Geothermal heat pumps will surpass $17 billion in annual revenue by 2020
Geothermal heat pump (GHP) systems – sometimes referred to as ground source heat pumps – are a growing part of the worldwide movement toward using renewable energy sources for building heating and cooling. Harnessing moderate and constant temperatures just below the Earth’s surface, GHP systems play a vital role in global strategies to reduce greenhouse gas emissions and the burden on overtaxed infrastructure. First used in the 1940s, GHP systems are being deployed in nearly every region of the world and in residential, commercial, institutional, and industrial environments with great success. According to a new report from Navigant Research, worldwide revenue from GHP systems will grow from $6.5 billion in 2013 to $17.2 billion annually by 2020.
“The global economic downturn, which slowed construction, reduced government investments in cleantech products, and limited the ability of developers to acquire capital for high-end construction products, has taken a toll on manufacturers of GHP products,” says Mackinnon Lawrence, principal research analyst with Navigant Research. “However, the market stands to experience strong growth in the coming years, as government policies create incentives for the use of energy efficiency resources and manufacturers reduce the upfront cost of GHP installations.”
Although GHPs rely on electricity to run, they are considerably more efficient at heating and cooling than air-source conditioners and other traditional HVAC competitor solutions. While they do not directly displace fossil-based energy generation, GHP systems can reduce the dependence on fossil fuel-generating sources by a factor of up to 71 percent. Used on their own, GHPs are capable of delivering large reductions in energy use and peak demand in buildings. They offer even greater benefits when used in conjunction with clean energy generation and whole building efficiency.
The report, “Geothermal Heat Pumps”, analyzes the global market opportunity for geothermal heat pumps, including a comprehensive examination of GHP markets, demand drivers, existing and emerging technologies, the public policy and regulatory environment, and key industry players. Market forecasts, segmented by geography and market segment, extend through 2020 and include examinations of market dynamics in all key regions worldwide. An Executive Summary of the report is available for free download on the Navigant Research website.