Geothermal Power Market Synopsis

Geothermal Power Market Size Was Valued at USD 7.0 Billion in 2023, and is Projected to Reach USD 11.42 Billion by 2032, Growing at a CAGR of 5.59% From 2024-2032.

Geothermal power refers to the generation of electricity using heat from the Earth's interior. This heat is harnessed from geothermal reservoirs beneath the Earth's surface and can be used to generate electricity or provide direct heating.

• Rising awareness of climate change is leading to a higher need for renewable energy sources such as geothermal power, aided by government policies and incentives that encourage eco-friendly solutions. Technological advancements enhance geothermal power plant efficiency and performance, enabling them to compete with other sources of renewable energy. Enhanced drilling methods reduce expenses and enhance access to deeper reserves.
• Geothermal energy provides steady, dependable base-load power, decreasing dependence on fossil fuels and enhancing energy security in comparison to inconsistent sources such as solar and wind. Geothermal power plants generate employment opportunities and stimulate local economies. Long-term economic advantages result from low operational expenses. Geothermal power plants are environmentally friendly due to their minimal emissions and smaller land requirements compared to solar or wind farms.
• Governments worldwide are focused on reducing greenhouse gas emissions and transitioning to renewable energy in order to combat climate change. Geothermal energy, recognized for its sustainability and low emissions, aligns with this strategy. Global agreements like the Paris Agreement encourage countries to adopt geothermal and other sustainable energy sources. Consumer demand for more environmentally friendly energy sources is also spurring utility companies to embrace geothermal solutions.

Geothermal Power Market Trend Analysis

Increased Adoption of Enhanced Geothermal Systems (EGS)

• Conventional geothermal energy is dependent on particular geological requirements, restricting its accessibility to regions with existing hydrothermal resources. Historically, geothermal power production has been confined to areas such as the western United States, Iceland, and the Pacific Ring of Fire. EGS Technology involves injecting water into hot, dry rock formations to create fractures and circulating it to harness heat for geothermal energy extraction.
• EGS extends the reach of geothermal power to regions without natural hydrothermal activity, enabling its use in formerly unsuitable areas. This technology expands the geographic reach of geothermal energy production, surpassing constraints of conventional methods. Advances in drilling and fracturing technology, like those in the oil and gas field, have made it easier and cheaper to put Enhanced Geothermal Systems (EGS) into practice.
• Advancements in subsurface engineering, such as enhanced modelling of underground reservoirs and a better comprehension of geothermal resource properties, have played a role in enhancing the feasibility of EGS projects through improved efficiency and effectiveness. Geothermal energy, particularly Enhanced Geothermal Systems (EGS), provides a reliable source of high-capacity power generation with continuous baseload power. EGS projects have the flexibility to be expanded in order to satisfy the need, rendering them a flexible and appealing choice for generating large amounts of renewable energy. These stability and scalability are essential for ensuring grid stability and fulfilling constant energy needs.

Integration of Geothermal Energy with Other Renewable Energy Sources

• Sunlight and wind conditions cause solar and wind power to be inconsistent. Geothermal energy, however, offers consistent baseload power regardless of the weather or time. A hybrid system can provide steady energy by merging geothermal with either solar or wind power, stabilizing fluctuations in power generation. Geothermal energy can improve the performance of solar and wind power by supplying energy when they are not generating, such as at night or on overcast days.
• Hybrid systems that blend various energy sources can increase total efficiency by using extra energy from one source to fuel another. The collaboration boosts energy generation, guaranteeing a steady supply and efficient utilization of resources. Combining geothermal energy with other renewable sources allows energy producers to vary their portfolios, decreasing dependence on a single source to improve security. Hybrid systems that integrate geothermal with solar or wind help countries and regions achieve their renewable energy goals by offering a dependable and well-rounded energy source for the widespread use of renewables.
• Merging geothermal energy with other renewable sources can decrease expenses and enhance resource efficiency by utilizing common infrastructure. This integration decreases the necessity for expensive energy storage solutions by using geothermal energy as a consistent power source, mitigating the variability of solar and wind power. Shared infrastructure, such as transmission lines and grid connections, increases the economic viability of energy projects and reduces the environmental impact compared to individual developments for each energy source.

Geothermal Power Market Segment Analysis:

• Geothermal Power Market Segmented on the basis of Technology, Power, Application, And Region.

By Power, Binary Cycle Power Plants Segment is Expected to Dominate the Market During the Forecast Period

• Binary Cycle Power Plants function in a distinct manner compared to conventional geothermal power plants, employing both geothermal fluid and a secondary fluid with a lower boiling point. The secondary fluid is vaporized by the geothermal fluid in a heat exchanger, which powers the turbine to generate electricity. The gas is subsequently cooled down into a liquid state and recycled within the procedure.
• Binary Cycle Power Plants have several benefits. They make use of geothermal resources at lower temperatures, which are more plentiful. The reason for their low environmental impact is because they inject geothermal fluid back into the ground. These plants are designed in modules, which allows for flexibility in accommodating different project scales. They can be located in various places, allowing them to be used in areas where traditional geothermal plants might not work.
• Binary Cycle Power Plants have become the market leader due to their growing acceptance, financial feasibility, and worldwide influence. Due to their capability to harness lower-temperature resources, they are being extensively used in areas with moderate geothermal activity. Technological progress and increased production have driven down costs, making electricity generation a viable choice for competition. Their flexibility has increased worldwide geothermal energy output, solidifying their position as a leading technology in the industry.

