Geothermal Energy Market

Geothermal Energy Market Analysis by Binary Cycle Power Stations, Flash Steam Power Stations, and Dry Steam Power Stations from 2023 to 2033

Analysis of Geothermal Energy Market Covering 30+ Countries Including Analysis of US, Canada, UK, Germany, France, Nordics, GCC countries, Japan, Korea and many more

Geothermal Energy Market Outlook (2023 to 2033)

The global geothermal energy market is valued at US$ 5.32 billion in 2023 and is predicted to reach US$ 10 billion by 2033, expanding at a CAGR of 6.5% over the forecast period (2023 to 2033).

Geothermal power is an eco-friendly and sustainable energy source, classified under renewable energy. By harnessing this alternative energy, the world can reduce its dependence on fossil fuels and significantly lower greenhouse gas emissions. As governments worldwide implement strict regulations and policies to address climate change, the global market is expected to witness significant growth in the forecast period. There is a growing trend of countries planning to invest in heat pumps to achieve sustainable and climate-friendly energy solutions.

Energy demand is indeed experiencing a significant surge worldwide, and concurrently, concerns regarding energy security are also on the rise. Pollution levels are increasing all over the world, and people are looking for other energy sources to replace coal. The administration is obsessed with developing geothermal technologies and emerging renewable energy sources. Geothermal energy is an environmentally friendly, dependable, and cost-effective source of energy.

The concept of community-based geothermal projects is gaining momentum, allowing local communities to have a direct stake in and benefit from geothermal energy development. This trend fosters local engagement and contributes to sustainable development goals.

Geothermal energy is increasingly being explored for industrial processes such as greenhouse heating, food processing, and mineral extraction. Utilizing geothermal energy for industrial applications can enhance energy efficiency and reduce carbon emissions. Companies specializing in geothermal research, digital technology development, and engineering services are vital to advancing the industry. These firms drive innovation, improving the efficiency and cost-effectiveness of geothermal energy production.

  • At the International Petroleum Technology Conference (IPTC) in February 2022 in Saudi Arabia, SLB announced the launch of the GeoSphere 360 3D reservoir mapping-while-drilling service. The service provides real-time 3D profiling of reservoir items using modern cloud and digital technology. This increases reservoir comprehension and well placement, resulting in higher returns from complex reservoirs.
Report Attributes Details

Geothermal Energy Market Size (2022)

US$ 5 Billion

Estimated Market Value (2023)

US$ 5.32 Billion

Forecasted Market Value (2033)

US$ 10 Billion

Global Market Growth Rate (2023 to 2033)

6.5% CAGR

Binary Cycle Power Stations Segment Growth Rate (2023 to 2033)

6.5% CAGR

China Market Growth Rate (2023 to 2033)

6.4% CAGR

Germany Market Growth Rate (2023 to 2033)


Key Companies Profiled

  • Tetra Tech, Inc.
  • Ormat Technologies, Inc.
  • Engie SA
  • Mitsubishi Power, Ltd.
  • First Gen Corporation
  • Calpine
  • Gradient Resources
  • EthosEnergy
  • Toshiba International Corporation
  • Chevron

What are the Key Factors Propelling the Demand for Geothermal Energy?

“Growing Investments in Expanding Geothermal District Heating Initiatives”

There has been a surge in investment and project developments in the geothermal energy sector. Governments, private companies, and international organizations are increasingly recognizing the potential of geothermal energy as a clean and reliable source of power, leading to new projects and expansion of existing ones.

Advancements in geothermal technology have improved the efficiency of geothermal power generation. Innovations in drilling techniques, reservoir management, and power plant design have made geothermal energy more viable and attractive to investors and stakeholders.

Geothermal district heating systems have gained popularity in urban areas, providing affordable and sustainable heating solutions for residential and commercial buildings. This trend is particularly prominent in countries with favorable geothermal resources and a focus on decarbonizing heating systems.

"Collaborative Efforts between Governments and Private Organization and Community-Based Projects for Geothermal Energy Development"

Governments and organizations worldwide are collaborating to share knowledge, best practices, and research to accelerate the development of geothermal energy. Supportive policies, incentives, and regulatory frameworks are also being implemented to harness geothermal energy.

