Geothermal Heat Pump Market Share, Revenue, Trends, Demand, Growth Strategy, Challenges, Opportunities and Future Competition Till 2033


Geothermal Heat Pump Market Share, Revenue, Trends, Demand, Growth Strategy, Challenges, Opportunities and Future Competition Till 2033: SPER Market Research

 Category : Power & Energy

 Published: Nov-2023
 Author: SPER Analyst

Global Geothermal Heat Pump Market is projected to be worth USD 18.11 billion by 2033 and is anticipated to surge at a CAGR of 6.7%.

Ground-source heat pumping systems (GHPs) use earth's heat to generate hot water and heat spaces. A pump like this removes heat from a vertical or horizontal collector. Typically, a hydronic distribution system is used to distribute extracted heat. Because of the advantage of its geothermal subsoil heat source's constant temperature, a GHP has a higher efficiency than an air source.

Global Geothermal Heat Pump Market Driving Factors and Challenges
The United States stands as a significant market for Geothermal Heat Pumps (GHP), driven by a growing awareness of escalating carbon emissions and volatile energy prices, prompting consumers to embrace renewable heat sources. The U.S. government plays a pivotal role in fostering this trend by implementing favourable policies, including personal tax credits and direct incentives, to promote GHP installation. Globally, governments are prioritizing the enhancement of energy efficiency across industries, supported by various subsidies and incentives, fostering a surge in demand for renewable energy sources. 

The escalating global population and rapid industrialization contribute to substantial energy consumption, emphasizing the imperative for sustainable solutions. The adverse environmental impact of relying on fossil fuels for heating, such as coal, oil, and natural gas, has intensified concerns about climate change and greenhouse gas emissions. This heightened awareness is anticipated to drive the demand for energy-efficient products like GHP. Concurrently, stringent government regulations and emission standards are expected to further stimulate the adoption of energy-saving technologies, particularly GHP, in both industrial and residential sectors. In the U.S., the proactive government measures, including tax credits and incentives, are poised to propel the GHP market, aligning with the global pursuit of enhanced energy efficiency.

The high cost of installation is the main factor limiting the market for geothermal heat pumps. Drilling and excavation expenses are substantial in addition to the cost of installation. To ensure a heating system operates reliably during installation, specific manufacture of parts and fine-tuning are necessary; otherwise, the system is likely to fail early. The price of replacing an outdated heat pump also includes the expense of disposing of and removing the wiring, ducts, and lines required for the correct operation of the new system. Compared to the domestic market, the industrial sector requires more capital expenditure for the installation of new heating systems due to the need to account for design, ductwork, remote accessibility, and energy efficiency. 

In order for a geothermal system to work, electricity is also needed, which results in high utility costs and a large carbon footprint. But geothermal systems can also run on solar or wind power, which increases their sustainability and cost-effectiveness. With very modest adjustments, other renewable energy sources utilised in the residential and commercial sectors can be readily adapted to other locations. Nevertheless, the initial expenses of GHPs are higher because each household or commercial location need a customised size, design, and installation. The acceptability of geothermal heat pumps is hampered by high installation costs and low consumer confidence in the world's major developing nations. This is because there has been little progress in technology and cost-effectiveness.

Impact of COVID-19 on Global Geothermal Heat Pump Market
The operations and sales of several firms have been significantly impacted by the global problems and commercial uncertainties brought on by the COVID-19 pandemic. The imposition of lockdown measures in many countries and the cessation of heat pump production activities had an adverse impact on the growth of the domestic heat pump market. Travel restrictions, a restricted border, and import-export prohibitions further hindered the availability of raw materials, including iron castings, stainless steel components, and aluminium tubing.

Geothermal Heat Pump Market Key Players:
The market study provides market data by competitive landscape, revenue analysis, market segments and detailed analysis of key market players such as; Bard HVAC, Bostech Mechanical Ltd., Carrier Corporation, ClimateMaster, Inc., Daikin Industries Ltd., Dandelion, De Dietrich S.A.S., Ecoforest S.A., EnergySmart Alternatives, Free Energy Innovations, Maritime Geothermal Ltd., Mitsubishi Electric Corporation, Pfister Energy, Robert Bosch LLC, Sauer-Danfoss Inc., Spectrum Manufacturing, Wolf GmbH, Others.

Global Geothermal Heat Pump Market Segmentation:

By Type: Based on the Type, Global Geothermal Heat Pump Market is segmented as; Closed Loop Systems (Horizontal, Vertical), Open Loop Systems.

By Application: Based on the Application, Global Geothermal Heat Pump Market is segmented as; Commercial, Industrial, Residential.

By Region: This research also includes data for North America, Asia-Pacific, Latin America, Middle East & Africa and Europe.

This study also encompasses various drivers and restraining factors of this market for the forecast period. Various growth opportunities are also discussed in the report.

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