Geothermal heat pumps are the most suitable and advanced platform to transfer heat directly to and from the ground. The global geothermal heat pump market is expected to witness significant growth on account of rising demand for cost-effective energy solutions for air conditioning and heating concerns. Low maintenance costs and full automation of geothermal heat pumps are also expected to contribute to the global market’s growth over the forecast period of 2018–2026. Additionally, these heat pumps can cut energy bills by up to 65% compared to traditional heating, ventilation, and air conditioning units, which is one of the major factors driving the market growth.
Cost-effective geothermal heat pumps are a significant advancement to conventional cooling and heating systems, thus observing significant penetration globally. A geothermal heat pump offers pollution-free air and no cost fluctuations determined by gas and oil prices, which can gradually raise market demand. Additionally, higher efficiency and lesser noise generation are expected to serve as high-impact rendering factors for the geothermal heat pump market’s growth. However, the high initial cost sets a major challenge for the geothermal heat pump market. Favorable government initiatives, including financial support, subsidies, and tax-free installation, offer a viable market for geothermal heat pumps across the globe.
The geothermal heat pump (GHP) market is segmented by installation type into closed and open loops. Because of their lower water consumption, closed-loop GHP systems dominate the GHP market over open-loop GHP systems. The closed-loop geothermal heat pump market is further segmented into vertical, horizontal, and pond GHP systems. However, vertical installation is preferred over horizontal, considering its lower space requirement. The hybrid heat pump [S1] complicates the system, posing a new challenge to the open-loop geothermal heat pump market.
North America is the largest regional market for geothermal heat pumps, where the demand for renewable energy resources is increasing exponentially. A growing focus on the development of renewable energy is expected to drive the geothermal heat pump market in China in the following years. Canada has seen a considerable rise in demand for geothermal heat pumps owing to the incentives offered by the Canadian government. Similarly, rising industrialization, along with rising disposable incomes, makes Latin America a potential market for geothermal heat pumps.
Major restraints on the geothermal heat pump market:
- high initial costs
- Space constraints in urban areas
- Limited production volumes lead to higher costs.
- a limited number of trained installers
- Low market awareness among consumers
- Environment regulations in some regions restrict groundwater re-injection.
The global geothermal heat pump market is segmented on the following basis:
- Ground Heat Exchanger
- Heat pump unit
- Air compressor
- Air delivery system
- Residential sector
- Commercial sector
- a system with an open loop
- Hybrid system
- The system with a closed loop
- Horizontal system
- Vertical system
- Pond/lack system
- North America
- Rest of Europe
- Rest of Asia-Pacific
- Latin America
- Rest of Latin America
- Middle East and Africa
- GCC Countries
- South Africa
- Rest of Middle East and Africa
Key players identified in the global geothermal heat pump market include, but are not limited to:
Climatemaster Inc., Energy Star, Mississippi Power Company, Bryant Heating, and Cooling Systems, Bosch Thermotechnik GmbH, and Water Furnace International Ltd.[S1] Are you talking with respect to installation type or technology?