The global geothermal heat pumps market is forecast to reach $130.5 billion by the end of 2020,
The rise would present a 13.1 per cent compound annual growth rate (CAGR) from 2014 to 2020, according to a new market research report from Transparency Market Research.
Increasing electricity and oil prices are shifting consumer preference towards cost-effective energy substitutes, states the report.
The highly reliable nature of the system and easy financial options for consumers are fueling demand for geothermal heat pumps.
On the other hand, faulty installations and wrong estimation of pump size are factors curbing global demand. On the basis of application, the market is categorized into residential and commercial.
Both the residential and commercial segments are further categorized into retrofit systems and new building systems.
On the basis of technology, the geothermal heat pumps market is categorized into open loop systems and closed loop systems.
The closed loop system segment is further divided into vertical loops, pond/lake loops, and horizontal loops.
The closed loop segment holds the largest share of the global geothermal heat pump market according to installed capacity.
Even though open loop systems are highly efficient, closed loop systems are widely used for loop configuration across the globe. Open loop systems are reliant on the accessibility to groundwater reserves.
The regulatory barriers regarding the usage of groundwater reserves are responsible for hampering the spread of open loop geothermal heat pump systems across the globe.
According to the report, North America and Europe lead the global geothermal heat pumps market.
European countries such as France, Germany, Sweden, and Switzerland are mature markets and have experienced a steady decline in installed capacity in the last few years.
In the Asia Pacific market, the demand for retrofit systems is expected to remain high in the coming years. In Asia Pacific, China is the largest contributor to the geothermal heat pumps market.
For more information on the geothermal heat pumps market report, click here.