The U.S geothermal heat pump market is expected to grow massively by 2028, driven by the rising awareness around environmental sustainability and a surging demand for reducing energy costs and carbon emissions. In addition, favorable government policies, tax regimes, and allowances for geothermal energy installation would also propel the market growth in the U.S.
According to the United States Department of Energy, every year, approximately 50,000 geothermal heat pumps are installed across the United States. The nation’ government considers geothermal heat pumps the most environmentally clean, energy-efficient, and cost-effective heating system that can be used to heat and cool buildings.
These systems possess the ability to deliver heating efficiencies that are 50% to 70% higher than that of other heating systems while offering cooling efficiencies that are 20% to 40% higher than that of currently available air conditioners in the market.
Recently, notable emphasis on sustainability innovations that lower carbon emissions and turn residential and commercial applications into bio-economic infrastructures have garnered significant attention.
Recently, in April of 2022, the University of California, Berkeley, replaced its cogeneration plant with a 400 feet deep geothermal heat pump system powered by renewable energy. The sustainable shift in heating and cooling system is expected to promise it a carbon-free infrastructure by 2030.
To cite another instance, in November 2021, the City of Boise, Idaho announced its plans to expand the city’s geothermal heating system by 40% to achieve its goal of becoming carbon-neutral by 2050. Similarly, in June 2021, the City of Milford, Utah finished one of three geothermal projects funded by the U.S department of Energy, to tap into a limitless supply of clean and reliable power sources.
The U.S geothermal heat pump market has been bifurcated based on application, product, and regional landscape.
The product segment has been further divided into open-loop, pond-loop, and closed-loop. Of these, the U.S geothermal heat thermal from pond-loop sub-segment is estimated to witness an overall growth rate of more than 3% by the end of 2028.
In the regional landscape, the geothermal heat pump market in Pacific States of the U.S is expected to witness a growth rate of over 4% by 2028 on account of a rapidly increasing demand for space heating and the presence of favorable tax credit schemes for heat pump installations.
Meanwhile, the U.S. Mountain States segment, which is inclusive of places like Nevada, Wyoming, and New Mexico, is estimated to witness a growth of over 5% by 2028 as a result of rising product adoption in the region. The higher shelf life and the low utility bills geothermal heat pumps offer are primarily driving the demand in these regional states.