EGEC Special Geothermal Market Report on Heat Pumps – Now available!

EGEC publishes its first dedicated Geothermal Heat Pump Market Report!

This publication marks the launch of a new series of targeted geothermal market reports by EGEC, providing more detailed insights into specific segments of Europe’s geothermal sector.

Building on the findings of the annual EGEC Geothermal Market Report 2025, the new publication focuses specifically on geothermal heat pumps (GHPs), examining market developments, technological innovations, regulatory challenges, competitiveness and future growth opportunities.

The EU policy context is increasingly favourable to geothermal heat pumps, but further action is needed to translate Europe’s decarbonisation ambitions into market growth. The revised Renewable Energy Directive (RED) and Energy Efficiency Directive (EED) set a stronger framework for renewable heating and cooling, while the EU’s broader electrification and energy-efficiency objectives reinforce the role of highly efficient geothermal solutions. The implementation of these policies, alongside the forthcoming EU Electrification Action Plan and measures to simplify permitting, improve access to finance and strengthen skills and manufacturing capacity, will be critical to accelerating deployment. Unlocking the full potential of geothermal heat pumps will also require greater recognition of their ability to provide efficient heating and cooling and underground thermal energy storage, supporting both building decarbonisation and more flexible energy systems.

Philippe Dumas, Secretary General of EGEC:

“Geothermal heat pumps are a key technology for Europe’s transition towards secure, affordable and decarbonised heating and cooling. The recovery of the market in 2025 is encouraging, but we must now build on this momentum by addressing persistent barriers, particularly permitting, financing and skills. With the right policy framework, geothermal heat pumps can make a much greater contribution to Europe’s energy independence, competitiveness and climate objectives. This new report provides policymakers and industry with the market insights needed to turn that potential into tangible progress.”

Key Findings of the Geothermal Heat Pump Market Report 2026

• The geothermal heat pump market returned to growth in 2025, with approximately 123,000 units sold across the EU, a 10% increase compared with 2024. More than 2.5 million units are now installed, representing 39.2 GWth of capacity and supplying around 88 TWh of heat annually.
• Larger geothermal heat pump systems are gaining importance, particularly in residential, commercial and public buildings, industrial applications and district heating and cooling networks, creating new opportunities for collective geothermal systems and underground thermal energy storage.
• Technological innovation is expanding geothermal applications, with advances in drilling, passive cooling, thermal energy storage and data centre solutions. New business models, such as Heat-as-a-Service, could also help accelerate deployment.
• Permitting remains a major barrier to market growth. Lengthy administrative procedures, inconsistent regulations and shortages of skilled professionals continue to slow deployment, highlighting the need for stronger policy support and investment.
• Geothermal heat pumps offer competitive long-term heating and cooling solutions, thanks to their high efficiency, low operating costs and long lifetimes. Despite higher upfront investments, they represent an affordable renewable alternative to fossil-fuel heating systems.

Read the full report: The Geothermal Heat Pump Market in Europe 2026.

The contents of this report are partially based on the contents of the Geothermal Market Report 2025, which was published by EGEC in July 2026.

Full Report & Annexes: The Full Report, as well as supporting data and tables (Annexes), are provided to EGEC members and they are also available for purchase from the EGEC secretariat.

Purchase options:

1. Full Report (90 pages) and Annexes (62 pages): €10.000,00

2. Full Report (90 pages): €5.000,00

3. Annexes (62 pages): €5.000,00

Key Findings: The Key Findings of the EGEC Geothermal Market Report 2025 are available on the EGEC website.

READ THE KEY FINDINGS

Should you wish to purchase the Full Report and Annexes (or learn about how to become a member of EGEC) please contact info@egec.org