The concept of community-based geothermal projects is gaining momentum, allowing local communities to have a direct stake in and benefit from geothermal energy development. This trend fosters local engagement and contributes to sustainable development goals.

Geothermal energy is increasingly being explored for industrial processes such as greenhouse heating, food processing, and mineral extraction. Utilizing geothermal heat for industrial applications can enhance energy efficiency and reduce carbon emissions.

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What are the Deterrents to the Demand Growth for Geothermal Energy?

"High Initial Cost, Exploration Risks, and Geographical Limitations"

The upfront capital investment required for exploring, drilling, and setting up geothermal power plants can be substantial. This poses a challenge, especially for countries or regions with limited financial resources or a lack of access to affordable financing options.

Geothermal projects involve the risk of unsuccessful exploration, where the geothermal reservoirs may not have the expected temperature or flow rates to make the project economically viable. Drilling and exploration costs can be significant, and the uncertainty involved can deter some investors.

Energy generation is heavily dependent on geographical location and the presence of suitable geothermal resources. Regions with no or insufficient geothermal activity may not have the opportunity to harness this renewable energy source.

“Environmental Concerns and Grid Integration Challenges Associated with Geothermal Energy Generation"

Over time, geothermal reservoirs can experience depletion or cooling, leading to a reduction in power generation capacity. Proper reservoir management and monitoring are essential to ensure the long-term sustainability of geothermal projects.

While geothermal energy is considered a clean and renewable energy source, there can be localized environmental impacts during the drilling and construction phases. Careful environmental assessments and mitigation measures are necessary to address potential risks.

Integrating geothermal power into existing electrical grids can present technical challenges due to its intermittent nature and variations in power generation. Grid stability and capacity upgrades may be required to accommodate geothermal power fluctuations.

Geothermal Energy Market Size, Share, Trends, Growth, Demand and Sales Forecast Report by Fact.MR

Country-wise Insights

Will Geothermal Energy Be the Next Big Thing in the United States?

“Abundance of Geothermal Resources Driving Utilization of Energy for Electricity Generation and Direct Heating/Cooling Solutions”

The United States ranks among the leading countries in geothermal energy production. Geothermal power plants in the United States have a considerable installed capacity, and they contribute a significant share to the country's renewable energy.

Geothermal resources are abundant in certain regions of the United States, with the majority of geothermal power plants located in western states such as California, Nevada, and Oregon. These states benefit from suitable geothermal conditions, making them prime locations for geothermal energy development.

Apart from electricity generation, geothermal energy is utilized for direct heating and cooling applications in the United States. Geothermal district heating systems and geothermal heat pumps are increasingly adopted in residential, commercial, and industrial settings.

North America stands as a prominent player in the global geothermal energy market, with the United States leading both the regional and global markets in terms of installed capacity.

  • In 2020, geothermal power plants in the United States alone produced approximately 17 billion kilowatt-hours (kWh) of electricity, contributing to 0.4% of the country's total utility-scale electricity generation.

What are the Growth Prospects for Geothermal Energy Suppliers in China?

"Favorable Government Policies Supporting Geothermal Energy Generation and Emphasis on Sustainable District Heating & Cooling"

The Chinese government has been actively promoting renewable energy sources, including geothermal energy, as part of its efforts to combat air pollution and reduce carbon emissions. Favorable policies, incentives, and subsidies have been introduced to encourage the development and utilization of geothermal energy. China has been steadily increasing its geothermal installed capacity. The country is actively exploring geothermal resources for electricity generation and direct-use applications like district heating and cooling.

Geothermal district heating has gained popularity in China, especially in areas with abundant geothermal resources. It offers an efficient and sustainable heating solution for residential and commercial buildings, reducing reliance on traditional fossil fuels. The country has been investing in research and development to advance geothermal technologies and improve the efficiency of geothermal power plants. This includes advancements in drilling techniques, reservoir management, and heat exchange technologies.

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Category-wise Insights

What is Leading to Extensive Setting Up of Binary Cycle Power Plants?

