Geothermal Heat Pump Market by End-user and Geography - Forecast and Analysis 2022-2026

The geothermal heat pump (GHP) market share is expected to increase by USD 4.89 billion from 2021 to 2026, and the market’s growth momentum will accelerate at a CAGR of 8.36%.

This geothermal heat pump market research report provides valuable insights on the post-COVID-19 impact on the market, which will help companies evaluate their business approaches. Furthermore, this report extensively covers geothermal heat pump market segmentation by end-user (residential and non-residential) and geography (Europe, North America, APAC, South America, and Middle East and Africa). The geothermal heat pump (GHP) market report also offers information on several market vendors, including Bard Manufacturing Co. Inc., Carrier Global Corp., Daikin Industries Ltd., Danfoss AS, EnergySmart Alternatives LLC, GeoSmart Energy, Glen Dimplex Deutschland GmbH, Green Planet Supply Inc., Johnson Controls International Plc, Kensa Group, Mitsubishi Corp., NIBE Industrier AB, Raytheon Technologies Corp., Robert Bosch GmbH, Sirac Air Conditioning Equipments Co. Ltd., Stiebel Eltron GmbH and Co. KG, Trane Technologies Plc, Vaillant Group, Viessmann Climate Solutions SE, and WaterFurnace International Inc. among others.

What will the Geothermal Heat Pump Market Size be During the Forecast Period?

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GHP Market: Key Drivers, Trends, and Challenges

Based on our research output, there has been a negative impact on the market growth during and post-COVID-19 era. The operational benefits of GHPs over conventional systems is driving the geothermal heat pump (GHP) market growth, although factors such as high upfront cost may impede the market growth. Our research analysts have studied the historical data and deduced the key market drivers and the COVID-19 pandemic impact on the geothermal heat pump industry. The holistic analysis of the drivers will help in deducing end goals and refining marketing strategies to gain a competitive edge.

Key GHP Market Driver

One of the key factors driving growth in the geothermal heat pump market is the operational benefits of GHPs over conventional systems. The GHPs offer several benefits when compared with conventional heating and cooling systems like boilers, furnaces, air conditioners, and room heaters. One major advantage is that the same or single device, i.e., the heat pump, provides the benefits of both heating and cooling throughout the year. Every HVAC system operates differently under varying climatic conditions. Conversion from an electric furnace to an air-source heat pump enables cost savings of up to 50%. In an HVAC system, proper maintenance is crucial to ensuring efficient operation and longer service life. When different types of heat pumps are compared, geothermal pumps have a service life of 20-25 years, while air source pumps only have a service life of 10-15 years. This is because the compressors in geothermal pumps are exposed to less mechanical and thermal stress and are not prone to external environmental conditions. These advantages are expected to drive the momentum of the GHP market and provide a boost to demand during the forecast period and beyond.  Thus, such benefits associated with the installation of GHP will propel the growth of the global GHP market.

Key GHP Market Trend

The emergence of BEMS is a geothermal heat pump market trend that is expected to have a positive impact in the coming years. A heat pump is a term that is more commonly applied to HVAC systems. In both residential and commercial applications, heat pumps are widely utilized for space heating and cooling. Building energy management systems (BEMS) is a new idea that can result in large energy savings because the focus is on energy efficiency and emissions reduction. The global BEMS industry is projected to grow at a steady rate during the forecast period; the industry is mainly driven by the need for energy efficiency and cost reduction in buildings. Countries such as the US and China have introduced energy labels such as the Energy Star and Three-Star that rate buildings based on energy consumption and other parameters. These ratings have further spurred the demand for BEMS. The growing use of BEMS will reinforce the market for HVAC as these systems would become more energy-efficient and have a lower impact on the environment. Thus, the emergence of such technologies will boost the growth of the global GHP market.

Key GHP Market Challenge

The high upfront cost will be a major challenge for the geothermal heat pump market during the forecast period. GHPs are used primarily for space heating and cooling; therefore, they find large applications in residential buildings. The deployment of GHPs and their retrofitting also depend on consumer preferences and disposable incomes. An important factor hindering small businesses and enterprises, as well as many households, from using GHPs is the high installation costs and price of heat pumps. In the long term, the savings realized from the use of GHPs can offset the high initial costs. However, the market faces significant challenges because of the capital-intensive nature of these products. Considering the uncertainty in the global economic scenario, where businesses are looking for cost-saving measures, it becomes difficult for small and medium-sized enterprises (SMEs) to procure heat pumps. Hence, the high upfront cost for GHP installation may hamper the growth of the global GHP market

This geothermal heat pump market analysis report also provides detailed information on other upcoming trends and challenges that will have a far-reaching effect on the market growth. The actionable insights on the trends and challenges will help companies evaluate and develop growth strategies for 2022-2026.

