Geothermal Power Market Overview
The Geothermal Power Market size accounted for USD 4.23 Billion in 2023 and is estimated to account for 8.01 Billion in 2024. The Market is expected to reach USD 117.35 Billion by 2034 growing at a compound annual growth rate (CAGR) of 13.35% from 2024 to 2034. The geothermal power market refers to the global industry involved in the production and sale of electricity generated from geothermal energy. Geothermal energy is a renewable energy source that harnesses the heat from the Earth’s interior to produce electricity. This heat is extracted through wells drilled into the Earth’s crust, where it is used to heat water or create steam, which can then be used to drive turbines and generate electricity.
The geothermal power market is driven by the increasing demand for renewable energy sources, as well as the growing awareness of the environmental benefits of geothermal power. Geothermal power plants emit significantly fewer greenhouse gases than traditional fossil fuel power plants, making them a more sustainable option for electricity generation. The geothermal power market is still relatively small compared to the overall energy market, but it has been growing steadily in recent years.
Global Geothermal Power Market Synopsis
Geothermal Power Market Dynamics
The major factors that have impacted the growth of Geothermal Power Market are as follows:
Drivers:
Ø Technological Advancements
Innovations in drilling technologies, geothermal power plant design, and reservoir management improve the efficiency and viability of geothermal projects, making them more competitive with traditional energy sources. Geothermal energy can provide a stable and local source of power, reducing reliance on imported fossil fuels. This aspect is particularly appealing to countries looking to enhance their energy security. Once established, geothermal power plants typically have low operational and maintenance costs compared to fossil fuel plants, leading to more stable electricity prices in the long term.
Restraint:
- Perception of High Initial Investment Costs and Resource Location Limitations
The upfront costs for geothermal power projects can be significant, including expenses for exploration, drilling, and plant construction. This can deter investors, especially in regions with less established geothermal resources. Geothermal resources are geographically concentrated, often found in specific regions such as tectonic plate boundaries. This limits the widespread applicability of geothermal energy, making it less accessible in certain areas. Fluctuations in energy prices and market conditions can impact the financial viability of geothermal projects, making them less attractive to investors during periods of low energy prices.
Opportunity:
⮚     Carbon Capture and Utilization (CCU)
Integrating geothermal plants with carbon capture technologies can reduce overall emissions and enhance the sustainability of geothermal energy production, making it more appealing in the context of climate change mitigation. The rising adoption of electric vehicles creates an opportunity for geothermal energy to power charging stations, particularly in regions with established geothermal infrastructure. Geothermal power can be a reliable source of energy for rural and remote areas that lack access to conventional electricity sources, enhancing energy access and supporting local economies.
Geothermal Power Market Segment Overview
By Station Type
Based on Station Type, the market is segmented based on Dry Steam Power Stations, Flash Steam Power Stations and Binary Cycle Power Stations. The The geothermal binary cycle power plant segment dominant the market. This is primarily due to the binary cycle plants also operates in the artificial lake with lower temperatures as it is a more appropriate option.
By Application
Based on Application, the market segment has been divided into Residential, Commercial, Industrial and Others. The commercial end-use segment dominated the geothermal power market. The main driver of the demand for geothermal energy in the commercial sector is the growing use of heat pumps for air conditioning and cooling down inside the environment, when necessary, which maintains a controlled climate in the commercial sector, including office buildings, hotels, schools, and hospitals.
Global Geothermal Power Market Regional Analysis
Based on region, the global Geothermal Power Market has been divided into North America, Europe, Asia-Pacific, the Middle East & Africa, and Latin America. North America is projected to dominate the use of the Geothermal Power Market followed by the Asia-Pacific and Europe regions.
Geothermal Power North America Market
North America holds a dominant position in the Geothermal Power Market. North America is one of the most developed globally, with significant contributions from the United States, and growing potential in Canada. North America’s geothermal market is supported by federal and state-level renewable energy mandates aimed at reducing greenhouse gas emissions and increasing the share of renewables in the energy mix. The U.S. is investing heavily in research and development, particularly in Enhanced Geothermal Systems (EGS), which could unlock vast geothermal potential in regions without traditional hydrothermal resources.
