Geothermal Energy Market Forecasts to 2030 – Global Analysis By Plant Type (Binary Cycle Plants, Flash Steam Plants, Dry Steam Plants, Ground Source Heat Pumps, Direct Systems and Other Plant Types), Power Output (Up to 5 MW, Above 5 MW and Other Power Ou

Geothermal Energy Market Forecasts to 2030 – Global Analysis By Plant Type (Binary Cycle Plants, Flash Steam Plants, Dry Steam Plants, Ground Source Heat Pumps, Direct Systems and Other Plant Types), Power Output (Up to 5 MW, Above 5 MW and Other Power Outputs), Temperature, Application and By GeographyAccording to Stratistics MRC, the Global Geothermal Energy Market is accounted for $7.68 billion in 2023 and is expected to reach $13.08 billion by 2030 growing at a CAGR of 7.9% during the forecast period. Geothermal power is a reliable and independent power generation system that harnesses the warm energy of the earth's magma. In geothermal power plants, the steam generated by hot water that is located a mile or more below the earth's surface is used to turn turbines that ignite generators, which then generate electricity. Moreover, steam is used in geothermal power plants to turn large turbines that drive electrical generators. A few miles or more below the surface of the earth are hot water reservoirs, from which steam is produced. Geothermal energy has advantages for the environment, such as lowering air pollution and conserving water.

According to the Energy Information Administration (EIA), as of 2020, California has 91% of the country’s steam-powered capacity, and 65% of binary-cycle capacity is found in Nevada.

Market Dynamics:

Driver:

Increasing need for power production

In the geothermal energy market, the rising demand for power generation has become a key driver. Geothermal energy presents itself as a dependable and renewable solution in light of the expanding global demand for electricity as well as worries about environmental sustainability and carbon emissions. However, the requirements for the grid's stability are well aligned with its ability to deliver reliable baseload power regardless of the weather. As a result of this factor, the geothermal energy industry is seeing increased investment, innovation, and growth, putting it in a position to play a significant role in the move towards energy systems that are cleaner and more resilient.

Restraint:

High initial expenditures and exploration costs

Drilling, exploration, and infrastructure development are expensive upfront costs for geothermal projects. Potential investors may be discouraged by the high costs associated with finding suitable geothermal reservoirs, drilling deep wells, and building power plants, especially when compared to other more well-established renewable energy sources. Additionally, the financial difficulties associated with geothermal development are exacerbated by the high upfront costs that frequently require lengthy payback periods.

Opportunity:

Opportunities with low- and medium-temperatures

Low- and medium-temperature geothermal resources' untapped potential offers a sizable market opportunity. These resources, which can be found in different geological settings, can be used directly for industrial processes like heating and cooling while also providing effective and environmentally friendly substitutes for conventional energy sources. Furthermore, by utilizing these geothermal reservoirs, businesses, neighborhoods, and communities can lower energy costs, reduce carbon emissions, and improve energy resilience, all of which help to further the general objective of achieving a cleaner and more varied energy mix.

Threat:

Alternative renewable energy sources

Although geothermal energy is one of the practical sources for many residential, commercial, and industrial applications, the accessibility and availability are subpar. Regarding distribution, the energy is constrained to particular areas and places. In addition, the high cost of drilling and building a plant makes geothermal energy one of the most expensive sources. Moreover, a one megawatt geothermal plant will cost between $2 million and $7 million. Due to the low cost of production, other renewable energy sources like solar photovoltaics, onshore wind, and offshore wind power still offer lower costs. Accordingly, over the long term, it is anticipated that the market share of geothermal energy will be negatively impacted by other renewable sources.

Covid-19 Impact:

Due to a disruption in the international supply chain and a decrease in investment for forthcoming projects, the COVID-19 outbreak had a significant impact on the global geothermal energy market. Although annual capacity additions match the market, some projects were delayed because of lockdown procedures related to COVID-19. Energy demand fluctuations and economic turbulence also had an impact on financing and slowed geothermal development. However, the pandemic demonstrated geothermal's adaptability as a reliable energy source and stoked interest in local, sustainable energy sources, which could spur further development.

The Commercial Heating and Cooling segment is expected to be the largest during the forecast period

The largest market share belongs to the commercial sector in the geothermal market during the forecast period. 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. This is done in office buildings, hotels, schools, and hospitals to maintain a controlled climate. Additionally, homes use this kind of energy for heating and cooling needs.

