Geothermal Heat Pump Market Overview

• Geothermal Heat Pump market size has reached to $4.41 billion in 2024

• Expected to grow to $6.41 billion in 2029 at a compound annual growth rate (CAGR) of 7.9%

• Growth Driver: Government Initiatives To Curb Carbon Emissions Drive Growth In The Geothermal Heat Pumps Market

• Market Trend: Revolutionizing Efficiency With The Launch of Dandelion Geo in the Geothermal Heat Pump Market

• Asia-Pacific was the largest region in 2024.

What Is Covered Under Geothermal Heat Pump Market?

The geothermal heat pump refers to a system with high-efficiency renewable energy technology that uses the earth's constant temperature to heat and cool buildings. Geothermal heat pumps are packaged in a single cabinet, which includes a compressor, loop-to-refrigerant heat exchanger, and controls.

The main types of geothermal heat pumps include open-loop geothermal heat pumps and closed-loop geothermal heat pumps. The open-loop geothermal heat pumps refer to a heat pump that uses groundwater, which acts as a refrigerant to transfer thermodynamic energy for heating or cooling. They are widely used in residential, commercial, and industrial applications.

What Is The Geothermal Heat Pump Market Size 2025 And Growth Rate?

The geothermal heat pump market size has grown strongly in recent years. It will grow from $4.41 billion in 2024 to $4.72 billion in 2025 at a compound annual growth rate (CAGR) of 7.1%. The growth in the historic period can be attributed to government initiatives to install heat pumps, increased adoption of renewable energy sources, and strong economic growth in emerging markets.

What’s The Trade War Impact On Machinery Industry?

The swift increase in U.S. tariffs and the ensuing trade tensions in spring 2025 are significantly affecting the machinery sector by increasing costs for steel, hydraulic systems, and precision bearings critical components often imported from tariff-affected regions. Manufacturers of construction, agricultural, and industrial machinery now face squeezed margins, as many long-term contracts prevent immediate price adjustments. The uncertainty has also delayed investment in automation and smart machinery technologies, slowing productivity gains. To adapt, firms are accelerating local supplier development, redesigning products to use alternative materials, and leveraging predictive maintenance to extend equipment lifespans amid higher replacement costs.

How Is The Geothermal Heat Pump Market Segmented?

1) By Technology: Open Loop System, Closed Loop System

2) By Application: Residential, Commercial, Industrial

Subsegments:

1) By Open Loop System: Groundwater Source Heat Pumps, Surface Water Source Heat Pumps

2) By Closed Loop System: Horizontal Closed Loop System, Vertical Closed Loop System, Pond Or Lake Closed Loop System

What Is Driving The Geothermal Heat Pump Market? Government Initiatives To Curb Carbon Emissions Drive Growth In The Geothermal Heat Pumps Market

The increasing government initiatives to curb carbon emissions are driving the growth of the geothermal heat pumps market. Governments across the world are launching various initiatives to cut carbon emissions and some countries have made futuristic plans to target net-zero carbon emissions through the utilization of natural resources such as geothermal energy, nuclear energy, and others. Increasing government’s shift toward natural resources is expected to boost demand for geothermal heat pumps as they are increasingly being used for heating and cooling over carbon emissions-producing products such as electricity-powered air conditioning units, thermal-powered power plants, and others. For instance, according to the International Energy Agency, a France-based autonomous intergovernmental organization, there is a road map for net-zero carbon emissions by 2050 that requires all governments to significantly strengthen and then successfully implement their energy and climate policies. The number of countries that pledged to achieve net-zero emissions has grown rapidly over the last year and now (as of 2021) covers around 70% of global CO2 emissions. In addition, New Zealand Japan, Canada, and Korea have passed laws committing to achieving net zero by 2050 whereas Fiji, Ireland, and Chile have proposed legislation. The UK has a legally attached net-zero target by 2050 and new interim targets to reduce emissions by 78% by 2035. Therefore, increasing government initiatives to curb carbon emissions is expected to boost demand for geothermal heat pumps during the forecast period.

What Is Driving The Geothermal Heat Pump Market? Rising Fuel Prices Propel Demand For Geothermal Heat Pumps In The Market

Rising fuel prices are expected to drive the growth of the geothermal heat pump market during the forecast period. Increasing fuel prices have LED to an increased demand for geothermal heat as these systems are more environmentally beneficial because they do not use fossil fuels. For example, according to the Bureau of Transportation Statistics, a US-based government agency, from January to June 2022, the price of regular motor gasoline rose 49% and the price of diesel fuel rose slightly more at 55%. Further, in August 2022, according to the British Broadcasting Corporation, a UK-based broadcasting company, fuel prices in Bangladesh have seen growth from 86 taka ($0.81) to 130 taka ($1.37) a liter. Diesel and kerosene have also risen by 42.5%. Therefore, the rising fuel prices will contribute to the growth of the geothermal heat pump industry.

