Global Geothermal Heat Pumps Market Driven by Increasing Demand for Affordable Electricity


Published Date : Feb 10, 2016

The global geothermal heat pumps market is projected to expand at a healthy rate in the coming five years. The demand for alternative energy sources has grown by leaps and bounds in the past few decades. Although solar and wind are leading the global renewable energy industry, alternative energy segments such as geothermal are also gaining traction. The global geothermal heat pumps market is driven by several factors. Let us look at these in detail.

5 Key Drivers of Global Geothermal Heat Pumps Market
By technology, the global geothermal heat pumps market is segmented into open loop systems and closed loop systems. 

  • Demand for Low-cost Alternatives: The increasing prices of electricity has led to consumers’ focus shifting towards low-cost energy alternatives. Several alternative energy systems such as geothermal and solar once installed offer consumers cost-effective electricity generation in the long run.
  • Environmental Benefits: The growing awareness of consumers regarding the benefits of alternative, clean energy sources is driving the global geothermal heat pumps market. In addition to this, the significant cost savings provided by this energy source has made it an attractive investment.
  • Attractive Payback Periods: By installing geothermal heat pumps in newly-built homes, consumers can enjoy attractive payback periods. This is another key trend that is driving the global geothermal heat pumps market.
  • Reliability: Another key driver of the global geothermal heat pumps market is the highly reliable nature of the overall system. Furthermore, the easy financing options available for consumers will also drive the global geothermal heat pumps market.
  • Incentive Structure: Another prominent driving force of the global geothermal heat pumps market is the attractive incentive structure. In addition to this, the lower sensitivity towards the upfront cost is projected to render the commercial sector as a rapidly expanding market.

These were the key drivers of the global geothermal heat pumps market. The global geothermal heat pumps market is worth billions of dollars and is projected to expand significantly in the coming few years driven by the aforesaid trends. Nevertheless, the global geothermal heat pumps market is suppressed by the inaccurate estimation of heat pump size and also due to the faulty installations, which can have a negative impact on the owners.