Technavio’s recent report, titled ‘Global Geothermal Heat Pump Market 2022-2026’ has covered a detailed analysis of the key drivers, the latest trends, and challenges impacting the growth of the market. As per the report, the market growth will be mainly driven by the operational benefits of Geothermal Heat Pumps (GHPs) over conventional systems.
Geothermal heat pumps offer several benefits when compared with conventional heating and cooling systems such as boilers, furnaces, air conditioners, and room heaters. GHPs deliver better COP when compared with other HVAC systems like room heaters, hence delivering efficient performance. Also, GHPs deliver lower operating costs when compared with other heating systems, especially oil or electric heating systems.
Although the operating costs are directly proportional to external factors like the length of operation and utility costs, the relative cost is less than oil and propane gas. Moreover, geothermal pumps have a service life of 20-25 years, while air source pumps only have a service life of 10-15 years. This is because the compressors in geothermal pumps are exposed to less mechanical and thermal stress and are not prone to external environmental conditions. Many such operational benefits are encouraging end-users to consider geothermal heat pumps over other heating solutions. All these factors are driving the growth of the market.
As per Technavio, the emergence of BEMS will have a positive impact on the market and contribute to its growth significantly over the forecast period.
Geothermal Heat Pump Market: Emergence of BEMS
Building Energy Management Systems (BEMS) are gaining prominence among end-users. They help end-users achieve significant energy savings while maintaining energy efficiency and reducing emissions. Besides, the cost of these systems has reduced considerably over the years owing to technological advances, such as advanced sensors and monitoring equipment, and the declining costs of monitoring and control devices. All these factors are making BEMS a cost-effective solution for various buildings. This trend is expected to have a positive impact on the growth of the global geothermal heat pump market during the forecast period.
Geothermal Heat Pump Market
The demand for geothermal heat pumps from residential end-users will be significant over the forecast period. The growth of the global construction sector and increasing favourable government initiatives and tax rebates offered on the
installation of energy-saving products are driving the growth of the segment.
The European region led the geothermal heat pump market in 2021, followed by North America, APAC, South America, and the Middle East and Africa respectively. During the forecast period, Europe is expected to register the highest incremental growth due to factors such as the rising number of construction activities and increased focus on reducing carbon emissions.