Closed Loop Geothermal Heat Pump Market Size

Closed Loop Geothermal Heat Pump Market was valued at USD 3 billion in 2023 and is estimated to grow at over 4.3% CAGR between 2024 and 2032. Increasing environmental awareness and governmental efforts within the construction sector to curb carbon emissions are key drivers shaping product adoption worldwide. Additionally, global initiatives aimed at regulating energy-efficient practices to reduce carbon footprints will further bolster the business outlook.

The geothermal/ground source heat pump is an electric device utilized in central heating or cooling systems, transferring heat to or from the ground. The global geothermal heat pump industry is poised for growth due to increasing concerns regarding energy security and environmental sustainability, as well as evolving technological advancements aligned with the bioeconomy. Additionally, the industry's outlook will also be shaped by supportive government policies and protocols aimed at minimizing carbon emissions across the globe.

COVID-19 Impact

The overall heat pump market experienced setbacks during COVID-19, grappling with supply chain disruptions and project delays. However, the pandemic underscored the significance of sustainable and efficient heating and cooling solutions, leading to renewed interest and adaptation of geothermal technologies for long-term resilience in building infrastructure.

Closed Loop Geothermal Heat Pump Market Trends

The rising adoption of heat pumps leveraging stable ground or water temperatures for building heating and cooling is driving market expansion. This energy-efficient and eco-friendly alternative to conventional systems is propelled by mounting environmental concerns and the imperative to curb carbon emissions, shaping the industry's trajectory positively. Increasing advancements in technology and growing concerns about energy efficiency are contributing to the rising adoption of closed-loop geothermal heat pump systems in both residential and commercial applications.

The significant rise in incentives and rebates provided by governments and utility companies is another key factor influencing product adoption, driving its uptake exponentially.

Closed Loop Geothermal Heat Pump Market Analysis

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Based on type, the vertical closed loop geothermal heat pump segment captured around 70% of the market share in 2023. Vertical configurations offer advantages such as space-saving installation and suitability for areas with limited land availability, driving their adoption. In addition, advancements in technology and a growing focus on reducing carbon emissions are further propelling the market forward.

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Based on application, the residential closed loop geothermal heat pump application is set to grow at over 4.5% CAGR through 2032. The increasing demand for renovating and restoring traditional heating and cooling systems is expected to elevate commercial applications to a prominent position within the sector. The adoption of the product is on the rise due to its capability to seamlessly integrate with HVAC systems in government buildings, whether existing or newly constructed.

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North America closed loop geothermal heat pump market is forecasted to exceed USD 2.4 billion by 2032. The rising demand for eco-friendly and sustainable space heating equipment, particularly in the U.S. geothermal heat pump industry, will enhance the industry landscape. This trend contrasts fossil fuel-based heating products, reflecting a growing preference for environmentally conscious alternatives.

Moreover, the Canadian GHP market is poised for notable growth in the coming years, driven by the substantial need within the new building construction sector. The increasing demand for dependable and top-notch infrastructure in Canada, fuelled by its high standard of living, will bolster product adoption across both residential and commercial segments. These factors, coupled with favourable regulations promoting the development of net zero-emission buildings, will incentivize the widespread utilization of geothermal heat pumps throughout the nation.

Closed Loop Geothermal Heat Pump Market Share

Daikin, Carrier, NIBE Energy Systems Ltd, Viessmann, Weishaupt Group, & Trane holds majority of the industry share. These companies prioritize strategic partnerships, the introduction of new products, and commercialization to expand their market presence. Moreover, they allocate significant investments towards research endeavours aimed at introducing innovative products, ultimately aiming to maximize revenue within the industry.

Closed Loop Geothermal Heat Pump Market Companies

Some of the key participants operating across the closed loop geothermal heat pump industry are:

• Bard HVAC
• Carrier
• Daikin
• Dandelion
• De Dietrich
• Ecoforest
• Kensa Heat Pumps
• Mitsubishi Electric Corporation
• MODINE MANUFACTURING COMPANY
• NIBE Energy Systems Ltd
• Nortek Global HVAC
• OCHSNER
• STIEBEL ELTRON GmbH & Co. KG
• Trane
• Vaillant Group
• Viessmann
• WaterFurnace International Inc.
• Weishaupt Group
  

Closed Loop Geothermal Heat Pump Industry News

• In May 2023, The Vaillant Group has increased its heat pump production capacity in Senica, Slovakia. The newly established mega factory is tailored for an annual production output of 300,000 heat pumps, effectively doubling its capacity to over 500,000 units per year. This expansion is poised to significantly enhance the deployment of closed-loop geothermal heat pumps.
  
• In January 2023, the government of Oregon, U.S. has implemented incentives for heat pumps as part of the recently enacted Federal Inflation Reduction Act. This new tax credit offers coverage of 30 percent of the expenses associated with a heat pump, capped at USD 2,000. Furthermore, Oregon anticipates receiving federal funding to provide rebates for energy efficiency retrofits and upgrades.
  

This closed loop geothermal heat pump market research report includes an in-depth coverage of the industry with estimates & forecast in terms of volume in ‘000 Units & revenue in USD Billion from 2019 to 2032, for the following segments:

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Market, By Type

• Vertical
• Horizontal

Market, By Application

• Residential
• Commercial
  • Educational institutes
  • Healthcare
  • Retail
  • Logistics & Transportation
  • Offices
  • Hospitality
  • Others

The above information has been provided for the following regions and countries:

• North America
  • U.S.
  • Canada
• Europe
  • Austria
  • Norway
  • Denmark
  • Finland
  • Germany
  • France
• Asia Pacific
  • China
  • Japan
  • Australia
  • South Korea
• Middle East & Africa
  • Saudi Arabia
  • Turkey
  • South Africa
• Latin America
  • Brazil
  • Mexico
  • Argentina