Industry Overview
The Global Geothermal Energy Market is anticipated to grow from USD 8.4 billion in 2023 to USD 10.6 billion in 2030 at a CAGR of 6.3% during the forecast period from 2025 to 2030.
System of creating clean power by extracting heat energy from the ground is known as geothermal power generation. Uses of this energy such as cooling, heating and electricity are expected to propel the market growth. Technological advancements in this type of energy and increasing need for clean energy resources globally is raising the growth of the market.
The market is segregated by technology such as flash, ground source heat pumps, direct systems, binary cycle plants and dry steam plants segments, where binary cycle plants dominates the market and by temperature such as low temperature (upto 900C), medium temperature (900C - 1500C) and high temperature (above 1500C), among which low temperature shall grow as these geothermal energy resources are used for recreation and heating applications. It is also divided on the applications into power generation, residential heating and cooling and commercial heating and cooling where power generation division shall grow more than the others.
Market Segmentation
Insight by Technology
Based on technology, the Geothermal Energy Market is segmented into flash, ground source heat pumps, direct systems, binary cycle plants and dry steam plants. The binary cycle segment shall dominate the market due to its various benefits and low costs. The flash steam segment too is anticipated to grow at the fastest CAGR during the forecast period due to the efficient nature of harnessing natural steam produced in underground reservoirs which convert it directly into electrical power.
Insight by Power
The Geothermal Energy Market is bifurcated into upto 5MW and above 5 MW. The above 5 MW segment accounted for the largest revenue share during the forecast period owing to the increasing demand for large scale power plants which are capable of generating high amount of electricity for commercial and industrial applications.
Insight by Temperature
The Geothermal Energy Market is classified into Low Temperature (upto 900C), Medium Temperature (900C - 1500C) and High Temperature (Above 1500C) on the basis of temperature. Low temperature segment accounts for the majority of the market share as these geothermal energy resources are used for recreation and heating applications.
Insight by Application
The market segmentation based on application includes power generation, residential heating and cooling and commercial heating and cooling. Among these segments, commercial heating and cooling segment leads the market as this energy is used for commercial applications like space and water heating.
Global Geothermal Energy Market Report Coverage
|
Report Metric
|
Details
|
|
Historical Period
|
2018 - 2023
|
|
Base Year Considered
|
2024
|
|
Forecast Period
|
2025 - 2030
|
|
Market Size in 2023
|
U.S.D. 8.4 Billion
|
|
Revenue Forecast in 2030
|
U.S.D. 10.6 Billion
|
|
Growth Rate
|
6.3%
|
|
Segments Covered in the Report
|
By Technology, By Power, By Temperature, By Application
|
|
Report Scope
|
Market Trends, Drivers, and Restraints; Revenue Estimation and Forecast; Segmentation Analysis; Impact of COVID-19; Companies’ Strategic Developments; Market Share Analysis of Key Players; Company Profiling
|
|
Regions Covered in the Report
|
North America, Europe, Asia-Pacific, Latin America, Middle East And Africa
|
Industry Dynamics
Growth Drivers
The major growth driver of the geothermal energy market is growing demand for renewable sources of energy. The growing demand for geothermal energy is driven by several other factors also. To reduce the dependency on energy generated from fossil fuels of many green government initiatives are expected to drive the market. Now-a-days, businesses have been adopting it as it emits 99% less carbon dioxide that shall propel the market growth. Geothermal energy is one of the reliable sources of energy which is eco-friendly and cost-effective. Today the increasing demand for uninterrupted power supply for commercial, residential and industrial sectors also play important role in the growth of the market. Geothermal energy have many applications in several economic sectors that have potential to decrease the use of fossil fuels and the greenhouse gas emissions that caters for the global objective to reduce carbon emissions. Geothermal energy is emerging as a promising solution to moderate growing energy demand and reduction in greenhouse gas emissions in coming years as countries across the globe flourish to reduce dependence on fossil fuels.
Restraints
The main restraint of the geothermal energy market is the potential emissions from the greenhouse gas below earth's surface can rise to the surface. The construction of large geothermal power plants can trigger an earthquake. High cost of electricity is also the another restraint of this market.
Geographic Overview
- North America
- Europe
- Asia Pacific (APAC)
- Latin America
- Middle East and Africa
Asia Pacific is anticipated to dominate the geothermal energy market share due to high potential demand for energy in Asian countries. The growth of this market is propelled because of the requirement for high volumes of the energy for the generation of electricity.
Competitive Insights
The major players are actively investing in research and development, partnerships and acquisitions. Companies are striving to enhance their technological capabilities, offer innovative solutions to meet evolving customer demands and expand market reach.
Ormat supplies renewable and alternative geothermal energy technology. The company has built over 190 power plants and installed over 3,200 MW. It owns and operates 933 MW of geothermal and recovered energy based power plants.
Mitsubishi Power was the first in the world to apply a combined system that consists of a two phase flow transportation system and a double flash cycle, which has been widely applied in geothermal power generation. Our geothermal power generation systems have been introduced in many different countries around the world and continue to be in high demand.
Key Players Covered in the Report
Some of the key players in this market are Ormat Technologies, Calpine, Mitsubishi Corporation, Enel Green Power, Ethos Energy, GEG Power, ElectraTherm, Toshiba International Corporation, First Gen Corporation, Berkshire Hathaway Energy, Turboden, Reykjavik Geothermal.
Recent developments by Key Players
Ormat Technologies, Inc., a key player in renewable energy, has inked a 30-year Power Purchase Agreement (PPA) with Electricité de France (EDF) for a new 10MW geothermal power plant on Guadeloupe Island, where we hold a 63.75% equity stake. This will complement Ormat’s existing 15MW Bouillante geothermal power plant, with the new project expected to go operational by the end of 2025, boasting a sea water-cooled binary system utilizing Ormat Energy Converters (OEC) for maximum efficiency. The transaction is a testimony to Ormat’s dedication to advancing clean energy solutions and pioneering sustainable practices for a greener future.
Mitsubishi Heavy Industries has invested in Fervo Energy. The company shall make reservoirs of hot rock which exist beneath the earth’s surface into economically viable carbon free sources of energy that can be used as heat sources for industrial and power generation.
Segments Covered in the Report
- By Technology
- Flash
- Ground Source Heat Pumps
- Direct systems
- Binary cycle plants
- Dry Steam Plants Heavy Duty
- By Power
- By Temperature
- Low Temperature (upto 900C)
- Medium Temperature (900C - 1500C)
- High Temperature (Above 1500C)Upto 5 MW
- By Application
- Power Generation
- Residential Heating and Cooling
- Commercial Heating and Cooling
Region Covered in the Report
- North America
- Europe
- Germany
- U.K.
- France
- Italy
- Spain
- Russia
- Rest of Europe
- Asia-Pacific (APAC)
- China
- Japan
- South Korea
- India
- Australia
- Rest of APAC
- Latin America
- Brazil
- Argentina
- Rest of Latin America
- Middle East and Africa
- Turkey
- UAE
- Saudi Arabia
- South Africa
- Rest of MEA
.png "Geothermal Energy Market Size")
Source: VynZ Research
.png "Geothermal Energy Market Analysis")
Source: VynZ Research
