The geothermal heat pump market was valued at $6.0 billion in 2021, and is projected to reach $12.5 billion by 2030, growing at a CAGR of 7.6% from 2022 to 2031.
A central heating/cooling system called a geothermal heat pump (GHP) transfers heat to or from the earth. Instead of using the temperature of the outside air as the transfer medium, geothermal heat pump employs the constant temperature of the ground. They are also known as earth-coupled, ground-source, geo exchange, and water-source heat pumps. Since geothermal heat pumps are thought to be a workable technology for sustainable home heating, their use in commercial and residential buildings is increasing. Compared to conventional HVAC systems, this technology has been keeping consumers comfortable for more than 50 years and can save energy costs by up to 65%.
The rising need for affordable and effective air conditioning systems from homes and businesses, together with rising oil and energy prices worldwide, are the main factors propelling the expansion of the global geothermal heat pump market. The market, however, faces some obstacles, including expensive installation and starting costs. During the projected period, favorable government measures to promote the use of renewable energy and technological improvement in GHPs are anticipated to create prospective growth possibilities.
The geothermal heat pump market is segmented on the basis of technology, end-use, and region. Depending on technology, the market is categorized into open loop systems and closed loop systems (vertical loops and horizontal loops). On the basis of end-use, the market is categorized into residential (new building systems and retrofit systems), commercial, and industrial. On the basis of region, the market is studied across North America, Europe, Asia-Pacific, and LAMEA.
Major players operating in the global geothermal heat pump market include, Bosch Terotechnology Ltd, Bostech Mechanical Ltd., Carrier global Corporation, ClimateMaster Inc., Daikin Industries, Ltd., Danfoss Technologies, Dandelion Energy, De Dietrich Process Systems, Ecoforest S.A, Energy Smart Alternatives, GeoComfort Geothermal systems, GeoSmart Energy Inc., Maritime Geothermal Ltd., Mitsubishi Electric Corporation, Pfister’s Energy, Viessmann, and Wolf GmbH.
A central heating/cooling system called a geothermal heat pump (GHP) transfers heat to or from the earth. Instead of using the temperature of the outside air as the transfer medium, geothermal heat pump employs the constant temperature of the ground. They are also known as earth-coupled, ground-source, geo exchange, and water-source heat pumps. Since geothermal heat pumps are thought to be a workable technology for sustainable home heating, their use in commercial and residential buildings is increasing. Compared to conventional HVAC systems, this technology has been keeping consumers comfortable for more than 50 years and can save energy costs by up to 65%.
The rising need for affordable and effective air conditioning systems from homes and businesses, together with rising oil and energy prices worldwide, are the main factors propelling the expansion of the global geothermal heat pump market. The market, however, faces some obstacles, including expensive installation and starting costs. During the projected period, favorable government measures to promote the use of renewable energy and technological improvement in GHPs are anticipated to create prospective growth possibilities.
The geothermal heat pump market is segmented on the basis of technology, end-use, and region. Depending on technology, the market is categorized into open loop systems and closed loop systems (vertical loops and horizontal loops). On the basis of end-use, the market is categorized into residential (new building systems and retrofit systems), commercial, and industrial. On the basis of region, the market is studied across North America, Europe, Asia-Pacific, and LAMEA.
Major players operating in the global geothermal heat pump market include, Bosch Terotechnology Ltd, Bostech Mechanical Ltd., Carrier global Corporation, ClimateMaster Inc., Daikin Industries, Ltd., Danfoss Technologies, Dandelion Energy, De Dietrich Process Systems, Ecoforest S.A, Energy Smart Alternatives, GeoComfort Geothermal systems, GeoSmart Energy Inc., Maritime Geothermal Ltd., Mitsubishi Electric Corporation, Pfister’s Energy, Viessmann, and Wolf GmbH.
IMPACT OF COVID-19 ON GEOTHERMAL HEAT PUMP MARKET
- The outbreak of COVID-19 in China and its spread across numerous countries globally, halted the manufacturing activities of industrial sectors, which correspondingly hampered geothermal heat pump manufacturing as well. The raw material procurement was also challenged owing to the outbreak of COVID-19.
- The COVID-19 pandemic's global crises and commercial uncertainties have had a substantial impact on the operations of many firms and their sales. The implementation of lockdown restrictions in various nations along with the closure of heat pump manufacturing operations had a detrimental effect on the expansion of the domestic heat pump market. The supply of raw materials including iron castings, stainless steel components, and aluminum tubing was further impeded by travel restrictions, a closed border, and an import-export prohibition.
