Geothermal heat pumps are increasingly in demand as energy use and carbon emissions are being reduced. Governments in several nations are pushing renewable energy sources like geothermal energy in response to growing worries about global warming. With incentives like tax credits and subsidies being offered for their installation, government activities have significantly accelerated the adoption of geothermal heat pumps. In addition, geothermal heat pumps now perform and have more features than earlier models, making them a more appealing alternative to conventional HVAC systems. The system is now simpler to handle and monitor thanks to the introduction of sophisticated and user-friendly digital controllers, and its performance has been enhanced with capabilities for remote maintenance and monitoring.
Increased awareness and acceptance of renewable energy sources, expanding demand from residential and commercial structures, rising cost-effectiveness, and greater environmental benefits are the driving forces behind the need for the geothermal heat pump market. Governments from different nations are also offering financial incentives to encourage the use of geothermal heat pumps for heating purposes. During the projected period, these factors are anticipated to increase the geothermal heat pump market globally.
Geothermal heat pumps are becoming more and more popular as a result of all the benefits they offer over conventional heating and cooling systems. Geothermal heat pumps are economical, effective, environmentally benign, and low maintenance. Both commercial and residential structures, including office buildings, shopping malls, hospitals, and more, can utilize to heat and cool their interior spaces. Geothermal heat pump systems are a fantastic option for anyone looking for environmentally friendly solutions to cool and heat their homes because they can be combined with renewable energy sources like solar panels and wind turbines.
Earth source heat pumps, commonly referred to as geothermal heat pumps, are a dependable and effective technique to transmit heat from the ground to structures. These pumps extract or move heat from one location to another using the constant temperature found a few meters beneath the Earth's surface. Since they lessen reliance on conventional energy sources like electricity, coal, and oil, geothermal heat pumps offer a cost-effective method for heating buildings.
During the projected period, it is anticipated that the global market for geothermal heat pumps would increase at a CAGR of 14.0%, from USD 2.62 billion in 2021 to USD 6.06 billion in 2031.
These systems' expensive installation costs will probably prevent them from being widely used in both residential and commercial structures. Other constraints that could prevent the widespread use of geothermal heat pumps in the upcoming years include high electricity costs, a lack of knowledge about their effectiveness, and protracted payback periods. However, new development prospects in the geothermal heat pump sector are anticipated to balance these restrictions. Due to the rising demand for energy-efficient and economical solutions, the geothermal heat pump market is anticipated to expand rapidly.
NIBE Industrier AB, Bosch Thermotechnology Corp., Carrier Corporation, Viessmann Manufacturing Company Ltd., and Daikin Industries, Ltd. are a few of the major companies competing in the global geothermal heat pump industry. To achieve a competitive advantage in the industry, these firms are committed to providing cutting-edge solutions.
The Vertical Closed Loop Type to Emerge as the Most Lucrative Segment
Type-based segmentation of the geothermal heat pump market includes a vertical closed loop, horizontal closed loop, open loop, and others. In 2020, the vertical closed loop market category held the most market share, and it is anticipated that it would keep that position for the duration of the forecast. This can be explained by the fact that certain systems are preferred by users over others since they are effective and inexpensive. In comparison to other varieties, vertically closed loop systems use fewer resources and are less expensive to build.
The Most Popular Application Segment in Residential Buildings
The geothermal heat pump market is divided into residential buildings and commercial buildings based on application. The greatest share was held by the residential building sector in 2020, and it is anticipated that it would remain in this position throughout the projection period. This is a result of both the preference for geothermal heat pumps as an environmentally acceptable alternative and the growing need for energy-efficient HVAC systems in residential buildings.
North American region to render Adequate Financing Avenues
The continents of North America, South America, Asia Pacific, Europe, the Middle East, and Africa make up the bulk of the world market for geothermal heat pumps. While Asia Pacific is anticipated to increase at the highest rate during the projected period, North America held the greatest share in 2020. It is anticipated that the market in this area will expand as a result of the rising number of residential development projects in nations like China and India. Geothermal heat pumps have also seen an uptick in investments and installations as a result of government programs supporting environmentally friendly and energy-efficient heating and cooling systems.
COVID-19 Impact and Market Status
Global geothermal heat pump demand is anticipated to soar between 2021 and 2031. Lockdowns and other limitations caused by the COVID-19 epidemic have significantly impacted the demand for geothermal heat pumps in numerous nations and areas. Despite this, there is still a lot of room for expansion as governments throughout the world make significant investments in renewable energy sources and heating systems. Following the lull brought on by the Covid-19 epidemic, the geothermal heat pump business is predicted to pick up steam in 2021. Investors have continued to invest in this industry despite the economic upheaval caused by the pandemic since geothermal heat pumps are a desirable choice for lowering energy prices and emissions. Additionally, governments all over the world have been offering incentives to persuade people and companies to switch to green energy sources.
Latest Innovations in the Global Geothermal Heat Pump Market: A Snapshot
• The NIBE F470 climate system, a new offering from NIBE Industrier AB, was introduced in March 2021. It has an intuitive control panel for simple operation and increased energy efficiency.
• The new line of geothermal heat pump systems from Bosch Thermotechnology Corp., which offers better performance and efficiency than its prior models, was introduced in April 2021.
Geothermal Heat Pump Market Scope
|Forecast Unit||Value (USD)|
|Revenue forecast in 2032||USD 6.06 billion|
|Growth Rate||CAGR of 14.0% during 2021-2031|
|Segment Covered||by Type, by Deployment, By Application, by Application, Regions|
|Regions Covered||North America, Europe, Asia Pacific, South America, Middle East and Africa|
|Key Players Profiled||NIBE Industrier AB, Bosch Thermotechnology Corp., Carrier Corporation, Viessmann Manufacturing Company Ltd., and Daikin Industries, Ltd.|
Key Segments of the Global Geothermal Heat Pump Market
By Type Overview, 2021-2031 (USD Billion)
• Vertical Closed Loop,
• Horizontal Closed Loop,
• Open Loop,
By Application Overview, 2021-2031 (USD Billion)
• Residential Buildings,
• Commercial Buildings,
By Regional Overview, 2021-2031 (USD Billion)
• Rest of Europe
• Rest of Asia Pacific
• Rest of South America
Middle East and Africa