Geothermal Energy Market

Geothermal Energy Market Forecast and Outlook 2025 to 2035

The global geothermal energy market is projected to grow from USD 56.0 billion in 2025 to approximately USD 85.0 billion by 2035, recording an absolute increase of USD 29.0 billion over the forecast period. This translates into a total growth of 51.8%, with the market forecast to expand at a CAGR of 4.2% between 2025 and 2035. The market size is expected to grow by nearly 1.5X during the same period, supported by increasing adoption of renewable energy technologies, rising demand for clean power generation solutions, and growing focus on energy security across the global power generation and industrial heating sectors.

Quick Stats for Geothermal Energy Market

• Geothermal Energy Market Value (2025): USD 56.0 billion
• Geothermal Energy Market Forecast Value (2035): USD 85.0 billion
• Geothermal Energy Market Forecast CAGR: 4.2%
• Leading Plant Type in Geothermal Energy Market: Flash Steam (40.0%)
• Key Growth Regions in Geothermal Energy Market: Europe, Asia-Pacific, and North America
• Key Players in Geothermal Energy Market: Ormat Technologies, Mitsubishi Power, Toshiba Energy, Enel Green Power, Chevron Geothermal, Reykjavik Energy, Fuji Electric

Between 2025 and 2030, the geothermal energy market is projected to expand from USD 56.0 billion to USD 69.5 billion, resulting in a value increase of USD 13.5 billion, which represents 46.6% of the total forecast growth for the decade. This phase of development will be shaped by rising demand for clean energy solutions, increasing applications in power generation optimization, and growing penetration in emerging renewable energy markets. Energy companies are expanding their geothermal capabilities to address the growing demand for reliable renewable power generation in various industrial segments and heating applications.

Geothermal Energy Market Key Takeaways

Metric	Value
Estimated Value in (2025E)	USD 56.0 billion
Forecast Value in (2035F)	USD 85.0 billion
Forecast CAGR (2025 to 2035)	4.2%

The renewable energy market is the largest contributor, accounting for approximately 40-45%. Geothermal energy, as a eco-friendly and reliable source of power, is increasingly adopted as part of the global transition towards renewable energy. The market's growth is driven by the need for clean, low-emission energy sources that help reduce dependence on fossil fuels and mitigate climate change. The energy generation and power systems market holds around 25-30%, as geothermal power plants are used for baseload electricity generation, providing a constant, reliable energy supply. Geothermal power is particularly advantageous in regions with high geothermal activity, such as Iceland, New Zealand, and parts of the U.S. and Southeast Asia.

The heating, ventilation, and air conditioning (HVAC) market contributes about 15-18%, as geothermal energy is used in ground-source heat pumps for residential, commercial, and industrial heating and cooling applications. These systems provide energy-efficient solutions for climate control, reducing energy consumption and lowering heating and cooling costs. The construction and building materials market holds around 10-12%, as geothermal heating and cooling systems are integrated into new building designs, particularly in eco-friendly construction projects. The environmental services market represents about 8-10%, as geothermal energy is used for environmental remediation and in some cases, for district heating to support local communities.

Why is the Geothermal Energy Market Growing?

Market expansion is being supported by the increasing demand for clean energy solutions and the corresponding need for high-efficiency geothermal systems in power generation applications across global energy and industrial operations. Modern energy companies are increasingly focused on advanced geothermal technologies that can improve energy security, reduce carbon emissions, and enhance operational efficiency while meeting stringent environmental requirements. The proven efficacy of geothermal systems in various power generation applications makes them an essential component of comprehensive renewable energy strategies and clean power programs.

The growing emphasis on energy sector transformation and advanced environmental compliance is driving demand for ultra-efficient geothermal systems that meet stringent performance specifications and regulatory requirements for renewable applications. Energy companies' preference for reliable, high-performance power generation systems that can ensure consistent energy output is creating opportunities for innovative geothermal technologies and customized energy solutions. The rising influence of environmental regulations and clean energy protocols is also contributing to increased adoption of premium-grade geothermal systems across different power generation applications and energy systems requiring advanced renewable technology.

