Geothermal Power Market Forecasts to 2030 – Global Analysis By Temperature (Low Temperature (Up to 900C), Medium Temperature (900C – 1500C) and High Temperature (Above 1500C)), Power Output (Up to 5 MW and Above 5 MW), Technology (Binary Cycle Plants, Fla

Geothermal Power Market Forecasts to 2030 – Global Analysis By Temperature (Low Temperature (Up to 900C), Medium Temperature (900C – 1500C) and High Temperature (Above 1500C)), Power Output (Up to 5 MW and Above 5 MW), Technology (Binary Cycle Plants, Flash Steam Plants and Other Technologies), Application and By GeographyAccording to Stratistics MRC, the Global Geothermal Power Market is accounted for $6.45 billion in 2023 and is expected to reach $10.36 billion by 2030 growing at a CAGR of 7% during the forecast period. The Geothermal Power involves the production and utilization of renewable energy derived from the Earth's natural heat. Geothermal power plants harness the Earth's internal heat to generate electricity through the conversion of steam or hot water. The process involves drilling wells into geothermal reservoirs to access the hot fluids, which are then used to drive turbines connected to electricity generators. Geothermal energy offers a sustainable and eco-friendly power generation solution with minimal greenhouse gas emissions.

According to the International Renewable Energy Agency (IRENA), the electricity generation was 83,477 GWh in 2016 and it is reached by 94,949 GWh in 2020

Market Dynamics:

Driver:

Increasing need for power production using sustainable methods

As global concerns regarding climate change and carbon emissions intensify, there is a growing emphasis on transitioning towards renewable and environmentally friendly energy sources. Geothermal power offers a reliable and sustainable solution, as it utilizes the Earth's natural heat to generate electricity without greenhouse gas emissions. Governments and energy policymakers worldwide are increasingly promoting the adoption of geothermal energy to diversify the energy mix and reduce reliance on fossil fuels.

Restraint:

Lack of drilling and exploratory methods

Accurate exploration is necessary to find suitable locations with high geothermal potential. The search for new geothermal reservoirs and the expansion of those that already exist may be hampered by a lack of cutting-edge exploration and drilling methods. Drilling efforts that are ineffective and higher project expenses could result from a lack of information about the underlying conditions and resource availability. Geothermal energy may be identified more effectively with the help of cutting-edge technology, making it a more competitive and feasible renewable energy source.

Opportunity:

Low- and medium-temperature resource potential from geothermal sources

While high-temperature geothermal resources have traditionally been the primary focus for power generation, the utilization of low- and medium-temperature resources has gained prominence. Advanced technologies, such as binary cycle power plants and enhanced geothermal systems, allow for the cost-effective extraction of energy from lower-temperature geothermal reservoirs. This expansion of geothermal applications increases the number of viable sites for geothermal power generation, broadening the market's reach and making geothermal energy accessible to regions previously considered unsuitable.

Threat:

Environmental disruptions

Geothermal power plants rely on accessing and extracting heat from underground reservoirs, which can be susceptible to environmental changes. Natural events like earthquakes, volcanic activities, and geological shifts can impact the stability and performance of geothermal resources, affecting power generation. Additionally, changes in underground pressure or fluid flow may lead to declining reservoir productivity. Environmental disruptions can cause project delays, increased maintenance costs, and even permanent damage to geothermal sites. To mitigate this threat, careful site selection, ongoing monitoring, and adaptive management strategies are essential to ensure sustainable and reliable geothermal power generation while minimizing environmental impacts.

Covid-19 Impact:

The COVID-19 pandemic's existence had a significant impact on the geothermal energy business since it caused multiple interruptions in the global supply chain and decreased investment from market participants in their planned projects. Aside from the yearly increases in geothermal power capacity that are expected to fuel the industry, several projects are facing delays because to COVID-19 and global lockout measures implemented by many nations across the world. In addition, growing worries about the security of electricity resulting from the use of environmentally beneficial and clean resources are propelling market expansion for geothermal power.

The commercial segment is expected to be the largest during the forecast period

The commercial segment held the largest share in the market owing to the increasing demand for heat pump which is used for air conditioning and cooling down inside the environment when needed, including office buildings, hotels, schools, and hospitals. In addition, one of the major sources of geothermal energy in residential structures is district heating.

The binary cycle plants segment is expected to have the highest CAGR during the forecast period

During the projection period, the binary cycle plants segment is expected to have the greatest CAGR. It is an advanced and efficient method used to generate electricity from low-temperature geothermal resources. In the Binary Cycle process, hot geothermal fluid with lower temperatures is passed through a heat exchanger, where it transfers its thermal energy to a secondary fluid with a lower boiling point. The secondary fluid vaporizes and drives a turbine connected to an electricity generator, producing clean and renewable power. Binary Cycle technology allows for the utilization of previously untapped low-temperature geothermal reservoirs, expanding the geothermal potential and making geothermal energy accessible to a broader range of regions, contributing to the growth of the geothermal power market.

Region with largest share:

The Asia Pacific region market is estimated to witness the highest share of the global Geothermal Power market during the forecast period, due to its abundant geothermal potential and rising use of renewable energy sources. Countries with ongoing geothermal power projects and recognized competence in geothermal energy production include Indonesia, the Philippines, and New Zealand. The market's expansion is further accelerated by government incentives, advantageous laws, and investments in geothermal technology. Geothermal energy is positioned to significantly contribute to the region's energy mix as the Asia Pacific region continues to prioritize clean and dependable power generation, encouraging long-term economic and environmental advantages.

Region with highest CAGR:

The North America region is expected to have the highest growth rate over the forecast period. By utilizing its wide variety of geothermal resources and technological know-how, North America is a major player in the geothermal power market. Several geothermal power stations that use the Earth's inherent heat to produce electricity are located in the United States and Mexico. Due to its renewable and clean energy qualities, which are in line with regional pledges to cut carbon emissions and advance sustainable energy practices, geothermal power is seen positively in North America. Geothermal power is anticipated to play an increasingly important role in the region's energy transition and expansion of renewable energy as it stresses energy security and environmental stewardship.

Key players in the market

Some of the key players in Geothermal Power market include Ansaldo Energia, Atlas Copco AB, Berkshire Hathaway Inc., Calpine, Chevron Corp., Enel Spa, EthosEnergy Group, Fuji Electric Co Ltd, General Electric, Gradient Resources, Green Mountain Energy Company, Halliburton, KenGen, Macquarie Group Limited, Ormat Technologies Inc., Reykjavik Geothermal, Sumitomo Corporation, Supreme Energy, Terra-Gen Power LLC, ThermaSource LLC, Toshiba International Corp., Turboden S.p.A. and U.S. Geothermal Inc..

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 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)

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

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

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

Applications Covered:
• Power Generation
• Residential
• Industrial
• Commercial
• 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