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Geothermal Heat Pumps Market

Geothermal Heat Pumps Market

Geothermal Heat Pumps Market Analysis by Technology (Open Loop Systems, Closed Loop Systems), by End User (Residential, Commercial), by Region - Global Forecast 2021-2031

Geothermal Heat Pumps Market
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Geothermal Heat Pumps Market Outlook (2021-2031)

Worldwide shipments of geothermal heat pumps accounted for a value of US$ 115.74 Bn in 2020, and this market valuation is expected to surge to US$ 505.5 Bn by the end of 2031. Global geothermal heat pump consumption is projected to increase at a stellar CAGR of 13.1% over the decade.

Report Attributes

Details

Geothermal Heat Pumps Market Size (2020)

US$ 115.74 Bn

Projected Year Value (2031F)

US$ 505.5 Bn

Global Market Growth Rate (2021-2031)

13.1% CAGR

Market Share of Closed Loop Systems

88%

Key Companies Profiled

  • GeoMaster LLC
  • WaterFurnace International
  • Danfoss Heat Pumps U.K.
  • Florida Heat Pump Manufacturing
  • Kensa Heat Pumps Ltd.

Rising focus on renewable energy and increasing popularity of geothermal systems are expected to boost the sales of dual-source heat pumps over the years to come.

Demand Analysis of Geothermal Heat Pumps (2017-2020) in Comparison to Market Forecasts (2021-2031)

The population of the world has increased substantially, and this has subsequently driven demand for renewable energy generation as the current energy generation infrastructure isn’t equipped to fulfil this increasing need.

Increasing demand for renewable and sustainable substitutes for energy generation is expected to majorly fuel demand for ground-source heat pumps. Rising consumer awareness for clean energy and supportive government initiatives to encourage the adoption of renewable energy sources are expected to prominently drive the shipments of geothermal heat pumps over the coming years.

Rising use of ground-source heat pumps in residential settings for space heating and hot water generation will also boost market potential in the future.

On the flip side, high initial costs for the installation of geothermal heat pumps are expected to have a constraining effect on overall GHP market growth through 2031.

Overall, sales of geothermal heat pumps are anticipated to progress at an astounding CAGR of 13.1% from 2021 to 2031.

Geothermal Heat Pumps Market forecast analysis by Fact.MR

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Will Increasing Demand for Clean Energy Impact Geothermal Heat Pumps Market Growth?

“Rising Popularity of Geothermal Energy Generation to Boost Market Potential”

Increasing prices of crude oil and depleting reserves fossil fuels have advanced the need for electricity, as it is being seen as the major energy to drive world growth in the future. Generation of electricity by conventional means causes a lot of pollution, and in this era of sustainability, it is not desirable by governments as well as consumers.

Hence, renewable energy has emerged as a popular alternative and has seen a robust increase in popularity in a short period of time. While solar and wind energy generation lead the market, increasing awareness is driving the popularity of geothermal energy generation as well.

This is giving rise to the demand for products such as water-source heat pumps, earth-coupled pumps, and ground-source heat pumps.

What Could Hamper Geothermal Heat Pump Shipments?

“High Initial Costs of Installation to Restrain GHP Sales Growth”

Consumption of geothermal heat pumps is anticipated to rise at an impressive pace over the coming years but the sales will be restricted by the high costs of installation of GHPs. This factor will slow down the adoption of geothermal heat pumps in economies with low spending potential.

Other factors such as low consumer confidence and less developed technology are also expected to have a restraining effect on overall geothermal heat pump demand growth.

An Adaptive Approach to Modern-day Research Needs

Which Regional Markets Should Geothermal Heat Pump Manufacturers Focus On?

“Europe to Lead Sales of Geothermal Heat Pumps through 2031”

Europe is anticipated to be the most lucrative region for geothermal heat pump providers over the coming years. The geothermal heat pumps market in Europe will majorly be driven by the high adoption of geothermal energy systems and increasing awareness of renewable energy generation.

Governments of countries such as Germany, the U.K., and France in this region are providing subsidies and encouraging the adoption of GHPs to attain zero carbon footprint. The market in Europe will hold a dominant share of 59.2% in the global geothermal heat pumps industry landscape by the end of 2031. Sales of water-source heat pumps and dual-source heat pumps are expected to have a bright outlook in this region.

Rising focus on sustainability and increasing demand for electricity is expected to boost use of geothermal heat pumps in the regions of South Asia and East Asia as well. Increasing urbanization and industrialization are prominent trends that will drive the adoption of geothermal energy generation systems in these regions.