Opportunity Pathways - Geothermal Energy Market

The geothermal energy market represents a specialized growth opportunity, expanding from USD 56.0 billion in 2025 to USD 85.0 billion by 2035 at a 4.2% CAGR. As energy companies prioritize environmental compliance, clean energy performance, and operational efficiency in complex power generation processes, geothermal systems have evolved from a niche energy technology to an essential component enabling renewable energy production, emission reduction, and multi-stage power generation across energy operations and specialized industrial applications.

The convergence of energy sector expansion, increasing renewable adoption, specialized power generation organization growth, and environmental requirements creates momentum in demand. High-efficiency systems offering superior power generation performance, cost-effective flash steam systems balancing performance with economics, and specialized binary cycle variants for advanced applications will capture market premiums, while geographic expansion into high-growth Asian energy markets and emerging market penetration will drive volume leadership. Environmental emphasis on emission reduction and energy reliability provides structural support.

• Pathway A - Flash Steam Dominance: Leading with 40.0% market share, flash steam applications drive primary demand through complex power generation workflows requiring comprehensive energy systems for reliable electricity production. Advanced systems enabling improved power output, reduced operational costs, and enhanced energy efficiency command premium pricing from energy companies requiring stringent performance specifications and environmental compliance. Expected revenue pool: USD 22.4-34.0 billion.
• Pathway B - Power Generation Leadership: Dominating with 60.0% market share through an optimal balance of performance and cost-effectiveness, power generation serves most energy applications while meeting environmental requirements. This application addresses both performance standards and economic considerations, making it the preferred choice for energy and industrial operations seeking reliable renewable power. Opportunity: USD 33.6-51.0 billion.
• Pathway C - Asian Market Acceleration: Indonesia (5.5% CAGR) and Philippines (4.8% CAGR) lead global growth through energy infrastructure expansion, renewable energy development, and domestic geothermal demand. Strategic partnerships with local energy companies, environmental compliance expertise, and supply chain localization enable the expansion of geothermal technology in major energy hubs. Geographic expansion upside: USD 10.0-25.0 billion.
• Pathway D - Binary Cycle Premium Segment: Binary cycle systems serve specialized applications requiring exceptional performance specifications for critical power generation processes. Binary cycle formulations supporting advanced temperature requirements, complex energy applications, and performance-sensitive processes command significant premiums from advanced energy organizations and specialized power facilities. Revenue potential: USD 16.8-25.5 billion.
• Pathway E - Advanced Technology & Enhancement Systems: Companies investing in sophisticated geothermal technologies, enhanced geothermal systems, and automated power processes gain competitive advantages through consistent system performance and energy output reliability. Advanced capabilities enabling customized specifications and rapid deployment capture premium energy partnerships. Technology premium: USD 5.0-12.0 billion.
• Pathway F - Supply Chain Optimization & Reliability: Specialized distribution networks, strategic equipment management, and reliable supply chain systems create competitive differentiation in energy markets requiring consistent geothermal system availability. Companies offering guaranteed supply security, technical support, and environmental documentation gain preferred supplier status with compliance-focused energy companies. Supply chain value: USD 4.0-10.0 billion.
• Pathway G - Emerging Applications & Market Development: Beyond traditional power generation, geothermal energy in direct heating applications, cooling systems, and industrial processes represent growth opportunities. Companies developing new applications, supporting R&D initiatives, and expanding into adjacent energy markets capture incremental demand while diversifying revenue streams. Emerging opportunity: USD 3.0-8.0 billion.

Segmental Analysis

The market is segmented by plant type, end use, and region. By plant type, the market is divided into dry steam, flash steam, and binary cycle. Based on end use, the market is categorized into power generation, direct use, and heating/cooling. Regionally, the market is divided into North America, Europe, and Asia-Pacific.

