July 16, 2024

Increasing Environment Awareness to boost the growth of Geothermal Heat Pumps Market

Geothermal heat pumps or geoexchange systems are considered a very sustainable and renewable energy technology for heating and cooling of residential and commercial buildings. They utilize stable underground temperatures between 50-60 degrees F to extract heat and transfer it indoors during winter months and reverse the cycle during summer. This results in considerable energy savings of around 40-60% compared to traditional air source heat pumps and fossil fuel furnaces. Geothermal heat pumps also provide very consistent indoor temperatures and dehumidified air along with needing less maintenance than other HVAC systems. Their operation is very silent and odorless without any emissions.

The global Geothermal Heat Pumps Market is estimated to be valued at US$ 11.20 Bn in 2023 and is expected to exhibit a CAGR of 7.7% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.

Market key trends:

One of the major trends in the geothermal heat pumps market is the growing preference for renewable and eco-friendly heating and cooling technologies among homeowners and commercial building owners to reduce carbon footprint. Geothermal systems offer significant energy cost savings over the lifetime without relying on fossil fuels. Factors like rising environmental awareness, government incentives and rebates are supporting the adoption rates. Growing construction of green buildings is another key driver as geothermal heat pumps allow new projects to meet sustainable design standards. Technological advancements are also making systems more efficient and cost-effective to install which is increasing their appeal in both residential retrofits and new constructions.

Porter’s Analysis

  • Threat of new entrants: The geothermal heat pumps market has moderate barrier for new companies to enter due to high initial investments required for R&D and infrastructure development.
  • Bargaining power of buyers: The bargaining power of buyers is moderate as there are many established players providing geothermal heat pump systems. However, buyers can negotiate on pricing and offerings.
  • Bargaining power of suppliers: The suppliers of key components for geothermal heat pump system have low bargaining power due to presence of multiple component manufacturers.
  • Threat of new substitutes: Alternative heating technologies like air source heat pumps offer substitute but geothermal systems have edge due to highly energy efficiency.
  • Competitive rivalry: The competitive rivalry in the market is high due to many international players competing on product quality,features, pricing and service.

Key Takeaways

The global geothermal heat pumps market is expected to witness high growth, exhibiting CAGR of 7.7% over the forecast period, due to increasing demand for energy efficient and eco-friendly heating solutions. The market size is estimated to reach US$ 11.20 Billion by 2023.

Regional analysis: North America dominates the global market due to supportive government policies and initiatives towards energy conservation in the region. The U.S accounts for over 35% of the global geothermal heat pumps market. Asia Pacific is expected to be the fastest growing market owing to growing construction activities and increasing energy demand in countries like India and China.

Key players: Key players operating in the geothermal heat pumps market are STIEBEL ELTRON GmbH & Co. KG, Ingersoll Rand, Vaillant Group, Viessmann Group, Glen Dimplex, and Daikin Industries, Ltd. The players are focusing on new product launches with advanced technologies and expanding their geographical footprints to strengthen market presence.

1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it