- Governments in several nations have taken steps to restart the economy and achieve the net zero carbon emission goal in the upcoming years in order to cope with the slowing business growth caused by the COVID-19 epidemic. For example, as per the news published in Electrical Times, an online news publishing platform, in 2020, the UK government issued a 10-point plan in 2020, to meet its net-zero carbon objective by 2050. The government has planned to install nearly 600,000 heat pumps by the end of 2028, along with investment in renewable energy and other low-carbon technology.
KEY BENEFITS FOR STAKEHOLDERS
- This report provides a quantitative analysis of the market segments, current trends, estimations, and dynamics of the geothermal heat pump market analysis from 2021 to 2031 to identify the prevailing geothermal heat pump market opportunities.
- The market research is offered along with information related to key drivers, restraints, and opportunities.
- Porter's five forces analysis highlights the potency of buyers and suppliers to enable stakeholders make profit-oriented business decisions and strengthen their supplier-buyer network.
- In-depth analysis of the geothermal heat pump market segmentation assists to determine the prevailing market opportunities.
- Major countries in each region are mapped according to their revenue contribution to the global market.
- Market player positioning facilitates benchmarking and provides a clear understanding of the present position of the market players.
- The report includes the analysis of the regional as well as global geothermal heat pump market trends, key players, market segments, application areas, and market growth strategies.
Key Market Segments
By Technology
- Open Loop Systems
- Closed Loop Systems
- Design
- Vertical Loops
- Horizontal Loops
By End Use
- Residential
- Installation Type
- New Building Systems
- Retrofit Systems
- Commercial
- Industrial
By Region
- North America
- U.S.
- Canada
- Mexico
- Europe
- France
- Italy
- Sweden
- Finland
- Germany
- Norway
- Spain
- Denmark
- Rest of Europe
- Asia-Pacific
- China
- Japan
- India
- South Korea
- Australia
- Rest Of Asia Pacific
- LAMEA
- Saudi Arabia
- South Africa
- Rest of LAMEA
- Brazil
Key Market Players
- Mitsubishi Electric Corporation
- Daikin Industries Ltd.
- Sauer-Danfoss Inc.
- Carrier Corporation
- ClimateMaster, Inc.
- Bosch Thermotechnology
- Wolf GmbH
- Dandelion
- GeoComfort
- EnergySmart Alternatives
- Free Energy Innovations
- De Dietrich S.A.S.
- Pfister Energy
- GeoSmart Energy
- Bostech Mechanical Ltd
- Maritime Geothermal Ltd
- Ecoforest S.A.
Table of Contents
CHAPTER 1: INTRODUCTION
CHAPTER 2: EXECUTIVE SUMMARY
CHAPTER 3: MARKET OVERVIEW
CHAPTER 4: GEOTHERMAL HEAT PUMP MARKET, BY TECHNOLOGY
CHAPTER 5: GEOTHERMAL HEAT PUMP MARKET, BY END USE
CHAPTER 6: GEOTHERMAL HEAT PUMP MARKET, BY REGION
CHAPTER 7: COMPANY LANDSCAPE
CHAPTER 8: COMPANY PROFILES
List of Tables
List of Figures
Executive Summary
According to the report, titled, “Geothermal Heat Pump Market," the geothermal heat pump market size was valued at $6.0 billion in 2021, and geothermal heat pump industry is estimated to reach $12.5 billion by 2031, growing at a CAGR of 7.6% from 2022 to 2031.A central water heating system that uses geothermal energy to heat the water is known as a geothermal heat pump (GHPs) or ground source heat pump. Geothermal heat pumps are popular in many heating applications for surface water, recycled water, retention basin storm water, sewage treatment plants, and rainwater harvesting. They are also energy efficient. Geothermal heat pumps may be utilized alone or in conjunction with other hybrid systems, such as solar geothermal heat pumps. The hybrid setups have advantages in terms of cost and high performance. The earth's mild temperatures are used by geothermal heat pumps as cooling and heating sources. Instead of always coming from the center of the earth's crust, the geothermal heat pump's primary source of heat is the sun. Some of the other popular name of geothermal heat pump in various part of the world includes geoexchange, earth energy systems and earth-coupled heat pumps.
The global geothermal heat pump market trends are being driven by rising concerns among policy makers regarding energy security, environmental sustainability, and the trend toward development and national well-being based on the bio economy. In addition, geothermal heat pumps reduce energy usage and aid in reducing greenhouse gas (GHG) emissions, which benefits the market even more. In addition, a geothermal water pump has lower long-term costs than a conventional water heater system. A major obstacle to the widespread adoption of this technology in the world's major developing nations is the high installation cost of geothermal heat pump systems as well as the lack of public understanding or confidence in the benefits of geothermal heat pump systems. Moreover, lack of technological advancement and technique toward the cost and performance benefits of geothermal heat pump is limiting the geothermal heat pump market growth.