By Plant Type, Flash Steam Segment Accounts for 40% Market Share

The flash steam segment is projected to account for 40% of the geothermal energy market in 2025, reaffirming its position as the category's dominant plant type. Energy companies increasingly recognize the optimal balance of performance and cost-effectiveness offered by flash steam for most power generation applications, particularly in electricity production and energy conversion processes. This type addresses both performance requirements and economic considerations while providing reliable energy output across diverse power generation applications.

This type forms the foundation of most energy protocols for geothermal applications, as it represents the most widely accepted and commercially viable level of geothermal power technology in the industry. Quality control standards and extensive performance testing continue to strengthen confidence in flash steam systems among energy and power generation providers. With increasing recognition of the cost-performance optimization requirements in renewable energy production, flash steam systems align with both operational efficiency and environmental compliance goals, making them the central growth driver of comprehensive energy generation strategies.

By End Use, Power Generation Segment Accounts for 60% Market Share

Power generation is projected to represent 60% of geothermal energy demand in 2025, underscoring its role as the primary end use segment driving market adoption and growth. Energy companies recognize that power generation requirements, including complex electricity production processes, specialized grid integration needs, and multi-stage energy systems, often require advanced geothermal services that standard energy technologies cannot adequately provide. Geothermal systems offer enhanced energy reliability and environmental compliance in power generation applications.

The segment is supported by the growing nature of electricity demand, requiring sophisticated power generation systems, and the increasing recognition that advanced geothermal technologies can improve energy performance and environmental outcomes. Energy companies are increasingly adopting evidence-based environmental guidelines that recommend specific geothermal systems for optimal power generation. As understanding of energy complexity advances and environmental requirements become more stringent, geothermal systems will continue to play a crucial role in comprehensive energy strategies within the power generation market.

What are the Drivers, Restraints, and Key Trends of the Geothermal Energy Market?

The geothermal energy market is advancing steadily due to increasing recognition of renewable energy technologies' importance and growing demand for high-efficiency power generation systems across the energy and industrial sectors. The market faces challenges, including complex installation processes, potential for geological variations during implementation and operation, and concerns about resource availability for specialized power generation equipment. Innovation in geothermal technologies and customized energy protocols continues to influence product development and market expansion patterns.

Expansion of Advanced Power Generation Facilities and Geothermal Technologies

The growing adoption of advanced power generation facilities is enabling the development of more sophisticated geothermal energy production and performance control systems that can meet stringent environmental requirements. Specialized energy facilities offer comprehensive geothermal services, including advanced power generation and conversion processes that are particularly important for achieving high-efficiency requirements in energy applications. Advanced energy infrastructure provides access to premium services that can optimize power output and reduce operational costs while maintaining cost-effectiveness for large-scale energy operations.

Integration of Smart Grid Systems and Energy Management Systems

Modern energy organizations are incorporating digital technologies such as real-time performance monitoring, automated control systems, and grid integration to enhance geothermal power delivery and distribution processes. These technologies improve system performance, enable continuous energy monitoring, and provide better coordination between energy providers and grid operators throughout the power generation cycle. Advanced digital platforms also enable customized performance specifications and early identification of potential system deviations or operational disruptions, supporting reliable energy production.

Analysis of the Geothermal Energy Market by Key Country

Country	CAGR (2025-2035)
Indonesia	5.5%
Philippines	4.8%
Kenya	4.5%
Turkey	4.2%
Japan	4.0%
USA	3.8%
Iceland	3.6%

The geothermal energy market is experiencing varied growth globally, with Indonesia leading at a 5.5% CAGR through 2035, driven by the expansion of renewable energy infrastructure development, increasing power generation capabilities, and growing domestic demand for high-efficiency geothermal systems. Philippines follows at 4.8%, supported by energy sector expansion, growing recognition of advanced geothermal technology importance, and expanding power generation capacity. Kenya records 4.5% growth, with a focus on developing the renewable energy technology and power generation industries. Turkey shows 4.2% growth, representing an emerging market with expanding energy infrastructure and power generation frameworks. Japan demonstrates 4.0% growth with focus on advanced energy technology adoption. USA demonstrates 3.8% growth, emphasizing energy infrastructure expansion and systematic renewable approaches. Iceland demonstrates 3.6% growth, emphasizing energy infrastructure expansion and systematic renewable approaches.