The ground source heat pump segment is expected to have the highest CAGR during the forecast period

The ground source heat pump segment is anticipated to have the highest CAGR during the forecast period. The promotion of sustainable building techniques as well as growing awareness of energy-efficient heating and cooling options can be credited for this expansion. Moreover, Ground-source heat pumps are a common option for residential, commercial, and industrial applications because they use geothermal heat from the earth for heating and cooling. Their capacity to deliver dependable and environmentally friendly thermal comfort is fueling significant demand and establishing them as a key growth driver within the geothermal energy market.

Region with largest share:

During the projected period, North America is expected to hold the largest market share for geothermal energy. Favourable government regulations, rising environmental awareness, and the development of geothermal technologies are the main causes of this dominance. Due to their commitment to renewable energy goals, nations like the United States and Canada have made sizable investments in geothermal projects. Moreover, North America is now a major player in the global geothermal energy market thanks to the region's well-established infrastructure, geothermal potential, and forward-thinking attitude toward the adoption of clean energy.

Region with highest CAGR:

During the forecast period, the Asia-Pacific region is expected to have the highest CAGR. The region's abundant geothermal resources, rising energy demand, and proactive government efforts to reduce carbon emissions account for the growth. Strategic investments in geothermal projects have been made by important players like Indonesia, the Philippines, and Japan in line with their commitment to bolstering renewable energy capacities. The Asia-Pacific region emerges as a formidable contender for driving accelerated growth within the global geothermal energy market by leveraging its thriving economy and unwavering pursuit of sustainable energy.

Key players in the market

Some of the key players in Geothermal Energy market include Tata Power Company Limited, Fuji Electric Co. Ltd, Yokogawa Electric Corporation, Terra-Gen Power LLC, Ormat Technologies Inc., Berkshire Hathaway Inc., Korea Electric Power Corporation , Doosan Škoda Power, Siemens AG, Toshiba International Corporation, First Gen Corporation, Aboitiz Power Corporation, ABB Limited, Tetra Tech Inc., Chevron Corp. , Therma Source LLC, Mitsubishi Power, Ltd., Energy Development Corporation , Calpine Corporation , Kenya Electricity Generating Company PLC and U.S. Geothermal Inc.

Key Developments:

In August 2023, Tata Power announced that its subsidiary Tata Power Renewable Energy Ltd. entered into power purchase agreements with Maharashtra State Electricity Distribution Company Ltd.. The subsidiary of Tata Power has signed two PPAs with MSEDCL for the commissioning of two solar projects of 200 MW and 150 MW capacities, respectively, Tata Power said in a filing to stock exchanges.

In June 2023, Ormat Technologies, Inc. a leading geothermal, energy storage, photovoltaic (PV), solar and recovered energy power company, today announced the signing of agreements with Eastland Generation Limited (EGL) to build a 50MW power plant in New Zealand.

In May 2023, Fuji Electric Corp is excited to announce the launch of the NEW MONITOUCH V10 HMI Series. The V10 joins the MONITOUCH V9, TechnoShot, and X1 series of HMI products available from Fuji Electric Corp.

Plant Types Covered:
• Binary Cycle Plants
• Flash Steam Plants
• Dry Steam Plants
• Ground Source Heat Pumps
• Direct Systems
• Other Plant Types

Power Outputs Covered:
• Up to 5 MW
• Above 5 MW
• Other Power Outputs

Temperatures Covered:
• Low Temperature (Up to 900C)
• Medium Temperature (900C - 1500C)
• High Temperature (Above 1500C)
• Other Temperatures

Applications Covered:
• Power Generation
• Residential Heating and Cooling
• Commercial Heating and Cooling
• Industrial
• Other Applications

Regions Covered:
• North America
US
Canada
Mexico
• Europe
Germany
UK
Italy
France
Spain
Rest of Europe
• Asia Pacific
Japan
China
India
Australia
New Zealand
South Korea
Rest of Asia Pacific
• South America
Argentina
Brazil
Chile
Rest of South America
• Middle East & Africa
Saudi Arabia
UAE
Qatar
South Africa
Rest of Middle East & Africa

What our report offers:
- Market share assessments for the regional and country-level segments
- Strategic recommendations for the new entrants
- Covers Market data for the years 2021, 2022, 2023, 2026, and 2030
- Market Trends (Drivers, Constraints, Opportunities, Threats, Challenges, Investment Opportunities, and recommendations)
- Strategic recommendations in key business segments based on the market estimations
- Competitive landscaping mapping the key common trends
- Company profiling with detailed strategies, financials, and recent developments
- Supply chain trends mapping the latest technological advancements