PUBLISHER: The Business Research Company | PRODUCT CODE: 1932566
PUBLISHER: The Business Research Company | PRODUCT CODE: 1932566
A geothermal heat pump is a high-efficiency renewable energy technology system that utilizes the constant temperature of the earth to heat and cool buildings. These heat pumps are packaged in a single cabinet, incorporating components such as a compressor, loop-to-refrigerant heat exchanger, and controls.
The main types of geothermal heat pumps are open-loop geothermal heat pumps and closed-loop geothermal heat pumps. Open-loop geothermal heat pumps utilize groundwater as a refrigerant to transfer thermodynamic energy for heating or cooling. They find widespread use in residential, commercial, and industrial applications.
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.
Tariffs are affecting the geothermal heat pump market by increasing the cost of imported compressors, heat exchangers, control electronics, and refrigerant system components essential for system efficiency. Residential and commercial installers in North America and Europe are most impacted due to reliance on imported HVAC equipment. Asia-Pacific faces export pricing challenges for packaged systems. These tariffs are increasing upfront installation costs and slowing retrofit adoption. At the same time, they are supporting domestic manufacturing, regional supply chain development, and innovation in cost-efficient geothermal system designs.
The geothermal heat pump market research report is one of a series of new reports from The Business Research Company that provides geothermal heat pump market statistics, including the geothermal heat pump industry global market size, regional shares, competitors with a geothermal heat pump market share, detailed geothermal heat pump market segments, market trends, and opportunities, and any further data you may need to thrive in the geothermal heat pump industry. This geothermal heat pump 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 heat pump market size has grown strongly in recent years. It will grow from $4.73 billion in 2025 to $5.08 billion in 2026 at a compound annual growth rate (CAGR) of 7.5%. The growth in the historic period can be attributed to rising energy costs, government incentives for renewable energy, demand for efficient heating and cooling, adoption of sustainable building practices, reduction of carbon emissions.
The geothermal heat pump market size is expected to see strong growth in the next few years. It will grow to $6.9 billion in 2030 at a compound annual growth rate (CAGR) of 7.9%. The growth in the forecast period can be attributed to net-zero building initiatives, expansion of smart energy systems, increased urban adoption, technological improvements in heat exchangers, policy support for decarbonization. Major trends in the forecast period include growth in renewable heating solutions, rising adoption of ground source systems, focus on energy-efficient building systems, increasing retrofitting of hvac systems, demand for low-carbon heating.
The increasing government initiatives to curb carbon emissions are driving the growth of the geothermal heat pumps market. Governments worldwide are implementing various measures to reduce carbon emissions, with some countries setting ambitious plans to achieve net-zero emissions through the use of natural resources such as geothermal energy, nuclear energy, and others. This shift toward natural resources is expected to increase demand for geothermal heat pumps, which are being used for heating and cooling as alternatives to electricity-powered air conditioning units, thermal-powered power plants, and other carbon-intensive products. For instance, in May 2024, according to the World Bank, carbon-pricing revenues reached a record USD 104 billion in 2023, with about 24% of global greenhouse-gas emissions covered by carbon-pricing mechanisms, reflecting continued government efforts to curb emissions. Therefore, rising government initiatives to reduce carbon emissions are expected to drive the demand for geothermal heat pumps during the forecast period.
Major companies in the geothermal heat pump market are increasingly focused on developing high-efficiency geothermal heat pumps to reduce energy consumption, lower operating costs, and minimize environmental impact, while addressing the growing demand for sustainable heating and cooling solutions across residential, commercial, and industrial applications. High-efficiency geothermal heat pumps provide a sustainable and cost-effective option for heating and cooling, aligning with rising energy efficiency standards and the demand for environmentally friendly technologies. For instance, in September 2024, Dandelion Energy, a U.S.-based company specializing in geothermal heat pumps, launched the Dandelion Geo, a geothermal heat pump that offers market-leading efficiency and performance. This initiative aims to connect skilled contractors with homeowners interested in adopting geothermal technology, thus facilitating wider access to this sustainable heating solution.
In October 2025, MuoviTech Finland Oy, a Finland-based provider of ground-source heating solutions, acquired GeoHeat Oy for an undisclosed amount. Through this acquisition, MuoviTech aims to enhance its expertise in semi-deep and deep geothermal systems, expand its service offerings, and strengthen its position as a leading provider of ground-source heat technologies across Northern Europe. GeoHeat Oy is a Finland-based manufacturing company specializing in the installation and servicing of semi-deep and deep geothermal systems, supporting the full lifecycle of geothermal heat pump applications.
Major companies operating in the geothermal heat pump market are Carrier Global Corporation, Trane Technologies plc, Daikin Industries Ltd., NIBE Group AB, Vaillant Group, Stiebel Eltron Group, Glen Dimplex Group, Danfoss A/S, Mitsubishi Electric Corporation, Johnson Controls International plc, Lennox International Inc., Enertech Global LLC, Kensa Group Ltd., Maritime Geothermal Ltd., Clivet S.p.A., Ochsner Warmepumpen GmbH, Heliotherm Warmepumpentechnik Ges.m.b.H., AIT Austria GmbH, Miami Heat Pump, Geo-Air Industries Inc., EarthLinked Technologies Inc.
Asia-Pacific was the largest region in the geothermal heat pump market in 2025, and it is also expected to be the fastest-growing region in the forecast period. The regions covered in the geothermal heat pump market report are Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East, Africa
The countries covered in the geothermal heat pump market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Taiwan, Russia, South Korea, UK, USA, Canada, Italy, Spain.
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.
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 Heat Pump Market Global Report 2026 from The Business Research Company provides strategists, marketers and senior management with the critical information they need to assess the market.
This report focuses geothermal heat pump 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 heat pump ? How does the market relate to the overall economy, demography and other similar markets? What forces will shape the market going forward, including technological disruption, regulatory shifts, and changing consumer preferences? The geothermal heat pump 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, total addressable market (TAM), market attractiveness score (MAS), competitive landscape, market shares, company scoring matrix, trends and strategies for this market. It traces the market's historic and forecast market growth by geography.
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