Authored By: Sarah
11 Jul 2024

 Geothermal Heat Pump Market Size to grow by USD 5655.9 million between 2024-2028

According to a research report “ Geothermal Heat Pump Market” by End-user (Residential, Non-residential) Type (Closed loop system, Open loop system) Geography (Europe, North America, APAC, South America, Middle East and Africa)- Global Forecast to 2028 published by Technavio, the market size is estimated to grow by USD 5655.9 million, at a CAGR of over 8.46% during the forecast period. Geothermal heat pumps offer significant operational advantages over conventional heating and cooling systems, making them a pivotal growth driver in the global geothermal heat pump market. These systems exhibit superior energy efficiency by extracting heat from the ground or water source, which maintains a more consistent temperature than outdoor air. Consequently, geothermal heat pumps require less energy to heat or cool buildings compared to traditional HVAC systems, leading to reduced energy expenses and lower carbon emissions. Additionally, their durability and longevity are notable advantages, as they possess fewer moving parts and are installed indoors, shielding them from harsh weather conditions.

Browse market data tables, figures, and in-depth TOC on “Geothermal Heat Pump Market” by End-user (Residential, Non-residential) Type (Closed loop system, Open loop system) Geography (Europe, North America, APAC, South America, Middle East and Africa) Global Forecast to 2028. Download Free Sample

 

By End-user, the Residential segment is projected to dominate the market size in 2024

The global geothermal heat pump market encompasses various system types, with closed loop systems being a significant segment. These systems utilize a continuous loop of subterranean piping, often installed horizontally or vertically, filled with a heat transfer fluid. In winter, the fluid absorbs heat from the ground, while in summer, it transfers heat back into the ground. Ideal for buildings with limited land area and unfeasible well drilling, closed loop systems offer environmental benefits, as they harness the earth's natural heat, thereby reducing the reliance on traditional heating and cooling systems that depend on fossil fuels.

By Type, Closed loop system  segment is expected to hold the largest market size for the year 2024

The residential segment dominated the geothermal heat pump market in 2023, accounting for a significant market share, and is anticipated to maintain this trend throughout the forecast period. The construction industry's recovery from a prolonged downturn following the financial crisis of the past decade will significantly impact the demand for geothermal heat pumps. Given that the residential sector comprises a substantial portion of the global construction market, the anticipated growth of the housing sector is expected to drive the demand for geothermal heat pumps on a global scale.

Europe is forecasted to hold the largest market size by region in 2024

The geothermal heat pump market represents a significant business opportunity, driven by the growing demand for renewable and energy-efficient heating solutions. These systems harness the natural heat from the earth to provide both heating and cooling, resulting in substantial energy savings and reduced carbon emissions. Market growth is further fueled by government incentives and increasing environmental consciousness among consumers. Companies specializing in geothermal technology and installation stand to benefit from this expanding market trend.

The Geothermal Heat Pump Market growth and forecasting report also includes detailed analyses of the competitive landscape of the market growth and forecasting and information about 20 market companies, including:

  • Bard HVAC
  • Carrier Global Corp.
  • Daikin Industries Ltd.
  • Dandelion
  • Danfoss AS
  • Energy Smart Alternatives.
  • GeoSmart Energy
  • Glen Dimplex Group.
  • Griffiths Air Conditioning and Electrical Contractors
  • Johnson Controls International Plc.
  • Kensa Group
  • Mitsubishi Corp.
  • NIBE Industrier AB
  • REMKO GmbH and Co. KG
  • Robert Bosch GmbH
  • Sirac Air Conditioning Equipments Co. Ltd.
  • Stiebel Eltron GmbH and Co. KG
  • Trane Technologies Plc
  • Vaillant GmbH
  • Viessmann Climate Solutions SE
.

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Research Analysis Overview

The Geothermal Heat Pump (GHP) market encompasses various types of systems that utilize the natural heat from rivers, lakes, wells, and groundwater to generate heating. Open-loop GHP systems, which use water from rivers or lakes as the primary heat source, lead the market. These systems offer lower heating costs compared to traditional fossil fuel-based systems, making them an attractive solution for renewable energy enthusiasts. Open-loop GHP systems consist of a pipe that draws water from the water source, passes it through a heat exchanger, and then releases it back into the water body. The space requirement for these systems is minimal, and their efficiency is high due to the constant temperature of the water source. Another popular configuration is the vertical closed-loop system, which uses interconnected pipes and loops filled with an antifreeze solution to transfer heat from the ground. These systems offer high durability and low maintenance cost. In contrast, horizontal closed-loop systems use pipes buried in the ground and require more length for effective heat transfer. Overall, GHP systems offer a sustainable and cost-effective heating solution, making them a promising market for the future.

Market Research Overview

Geothermal Heat Pumps (GHPs) are an Energy Smart Alternative for industrial and commercial applications, providing both space heating and cooling through the transfer of heat from the ground. GHPs can be integrated into new building systems or retrofitted into existing ones. Two main types of loops are used: horizontal and vertical. Horizontal loops consist of U-shaped pipes buried in trenches, while vertical loops involve drilling holes into the ground for U-shaped or V-shaped pipes. Closed-loop systems use an antifreeze solution, while open-loop systems draw water directly from sources like ponds, rivers, lakes, or wells. The commercialization of GHPs has been influenced by economic conditions and tax rebates. GHPs can provide hot water for water heating and dehumidification through evaporation processes. Large GHPs can generate significant hot water for industrial processes, reducing heating costs. However, feasibility depends on local restrictions, availability of suitable groundwater quality, and installation costs. The open-loop GHP segment faces challenges due to limited availability of suitable water sources and local restrictions. In contrast, closed-loop GHPs offer high durability and low maintenance costs, making them a popular choice. The efficiency of GHPs depends on the configuration, pipe length, depth, and ground area. Vertical closed-loop systems are ideal for sites with limited space availability. Overall, GHPs contribute to renewable energy solutions for industrial and commercial applications.

Contacts

Technavio Research
Jesse Maida
Media & Marketing Executive
US: +1 844 364 1100
UK: +44 203 893 3200
Email: media@technavio.com
Website: www.technavio.com/

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