Geothermal Heat Pumps System Market Size, Share, Growth, and Industry Analysis, By Type (Underground Tube Ground Source Heat Pump System, Groundwater Source Heat Pump System, Surface Water Ground Source Heat Pump System), By Application (Household and Commercial), Regional Insights, and Forecast To 2032

Updated On: 08 July 2024

geothermal heat pumps system market REPORT OVERVIEW

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The global geothermal heat pumps system market size was USD 4946.9 million in 2022 and the market is projected to touch USD 12154.6 million by 2032 at a CAGR of 9.4% during the forecast period.

A Geothermal Heat Pump System, also known as a Ground Source Heat Pump System, is a type of heating, ventilation, and air conditioning (HVAC) system that takes advantage of the relatively stable temperature of the Earth's subsurface to provide efficient heating, cooling, and sometimes water heating for buildings. This system takes advantage of the fact that, regardless of the air temperature, the ground temperature remains generally consistent throughout the year. The system is made up of a series of underground pipes that are typically several feet deep. This loop can be deployed horizontally or vertically in trenches or boreholes. The loop holds a heat transfer fluid, which is often a water-antifreeze mixture. There is a heat pump unit within the building that contains a compressor and a refrigerant.

Because geothermal systems transport heat rather than generating it, they are extremely efficient. They can generate three to four units of heat for every unit of power consumed, resulting in substantial energy savings. Unlike air-source heat pumps, which are dependent on constantly changing air temperatures, the temperature of the earth remains relatively constant throughout the year. As a result, system performance is consistent and reliable. Because geothermal systems do not use fossil fuels to generate heat, they emit fewer greenhouse gases than standard heating and cooling systems. In addition, they utilize a tiny amount of electricity to power the heat pump.

COVID-19 Impact: Supply Chain Disruptions to Hinder Market Growth

The COVID-19 pandemic has been unprecedented and staggering, with experiencing lower-than-anticipated demand across all regions compared to pre-pandemic levels. The sudden decline in CAGR is attributable to the market’s growth and demand returning to pre-pandemic levels.

Like many other industries, the geothermal heat pump system industry relies on global supply chains for components and materials. The pandemic caused supply chain disruptions due to lockdowns, transportation restrictions, and reduced industrial capacity. This could have resulted in delays in the manufacture and installation of geothermal systems. Lockdowns, social distancing measures, and construction activity limitations in some areas may have caused delays in the installation of geothermal heat pump installations. Many installation projects were halted or slowed, generating delays and potentially financial consequences for both manufacturers and installers. Economic uncertainty caused by the pandemic may have caused some consumers and businesses to postpone or cancel initiatives with large upfront expenditures, such as building geothermal systems.

LATEST TRENDS

"Increased Focus on Renewable Energy to Enhance Market Growth"

With rising worries about climate change and the need to move to renewable energy sources, geothermal heat pump systems gained popularity due to their high efficiency and low greenhouse gas emissions. Governments and organisations were increasingly seeking for ways to encourage and incentivize the use of these technologies. Geothermal heat pump systems, like other sectors of the HVAC business, were embracing smart technology features. This includes remote monitoring, mobile app control, and interaction with smart home systems. These characteristics were designed to boost energy efficiency and user convenience. Hybrid HVAC systems, which mix geothermal heat pump technology with other renewable energy sources such as solar panels, were gaining popularity. By utilising numerous renewable sources, these systems provided enhanced flexibility and energy savings.

geothermal heat pumps system market SEGMENTATION

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• By Type

Based on type market is classified as underground tube ground source heat pump system, groundwater source heat pump system, surface water ground source heat pump system.

• By Application

Based on application market is classified as household and commercial.

DRIVING FACTORS

"Increasing Focus on Sustainability and Renewable Energy to Augment Market Growth"

The adoption of renewable energy solutions was driven by the global movement towards sustainability and the need to minimise greenhouse gas emissions. Geothermal heat pump systems, which are highly efficient and use a renewable heat source, fit in well with these goals. Geothermal heat pump systems are extremely energy efficient, producing greater heating and cooling output per unit of electricity intake. This equates to lower long-term energy consumption and electricity bills, making them an appealing solution for cost-conscious consumers and companies. Many governments throughout the world were providing incentives, tax breaks, grants, and rebates to encourage the use of renewable energy technologies such as geothermal heat pump systems. These incentives aided in offsetting initial installation costs and hastened market growth.

"Increasing Awareness and Education to Propel Market Growth"

Geothermal heat pump systems take advantage of the Earth's steady subsurface temperature to provide consistent heating and cooling performance regardless of external weather conditions. Consumers seeking dependable and predictable comfort may find this steadiness appealing. Continuous R&D efforts were resulting in technological advances in geothermal heat pump systems. Ground loop design, heat exchangers, and system controls innovations were increasing system efficiency, longevity, and ease of installation. As the benefits of geothermal heat pump systems were more widely known, more consumers and businesses began to consider them as a viable alternative for their heating and cooling requirements. Educational efforts and information dissemination helped to expand awareness of these systems.

RESTRAINING FACTORS

"Lack of Public Awareness to Impede Market Expansion"

When compared to conventional heating and cooling systems, the initial installation expenses of geothermal heat pumps system, including drilling or trenching for ground loops, might be greater. This initial cost barrier may deter some potential clients, particularly those with short-term budget concerns. Geothermal heat pumps system necessitates enough room to install ground loops, either horizontally in trenches or vertically in boreholes. Due to limited space or unfavourable ground conditions, these systems may be impractical for certain properties. While geothermal heat pump systems are becoming more popular, they may still be unfamiliar to many consumers and companies. This lack of understanding may hinder adoption rates since people may overlook this alternative while making HVAC decisions.

geothermal heat pumps system market REGIONAL INSIGHTS

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"North America to Dominate the Market Due to Decades of Expertise in The Area"

With decades of expertise and extensive use in both the residential and commercial sectors, North America has a well-established market for geothermal heat pumps system market share. Various federal, state, and municipal government incentives, tax credits, and rebates have encouraged the use of renewable energy technology, including geothermal heat pump systems. Focus on Energy Efficiency: Both the United States and Canada place a premium on energy efficiency and sustainability, which are ideal for geothermal heat pumps systems. Growing environmental consciousness and a desire to minimise carbon emissions have fuelled interest in renewable energy solutions such as geothermal.

KEY INDUSTRY PLAYERS

"Key Players Focus on Partnerships to Gain a Competitive Advantage"

Prominent market players are making collaborative efforts by partnering with other companies to stay ahead of the competition. Many companies are also investing in new product launches to expand their product portfolio. Mergers and acquisitions are also among the key strategies used by players to expand their product portfolios.

List of Market Players Profiled

• Bosch Thermotechnology (Germany)
• Carrier (U.S.)
• Vaillant (Germany)
• BDR Thermea (Netherlands)
• Modine (U.S.)
• Nibe Industrier (Sweden)
• Mitsubishi Electric (Japan)
• Viessmann (Germany)

REPORT COVERAGE

The report anticipates a detailed analysis of the global market size at the regional and national level, the ssegmentation market growth and market share. The prime objective of the report is to help user understand the market in terms of definition, market potential, influencing trends, and the challenges faced by the market. Aanalysis of sales, the impact of the market players, recent developments, opportunity analysis, strategic market growth analysis, territorial market expansion, and technological innovations are the subject matter explained in the report.