Indonesia Demonstrates Growing Market Potential with Energy Infrastructure Development

Revenue from geothermal energy in Indonesia is projected to exhibit robust growth with a CAGR of 5.5% through 2035, driven by ongoing energy sector expansion and increasing recognition of high-efficiency geothermal systems as essential power generation components for complex energy processes. The country's expanding energy infrastructure and growing availability of specialized power generation capabilities are creating significant opportunities for geothermal adoption across both domestic and export-oriented energy facilities. Major international and domestic energy companies are establishing comprehensive power generation and distribution networks to serve the growing population of energy providers and power facilities requiring high-performance geothermal systems across power generation and industrial applications throughout Indonesia's major energy hubs.

The Indonesian government's strategic emphasis on renewable energy modernization and power sector advancement is driving substantial investments in specialized power generation capabilities. This policy support, combined with the country's abundant geothermal resources and expanding energy requirements, creates a favorable environment for the geothermal energy market development. Indonesian energy companies are increasingly focusing on high-value renewable technologies to improve power generation capabilities, with geothermal systems representing a key component in this energy transformation.

• Government initiatives supporting energy development and power generation modernization are driving demand for high-efficiency geothermal systems throughout major energy and power centers, including Java, Sumatra, and Sulawesi regions.
• Power generation capacity expansion and energy system development are supporting appropriate utilization of geothermal systems among energy providers and power facilities nationwide, with particular growth in grid-connected operations and industrial energy services.

Philippines Demonstrates Exceptional Market Potential with Renewable Energy Growth

Demand for geothermal energy in Philippines is expanding at a CAGR of 4.8%, supported by increasing renewable energy accessibility, growing environmental awareness, and developing technology market presence across the country's major energy clusters. The country's established geothermal sector and increasing recognition of advanced power generation systems are driving demand for effective high-efficiency energy solutions in both power generation and industrial applications. International energy companies and domestic providers are establishing comprehensive distribution channels to serve the growing demand for reliable geothermal systems while supporting the country's position as a leading geothermal energy market.

Philippines' energy sector continues to benefit from favorable renewable energy policies, expanding power generation capabilities, and cost-competitive energy infrastructure development. The country's focus on maintaining its position as a global geothermal technology leader is driving investments in specialized geothermal technology and power generation infrastructure. This development is particularly important for geothermal applications, as energy companies seek reliable domestic sources for critical power generation technologies to enhance energy security and improve supply chain efficiency.

• Rising awareness about advanced renewable energy options and improving power generation capabilities are creating opportunities for specialized geothermal systems across power generation and industrial settings in major hubs like Luzon, Visayas, and Mindanao.
• Growing energy infrastructure development and technology adoption are supporting increased access to high-efficiency geothermal systems among organizations requiring comprehensive power generation capabilities, particularly in electricity production and industrial energy organizations.

USA Maintains Technology Leadership

Advanced energy technology market in the USA demonstrates sophisticated power generation deployment with documented geothermal effectiveness in energy facilities and power centers through integration with existing energy systems and grid infrastructure. The country leverages technical expertise in renewable energy technology and power systems integration to maintain a 3.8% CAGR through 2035. Power generation centers, including major energy regions, showcase premium installations where geothermal systems integrate with comprehensive energy information systems and grid platforms to optimize power generation accuracy and operational workflow effectiveness.

American energy companies prioritize system reliability and environmental compliance in power development, creating demand for premium systems with advanced features, including performance validation and integration with US energy standards. The market benefits from established energy industry infrastructure and a willingness to invest in advanced geothermal technologies that provide long-term operational benefits and compliance with environmental regulations.

Kenya Shows Strong Regional Leadership

Geothermal energy market expansion in Kenya benefits from diverse energy demand, including power generation modernization in Nairobi and Mombasa, renewable energy development programs, and government energy programs that increasingly incorporate geothermal solutions for power enhancement applications. The country maintains a 4.5% CAGR through 2035, driven by rising environmental awareness and increasing adoption of renewable energy benefits, including superior power generation capabilities and reduced complexity.

