Europe Closed Loop Geothermal Heat Pump Market Size - By Type, By Application, Analysis, Share, Growth Forecast, 2024 – 2032

Europe Closed Loop Geothermal Heat Pump Market Size

Europe Closed Loop Geothermal Heat Pump Market was valued at USD 800 million in 2023 and is likely to register around 5.1% CAGR from 2024 to 2032. Rising energy efficiency standards along with favourable government incentives & policy towards heat pump adoption is fuelling the market growth. With the EU pushing for higher energy efficiency standards in residential and commercial buildings, closed-loop geothermal heat pumps offer a sustainable solution. These systems provide consistent energy savings and meet stringent environmental regulations, making them popular in both new construction and retrofits.
 

Geothermal or ground source heat pumps transfer heat between buildings and the ground for heating and cooling. The industry is growing due to energy security concerns, new product launches, environmental awareness, and bioeconomy advancements. In February 2024, Kensa Heat Pumps launched compact heat pumps five times more efficient than gas boilers. Government policies supporting carbon reduction further boost the industry's prospects.
 

Europe Closed Loop Geothermal Heat Pump Market Trends

Advances in geothermal drilling and installation techniques are lowering the upfront costs of closed-loop systems. This, combined with long-term energy savings and the increasing availability of financing options, is making the technology more affordable to a broader market segment. In addition, the product offers near-zero emissions and a highly efficient energy solution and with increased awareness of climate change and environmental sustainability, the European consumers and businesses are leaning toward cleaner alternatives like geothermal systems.
 

Europe Closed Loop Geothermal Heat Pump Market Analysis

Based on type, the vertical closed loop geothermal heat pump industry will exceed 900 million by 2032. Vertical configurations offer advantages like space-efficient installation and suitability for areas with limited land availability, driving their adoption. Furthermore, technological advancements and a growing focus on reducing carbon emissions are propelling the market growth.
 

Based on application, the residential application industry is set to grow at a CAGR of over 5.5% through 2032. The increasing demand for renovating and upgrading traditional heating and cooling systems is driving commercial applications to a dominant position in the market. The adoption of these products is growing due to their ability to integrate effectively with HVAC systems in government buildings, both in existing structures and new constructions.
 

The Germany closed loop geothermal heat pump market will surpass USD 300 billion by 2032. The rising demand for eco-friendly and sustainable space heating equipment is shaping the industry landscape. This transition from fossil fuel-based heating products indicates a growing preference for environmentally responsible alternatives. Geothermal advocates and environmental organizations have long urged the country to increase its use for heating purposes. These factors combined with favourable regulations promoting the development of net zero-emission buildings, will incentivize the widespread utilization of geothermal heat pumps throughout the country.

Europe Closed Loop Geothermal Heat Pump Market Share

Daikin, NIBE, Carrier, Viessmann, and Trane hold most of the industry share. These key players are implementing various strategies to enhance their competitive position and address the increasing demand for energy-efficient and sustainable heating and cooling solutions. Their approaches include innovation, partnerships, and market expansion.
 

Europe Closed Loop Geothermal Heat Pump Market Companies

Some of the key market players operating across the Europe closed loop geothermal heat pump industry are:

• Bard
• Carrier
• Daikin
• De Dietrich
• Ecoforest
• Kensa Heat Pump
• Mitsubishi Electric
• Modine
• NIBE
• Ochsner
• Oilon
• Trane
• Thermia Heat Pumps
• Viessmann
   

Europe Closed Loop Geothermal Heat Pump Industry News

• In April 2024, Modine has opened a second facility in Sremska, Serbia, to produce coils for commercial and residential heat pump applications. This is new plant highlights the company’s dedication to investing in energy-efficient technologies, such as heat pumps, that help reduce energy consumption and emissions. Additionally, this expansion is expected to contribute to the growth of the ground source heat pump market in Europe.
   
• In April 2023, Daikin began constructing a new heat pump manufacturing facility in Poland, investing over USD 300 million. This factory will complement existing production in Germany, Belgium, and the Czech Republic, with production capacity set to quadruple by 2025. It will also enable the company to establish a stable production system to meet the increasing demand in the heat pump market.
   

This Europe closed loop geothermal heat pump market research report includes an in–depth coverage of the industry with estimates & forecast in terms of revenue in ‘USD Billion’ and volume ‘’000 Units’ from 2021 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 countries:

• Austria
• Norway
• Denmark
• Finland
• Germany
• France