“Binary Cycle Power Plants Enabling Sustainable Geothermal Energy Generation through Indirect Heat Exchange & Recycled Fluids"
In binary cycle power plants, a clever and efficient process is employed to generate geothermal power without direct contact between the earth's water or steam and the turbines. The water extracted from geothermal reservoirs is channeled through a heat exchanger, where it heats a secondary liquid, like isobutene, which has a lower boiling temperature than water.

This heated secondary liquid transforms into steam, propelling the turbines that, in turn, drive a generator to produce electricity. Meanwhile, the hot water from the geothermal source is thoughtfully recycled back into the earth via an injection well. Similarly, the secondary liquid is also recycled, looping through the turbine and back into the heat exchanger for further use, creating a sustainable and efficient cycle.

Several new installations have been announced in recent times, indicating potential market growth during the forecast period.

  • An illustrative example is the joint announcement made in February 2021 by Turboden SpA, a group company of Mitsubishi Heavy Industries Ltd (MHI) and Mitsubishi Power Ltd. The announcement revealed an order for 29-megawatt (MW) binary cycle power generation equipment, which is set to be installed at the geothermal power plant in Palayan, Philippines operated by the Energy Development Corporation (EDC).

Why is Geothermal Energy Widely Used in the Commercial Sector?

“Focus of Commercial Sector on LEED Certification and Enhancing Energy Efficiency”

Geothermal heat pumps are widely used for heating and cooling commercial buildings. They harness the stable temperature of the earth to provide efficient heating during winter and cooling during summer, reducing energy consumption and operating costs.

In areas with accessible geothermal resources, district heating systems are implemented to serve multiple commercial buildings. These systems deliver hot water or steam through a network of pipes, providing a sustainable and reliable heating solution for commercial properties. It aligns well with the sustainability goals of green buildings. Commercial developers and property owners seeking the LEED (Leadership in Energy and Environmental Design) certification often incorporate geothermal systems to enhance energy efficiency and reduce carbon footprints.

Geothermal energy is utilized in certain industrial processes that require low-temperature heating, such as food drying, greenhouse heating, and spas. Commercial facilities can benefit from geothermal applications to support their specific industrial needs.

Competitive Landscape

Some well-established energy companies with significant expertise in geothermal energy have a strong presence in the market. These companies often operate geothermal power plants and have extensive experience in geothermal project development, providing them with a competitive advantage.

Independent power producers play a crucial role in the geothermal energy market, especially in regions with supportive regulatory environments. These IPPs develop, own, and operate geothermal power projects, adding to the diversity of market participants.

  • Pertamina Geothermal Energy (PGE) planned to increase its geothermal power plant capacity in November 2021 to contribute more to the reduction of greenhouse gas emissions in Indonesia and to support the achievement of the Sustainable Development Goals (SDGs) on climate action by implementing Environmental, Social, and Governance (ESG)-based programs.
  • EXERGY International Srl and Geothermal Development & Investment Inc. announced a partnership agreement in June 2022 to distribute turnkey geothermal power stations in Japan using the sophisticated, highly efficient ORC (Organic Rankine Cycle) technology.

Know thy Competitors

Competitive landscape highlights only certain players
Complete list available upon request

Key Segments of Geothermal Energy Industry Research

  • By Power Station Type :

    • Binary Cycle Power Stations
    • Flash Steam Power Stations
    • Dry Steam Power Stations
  • By Power Output :

    • Up to 5 MW
    • Above 5 MW
  • By End Use :

    • Industrial
    • Residential
    • Commercial
  • By Region :

    • North America
    • Latin America
    • Europe
    • Asia Pacific
    • Middle East & Africa

- FAQs -

How much is the geothermal energy market valued in 2023?

The global geothermal energy market stands at US$ 5.32 billion in 2023.

What is the forecasted growth rate for the demand for geothermal energy?

Worldwide demand for geothermal energy is set to increase at a CAGR of 6.5% from 2023 to 2033.

What is the sales outlook for geothermal energy for 2033?

Global sales of geothermal energy are set to reach US$ 10 billion by 2033.

What is the projected growth rate for the market in China?

The market in China is predicted to rise at a CAGR of 6.4% through 2033.

At what rate is the geothermal energy market predicted to expand in Germany?

The market for geothermal energy in Germany is forecasted to expand at 6% CAGR through 2033.

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