Market dynamics focus on cost-effective geothermal solutions that balance advanced power generation features with affordability considerations important to Kenyan energy operators. Growing energy infrastructure creates demand for modern power generation systems in new energy facilities and power equipment modernization projects.

Strategic Market Considerations:

• Energy and power generation segments leading growth with focus on renewable energy enhancement and operational efficiency applications
• Regional energy requirements are driving a diverse product portfolio from basic geothermal systems to advanced power generation platforms
• Resource availability challenges offset by potential local development partnerships with international energy manufacturers
• Government energy initiatives beginning to influence procurement standards and power generation requirements

Turkey Shows Steady Market Growth

Turkey demonstrates steady market development with a 4.2% CAGR through 2035, distinguished by energy operators' preference for high-quality geothermal systems that integrate seamlessly with existing power equipment and provide reliable long-term operation in specialized energy applications. The market prioritizes advanced features, including precision power generation algorithms, performance validation, and integration with comprehensive energy platforms that reflect Turkish energy expectations for technological advancement and operational excellence.

Turkish energy companies focus on system reliability and precision in power generation development, creating demand for premium systems with advanced features including automated performance monitoring and comprehensive technical support. The market benefits from established energy research infrastructure and investment in renewable technology that provides long-term energy benefits.

Strategic Market Indicators:

• Premium focus on precision systems with advanced power generation algorithms and high-reliability capabilities
• Integration requirements with existing energy information systems and power generation management platforms
• Emphasis on geothermal reliability and long-term performance in energy applications

Japan Emphasizes Precision and Integration Excellence

Japan demonstrates steady market development with a 4.0% CAGR through 2035, distinguished by energy operators' preference for high-quality geothermal systems that integrate seamlessly with existing power equipment and provide reliable long-term operation in specialized energy applications. The market prioritizes advanced features, including precision power generation algorithms, performance validation, and integration with comprehensive energy platforms that reflect Japanese energy expectations for technological advancement and operational excellence.

Japanese energy companies focus on system reliability and precision in power generation development, creating demand for premium systems with advanced features including automated performance monitoring and comprehensive technical support. The market benefits from established energy research infrastructure and investment in renewable technology that provides long-term energy benefits.

Strategic Market Indicators:

• Premium focus on precision systems with advanced power generation algorithms and high-reliability capabilities
• Integration requirements with existing energy information systems and power generation management platforms
• Emphasis on geothermal reliability and long-term performance in energy applications

Iceland Emphasizes Energy Innovation

Iceland demonstrates steady market development with a 3.6% CAGR through 2035, driven by established geothermal infrastructure and focus on advanced energy technology integration. The country's abundant geothermal resources and sophisticated energy systems are creating opportunities for enhanced geothermal adoption across both domestic heating and power generation facilities. Major energy companies are maintaining comprehensive geothermal networks to serve the established population of energy consumers and facilities requiring high-performance geothermal systems across heating and power applications throughout Iceland's energy infrastructure.

The Icelandic government's continued support for geothermal development and energy innovation is maintaining investments in specialized power generation capabilities. This policy continuity, combined with the country's established geothermal expertise and mature energy requirements, creates a stable environment for the geothermal energy market development. Icelandic energy companies continue focusing on high-efficiency renewable technologies to optimize energy utilization, with geothermal systems representing a cornerstone component in this energy strategy.

• Established energy infrastructure supporting continued demand for high-efficiency geothermal systems throughout major energy centers, including Reykjavik and regional power facilities.
• Energy optimization and advanced system development are supporting continued utilization of geothermal systems among energy providers and facilities nationwide, with particular growth in district heating operations and industrial energy services.

Europe Market Split by Country

The geothermal energy market in Europe is projected to grow from USD 19.6 billion in 2025 to USD 29.8 billion by 2035, with individual country performance varying across the region. Germany is expected to maintain its leadership position with a market value of USD 11.0 billion in 2025, supported by its advanced energy infrastructure, precision power generation capabilities, and strong renewable energy presence throughout major industrial regions.

