiency and minimal maintenance needs, geothermal heat pumps offer significant long-term cost advantages while having higher initial installation prices. Because these systems last longer than conventional HVAC systems, users pay less over their entire lifecycles for geothermal heat pump.
Rise in Construction Activity Driving Geothermal Heat Pump Market
Geothermal heat pumps have become a popular alternative as a result of construction activities, which have boosted the demand for sustainable and energy-efficient heating and cooling solutions in both the residential and commercial sectors. There has been a rise in the use of eco-friendly and energy-efficient technologies as there has been an increase in the construction of new homes and businesses. Geothermal heat pumps offer a dependable and environmentally friendly solution for these new buildings’ heating, cooling, and hot water requirements.
A trend of retrofitting and upgrading existing buildings to increase their energy efficiency and environmental performance has emerged in addition to new construction. Since geothermal heat pumps can be installed in both new construction and existing structures, they are appropriate for retrofit projects since they provide long-term energy savings and a reduced carbon impact.
Asia Pacific Significantly Drives Global Geothermal Heat Pump Market Growth
Geothermal heat pumps have steadily become more popular throughout the Asia-Pacific area, particularly in China, Japan, and South Korea. Rising urbanization, rising energy demand, and initiatives to minimize greenhouse gas emissions were all factors in this region’s growth. The industry was also fueled by government programs to encourage energy-efficient technologies and renewable sources.
Another large market for geothermal heat pumps was Europe. Strict environmental rules, energy efficiency goals, and incentives provided by governments and utilities propelled the adoption of geothermal systems in nations like Sweden, Germany, and France. The region’s focus on utilizing renewable energy sources and lowering carbon emissions has helped the market for geothermal heat pumps expand.
Market Structure and Competitive Landscape
These players adopt various strategies in order to reinforce their market share and gain a competitive edge over other competitors in the global geothermal heat pump market. Mergers & acquisitions, partnerships and collaborations, and product launches are some of the strategies followed by industry players. Some of the key developments in the global geothermal heat pump market include,
- In 2019, Beijing Daxing International Airport is planning to equip a ground source heat pump system. The system can produce 563,600 GJ of shallow geothermal energy annually, conserving 1,736 cubic meters of natural gas and reducing carbon emissions by around 15,800 tons over an area of about 2.5 million square meters.
The global geothermal heat pump market is fragmented in nature with the presence of various players operating in the market. Some of the prominent players operating in the geothermal heat pump market, include Stiebel Eltron, Ingersoll Rand, Vaillant Group, Viessmann, Glen Dimplex, Daikin, NIBE, Carrier, ClimateMaster Inc, Bard HVAC, Spectrum Manufacturing, Dandelion, Robert Bosch LLC, Maritime Geothermal, and OCHSNER, among others.
Key Market Segmentation
RationalStat has segmented the global geothermal heat pump market based on type, application and region.
- By Type
- Closed Loop
- Open Loop
- Closed Loop
- By Application
- Installation Type
- New Building systems
- Retrofit Systems
- Installation Type
- By Region
- North America
- Latin America
- Rest of Latin America
- Western Europe
- Rest of Western Europe
- Eastern Europe
- Rest of Eastern Europe
- Asia Pacific
- South Korea
- ASEAN (Indonesia, Vietnam, Malaysia, etc.)
- Rest of Asia Pacific
- Middle East & Africa
- South Africa
- Rest of the Middle East & Africa
- North America
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Frequently Asked Questions (FAQs)
The global geothermal heat pump market is anticipated to grow at a CAGR of approximately 6.2% during the forecast period 2023-2030.
The global geothermal heat pump market is estimated at US$ 14 billion in 2023.
Increasing demand for energy-efficient solutions driving the geothermal heat pump market growth.
Asia Pacific holds the major share of the global geothermal heat pump market.
Leading Companies operating in the global geothermal heat pump market include Stiebel Eltron, Ingersoll Rand, Vaillant Group, Viessmann, Glen Dimplex, Daikin, NIBE, Carrier, ClimateMaster Inc, Bard HVAC, Spectrum Manufacturing, Dandelion, Robert Bosch LLC, Maritime Geothermal, OCHSNER etc.