The geothermal heat pump market is anticipated to showcase notable expansion through 2028 owing to prevalent demand in leading regions across the globe. In addition, rising consumer demand in areas with harsh weather conditions is slated to further support industry growth over the forecast timespan.
Geothermal heat pumps, which are also known as ground source heat pumps, have been in use for numerous decades, particularly in regions that experience extreme temperatures. These pumps are used for water heating as well as space heating and cooling. They are a highly efficient renewable energy technology and have gained massive importance in both commercial and residential buildings.
Geothermal heat pumps utilize the relatively constant temperature of the ground as the exchange medium as opposed to other pumps that use outside air temperature. Ground source heat pumps are beneficial as they concentrate naturally occurring heat instead of generating heat through fossil fuel combustion. These factors have played a vital role in promoting product adoption in recent years.
Notably, increasing number of government initiatives focused on boosting the uptake of renewable technologies in the energy sector has been profitable for business growth in key regions worldwide. For instance, in February 2022, the U.S. Department of Energy’s (DOE) Geothermal Technologies Office (GTO) presented an extensive and detailed program plan that was intended to bolster geothermal deployment. GTO’s multi-year program plan (MYPP) lays out its vision and mission with a plan to expedite the development of geothermal technology in the coming five years.
Furthermore, industry players have been investing in product development and innovation to gain a competitive edge in the geothermal heat pump market, which has further propelled industry expansion. To cite an instance, in September 2021, WaterFurnace International, Inc., a major provider of geothermal heat pumps, introduced its novel AlpinePure Ionization System as an add-on accessory for residential units. The new system claims to enhance indoor air quality, eliminating harmful airborne bacteria and viruses, and decrease power consumption by nearly 30% compared to other technologies.
For extensive analysis, the geothermal heat pump market has been categorized on the basis of product, application, and region. From the product perspective, the market has been segmented into closed loop, open loop, and pond loop. The pond loop product segment is likely to grow at a rate of over 5% through 2028 to attain a sizable share in the geothermal heat pump market by the end of the study timeline.
In the regional landscape, the Asia Pacific geothermal heat pump industry accounts for a considerable portion of the global market revenue and is set to observe robust growth at more than 6% CAGR over the forecast period to reach a substantial valuation by the end of 2028.