Geothermal Power Asia-Pacific Market
The Asia-Pacific region has indeed emerged as the fastest-growing market for the Geothermal Power Market industry. The Asia-Pacific region is experiencing growth due to the region’s abundant geothermal resources, government initiatives for renewable energy, and increasing energy demand and Japan has significant geothermal resources due to its location along the Pacific Ring of Fire, but geothermal development is limited compared to its potential.
Competitive Landscape
The global Geothermal Power Market is highly competitive, with numerous players offering a wide range of software solutions. The competitive landscape is characterized by the presence of established companies, as well as emerging startups and niche players. To increase their market position and attract a wide consumer base, the businesses are employing various strategies, such as product launches, and strategic alliances.
Prominent Players:
- Enel Green Power S.p.A.,
- Ormat Technologies Inc.
- Kenya Pertamina Geothermal Energy
- Electricity Generating Company PLC
- Calpine Corporation
- Aboitiz Power Corporation
- Energy Development Corporation
- Fuji Electric Co. Ltd.
- Toshiba Energy Systems & Solutions Corporation
- Mitsubishi Gas Chemical Company Inc.
Key Development
In April 2022, Calpine Corporation and Sacramento Municipal Utility District (SMUD) have a deal. According to the agreement, SMUD agreed to purchase electricity from a 100 MW section of the Californian Geysers field. It was a PPA with a 10-year term that became effective on January 1, 2023.
Scope of the Report
Global Geothermal Power Market, by Station Type
- Dry Steam Power Stations
- Flash Steam Power Stations
- Binary Cycle Power Stations
Global Geothermal Power Market, by Application
- Residential
- Commercial
- Industrial
- Others
Global Geothermal Power Market, by Region
- North America
- US
- Canada
- Mexico
- Europe
- UK
- Germany
- France
- Italy
- Spain
- Benelux
- Nordic
- Rest of Europe
- Asia Pacific
- China
- Japan
- South Korea
- Indonesia
- Austalia
- Malaysia
- India
- Rest of Asia Pacific
- South America
- Brazil
- Argentina
- Rest of South America
- Middle East & Africa
- Saudi Arabia
- UAE
- Egypt
- South Africa
- Rest of Middle East & Africa
| Parameters | Indicators |
|---|---|
| Market Size | 2033: $117.35 Billion |
| CAGR | 13.35% CAGR (2023-2033) |
| Base year | 2022 |
| Forecast Period | 2023-2033 |
| Historical Data | 2021 |
| Report Coverage | Revenue Forecast, Competitive Landscape, Growth Factors, and Trends |
| Key Segmentations | Station Type, Application |
| Geographies Covered | North America, Europe, Asia-Pacific, Latin America, Middle East, Africa |
| Key Vendors | Enel Green Power S.p.A., Ormat Technologies Inc., Kenya Pertamina Geothermal Energy, Electricity Generating Company PLC, Calpine Corporation, Aboitiz Power Corporation, Energy Development Corporation, Fuji Electric Co. Ltd., Toshiba Energy Systems & Solutions Corporation and Mitsubishi Gas Chemical Company Inc |
| Key Market Opportunities | • The growing demand for healthier food options • The rise of e-commerce and online food delivery platforms |
| Key Market Drivers | • Carbon Capture and Utilization (CCU) |
REPORT CONTENT BRIEF:
- High-level analysis of the current and future Geothermal Power Market trends and opportunities
- Detailed analysis of current market drivers, restraining factors, and opportunities in the future
- Geothermal Power Market historical market size for the year 2021, and forecast from 2023 to 2033
- Geothermal Power Market share analysis at each product level
- Competitor analysis with detailed insight into its product segment, Government & Defense strength, and strategies adopted.
- Identifies key strategies adopted including product launches and developments, mergers and acquisitions, joint ventures, collaborations, and partnerships as well as funding taken and investment done, among others.
- To identify and understand the various factors involved in the global Geothermal Power Market affected by the pandemic
- To provide a detailed insight into the major companies operating in the market. The profiling will include the Government & Defense health of the company’s past 2-3 years with segmental and regional revenue breakup, product offering, recent developments, SWOT analysis, and key strategies.