Parent Market Analysis

Technavio categorizes the global geothermal heat pump (GHP) market as a part of the global heavy electrical equipment market within the global electrical equipment market. Our research report has extensively covered external factors influencing the parent market growth potential in the coming years, which will determine the levels of growth of the geothermal heat pump (GHP) market during the forecast period.

Who are the Major GHP Market Vendors?

The report analyzes the market’s competitive landscape and offers information on several market vendors, including:

• Bard Manufacturing Co. Inc.
• Carrier Global Corp.
• Daikin Industries Ltd.
• Danfoss AS
• EnergySmart Alternatives LLC
• GeoSmart Energy
• Glen Dimplex Deutschland GmbH
• Green Planet Supply Inc.
• Johnson Controls International Plc
• Kensa Group
• Mitsubishi Corp.
• NIBE Industrier AB
• Raytheon Technologies Corp.
• Robert Bosch GmbH
• Sirac Air Conditioning Equipments Co. Ltd.
• Stiebel Eltron GmbH and Co. KG
• Trane Technologies Plc
• Vaillant Group
• Viessmann Climate Solutions SE
• WaterFurnace International Inc.

This statistical study of the geothermal heat pump market encompasses successful business strategies deployed by the key vendors. The geothermal heat pump (GHP) market is fragmented and the vendors are deploying organic and inorganic growth strategies to compete in the market.

Product Insights and News

• carrier.com - The company offers geothermal heat pumps such as Infinity, Performance, and Comfort.

• carrier.com - Through the HVAC segment, the company provides products, controls, services, and solutions to meet the heating and cooling, and ventilation needs of residential and commercial customers.

To make the most of the opportunities and recover from the post-COVID-19 impact, market vendors should focus more on the growth prospects in the fast-growing segments, while maintaining their positions in the slow-growing segments.

The geothermal heat pump market forecast report offers in-depth insights into key vendor profiles. The profiles include information on the leading companies' production, sustainability, and prospects.

GHP Market Value Chain Analysis

Our report provides extensive information on the value chain analysis for the geothermal heat pump (GHP) market, which vendors can leverage to gain a competitive advantage during the forecast period. The end-to-end understanding of the value chain is essential in profit margin optimization and evaluation of business strategies. The data available in our value chain analysis segment can help vendors drive costs and enhance customer services during the forecast period.

Which are the Key Regions for the GHP Market?

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49% of the market’s growth will originate from Europe during the forecast period. Germany, France, and the UK are the key markets for geothermal heat pumps in Europe. Market growth in this region will be slower than the growth of the market in other regions.

Germany, Ireland, France, the Netherlands, Italy, the UK, and Spain witnessed a substantial advance in their economic conditions in the past, which helped increase their construction and manufacturing activities. This will facilitate the geothermal heat pump (GHP) market growth in Europe over the forecast period. This market research report entails detailed information on the competitive intelligence, marketing gaps, and regional opportunities in store for vendors, which will assist in creating efficient business plans.

COVID Impact and Recovery Analysis

In 2020, the GHP market in Europe witnessed a significant decline in revenue owing to the lockdown restrictions imposed to curb the spread of the COVID-19 disease. The outbreak of COVID-19 negatively affected the economies of many countries in the region, including the UK, Germany, and Italy. It also disrupted the overall economic growth of the region and the supply chain of the industrial and construction sectors. However, in the first half of 2021, many countries in Europe lifted COVID-19 -induced restrictions due to the initiation of large-scale vaccination drives. Vendors mandated social distancing and restricted the entry of non-essential visitors to their facilities. 

What are the Revenue-generating End-user Segments in the Geothermal Heat Pump Market?

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The geothermal heat pump (GHP) market share growth in the residential segment will be significant during the forecast period. Development in the construction of residential buildings has a direct impact on the demand for GHPs as they are an essential part of any residential building. The construction industry is recovering following a long period of slowdown in the wake of the financial crisis in the past decade. A significant portion of the global GHP market relies on residential end-users. The residential construction or housing market accounts for a substantial share of the global construction market. Significant growth of the global housing market is expected to drive the demand for GHPs worldwide.

This report provides an accurate prediction of the contribution of all the segments to the growth of the geothermal heat pump market size and actionable market insights on the post-COVID-19 impact on each segment.

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What are the Key Data Covered in this Geothermal Heat Pump Market Report?

• CAGR of the market during the forecast period 2022-2026
• Detailed information on factors that will drive geothermal heat pump market growth during the next five years
• Precise estimation of the geothermal heat pump market size and its contribution to the parent market
• Accurate predictions on upcoming trends and changes in consumer behavior
• The growth of the geothermal heat pump industry across Europe, North America, APAC, South America, and Middle East and Africa
• A thorough analysis of the market’s competitive landscape and detailed information on vendors
• Comprehensive details of factors that will challenge the growth of geothermal heat pump market vendors

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