Who Are The Major Players In The Global Geothermal Heat Pump Market?

Major companies operating in the geothermal heat pump market include Carrier Global Corporation, Bosch Thermotechnology, NIBE Group, Viessmann, Trane, Daikin Industries Ltd, Vaillant Group, Stiebel Eltron, Glen Dimplex, Maritime Geothermal Ltd., Guangdong Shunde O.S.B. Environmental Technology Co. Ltd, Shijiazhuang Industrial Pump Factory Co. Ltd, Xiamen Hysen Control Technology Co. Ltd, First Industrial Development Co. Ltd, Shenzhen E-Joy Tech Co. Ltd, Teccon Services Private Limited, Suntec Energy Systems, Mitsubishi Corporation, Nidec Servo, Yanmar Energy System Co, Enopsol ApS, Go Geothermal Ltd, Argoclima SpA, GT Energy, Kensa Heat Pumps, Tecnoclima Spa, HRS Heat Exchangers Ltd, Thermostahl Srl, Thermocold, KENO Pawel Grzegorczyk, Geo Star, Geothermal Products, Water Furnace International Inc, Miami Heat Pump, Climate Master Inc, Energy Smart Alternatives LLC, Alterra Power Corporation, Pfister Energy, Geo-Air Industries Inc, Geo Smart Energy, Hilliard Corporation, Ruf Maschinenbau GmbH & Co. KG, Enel Green Power, Viessmann Werke GmbH & Co. KG, Mitsubishi Heavy Industries, Cummins Inc.

What Are The Key Trends Of The Global Geothermal Heat Pump Market? Revolutionizing Efficiency With The Launch of Dandelion Geo in the Geothermal Heat Pump Market

Major companies operating in the geothermal heat pump market are focused on developing high-efficiency geothermal heat pumps to reduce energy consumption, lower operating costs, and minimize environmental impact, while also meeting the increasing demand for sustainable heating and cooling solutions in residential, commercial, and industrial applications. High-efficiency geothermal heat pumps represent a sustainable and cost-effective solution for heating and cooling, aligning with increasing energy efficiency standards and the demand for environmentally friendly technologies. For instance, in September 2024, Dandelion Energy, a US-based company that offers geothermal heat pumps introduced the Dandelion Geo, a geothermal heat pump that boasts market-leading efficiency and performance. This initiative aims to connect skilled contractors with homeowners interested in adopting geothermal technology, thereby facilitating broader access to this sustainable heating solution.

What Are The Key Trends Of The Global Geothermal Heat Pump Market? Geothermal Heat Pump Market Witnesses A Surge In Investments For Expansion And Innovation

Increasing investments is the key trend gaining popularity in the geothermal heat pump market. Major players in the geothermal heat pump market are focusing on investments to use geothermal energy technologies for heating and cooling buildings. For instance, in November 2022, Dandelion Energy, a US-based company offering geothermal heating installation, raised $70 million in a new funding round. Dandelion aimed to use the capital to invest in a broader range of products capable of serving more customers and geographies. Similarly, in February 2021, Dandelion raised $30 million in Series B financing to install geothermal systems in 10,000 houses each year. The new capital enabled the company to expand its horizons in Massachusetts, Connecticut, and New York, where many residential natural gas or fuel oil heating systems were ready to be replaced with geothermal heat pumps.

Geothermal Heat Pump Market Merger And Acquisition: Energy Machines Expands Global Presence With Acquisition Of Enopsol For Energy Systems Technologies

In January 2022, Energy Machines, a Danish company offering integrated energy systems for buildings acquired Enopsol for an undisclosed amount. With this acquisition, Energy Machines is focused on expanding its portfolio of energy systems technologies and increasing its business presence across the globe. Enopsol is a Danish company engaged in the design and installation of groundwater cooling and heating systems.

Regional Outlook For The Global Geothermal Heat Pump Market

Asia-Pacific was the largest region in the geothermal heat pump market in 2024, and IT is also expected to be the fastest-growing region in the forecast period. The regions covered in this market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.

The countries covered in this market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Italy, Spain, Canada.

What Defines the Geothermal Heat Pump Market?

The geothermal heat pump market consists of sales of horizontal loop systems, vertical loop systems, well-water loop systems, pond/lake geothermal heat pump systems direct exchange, and hybrid systems. Values in this market are ‘factory gate’ values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors, and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

How is Market Value Defined and Measured?

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

What is the Market Assessment and Strategic Outlook for the Geothermal Heat Pump Industry?

The geothermal heat pump market research report is one of a series of new reports from The Business Research Company that provides market statistics, including industry global market size, regional shares, competitors with the market share, detailed market segments, market trends and opportunities, and any further data you may need to thrive in the geothermal heat pump industry. The market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future state of the industry.