Straitsresearchtrendingreports: Geothermal Heat Pumps Market to Hit USD 23.69 Billion by 2033, Fueled by Demand for Sustainable Heating and Cooling

New York, USA – July 2025 – The global geothermal heat pumps market size, valued at USD 12.89 billion in 2024, is projected to reach USD 13.79 billion in 2025 and soar to USD 23.69 billion by 2033, expanding at a CAGR of 7%. This growth is fueled by the increasing adoption of geothermal heating and cooling systems as sustainable alternatives to fossil fuel-based HVAC setups.

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What is a Geothermal Heat Pump?

A geothermal heat pump (also known as a ground source heat pump) is a renewable geothermal energy technology that leverages the earth’s stable subsurface temperature to efficiently regulate indoor climates. These systems are widely recognized for their energy-saving capabilities, minimal environmental impact, and long-term cost-effectiveness.

Unlike traditional heat pump systems that extract heat from the air, geothermal heat pumps extract and dissipate heat from the ground, making them more efficient especially in extreme climates. According to the U.S. EPA, geothermal systems are among the most eco-friendly HVAC solutions available.

How Heat Pumps Work

Heat pumps move heat from one place to another using a refrigerant cycle, similar to a refrigerator. In heating mode, they extract heat from the outside air (even when it's cold) using an outdoor unit. A compressor then increases the temperature of this captured heat. The hot refrigerant flows indoors, releases heat inside your home via an indoor unit, and the cycle repeats. To cool your home, the cycle simply reverses, pulling heat from indoors and releasing it outside.

How Geothermal Heat Pumps Work

Geothermal heat pumps work on the same principle as regular heat pumps but use the earth (or groundwater) as the heat source or sink instead of outdoor air. A loop of pipes buried underground circulates a fluid that absorbs the earth's stable, moderate heat in winter. This heat is brought up, concentrated by the heat pump, and transferred into your home. In summer, the process reverses, pulling heat from your house and depositing it into the cooler ground. Using the earth's constant temperature makes geothermal systems much more efficient than air-source heat pumps.

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Segmentation Snapshot

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Regional Highlights

Asia-Pacific is expected to dominate the market, projected to hit USD 7,780 million by 2030 at a CAGR of 8%. Factors such as low-cost skilled labor, increasing urban demand, and government support are driving adoption.
Europe is the second-largest market, projected at USD 5,993 million by 2030, with initiatives supporting energy efficiency and environmental protection policies.

Leading Market Players

Stiebel Eltron GmbH & Co. KG
Ingersoll Rand
Vaillant Group
Daikin Industries Ltd.
Dandelion Energy
Carrier
Robert Bosch GmbH
BDR Thermea Group

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Frequently Asked Questions (FAQs)

How do heat pumps work in geothermal systems?
What is the typical geothermal heat pumps cost?
Why is geothermal heating and cooling more efficient?
Is geothermal energy sustainable?

About Straits Research

Straits Research is a global market intelligence and consulting firm delivering actionable insights to organizations across diverse sectors, including construction, healthcare, technology, energy, and consumer goods. We specialize in providing detailed market reports, custom research solutions, and strategic advisory services to help businesses identify emerging trends, assess opportunities, and make data-driven decisions.