Publishing: May 2021 | Report Code: SE11320 | Available Format: PDF
Geothermal Heat Pump Market Overview
Rising focus toward energy efficiency, and favorable government initiatives, such as rebates, subsidies and financial support to encourage adoption of renewable energy sources are some of the key factors driving the market. Apart from this, rising oil and electricity prices are resulting in shift of consumer focus toward low cost energy alternatives, further aiding growth of geothermal heat pump market, globally.
Geothermal heat pump also known as ground source heat pumps, consists of ground heat exchanger, heat pump unit, and air delivery system. A geothermal heat pump transfers heat from and to the ground and is cost-effective and energy efficient heating and cooling system. During summer, geothermal heat pump takes heat from building and transfers it to ground for cooling. In winter, it takes heat from the ground and transfers it to building for heating.
Based on product type, geothermal heat pump market is categorized into open loop, closed loop, and hybrid. Among these, closed loop type held the largest share in 2017 and is expected to exhibit fastest growth during the forecast period. This is attributed to growing demand for closed loop type, as it requires less maintenance and offers high equipment life as compared to open loop type. Further, closed loop geothermal heat pump circulates water or antifreeze solution through a system of plastic pipe, arranged either horizontally or vertically. On the contrary, open loop type uses surface water fluid that flows directly through geothermal heat pumps.
The closed loop geothermal pump market is further categorized into horizontal and vertical. Among these, horizontal closed loop type held the largest share in the market. This is attributed to cost effectiveness of horizontal closed loop type. Further, horizontal closed loop type is installed over a large area of ground and is buried at a level of six to ten feet from ground.
Based on application, geothermal heat pump market is segmented into residential, commercial and industrial. Among these, commercial application is expected to record fastest growth in the market. This can be attributed to growing demand for energy efficient systems in commercial sector over the years.
Based on geography, Europe has been contributing the largest revenue to the global geothermal heat pump market. Rise in expenditure toward ecological construction coupled with surging demand for heating & cooling system, are observed as the key regional drivers. Further, governments across the region are focusing on energy efficiency and reducing carbon footprints, thus further pushing the geothermal heat pump market.
However, Asia-Pacific is expected to register fastest growth in the geothermal heat pump market, due to development of renewable energy sector in the region, mainly in China, Japan, India, and Australia. For instance, in 2016, the Chinese government announced to increase geothermal energy consumption by three times till 2020. Further, the government of Australia announced its renewable energy targets of 33,000Gwh by 2020. with increasing government support to increase renewable energy consumption, the market for geothermal heat pumps is expected to grow in the coming years.
Geothermal Heat Pump Market Dynamics
Rising prices oil and electricity, increasing focus of government towards energy efficiency, and government initiatives to encourage adoption of renewable energy sources are the major factors driving geothermal heat pump market growth. Additionally, rising fuel prices are making renewable energy more competitive in the market. Some of the potential benefits of using renewable energy sources include reduction of emissions, its minimal impact on the environment, and low energy costs. Geothermal heat pump is increasingly being used by home owners, commercial building owners, and architects.
Additionally, government of various countries are focusing on reducing carbon footprints and promoting installation of energy efficient geothermal heat pumps in the cities. For instance, in 2017, New York State Energy Research and Development Authority (NYSERDA) and New York Power Authority (NYPA) announced the availability of $3.8 Million for funding and deployment of geothermal systems at public and private schools, state and local governmental entities, as well as healthcare facilities across New York. This initiative was in line with Governor Andrew M. Cuomo’s target to reduce greenhouse gas emissions by 40% by 2030, thereby promoting sustainable energy use.
Moreover, rising investments in enhanced geothermal systems (EGS) globally, particularly in France, Australia, U.K. and U.S has been observed in the geothermal heat pump market. For instance, in June 2018, the U.S. Department of Energy (DOE), announced investment of $4.45 million for early-stage development of EGS tools and technologies.
Geothermal Heat Pump Market Competitive Landscape
The geothermal heat pump market is highly fragmented, with the presence of numerous market participants. Several market players are focusing on partnerships as well as mergers & acquisitions to increase their regional presence and enhance their portfolio. For instance, in February 2017, NIBE Industrier AB acquired 50% of the shares in heat pump company “CGC Group of Companies Inc”. With this acquisition, the company is planning to enhance its presence in North America region. Earlier, in September 2016, NIBE Industrier AB acquired a British-owned Enertech Group with an objective to expand its global presence.
Some of the other key players operating in the global geothermal heat pump market include ClimateMaster, WaterFurnace International Inc., Geomasters Heating and Cooling LLC., Carrier Corporation, Hydro-Temp Corporation, Mammoth Inc., Ingersoll-Rand plc, Modine Manufacturing Company, Robert Bosch GmbH, and Danfoss A/S.
The report will provide country-wise geothermal heat pump market analysis. Some of the major countries that is covered in the report include the U.S., Canada, China, Japan, India, Australia, South Korea, Saudi Arabia, U.A.E., South Africa, U.K., Italy, Germany, France, Russia, Brazil, Mexico.
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