Geothermal Heat Pump Market Share

Asia Pacific Market Analysis

Asia Pacific in geothermal heat pump market is set to hold more than 39.8% revenue share by 2037 owing to rapid industrialization, commercialization, and rising economic conditions. A robust regional consumer base has led to an increase in the demand for geothermal heat pumps. Also, the major manufacturing sector with a dense population is anticipated to positively influence market growth. Moreover, the expansion of geothermal heat pumps beyond residential usage to industrial and commercial applications additionally sets Asia Pacific's position as an important player in the geothermal heat pumps market while contributing to sustainability goals and energy efficiency in the region.

Geothermal heat pumps are used by rapid urbanization in countries including China to offer effective heating and cooling in crowded settings. Technological advancements and government support have also led to market expansion. China is committing to reduce carbon emissions and improve energy efficiency. According to Heat Pumping Technologies, China is an industry leader in the heat pump for a green future. There is a “Double Carbon Policy” in China that aims for carbon neutrality by 2060. The worldwide deployment of heat pumps in China which was held in August 2024 at the Shanghai Heat Pump Forum (HPF) was brought by 1000 industry professionals globally.

India is committing to decrease greenhouse gas emissions which has led to the promotion of eco-friendly solutions with geothermal heat pumps. For instance, in January 2024, Havells announced its latest innovation of India’s first energy-efficient heat pump water heaters, to meet the demands of residential applications by cutting-edge technology offering up to 75% energy savings and setting new standards in water heating. The company specifically focuses on concerns related to energy wastage and the capability of hot water.  The revolutionary Havells Heat Pump provides a solution that only consumes ¼energy cost compared to conventional water heaters.

North America Market Analysis

North America is projected to experience significant growth during the forecast period due to increasing requirements for water heating and space heating, as well as growing government initiatives and support is projected to boost the regional market growth. Moreover, developments in geothermal technology and increasing emphasis on sustainable building practices while promoting renewable energy technologies are further propelling the geothermal heat pump market to grow.

The growing demand for space heating equipment that is sustainable and eco-friendly when compared to substitutes including fossil fuel-based heating products particularly in the U.S. geothermal heat pump industry will complement the scenario. For example, in November 2022, Dandelion Energy funded USD 70 million in Series B1 to enhance and expand its geothermal heat pump operation across the U.S. The company has also tripled its commercial operation in 2022 supported by the Inflation Reduction Act by the U.S. government. This provides tax credits and some other financial incentives for house owners who are adopting geothermal technology. This strategy with financial support further enhances the transition of geothermal heat pumps in the U.S. market.

Additionally, the Canada geothermal market will grow due to the growing demand for high-quality infrastructure that provides a high standard of living in both commercial and residential sectors. All the parameters including favorable standards to encourage new zero-emission buildings will significantly boost the use of geothermal heat pumps across the nation. For instance, researchers at the Université du Québec have surveyed four Canadian cities to determine the economic feasibility of installing geothermal heating pumps in houses situated in Vancouver, Montreal, Halifax, and Toronto. Researchers found geothermal heat pumps most feasible in Halifax with less potential savings in the other cities.