By Isabella Kaminski

According to a new report from cleantech market intelligence firm Pike Research, Geothermal Heat Pumps and Direct Use, annual unit shipments of geothermal heat pumps in the US will double from just under 150,000 in 2011 to over 326,000 units by 2017.

The report estimates that total worldwide capacity for geothermal direct use applications will increase by 179% during the same period, and that heat pumps will represent a significant majority of the global market for such direct use applications, accounting for 84% of total capacity.

Other key segments, according to Pike Research, include bathing and swimming applications and space (district) heating.

According to Pike Research, while cost and lack of consumer awareness remain primary obstacles to increased adoption, tax incentives and policies supporting building efficiency improvements are helping to drive dramatic growth in the geothermal heat pump market.

Mackinnon Lawrence, Industry Analyst, says: “The potential for geothermal heat pumps is high, but installations currently represent just 1% of the heating and cooling market. However, growing electricity demand, rising energy prices, and increasing regulation around emissions and efficiency are all expected to push demand higher.

"Used on their own, geothermal heat pumps are capable of producing large reductions in energy use and peak demand in buildings. Used in conjunction with clean energy generation and whole-building efficiency measures, the benefits of using heat pumps increase substantially.”