Geothermal Energy Market Forecasts to 2028 – Global Analysis By Temperature (High Temperature (Above 150°C), Medium Temperature (90–150°C) and Low Temperature (Less THAN 90°C)), Technology (Dry Steam Plants, Binary Cycle Plants and Other Technologies), Ap

Geothermal Energy Market Forecasts to 2028 – Global Analysis By Temperature (High Temperature (Above 150°C), Medium Temperature (90–150°C) and Low Temperature (Less THAN 90°C)), Technology (Dry Steam Plants, Binary Cycle Plants and Other Technologies), Application (Commercial Heating and Cooling, Residential Heating and Cooling and Other Applications), and By Geography

According to Stratistics MRC, the Global Geothermal Energy Market is accounted for $7.12 billion in 2022 and is expected to reach $11.23 billion by 2028 growing at a CAGR of 7.9% during the forecast period. Geothermal energy is clean, environmentally friendly, recyclable, abundant, and has a big supply. It is also dependable, stable, and has a minimal carbon footprint. This type of energy draws heat from below the surface and can be applied to a variety of tasks, such as the production of electricity and the provision of heating and cooling. With the development of technology, a large amount of energy is currently being captured. Geothermal power generation increases globally as the need for clean energy for a variety of uses rises.

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:

Shift toward renewables to increase demand d for geothermal energy

With the rising need for renewable energy, geothermal power generation is steadily rising on a global scale. Globally, a number of governments are implementing green measures to reduce greenhouse gas emissions. Air pollution will be decreased by generating electricity with little or no emissions of greenhouse gases. Geothermal energy is lowering reliance on energy produced by burning fossil fuels. Compared to fossil fuels, geothermal power facilities emit 99% less carbon dioxide. Since the energy is one of the most dependable energy sources and is also affordable, sustainable, and environmentally benign, market demand for this renewable energy source will continue to rise as the world looks increasingly for renewable alternatives.

Restraint:

Lack of exploration and drilling techniques

In comparison to drilling for water or oil and gas, geothermal wells require advanced techniques and technology for construction and operation. Due to lost circulation, drill bit trips, and inefficiencies brought on by low penetration rates and harmful drilling dynamics, geothermal drilling is frequently plagued by unproductive time. The upfront cost of drilling is rising dramatically while drilling efficiency and system performance are improving slowly. More effective drilling can lower risk, lower costs, and contribute to an increase in geothermal development in the near future. Drilling operations account for a significant portion of the cost of geothermal development. Companies are working to advance hard rock/high temperature geothermal drilling.

Opportunity:

Geothermal potential for low- and medium-temperature resources

Heat extracted from the geothermal fluid in the earth at or below 300°F (150°C) is referred to as low-to-moderate temperature geothermal energy. Despite being an important source of energy for the entire planet, these systems make the production of electricity economically difficult. Poor-temperature resources have poor energy and commensurate efficiency for converting the heat into electricity, in addition to the difficulties faced by any geothermal development (exploration, permission, funding, and operation). In direct-use applications, including as district heating, greenhouses, fisheries, mineral recovery, and industrial process heating, these resources are often employed. Urban centres, rural locations, and isolated settlements can all make use of low-temperature geothermal energy resources.

Threat:

Alternative renewables options

Although there are many household, commercial, and industrial applications for geothermal energy, the accessibility and availability are not on par. Regarding the distribution of the energy, it is constrained to particular areas and places. In addition, geothermal energy is regarded as one of the most expensive sources due to the high costs associated with drilling and plant construction. A geothermal plant with a capacity of one megawatt will cost between $2 million and $7 million. Due to the low cost of production, other renewable energy sources including solar photovoltaics, onshore wind, and offshore wind power still have lower costs. Therefore, over the long term, other renewable sources are predicted to reduce the market share of geothermal energy.

