The Global Geothermal Energy Market size was valued at USD 5.44 Billion in 2022 and is expected to surpass USD 7.29 Billion by 2031, expanding at a CAGR of 3.3% during the forecast period, 2023 – 2031. The growth of the market is attributed to the increasing demand for eco-friendly and clean source of energy and rising requirements for cooling and heating systems such as ground source heat pumps and district heating.
Geothermal energy is heat which comes from within the earth sub-surface, it is present in the rocks and fluids beneath the earth’s crust and can be found as deep down as to the earth’s hot molten rock and magma. Geothermal energy is considered as renewable, carbon-free, and sustainable form of energy that provides a continuous, uninterrupted supply of heat which can be used to warm residential houses and commercial office buildings and to generate electricity. Theoretically earth’s geothermal resources are more than sufficient to supply humanity’s energy needs.
In comparison to natural gas plants geothermal energy only produces one-sixth CO2 emissions and it is not an intermittent source of energy like wind or solar. It can potentially produce at least 35GW and can go as high as 2TW. The energy can be used in varieties of applications including heating purposes and electricity generation. Geothermal energy is used in more than 20 countries worldwide. USA is one of the largest producers of geothermal energy in the world, and hosts the biggest geothermal field known as “The Geysers” located in California spread over in 117 square kilometres with an installed capacity of over 1.5 GW.
Market Trends, Drivers, Restraints, and Opportunities
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Growing concerns regarding carbon emissions and increasing demand for clean and renewable energy sources are expected to drive the market growth during the forecast period.
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Rapid growth in governmental support mechanisms such as tax credits, renewable portfolio standards, and feed-in-tariffs attributed towards development of geothermal energy are major factors boosting the market expansion in the coming years.
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Limited percentage of the energy which can be harnessed for power generation is estimated to be a major challenge that can hinder the market growth during the forecast period.
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Lack of skilled labor, complex endeavor of power production, and high cost of investment required for geothermal power plants act as major factors that can restrict the market expansion in the coming years.
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Increasing investments in renewable energy attributed to the various incentives introduced by the governments around the world is projected to offer significant opportunities for the market players.
Scope of Geo Thermal Energy Market Report
The report on the global geothermal energy market includes an assessment of the market, trends, segments, and regional markets. Overview and dynamics have also been included in the report.
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Attributes
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Details
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Report Title
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Geothermal Energy Market - Global Industry Analysis, Growth, Share, Size, Trends, and Forecast
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Base Year
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2022
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Historic Data
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2016–2021
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Forecast Period
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2023–2031
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Segmentation
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Plant Types (Dry Steam Plants, Flash Steam Plants, and Binary Cycle Power Plants), Applications (Residential, Commercial, Industrial, and Others)
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Regional Scope
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Asia Pacific, North America, Latin America, Europe, and Middle East & Africa
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Report Coverage
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Company Share, Market Analysis and Size, Competitive Landscape, Growth Factors, and Trends, and Revenue Forecast
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Key Players Covered in the Report
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Calpine, Ormat Technologies Inc., U.S. Geothermal Inc., Terra-Gen Power LLC, Chevron Corp., Enel Green Power North America Inc., Gradient Resources, Toshiba International Corp., EthosEnergy Group, ThermaSource LLC, Engie SA, Tetra Tech Inc., Mitsubishi Power Ltd.
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Geothermal Energy Market Segment Insights
Binary cycle power plants segment is projected to grow at a significant CAGR
Based on plant types, the geothermal energy market is segmented into dry steam plants, flash steam plants, and binary cycle power plants. The dry and flash steam plants segment is projected to grow at a significant CAGR in the coming years due to the factors such as low initial cost, high efficiency, zero emissions, and its ability to integrate with other renewable energy sources such as solar and biomass. Binary cycle power plants function by transferring heat from geothermal hot water to another liquid, this heat causes the second liquid to turn into steam which is used to drive propel generator turbine.
On the other hand, the flash steam segment is anticipated to account for a major market share owing to their simple and conservative power plant designs that are easy to build and operate. 87% of the worlds installed capacity utilizes direct steam or flash technology, binary system accounts for 13%.
Industrial segment is expected to account for large market share
Based on the applications, the geothermal energy market is segregated into residential, commercial, industrial, and others. Industrial segment is expected to account for large market share owing to lower levelized cost of electricity than most of the other renewable energy sources. It also compares favorably to advanced coal and gas power plants which is projected to spur the growth at a steady rate. On the other hand, residential segment is estimated to have a healthy CAGR during the forecast period which is attributed to rising demand for cooling and heating systems combined with growing investments towards the development of green building infrastructure worldwide.
North America is anticipated to dominate the market
On the basis of regions, the geothermal energy market is categorized as Asia Pacific, North America, Latin America, Europe, and Middle East & Africa. The market of North America is anticipated to dominate the market at an impressive or healthy CAGR during the forecast period. The regional market growth can be attributed to increasing demand for clean electricity demand and growing emission reduction measures. However, the market of Asia Pacific is expected to exhibit a rapid growth rate in the coming years owing rapid economic development, increasing demand for efficient technologies, and rising environmental awareness.
Segments
Plant Types
- Dry Steam Plants
- Flash Steam Plants
- Binary Cycle Power Plants
Applications
- Residential
- Commercial
- Industrial
- Others
Regions
- Asia Pacific
- North America
- Latin America
- Europe
- Middle East & Africa
Key Players
- Calpine
- Ormat Technologies Inc.
- U.S. Geothermal Inc.
- Terra-Gen Power LLC
- Chevron Corp.
- Enel Green Power North America Inc.
- Gradient Resources
- Toshiba International Corp.
- Ethos Energy Group
- ThermaSource LLC
- Engie SA
- Tetra Tech Inc.
- Mitsubishi Power Ltd.
Competitive Landscape
Key players competing in the geothermal energy market include Calpine, Ormat Technologies Inc., U.S. Geothermal Inc., Terra-Gen Power LLC, Chevron Corp., Enel Green Power North America Inc., Gradient Resources, Toshiba International Corp., EthosEnergy Group, ThermaSource LLC, Engie SA, Tetra Tech Inc., Mitsubishi Power Ltd.
Due to the competitive nature of the market some of the players are adopting several business strategies such as mergers, acquisitions, partnerships, collaborations, capacity expansion, and product launches to enhance their market shares. For instance, In October 2020, Mitsubishi Power Ltd completed renovation of its geothermal plant located in in Oita Prefecture, Japan. Renovation was undertaken to increase the power output of the plant by two megawatts (MW) compared to the previous facility.
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