Geothermal Power Market Size - Global Industry, Share, Analysis, Trends and Forecast 2023 - 2032

Geothermal Power Market Highlights

• Global geothermal power market revenue is poised to garner USD 10.9 billion by 2032 with a CAGR of 5.6% from 2023 to 2032
• North America geothermal power market value occupied around USD 2.5 billion in 2022
• Asia-Pacific geothermal power market growth will record a CAGR of more than 6.5% from 2023 to 2032
• Among power station type, the binary cycle power stations sub-segment generated more that USD 3.3 billion revenue in 2022
• Based on application, the industrial sub-segment generated around 34% share in 2022
• Integration of geothermal energy into hybrid systems for enhanced efficiency is a popular geothermal power market trend that fuels the industry demand

Geothermal energy is a dependable and self-sufficient technique for producing electricity by harnessing the magmatic heat that exists naturally on Earth. Geothermal power plants use steam that is produced by hot water sources that are located deep below the surface of the Earth. When this steam is used, it powers turbines, which turn thermal energy into electrical power. Because geothermal power is sustainable and environmentally beneficial, the market for it is expanding significantly. Investments in geothermal technology soar as global awareness of renewable energy options grows, indicating a promising trend in industry progress. The market is positioned to be a key player in the shift to renewable energy sources by providing a reliable and sustainable substitute for conventional power generation techniques.

Global Geothermal Power Market Dynamics

Market Drivers

• Increasing global demand for sustainable energy sources
• Supportive government policies and incentives
• Declining costs of geothermal technology
• Growing environmental awareness and preference for clean energy solutions

Market Restraints

• High upfront investment required for geothermal projects
• Geological limitations and site-specific challenges
• Competition from alternative renewable energy sources

Market Opportunities

• Research and development investments for technological advancements
• Untapped geothermal potential in emerging markets
• Expansion of geothermal projects in established markets

Geothermal Power Market Report Coverage

Geothermal Power Market Insights

Some of the main developments in the geothermal power sector are driven by the rising need for electricity generation. Geologists, geophysicists, geochemists, and other experts in this field play crucial roles, from the exploratory phase to power generation and subsequent distribution. There are also manpower requirements for drilling wells, geothermal boiling equipment, mud-logger fluid analysis, and the placement of concrete metal housings in soldering wells. Additionally, job prospects in EPC services have increased, as workers with civil, mechanical, and electrical engineering skills are in demand. Trained staff for geothermal power plant construction, operations, and maintenance is also needed. On the other hand, increasing technical advancements and the presence of several geothermal deposits are projected to provide global players with business opportunities. However, the growing demand for energy from developing economies is expected to fuel industry growth over the geothermal power industry forecast period.

Within the geothermal power industry, investments in research and development (R&D) projects present a substantial chance for innovation and technological advancements. Improvements in overall performance and cost-effectiveness can result from developments in drilling techniques, reservoir characterization, and geothermal plant efficiency. R&D can also concentrate on investigating novel technologies, like improved geothermal systems (EGS), to access resources that were previously unreachable, hence increasing the potential for the extraction of geothermal energy. These developments address issues like project risk and resource variability, making geothermal power more competitive with other renewable energy sources.

The unexplored geothermal potential in developing nations offers a sizable window of opportunity for commercial expansion. Geothermal resources are rich and underutilized in many developing regions. In addition to satisfying the region's rising energy demand, expansion into these markets presents new economic prospects for multinational corporations. Initiatives to encourage the growth of geothermal energy in developing nations are likely to receive support from governments and international organizations that are aware of the advantages geothermal energy has for the environment. Established businesses may contribute to both economic development and environmental sustainability by utilizing their experience to deploy geothermal projects in areas where sustainable energy sources are gaining traction.

Geothermal Power Market Segmentation

The worldwide market for geothermal power is split based on power station type, power output, application, and geography.

Geothermal Power Market by Power Station Types

• Binary Cycle Power Stations
• Dry Steam Power Stations
• Flash Steam Power Stations

Accordning to the geothermal power industry analysis, the technological benefits of binary cycle power plants account for their dominance in the market. Binary cycle power plants work by heating a secondary fluid that has a lower boiling point than water using geothermal resources that are at a lower temperature. After that, this working fluid vaporises and powers a turbine to produce energy. With the use of this technology, binary cycle power plants may now access a wider variety of geothermal resources, increasing their adaptability to different geological settings. Furthermore, binary cycle systems are thought to be environmentally benign due to their low emissions and ability to maximise the use of geothermal resources. Binary cycle power plants' adaptability, effectiveness, and environmental sustainability add to their notoriety in the developing geothermal power market.

Geothermal Power Market by Power Outputs

• Up to 5 MW
• Above 5 MW

The market for geothermal electricity is dominated by the up to 5 MW segment for a number of reasons, including the appeal of smaller-scale plants. Up to 5 MW geothermal power plants are frequently more practical for installation in a variety of geographic locations, including those with lower temperature geothermal resources. These smaller projects are typically less expensive to create and require less capital up front, making them more affordable. They can also be deployed in a distributed fashion, allowing for more siting flexibility and localised power solutions. These projects' scalability makes it possible to build capacity incrementally in response to demand, fostering an approach to energy development that is more flexible and responsive. Smaller geothermal power plants can support local energy independence and sustainability in areas with limited grid infrastructure. Thus, the prominence of the "Up to 5 MW" section highlights the flexibility and availability of smaller geothermal facilities in the changing energy environment.

Geothermal Power Market by Applications

• Residential
• Commercial
• Industrial
• Others

The industrial sector is the largest segment in the market because of its high energy requirements. Industrial processes, such as manufacturing, processing, and other energy-intensive operations, rely heavily on geothermal power to supply their electricity needs. Because geothermal energy is a baseload power source, it meets the needs of industries that require a steady and dependable power supply. Geothermal power is the energy source of choice for industrial applications because it is steady and continuous, guaranteeing uninterrupted operations. Furthermore, the environmental advantages of geothermal energy coincide with the increasing corporate focus on sustainability, which propels its uptake in the industrial sector.

Geothermal Power Market Regional Outlook

North America

• U.S.
• Canada

Europe

• U.K.
• Germany
• France
• Spain
• Rest of Europe

Asia-Pacific

• India
• Japan
• China
• Australia
• South Korea
• Rest of Asia-Pacific

Latin America

• Brazil
• Mexico
• Rest of Latin America

The Middle East & Africa

• South Africa
• GCC Countries
• Rest of the Middle East & Africa (ME&A)

Geothermal Power Market Regional Analysis

North America is a major source of geothermal electricity and holds the largest share in global geothermal energy. The growing geothermal production in the region and the increasing potential of older plants will boost the region's demand for geothermal energy, leading to global growth over the geothermal power market forecast period.

Asia-Pacific is expected to show considerable growth due to large-scale geothermal development in the Philippines, Japan, and Indonesia. The area is projected to continue fueling market growth with rising demand for electricity in China and India, coupled with increasing government involvement in generating electricity through renewable resources. Feed-in tariffs are expected to enhance geothermal development in the region through smaller ventures in Japan, thereby supplementing demand growth in Asia-Pacific. In Africa, geothermal demand will be powered by the rising development of geothermal energy in Kenya and Ethiopia.

Geothermal Power Market Players

Some of the top geothermal power companies offered in our report includes Enel SPA (Enel), Mitsubishi Hitachi Power Systems Inc., The Tata Power Company Limited, Siemens AG, Toshiba Corporation, Yokogawa Electric Corporation, Korea Electric Power Corporation, General Electric (GE), ABB, and EDF.