PUBLISHER: The Business Research Company | PRODUCT CODE: 1751008
PUBLISHER: The Business Research Company | PRODUCT CODE: 1751008
Geothermal heating and cooling is a system that utilizes the stable temperatures beneath the Earth's surface to regulate indoor temperatures in buildings. This system transfers heat between the ground and buildings using a network of underground pipes, called ground loops, and heat pumps, reducing reliance on traditional energy sources and lowering greenhouse gas emissions.
Note that the outlook for this market is being affected by rapid changes in trade relations and tariffs globally. The report will be updated prior to delivery to reflect the latest status, including revised forecasts and quantified impact analysis. The report's Recommendations and Conclusions sections will be updated to give strategies for entities dealing with the fast-moving international environment.
The main types of geothermal heating and cooling systems are closed-loop and open-loop. Closed-loop systems circulate a heat transfer fluid through a sealed underground loop to efficiently exchange heat with the earth, without coming into direct contact with groundwater. The product types include packaged geothermal systems and split geothermal systems. These systems are used in various applications such as residential and commercial buildings and are distributed through both direct and indirect sales channels.
The geothermal heating and cooling market research report is one of a series of new reports from The Business Research Company that provides geothermal heating and cooling market statistics, including the geothermal heating and cooling industry global market size, regional shares, competitors with the geothermal heating and cooling market share, detailed geothermal heating and cooling market segments, market trends, and opportunities, and any further data you may need to thrive in the geothermal heating and cooling industry. This geothermal heating and cooling market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenarios of the industry.
The geothermal heating and cooling market size has grown strongly in recent years. It will grow from$9.21 billion in 2024 to $9.99 billion in 2025 at a compound annual growth rate (CAGR) of 8.4%. The growth during the historic period can be attributed to rising oil prices, increasing electricity and energy expenses, the volatile cost of traditional fossil fuels, rapid industrialization, and the growing reliance on fossil fuels.
The geothermal heating and cooling market size is expected to see strong growth in the next few years. It will grow to$13.60 billion in 2029 at a compound annual growth rate (CAGR) of 8.0%. The growth during the forecast period can be attributed to the growing demand for renewable energy sources, an increased focus on energy-efficient solutions, significant government support through subsidies, incentives, and other financial benefits, a stronger emphasis on reducing carbon footprints, and a rising global population. Key trends in the forecast period include new product launches, the integration of smart technology in system controls, the exploration of geothermal potential for low- and medium-temperature resources, technological advancements, and the digitalization of the power sector.
The growing demand for sustainable energy solutions is expected to drive the growth of the geothermal heating and cooling market. Sustainable energy solutions focus on using renewable resources, such as solar, wind, and hydropower, to produce energy while minimizing environmental impact and protecting ecosystems. This shift towards eco-friendly alternatives is being driven by increased awareness of climate change and environmental degradation, which has motivated individuals and governments to adopt cleaner energy sources. Geothermal heating and cooling systems, which utilize the Earth's natural heat for temperature regulation in buildings, are a prime example of a sustainable energy solution. These systems reduce energy consumption, cut emissions, and rely on a renewable, low-impact resource. For example, in December 2024, Eurostat, the Luxembourg-based government agency, reported that in 2023, renewable sources accounted for 24.5% of the European Union's gross final energy consumption, marking a 1.5 percentage point increase from 2022. As a result, the growing demand for sustainable energy is fueling the growth of the geothermal heating and cooling market.
To improve geothermal system efficiency, major companies in the geothermal heating and cooling market are adopting proprietary technologies. Proprietary technology refers to a unique, company-developed system or method that enhances geothermal system performance. These technologies help improve efficiency, reduce installation costs, and improve temperature control through specialized heat exchange systems and advanced controls. For example, in September 2024, Dandelion Energy Inc., a US-based residential construction company, launched Dandelion Geo, the world's most efficient geothermal heat pump. It provides up to 63,000 Btu/hr of heating and a coefficient of performance (COP) of up to 5.2, offering greater energy efficiency and reduced operating costs. Designed for easier adoption, the Dandelion Geo eliminates the need for most main panel upgrades, supports seamless integration with existing ductwork-especially in older and larger homes-and includes real-time performance monitoring and diagnostics to ensure long-term reliability.
In February 2025, Swegon AB, a Sweden-based provider of heating, ventilation, and air conditioning (HVAC) solutions, acquired American Geothermal for an undisclosed amount. With this acquisition, Swegon aims to enhance its presence in the North American market and expand its sustainable HVAC solution portfolio. The acquisition of American Geothermal, a US-based manufacturer specializing in geothermal heating and cooling systems, enables Swegon to leverage its expertise in heat pumps and chillers, aligning with increasing demand driven by environmental regulations and decarbonization initiatives.
Major players in the geothermal heating and cooling market are Robert Bosch GmbH, Daikin Industries Ltd., Carrier Global Corporation, Trane Technologies plc, NIBE Industrier AB, Vaillant GmbH, AAON Inc., WaterFurnace International Inc., ClimateMaster Inc., Eavor Technologies Inc., STIEBEL ELTRON GmbH & Co. KG, K&S Heating & Air Conditioning Inc., Metco Engineering Inc., Aire Serv LLC, EcoSmart Solution LLC, Endurant Energy LLC, Celsius Energy SAS, Direct Energy Australia Pty Ltd, Nordic Heat Pumps Inc., Enertech Global LLC, Efficiency Maine Trust, J & R Herra Inc., Nunning Heating Air Conditioning and Refrigeration Inc.
North America was the largest region in the geothermal heating and cooling market in 2024. Asia Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in geothermal heating and cooling report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East and Africa.
The countries covered in the geothermal heating and cooling market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.
The geothermal heating and cooling market consists of revenues earned by entities by providing services such as operation and maintenance, system installation and integration, site assessment and feasibility studies, consulting and project management, monitoring and control services. The market value includes the value of related goods sold by the service provider or included within the service offering. The geothermal heating and cooling market also includes sales of control systems, monitoring and maintenance equipment, buffer and storage tanks, ground heat exchangers, geothermal heat pumps. 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.
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.
Geothermal Heating and Cooling Global Market Report 2025 from The Business Research Company provides strategists, marketers and senior management with the critical information they need to assess the market.
This report focuses on geothermal heating and cooling market which is experiencing strong growth. The report gives a guide to the trends which will be shaping the market over the next ten years and beyond.
Where is the largest and fastest growing market for geothermal heating and cooling ? How does the market relate to the overall economy, demography and other similar markets? What forces will shape the market going forward? The geothermal heating and cooling market global report from the Business Research Company answers all these questions and many more.
The report covers market characteristics, size and growth, segmentation, regional and country breakdowns, competitive landscape, market shares, trends and strategies for this market. It traces the market's historic and forecast market growth by geography.
The forecasts are made after considering the major factors currently impacting the market. These include the Russia-Ukraine war, rising inflation, higher interest rates, and the legacy of the COVID-19 pandemic.