These are the main conclusions of The Geothermal Heat Pump Market in Europe 2026, published by the European Geothermal Energy Council (EGEC).
More than 2.5 million units are now installed across the European Union. Looking ahead to 2030, the combination of electrification policies, growing energy security considerations, rising cooling demand and continued technological improvements is expected to support sustained growth in the geothermal heat pump sector.
The EGEC report marks the launch of a new series of targeted market reports, providing 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, examining market developments, technological innovations, regulatory challenges 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.
“Geothermal heat pumps are the key technology for Europe's transition towards secure, local, affordable and decarbonised heating and cooling” said Philippe Dumas, EGEC’s Secretary-General. “The market development is encouraging, but we must now build on this momentum by addressing persistent barriers, particularly permitting. With the right policy framework, geothermal heat pumps can make a much greater contribution to Europe's energy independence by cutting drastically fossil fuel imports, with affordable heating and cooling prices to buildings. With high efficiency, It allows also to reduce electricity grid costs.”
Here are some of the Key Findings contained in EGEC’s latest report:
Around 2 million additional units would be expected by 2030 to reach a stock of ca. 4.5 million units.
Networked geothermal and thermal energy networks become a growing market segment.
Growing cooling demand creates additional market opportunities.
Permitting barriers continue to constrain market growth.
Geothermal heat pumps offer competitive long-term heating and cooling solutions: (i) the highest levels of efficiency for heating, cooling, hot water and storage; (ii) an operating lifetime longer than 50 years, helping to amortise investment costs.
Installing a GHP system can also increase the market value of a building.
This publication marks the launch of a new series of targeted market reports by EGEC, providing detailed insights into specific segments of Europe's geothermal sector.
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