A circulation pump is a specific type of pump that is used to circulate gases or liquids in a closed circuit. However, the term is generally used to refer to the circulation of water in a cooling or heating system. In the home, the circulation pump has to contend only with the friction of the contents and the pipes; as such, it needs only a maximum of one horse power motor for moving the contents around. In its largest application, which is usually in the production and manufacturing industries, a high powered electric motor which is separate from the pump is used.
In the home, the circulation of water is such that if there was no pump, the water would be heated and upon initial opening of the tap, hot water would come out of the taps. On closing the tap, the hot water would stay in the taps and with time, cool down. On the second opening, the water would be cold and the tap would have to be run for some time to get hot water. This would lead to a lot of waste in a world that cannot afford such waste. The circulation pump serves to circulate hot water so that taps can produce hot water on demand. The circulation pump constantly circulates a small amount of water between the heater and the furthest point in the circulation system. This ensures that no water is wasted as water is instantly hot on opening the tap.
Despite the fact that some heat is lost in the constantly hot pipes, it is a small price to pay for the money saving made possible through energy saved from not having to heat water that will be lost anyway and in the water that goes down the drain, literally. In order to cut down on the heat lost to the pipes, some innovations have been made in the form of all kinds of thermostats to regulate and control temperature. There are various forms which include those that are based on temperature, time of day, day of the week and occupancy sensor.