Geothermal Heat Pump Market Size, Share and Global Trend By Type (Open Loop, Closed Loop, Hybrid), By End User (Residential, Commercial, Industrial), and Regional Forecast, 2024-2032

Geothermal heat pump is also known as the ground source heat pump. It consists of a heat pump unit, ground heat exchanger, and air delivery system. Geothermal heat pumps transfer heat from the ground to the buildings in the winter season and vice-versa in the summer season. It is the most cost-effective and energy-efficient cooling and heating system, which makes it more relevant for consumption. It is a constant source of energy, i.e., not dependent on wind or sun and is extracted without burning fossil fuels which means no emission.

On the basis of its type, the geothermal heat pump market can be segmented into a closed loop, open loop, and hybrid. The closed-loop circulates water or antifreeze solution through a system of plastic pipe, which makes it of less maintenance and offers high equipment life than compared to an open loop. The open loop type uses surface water fluid that flows directly through geothermal heat pumps. The closed loop geothermal heat pump is further classified into horizontal and vertical. A horizontal closed loop is installed over a large area of ground & is buried at a level of 6-10 feet from the ground.

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On the basis of its end user, the geothermal heat pump market can be segmented into residential, commercial, and industrial. Among these, it is likely to expect the fastest growth for the geothermal heat pump in the commercial and industrial sector as the sector is growing its demand for energy efficient system over the years. The other reason is that heat pumps like closed loop require sufficient land for functioning. E.g. construction of new buildings etc.

The key market driver for the geothermal heat pump market is a constant increase in the price of crude oil and electricity. The other reason which is driving the market is government focus and initiatives taken to encourage the adoption of renewable energy sources. In addition, rising fuel prices are making the market more competitive. The key benefits offered are low emission, minimal impact on the environment, and low energy costs which enhances its consumption in commercial building owners and architects.

The key market restraint for the geothermal heat pump market is the high installation cost. High installation cost along with a lack of consumer confidence in major developing countries around the globe is a major challenge for the acceptance of geothermal heat pumps. This is due to the lack of technological advancement and technique towards the cost.

Key Players Covered

Some of the major companies that are present in the geothermal heat pump market are Carrier Corporation, Danfoss, Mitsubishi Materials Techno Co., NIBE Energy Systems, BDR Thermea, Bosch LLC, Bryant Heating & Cooling Systems, Altarock Energy Inc., Trane, Nevada Geothermal Power Inc., Energy Star, ClimateMaster Inc., and Water Furnace International.

SEGMENTATION

SEGMENTATION	DETAILS
By Type	· Open Loop · Closed Loop · Hybrid
By End User	· Residential · Commercial · Industrial
By Geography	· North America (the USA and Canada) · Europe (UK, Germany, France, Italy, Spain, Russia and Rest of Europe) · Asia Pacific (Japan, China, India, Australia, Southeast Asia and Rest of Asia Pacific) · Latin America (Brazil, Mexico and Rest of Latin America) · Middle East & Africa (South Africa, GCC and Rest of the Middle East & Africa)

Regional Analysis

The geothermal heat pump market has been segmented into North America, Europe, Asia Pacific, Latin America, and Middle East & Africa. The highest growth has been observed in North America where demand for renewable energy resources is increasing exponentially due to its continuous use in heat generation in all the sectors of the economy. Mature markets for geothermal heat pumps in Europe include Germany, Sweden, France, and Switzerland. The recently initiated Renewable Heat Incentive (RHI) scheme in the UK is also likely to positively impact the European geothermal heat pumps market growth. Increasing the requirement for geothermal heat pumps and geothermal capacity in China, it is expected to drive the Asia Pacific market. According to the studies conducted, there’s a potential of one gigawatt of geothermal energy for every active volcano and Mexico has 25 volcanoes which clearly shows that Latin America has the high potential for geothermal power plants. Countries in GCC are looking forward to an alternative source of supply for their power plants for which they are considering geothermal as an alternative in the upcoming future.

Key Industry Developments

• In Feb 2017, NIBE acquires Canadian heat pump company CGC Group of companies Incorporation in Ontario and Canada with an option to acquire the remaining 50% shares in 2022. The ambition is to get an additional platform in North America for growth opportunities in Canada and the USA.
• In Sep 2018, The National Institute of Electricity and Clean Energy (INEEL) installed the first Geothermal heat pump system for air conditioning of housing spaces, which was developed in collaboration with the Federal Electricity Commission.
• In Apr 2019, Beijing Daxing International Airport is planning to equip a ground source heat pump system. The system can extract shallow geothermal energy of 563,600 GJ each year, saving 1,736 cubic metres natural gas and cutting more than 15,800 tonnes of carbon emission around 2.5 million square metres.