Iceland follows with USD 7.0 billion in 2025, driven by established geothermal systems, renewable energy integration, and expanding heating networks serving both domestic and industrial markets. Turkey holds USD 6.0 billion in 2025, supported by energy infrastructure expansion and growing adoption of high-efficiency geothermal systems. Italy commands USD 5.0 billion in 2025, while France accounts for USD 4.0 billion in 2025. The Rest of Europe region, including Nordic countries, Eastern Europe, and smaller Western European markets, holds USD 12.0 billion in 2025, representing diverse market opportunities with established energy and power generation capabilities.

Competitive Landscape of the Geothermal Energy Market

The geothermal energy market is characterized by competition among established energy companies, specialty power generation companies, and renewable technology suppliers focused on delivering high-efficiency, consistent, and reliable geothermal systems. Companies are investing in power generation technology advancement, performance control enhancement, strategic partnerships, and customer technical support to deliver effective, efficient, and reliable geothermal solutions that meet stringent energy and environmental requirements. Power optimization, performance validation protocols, and supply chain strategies are central to strengthening product portfolios and market presence.

Ormat Technologies leads the market with comprehensive high-efficiency geothermal system offerings with a focus on performance consistency and power generation reliability for energy applications. Mitsubishi Power provides specialized power generation systems with emphasis on industrial energy applications and comprehensive technical support services. Toshiba Energy focuses on advanced geothermal technologies and customized energy solutions for power generation systems serving global markets. Enel Green Power delivers established renewable energy systems with strong performance control systems and customer service capabilities.

Chevron Geothermal operates with a focus on bringing innovative geothermal technologies to specialized energy applications and emerging markets. Reykjavik Energy provides comprehensive power generation system portfolios, including advanced geothermal services, across multiple energy applications and industrial processes. Fuji Electric specializes in customized power generation solutions and performance management systems for energy systems with emphasis on environmental compliance. CalEnergy provides reliable supply chain solutions and technical expertise to enhance market accessibility and customer access to essential geothermal systems.

Key Players in the Geothermal Energy Market

• Ormat Technologies
• Mitsubishi Power
• Toshiba Energy
• Enel Green Power
• Chevron Geothermal
• Reykjavik Energy
• Fuji Electric
• CalEnergy
• Pertamina Geothermal
• Sumitomo Corp
• Marubeni
• EDC
• GeoGlobal
• TGS
• Power Engineers

Scope of the Report

Items	Values
Quantitative Units (2025)	USD 56.0 billion
Plant Type	Dry Steam, Flash Steam, Binary Cycle
End Use	Power Generation, Direct Use, Heating/Cooling
Regions Covered	North America, Europe, Asia-Pacific
Countries Covered	USA, Indonesia, Philippines, Japan, Kenya, Turkey, Iceland and 40+ countries
Key Companies Profiled	Ormat Technologies, Mitsubishi Power, Toshiba Energy, Enel Green Power, Chevron Geothermal, Reykjavik Energy, Fuji Electric, and CalEnergy
Additional Attributes	Dollar sales by plant type and end use, regional demand trends, competitive landscape, energy provider preferences for specific geothermal systems, integration with specialty energy supply chains, innovations in power generation technologies, performance monitoring, and energy optimization

Geothermal Energy Market by Segments

• Plant Type :

  • Dry Steam
  • Flash Steam
  • Binary Cycle

• End Use :

  • Power Generation
  • Direct Use
  • Heating/Cooling

• Region :

  • North America

    • United States
    • Canada
    • Mexico

  • Europe

    • Germany
    • Iceland
    • Turkey
    • Italy
    • France
    • United Kingdom
    • Spain
    • Nordic
    • BENELUX
    • Rest of Europe

  • Asia-Pacific

    • Indonesia
    • Philippines
    • Japan
    • Kenya
    • South Korea
    • China
    • India
    • Australia & New Zealand
    • Rest of Asia Pacific