Covid-19 Impact

Due to the disruption of the global supply chain and the decline in investment for the impending projects, the COVID-19 epidemic had a severe impact on the market for geothermal energy worldwide. Although annual capacity additions match the driven market, several projects were postponed because of lockdown measures related to COVID-19. The market for geothermal energy is expanding as a result of growing worries about the security of electricity due to clean and environmentally favourable resources.

The binary cycle plants segment is expected to be the largest during the forecast period

The binary cycle plants segment is estimated to have a lucrative growth, due to superior performance and lowest cost advantages over other geothermal varieties. In a binary cycle geothermal power plant, isobutene is heated by the water that is pumped from the geothermal reservoir through a heat exchanger. In the binary cycle, reservoirs of steam or water are never in direct contact with the turbines.

The commercial heating and cooling segment is expected to have the highest CAGR during the forecast period

The commercial heating and cooling segment is anticipated to witness the highest CAGR growth during the forecast period, due to 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. In addition, one of the major sources of geothermal energy in residential structures is district heating.

Region with highest share:

Asia Pacific is projected to hold the largest market share during the forecast period. Several nations in Asia and the Pacific are actively concentrating on geothermal energy to fulfil the rising demand for electricity and to reach the goal of net zero CO2 emissions. In Asia Pacific nations like Indonesia and New Zealand, geothermal resources are plentiful and can be used as climate-friendly energy sources in all weather. Both the government and private enterprises are making large investments in response to these reasons.

Region with highest CAGR:

Europe is projected to have the highest CAGR over the forecast period, owing to the geographic dispersion of geothermal energy throughout Europe. In both the residential and non-residential sectors in Europe, geothermal energy is primarily used for heating and cooling purposes. As this use of geothermal energy for reliable heating and cooling purposes rises, it is further inducing investors and policymakers to support this type of renewable energy. The oil and gas industry operators are being presented with a lucrative chance for growth as a result of this trend in the local market.

Key players in the market

Some of the key players profiled in the Geothermal Energy Market include Mitsubishi Heavy Industries, General Electric, Ormat, Ansaldo Energia, Fuji Electric, Toshiba Energy Systems & Solutions Corporation, Siemens Energy, Exergy International SRL, Altarock Energy, Baker Hughes Company, Halliburton, Bosch Thermotechnik GMBH, Dandelion Energy, Danfoss, SLB.

Key Developments:

In July 2022, Ormat announced the commercial operation of the Casa Diablo-IV (CD4) 30 MW geothermal power plant. The CD4 facility provides 7 MW of geothermal power to two Community Choice Aggregators, Silicon Valley Clean Energy and Central Coast Community Energy, each under a 10-year power purchase agreement (PPA). In addition, the facility provides 16 MW of geothermal power to the Southern California Public Power Authority under a 25-year agreement.

In May 2022, Baker Hughes Company announced an investment in San Francisco-based GreenFire Energy Inc., a company involved in the development of closed-loop Advanced Geothermal Systems (AGS).

In February 2022, SLB announced the introduction of the GeoSphere 360 3D reservoir mapping-while-drilling service at the International Petroleum Technology Conference (IPTC). The service uses advanced cloud and digital solutions to deliver real-time 3D profiling of reservoir objects.

In May 2021, Iberdrola and Mitsubishi Power, a subsidiary of Mitsubishi Heavy Industries signed a collaboration agreement to jointly develop competitive, clean and safe energy solutions based on renewable energy that promotes the decarbonization of industrial production in different regions around the world.

In March 2021, Ormat launched a new, high-performance between-bearings turbine. By utilizing the traditional radially split design, the turbine rotor in the new product is supported between the axially spaced bearings.

Temperatures Covered:
• High Temperature (Above 150°C)
• Medium Temperature (90–150°C)
• Low Temperature (Less Than 90°C)

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

Applications Covered:
• Commercial Heating and Cooling
• Residential Heating and Cooling
• Power Generation
• 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 2020, 2021, 2022, 2025, and 2028
- 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