The geothermal heat pump market forecast is segmented on the basis of technology, end use, and region. Depending on technology, the market is categorized into open loop systems and closed loop systems (vertical loops and horizontal loops). On the basis of end-use, the market is categorized into residential (new building systems and retrofit systems), commercial, and industrial. Region-wise, the market is studied across North America, Europe, Asia-Pacific, and LAMEA.
Major players operating in the global geothermal heat pump market include, Bosch Terotechnology Ltd, Bostech Mechanical Ltd., Carrier global Corporation, ClimateMaster Inc., Daikin Industries, Ltd., Danfoss Technologies, Dandelion Energy, De Dietrich Process Systems, Ecoforest S.A, Energy Smart Alternatives, GeoComfort Geothermal systems, GeoSmart Energy Inc., Maritime Geothermal Ltd., Mitsubishi Electric Corporation, Pfister’s Energy, Viessmann, and Wolf GmbH.
Key Findings of the Study
- Asia-Pacific would exhibit CAGR of 8.5% during 2022-2031.
- Japan contributes around 5.4% of total geothermal heat pump market share and would exhibit CAGR of 7.6% during 2022-2031.
- South Korea contributes around 1.9% of total market share and would exhibit CAGR of 9.1% during 2022-2031
- As per global geothermal heat pump market analysis, by technology, the closed loop systems segment accounted more than 80% of market share in 2021.
- By end use, residential segment is expected to possess a market share of 75.1% in 2031.
- By region, Europe was the leading segment in 2021, with a CAGR of 6.4% during 2022-2031
IMPACT OF COVID-19 ON GEOTHERMAL HEAT PUMP MARKET
- The outbreak of COVID-19 in China and its spread across numerous countries globally, halted the manufacturing activities of industrial sectors, which correspondingly hampered geothermal heat pump manufacturing as well. The raw material procurement was also challenged owing to the outbreak of COVID-19.
- The COVID-19 pandemic's global crises and commercial uncertainties have had a substantial impact on the operations of many firms and their sales. The implementation of lockdown restrictions in various nations along with the closure of heat pump manufacturing operations had a detrimental effect on the expansion of the domestic heat pump market. The supply of raw materials including iron castings, stainless steel components, and aluminum tubing was further impeded by travel restrictions, a closed border, and an import-export prohibition.
- Governments in several nations have taken steps to restart the economy and achieve the net zero carbon emission goal in the upcoming years in order to cope with the slowing business growth caused by the COVID-19 epidemic. For example, as per the news published in Electrical Times, an online news publishing platform, in 2020, the UK government issued a 10-point plan in 2020, to meet its net-zero carbon objective by 2050. The government has planned to install nearly 600,000 heat pumps by the end of 2028, along with investment in renewable energy and other low-carbon technology.
Companies Mentioned
- Mitsubishi Electric Corporation
- Daikin Industries Ltd.
- Sauer-Danfoss Inc.
- Carrier Corporation
- Climatemaster, Inc.
- Bosch Thermotechnology
- Wolf GmbH
- Dandelion
- Geocomfort
- Energysmart Alternatives
- Free Energy Innovations
- De Dietrich S.A.S.
- Pfister Energy
- Geosmart Energy
- Bostech Mechanical Ltd
- Maritime Geothermal Ltd
- Ecoforest S.A.
Methodology
The analyst offers exhaustive research and analysis based on a wide variety of factual inputs, which largely include interviews with industry participants, reliable statistics, and regional intelligence. The in-house industry experts play an instrumental role in designing analytic tools and models, tailored to the requirements of a particular industry segment. The primary research efforts include reaching out participants through mail, tele-conversations, referrals, professional networks, and face-to-face interactions.
They are also in professional corporate relations with various companies that allow them greater flexibility for reaching out to industry participants and commentators for interviews and discussions.
They also refer to a broad array of industry sources for their secondary research, which typically include; however, not limited to:
- Company SEC filings, annual reports, company websites, broker & financial reports, and investor presentations for competitive scenario and shape of the industry
- Scientific and technical writings for product information and related preemptions
- Regional government and statistical databases for macro analysis
- Authentic news articles and other related releases for market evaluation
- Internal and external proprietary databases, key market indicators, and relevant press releases for market estimates and forecast
Furthermore, the accuracy of the data will be analyzed and validated by conducting additional primaries with various industry experts and KOLs. They also provide robust post-sales support to clients.
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Table Information
| Report Attribute | Details |
|---|---|
| No. of Pages | 400 |
| Published | July 2022 |
| Forecast Period | 2021 - 2030 |
| Estimated Market Value ( USD | $ 6 billion |
| Forecasted Market Value ( USD | $ 12.5 billion |
| Compound Annual Growth Rate | 8.5% |
| Regions Covered | Global |
| No. of Companies Mentioned | 17 |
