Geothermal Heat Pump Global Market Opportunities and Strategies to 2032

This report describes and explains the geothermal heat pump market and covers 2017 to 2022, termed the historic period, and 2022 to 2027 termed the forecast period, along with further forecasts for the period 2027-2032. The report evaluates the market across each region and for the major economies within each region.

The geothermal heat pump market reached a value of nearly $3,735.4 million in 2022, having grown at a compound annual growth rate (CAGR) of 5.2% since 2017. The market is expected to grow from $3,735.4 million in 2022 to $5,739.4 million in 2027 at a rate of 9.0%. The market is then expected to grow at a CAGR of 7.8% from 2027 and reach $8,343.3 million in 2032.

Growth in the historic period resulted from government initiatives to install heat pumps, increased adoption of renewable energy sources, and strong economic growth in emerging markets. Factors that negatively affected growth in the historic period was impact of COVID-19.

Going forward, increasing government initiatives to curb carbon emissions, rising fuel prices, increasing demand for heat pumps, and growing investment in construction will drive the growth. Factors that could hinder the growth of the geothermal heat pump market in the future include high installation cost.

The geothermal heat pump market is segmented by technology into open loop system and closed loop system. The closed loop system market was the largest segment of the geothermal heat pump market segmented by technology, accounting for 85.5% of the total in 2022. Going forward, the closed loop system segment is expected to be the fastest growing segment in the geothermal heat pump market segmented by technology, at a CAGR of 9.1% during 2022-2027.

The geothermal heat pump market is segmented by application into residential, commercial, and industrial. The residential market was the largest segment of the geothermal heat pump market segmented by application, accounting for 60.5% of the total in 2022. Going forward, the residential segment is expected to be the fastest growing segment in the geothermal heat pump market segmented by application, at a CAGR of 9.3% during 2022-2027.

Asia Pacific was the largest region in the geothermal heat pump market, accounting for 36.7% of the total in 2022. It was followed by North America, and then the other regions. Going forward, the fastest-growing regions in the geothermal heat pump market will be Asia Pacific and North America where growth will be at CAGRs of 11.9% and 8.0% respectively. These will be followed by Western Europe and South America where the markets are expected to grow at CAGRs of 7.8% and 6.0% respectively.

The global geothermal heat pump market is concentrated, with a few large players. The top ten competitors in the market made up to 41.62% of the total market in 2021. Carrier Global Corporation was the largest competitor with 19.62% share of the market, followed by Bosch Thermotechnology with 8.76%, NIBE Group with 2.95%, Viessmann with 2.86%, Trane with 2.43%, Daikin Industries, Ltd. with 1.30%, Vaillant Group with 1.26%, Stiebel Eltron with 1.22%, Glen Dimplex with 0.61%, and Maritime Geothermal Ltd. with 0.51%.

The top opportunities in the geothermal heat pump market segmented by technology will arise in the closed loop system segment, which will gain $1,736.5 million of global annual sales by 2027. The top opportunities in the geothermal heat pump market segmented by application will arise in the residential segment, which will gain $1,264.3 million of global annual sales by 2027. The geothermal heat pump market size will gain the most in USA at $364.9 million.

Market-trend-based strategies for the geothermal heat pump market includes focus on expanding their manufacturing operations, turning to pay-as-you-go business model, increasing investments, and undergoing partnerships and collaborations to improve their product offerings and to stay competitive in the market.

Player-adopted strategies in the geothermal heat pump market includes focus on expanding its product portfolio and strengthening is business by acquiring companies having same business, brining advancement in its products and is also enhancing its business by launching new products, strengthening its business by launching new products into the market and is also acquiring companies with same business, and increasing its production capacity by opening its new manufacturing factory.

To take advantage of the opportunities, the publisher recommends the geothermal heat pump companies to focus on increasing production facilities, focus on increasing investments, adopt to the pay-as-you-go business model, expand in emerging markets, target countries with high geothermal power generation capacity, focus on partnerships and collaborations, and focus on fast growing applications.