Country-wise Insights

How Will Sales of Geothermal Heat Pumps Play Out in the U.K?

“Supportive Government Initiatives to Boost Geothermal Heat Pump Demand”

The U.K. has seen a substantial rise in focus on sustainable energy and this trend is expected to favor the geothermal heat pumps market potential as well.

Government initiatives are promoting companies and consumers to adopt geothermal energy generation and this will positively impact sales of products such as earth-coupled pumps and ground-source heat pumps in the nation.

  • For instance, in March 2022, the Green Heat Network Fund of around US$ 311 Mn opened for businesses and citizens in England to promote the next generation of clean heating projects. Under this scheme, businesses and households can bid for their projects and get them funded by the government, if approved.

Category-wise Insights

Which Technology Will Hold a Dominant Outlook?

“Closed Loop Technology to Account for Major Market Share”

Closed loop geothermal heat pumps are expected to account for a dominant market share over the forecast period. This can be attributed to the low cost of installation of this technology as compared to open loop technology.

The closed loop systems segment is anticipated to account for a market share of around 88% by the end of 2031.

Which End User Will Lead Consumption of GHPs?

“Residential Sector Exhibits Bright Outlook for Market Players”

Adoption of geothermal energy systems in buildings has increased in the past few years owing to rising awareness about their benefits for the general HVAC systems of the infrastructure. While the use of geothermal heat pumps is high in commercial applications, the residential segment leads the market growth and is expected to maintain this stance through 2031.

Increasing use of geothermal heat pumps for space heating and hot water generation in residential applications is expected to bolster the growth of the residential segment. This segment held a market share of 58.07% in 2020 in the global geothermal heat pumps marketplace.

How Did the Geothermal Heat Pumps Market Perform in 2020?

The pandemic of 2020 resulted in a negative growth trend for the geothermal heat pumps market. As coronavirus infections spread across the world and created a pandemic situation, lockdowns were imposed to curb the spread of these infections. Lockdown restrictions hampered manufacturing and sales activities as the whole demand and supply chains were disrupted.

Lack of skilled workforce, closed manufacturing facilities, and supply shortage of raw materials were other factors that dented geothermal heat pump consumption in 2020. Sales of earth-coupled pumps and dual-source heat pumps also witnessed a downward trend.

Shipments of geothermal heat pumps are expected to see high increase in the post-pandemic era as restrictions are lifted across the world. Increasing focus on clean energy and rising demand from the growing population will majorly propel GHP sales in the post-pandemic era through 2031.

Competitive Landscape:

Key geothermal heat pumps market players are focusing on expanding the scope of their offerings in order to increase their market presence on a global scale.

Geothermal heat pump suppliers are adopting various strategies to boost the expansion of their sales and services.

  • In March 2021, Dandelion Energy, a renowned residential geothermal organization based in the United States, announced that it would now be providing its services to the complete state of Connecticut along with the signing of a lease for a 21,000 square foot facility to manage its operations in this region.

Key Segments Covered in Geothermal Heat Pumps Industry Research

  • Geothermal Heat Pumps Market by Technology:

    • Open Loop Systems
    • Closed Loop Systems
      • Vertical Loops
      • Horizontal Loops
      • Pond/Lake Systems
  • Geothermal Heat Pumps Market by End User:

    • Geothermal Heat Pumps for Residential Use
      • New Building Systems
      • Retrofit Systems
    • Geothermal Heat Pumps for Commercial Use
      • New Building Systems
      • Retrofit Systems
  • Geothermal Heat Pumps Market by Region:

    • North America Geothermal Heat Pumps Market
    • Latin America Geothermal Heat Pumps Market
    • Europe Geothermal Heat Pumps Market
    • East Asia Geothermal Heat Pumps Market
    • South Asia & Oceania Geothermal Heat Pumps Market
    • MEA Geothermal Heat Pumps Market

- FAQs -

In 2020, value of the global geothermal heat pumps market was US$ 115.74 Bn.
The geothermal heat pumps market is expected to attain a net worth of US$ 505.5 Bn by the end of 2031.
From 2021 to 2031, global sales of geothermal heat pumps are estimated to rise at a phenomenal CAGR of 13.1%.
Companies such as GeoMaster LLC, WaterFurnace International, Danfoss Heat Pumps U.K., Florida Heat Pump Manufacturing, and Kensa Heat Pumps Ltd have been profiled in this geothermal heat pumps market research report.
Closed loop geothermal heat pumps are more cost-effective and have higher efficiency than open loop geothermal heat pumps.

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