Closed Loop Geothermal Heat Pump Market Analysis

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.

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.

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.