Geothermal Heat Pump Global Market Report 2024

The geothermal heat pump market size has grown strongly in recent years. It will grow from $4.06 billion in 2023 to $4.44 billion in 2024 at a compound annual growth rate (CAGR) of 9.3%. The expansion observed in the historical period can be attributed to government initiatives to install heat pumps, increased adoption of renewable energy sources, and strong economic growth in emerging markets.

The geothermal heat pump market size is expected to see strong growth in the next few years. It will grow to $6.15 billion in 2028 at a compound annual growth rate (CAGR) of 8.5%. The anticipated growth in the forecast period can be attributed to government initiatives to install heat pumps, increased adoption of renewable energy sources, and strong economic growth in emerging markets. Key trends expected in the forecast period encompass a focus on expanding manufacturing operations, adopting a pay-as-you-go business model, increasing investments, and undergoing partnerships and collaborations to improve product offerings and stay competitive in the market.

The growth of the geothermal heat pumps market is being propelled by increasing government initiatives aimed at reducing carbon emissions. Governments worldwide are implementing various measures to cut carbon emissions, with some countries setting ambitious targets for achieving net-zero carbon emissions. This shift towards natural resources, including geothermal energy, is expected to drive the demand for geothermal heat pumps. These pumps are increasingly utilized for heating and cooling purposes, offering an eco-friendly alternative to carbon-emission-producing products such as electricity-powered air conditioning units and thermal-powered power plants. Notably, the International Energy Agency has outlined a roadmap for achieving net-zero carbon emissions by 2050, with many countries committing to this goal. The growing emphasis on curbing carbon emissions is anticipated to boost the demand for geothermal heat pumps in the forecast period.

The geothermal heat pump market is also expected to experience growth due to rising fuel prices. The surge in fuel prices has led to an increased demand for geothermal heat, given that these systems provide an environmentally friendly solution by eliminating the need for fossil fuels. The escalating costs of regular motor gasoline and diesel fuel, as reported by the Bureau of Transportation Statistics, have contributed to a growing interest in alternative energy sources. Additionally, fuel prices in countries such as Bangladesh have witnessed significant increases, further driving the adoption of geothermal heat pump systems. Consequently, the upward trajectory of fuel prices is poised to contribute to the expansion of the geothermal heat pump market.

A notable trend in the geothermal heat pump market is the emphasis on technological advancement. Key players in the market are dedicating efforts to developing new technologies with enhanced operational and performance capabilities, coupled with reduced complexities. For instance, Bosch Thermotechnik GmbH introduced the QV Series, featuring ultra-quiet heat pumps designed for commercial areas. This product incorporates Bosch-patented compressor encapsulation, ensuring comprehensive and sound performance while offering a compact design suitable for small spaces in commercial establishments. This technological innovation is expected to enhance the appeal of geothermal heat pumps.

A notable trend gaining traction in the geothermal heat pump market is the increasing focus on investments by major industry players. These companies are directing their efforts towards leveraging geothermal energy technologies to facilitate heating and cooling applications in buildings. An illustrative example is the case of Dandelion Energy, a US-based company specializing in geothermal heating installation. In November 2022, the company successfully raised $70 million in a new funding round, aiming to utilize the capital for investments in a more extensive range of products. The objective is to cater to a larger customer base and expand operations to additional geographical locations. This funding follows a similar initiative by Dandelion in February 2021, where $30 million was secured in Series B financing. The funds were earmarked for the installation of geothermal systems in 10,000 houses annually, driving expansion efforts in Massachusetts, Connecticut, and New York. This strategic move aligns with the company's vision to replace residential natural gas or fuel oil heating systems with efficient geothermal heat pumps.

In January 2022, Energy Machines, a Danish company specializing in integrated energy systems for buildings, acquired Enopsol, although the specific financial details remain undisclosed. This acquisition reflects Energy Machines' commitment to enhancing its portfolio of energy systems technologies and broadening its global business presence. Enopsol, a Danish company recognized for its expertise in the design and installation of groundwater cooling and heating systems, aligns with Energy Machines' strategic objectives. The acquisition serves as a key step in achieving expansion goals and further establishing a strong foothold in the geothermal heat pump market.

Major companies operating in the geothermal heat pump market report are Carrier Global Corporation, Bosch Thermotechnology, NIBE Group, Viessmann, Trane, Daikin Industries Ltd., Vaillant Group, Stiebel Eltron, Glen Dimplex, Maritime Geothermal Ltd., Guangdong Shunde O.S.B. Environmental Technology Co. Ltd., Shijiazhuang Industrial Pump Factory Co. Ltd., Xiamen Hysen Control Technology Co. Ltd., First Industrial Development Co. Ltd., Shenzhen E-Joy Tech Co. Ltd., Teccon Services Private Limited, Suntec Energy Systems, Mitsubishi Corporation, Nidec Servo, Yanmar Energy System Co, Enopsol ApS, Go Geothermal Ltd., Argoclima SpA, GT Energy, Kensa Heat Pumps, Tecnoclima Spa, HRS Heat Exchangers Ltd., Thermostahl Srl, Thermocold, KENO Pawel Grzegorczyk, Geo Star, Geothermal Products, Water Furnace International Inc., Miami Heat Pump, Climate Master Inc., Energy Smart Alternatives LLC, Alterra Power Corporation, Pfister Energy, Geo-Air Industries Inc., Geo Smart Energy, Hilliard Corporation, Solar Turbines Incorporated, Solartec SA, Capstone Turbine Corporation, ABO Wind Energias Renovables S.A, Ruf Maschinenbau GmbH & Co. KG, Enel Green Power, SAFARIO Cooling Factory LLC, Osso Ltd., Viessmann Werke GmbH & Co. KG, Roots - Sustainable Agricultural Technologies Ltd., Stellae Energy, Yokogawa South Africa (Pty) Ltd., Generac Power Systems, Mitsubishi Heavy Industries, Cummins Inc.

Asia-Pacific was the largest region in the geothermal heat pump market in 2023, and it is also expected to be the fastest-growing region in the forecast period. The regions covered in the geothermal heat pump market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the geothermal heat pump market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Italy, Spain, Canada.

The main types of geothermal heat pumps are open-loop geothermal heat pumps and closed-loop geothermal heat pumps. Open-loop geothermal heat pumps utilize groundwater as a refrigerant to transfer thermodynamic energy for heating or cooling. They find widespread use in residential, commercial, and industrial applications.

The geothermal heat pump market research report is one of a series of new reports that provides geothermal heat pump market statistics, including the geothermal heat pump industry global market size, regional shares, competitors with a geothermal heat pump market share, detailed geothermal heat pump market segments, market trends, and opportunities, and any further data you may need to thrive in the geothermal heat pump industry. This geothermal heat pump market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenarios of the industry.

The geothermal heat pump market consists of sales of horizontal loop systems, vertical loop systems, well-water loop systems, pond/lake geothermal heat pump systems direct exchange, and hybrid systems. Values in this market are ‘factory gate’ values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors, and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.