Global Geothermal Power Market Insights Forecasts to 2033

• The Global Geothermal Power Market Size was Valued at USD 7.9 Billion in 2023
• The Market Size is Growing at a CAGR of 4.44% from 2023 to 2033
• The Worldwide Geothermal Power Market Size is Expected to Reach USD 12.2 Billion by 2033
• Europe is Expected to Grow the fastest during the forecast period.

The Geothermal Power Market Size is Anticipated to Exceed USD 12.2 Billion by 2033, Growing at a CAGR of 4.44% from 2023 to 2033.

The market is growing due to an increase in demand for clean and environmentally friendly sources. The governments in various republics are providing economic inducements and tax reimbursements to boost the use of sustainable energy, which can enhance market growth.

GEOTHERMAL POWER MARKET REPORT OVERVIEW

Geothermal power is thermal energy produced and stored within the earth's crust. Geothermal power plants produce heat by drawing fluids from underground reservoirs to the surface. This steam or hot liquid drives power turbines, producing electricity being reintroduced back into the reservoir. They operate similarly to coal or nuclear power plants, with the only difference being the heating source used in geothermal plants. Geothermal power uses the earth's heat to replace a nuclear plant's reactor. It requires high-temperature hydrothermal resources ranging from 300°F to 700°F, which can be obtained from either dry steam wells or hot water wells.

The development of the global geothermal power market is being driven by several stringent regulations imposed by various governments. The limited accessibility of fossil fuels and increasing greenhouse gas emissions are also driving market growth. Geothermal power is cost-effective and has a high capacity, so the market is expected to grow during the forecast period. There is an increasing demand for clean and environmentally friendly sources, which is driving market growth. Although geothermal power projects require significant capital investment, their operating costs are low and predictable. The total installation costs of a geothermal power plant include exploration and resource assessment.

Governor Jared Polis of Colorado launched The Heat Beneath Our Feet (HBOF) as his WGA Chair Initiative for 2023. The initiative is going to investigate the opportunities and barriers for greater installation of geothermal energy technology for both power generation and heating and cooling systems in western states, which have the greatest amount of high-yield geothermal energy capacity in the United States.

The Dominican administration and Dominica Electric Service have signed a contract with Ormat Technologies Inc., a US company, and its subsidiaries to develop a 10 MW geothermal energy facility at Laudat.

Report Coverage

This research report categorizes the market for the global geothermal power market based on various segments and regions forecasts revenue growth and analyzes trends in each submarket. The report analyses the key growth drivers, opportunities, and challenges influencing the global geothermal power market. Recent market developments and competitive strategies such as expansion, product launch, and development, partnership, merger, and acquisition have been included to draw the competitive landscape in the market. The report strategically identifies and profiles the key market players and analyses their core competencies in each sub-segment of the global geothermal power market.

DRIVING FACTORS:

The increased technological advancements can boost market growth.

The drilling technological advances and improved geothermal systems have made geothermal resources more affordable and readily available. These advances reduce entry and operating costs, thereby encouraging growth and investment in the geothermal energy sector. The drilling technology advancements, such as directional drilling and upgraded geothermal systems have expanded the scope of geothermal power.

The geothermal power plants produce renewable energy and low emission of carbon can maintain environmental well-being.

When compared to fossil fuel-based power plants, geothermal power plants emit extremely low levels of carbon dioxide and other greenhouse gases. As worldwide attention emphasizes lowering carbon emissions to combat climate change, geothermal energy has become an appealing option for meeting energy demand.

RESTRAINING FACTORS

The high capital cost can restrict the market growth.

The initial investment required to drill wells and build geothermal power plants can be large. This high capital cost could discourage prospective financiers and make geothermal projects less competitive with other energy sources, particularly in areas with cheaper fossil fuel choices.

Market Segmentation

The geothermal power market share is classified into type and application.

The binary cycle plant accounts for the largest market growth due to the increased access to geothermal resources and growing adaptability to different geological environments.

Based on type, the global geothermal power market is classified into dry steam plants, flash steam plants, and binary cycle plants. Binary cycle power plants' market leadership develops from their technological advantages. Binary cycle power plants operate by heating a secondary fluid with less boiling point than water using geothermal resources at lower temperatures. Following that, the working fluid evaporates and drives a turbine to generate energy. With this technology, binary cycle power plants can now access a broader range of geothermal resources, increasing their adaptability to different geological environments. In addition, binary cycle systems are considered environmentally friendly due to their minimal emissions and ability to optimize the use of geothermal resources.

The rising demand for electricity production has widely contributed to the market growth.

Based on application, the global geothermal power market is classified into electricity generation, direct heating and district heating, greenhouse heating, and spa & wellness facilities. Geothermal power is primarily used to generate electricity. Geothermal power plants use the energy of steam or hot water reservoirs to power turbines and produce electricity. This segment is well-established in areas with abundant geothermal resources and developed geothermal power infrastructure. The dependability and consistency of geothermal power stations make the production of electricity an appealing and secure energy source. Although, direct heating and district heating are widely used in residential, commercial, and industrial buildings.

Regional Segment Analysis of the Global Geothermal Power Market

• North America (U.S., Canada, Mexico) 
• Europe (Germany, France, U.K., Italy, Spain, Rest of Europe)
• Asia-Pacific (China, Japan, India, Rest of APAC)
• South America (Brazil and the Rest of South America) 
• The Middle East and Africa (UAE, South Africa, Rest of MEA)

Asia-Pacific is expected to have the biggest share of the geothermal power market throughout the forecast period.

The region's growth is being fueled by government policies that aim to increase the proportion of geothermal power in the overall energy source. This favorable atmosphere is expected to drive significant market growth over the forecast period. In the Philippines, there is an intense focus on developing geothermal resources to achieve energy independence and increase the share of renewable energy. China presents another lucrative prospect for the geothermal energy industry, as the country increases emissions regulations on power plants run on coal. The Geological Survey of India (GSI) has conducted geothermal energy exploration in several well-known geothermal fields, gathering data on temperature, discharge, and water quality/chemistry. GSI investigated 381 thermally anomalous locations in India and published a study called 'Geothermal Atlas of India, 2022'. The nation's geothermal energy potential is projected at 10,600 megawatts

Europe is the fastest-growing region of the geothermal power market during the forecast period.

The geothermal power market in Europe accounts for a sizable market share as geothermal renewable energy becomes more popular. Several European countries generate heat from geothermal power, and others are making plans to investigate the possible uses of this renewable resource. Bulgaria has secured funding from the Recovery & Resilience Fund to build two geothermal power plants to generate sustainable hydrogen. Greece and Spain are developing national regulations and exploring geothermal power potential.

Competitive Analysis:

The report offers the appropriate analysis of the key organizations/companies involved within the global geothermal power market along with a comparative evaluation primarily based on their product offering, business overviews, geographic presence, enterprise strategies, segment market share, and SWOT analysis. The report also provides an elaborative analysis focusing on the current news and developments of the companies, which includes product development, innovations, joint ventures, partnerships, mergers & acquisitions, strategic alliances, and others. This allows for the evaluation of the overall competition within the market.

List of Key Companies

• Sumitomo Corporation
• Green Mountain
• Turboden S.p.A. 
• Reykjavik Geothermal
• Atlas Copco AB
• KenGen
• Halliburton
• Calpine
• Fuji Electric Co Ltd
• Enel Spa
• General Electric
• Supreme Energy
• Ansaldo Energia
• Macquarie Group Limited
• Sumitomo Corporation
• Others

Key Market Developments

• In May 2022, Baker Hughes firm has announced an investment in Green Fire Energy Inc., a San Francisco-based firm that develops closed-loop Advanced Geothermal Systems (AGS). The firms want to accelerate geothermal resource development by converting current non-producing geothermal and oil and gas wells into closed-loop heat-producing wells for power production and immediate applications.

• In April 2022, Peninsula Clean Energy and Ormat Technologies signed a 15-year Power Purchase Agreement (PPA). This community choice aggregator provides power to the city of Los Banos and San Mateo County in excess of 3,500 gigawatt hours.

Key Target Audience

• Market Players
• Investors
• End-users
• Government Authorities 
• Consulting And Research Firm
• Venture capitalists
• Value-Added Resellers (VARs)

Market Segment

This study forecasts revenue at global, regional, and country levels from 2020 to 2033. Spherical Insights has segmented the global geothermal power market based on the below-mentioned segments: 

Global Geothermal Power Market, By Type

• Dry Steam Plant
• Flash Steam Plant
• Binary Cycle Plant

Global Geothermal Power Market, By Application

• Electricity Generation
• Direct Heating and District Heating
• Greenhouse Heating
• Spa & Wellness Facilities

Global Geothermal Power Market, By Regional

• North America
  • US
  • Canada
  • Mexico
• Europe
  • Germany
  • Uk
  • France
  • Italy
  • Spain
  • Russia
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Australia
  • Rest of Asia Pacific
• South America
  • Brazil
  • Argentina
  • Rest of South America
• Middle East & Africa
  • UAE
  • Saudi Arabia
  • Qatar
  • South Africa
  • Rest of the Middle East & Africa