By Application, Commercial Segment Held the Largest Share in 2023

• The business and industrial sector of geothermal power consists of businesses and industries utilizing geothermal energy for power production and heating purposes. This involves major power stations providing electricity to the system for business and industrial purposes. The three primary kinds of geothermal power plants utilized in commercial activities include Binary Cycle, Flash Steam, and Dry Steam, each with specific criteria for producing electricity on a massive level.
• Geothermal power is dependable and consistent, making it well-suited for business uses. Once a plant is up and running, the fuel expenses are minimal, making it a cost-efficient option in the long term. Long-term agreements and power purchase agreements (PPAs) with geothermal producers guarantee stable income, enabling projects to be economically feasible. Its eco-friendly and sustainable characteristics make it eligible for potential rewards or financial aid. In general, geothermal energy is a viable and advantageous choice for generating energy on a large scale in commercial industries.
• Geothermal energy is commonly utilized in the business sector to generate electricity via large power plants that provide power to the grid. Moreover, district heating, greenhouse heating, and industrial processes often utilize direct heating applications. Improved Geothermal Systems (EGS) are being created to increase geothermal energy sources and uses in the business sector. Resort and hotel spas also make use of geothermal energy for their heating needs.

Geothermal Power Market Regional Insights:

North America is Expected to Dominate the Market Over the Forecast Period

• The U.S. possesses ample geothermal opportunities due to the active tectonic and volcanic activity in states such as California, Nevada, Oregon, and Idaho. Mapping initiatives have uncovered valuable resources, leading to widespread growth and use of geothermal energy in these areas. Innovation in geothermal technology is led by North America, with progress in drilling, Enhanced Geothermal Systems, and heat pump technologies.
• Research organizations, such as the U.S. Department of Energy and colleges, also emphasize geothermal energy. The US government provides tax credits, grants, and loan guarantees to encourage the growth of geothermal energy projects. Regulatory frameworks facilitate the growth of geothermal projects by implementing permitting and resource management systems. Geothermal energy is used to directly heat areas such as districts, greenhouses, and industries, as well as for heating and cooling buildings through geothermal heat pumps, expanding its use beyond just generating electricity.
• Substantial funding from public and private sources has fuelled the expansion of geothermal power in North America, supporting new projects, advancements in technology, and enhancements to infrastructure. Businesses are growing their activities and boosting their production capabilities. Geothermal energy provides sustainability and environmental advantages by emitting low levels of greenhouse gases, in line with North America's objectives to decrease emissions. It offers energy security through a dependable and steady power source.

Geothermal Power Market Active Players

• Ormat Technologies Inc. (USA)
• Mitsubishi Heavy Industries, Ltd. (Japan)
• Enel Green Power S.p.A. (Italy)
• Calpine Corporation (USA)
• Chevron Corporation (USA)
• Pertamina Geothermal Energy (Indonesia)
• KenGen (Kenya)
• Turboden S.p.A. (Italy)
• Toshiba Energy Systems & Solutions Corporation (Japan)
• Cyrq Energy, Inc. (USA)
• U.S. Geothermal Inc. (USA)
• EthosEnergy Group (UK)
• ThermaSource LLC (USA)
• Fuji Electric Co., Ltd. (Japan)
• EnBW Energie Baden-Württemberg AG (Germany)
• Energy Development Corporation (EDC) (Philippines)
• Innergex Renewable Energy Inc. (Canada)
• HS Orka hf. (Iceland)
• ElectraTherm, Inc. (USA)
• Ansaldo Energia S.p.A. (Italy)
• Abengoa S.A. (Spain)
• Gradient Resources Inc. (USA)
• Mannvit Engineering (Iceland)
• Iceland Drilling Company Ltd. (Iceland)
• Alterra Power Corp. (Canada), and Other Active Players

Key Industry Developments in the Geothermal Power Market:

• In February 2024, The Flexible geothermal power approach combines clean energy with a built-in ‘battery’. Many consider geothermal to be an around-the-clock clean energy resource, but according to a Princeton-led study in collaboration with startup Fervo Energy, operating new geothermal plants flexibly could provide the best value for the grid.
• In June 2024, House Science, Space, and Technology Committee Chairman Frank Lucas (R-OK) and Representative Andrea Salinas (D-OR) introduced legislation to advance supercritical geothermal energy. Supercritical geothermal, sometimes referred to as superhot rock energy, is a category of enhanced geothermal systems that requires deep drilling technologies to access dry rocks at temperatures around 400°C or greater.

1. INTRODUCTION
   1. RESEARCH OBJECTIVES
   2. RESEARCH METHODOLOGY
   3. RESEARCH PROCESS
   4. SCOPE AND COVERAGE
      1. Market Definition
      2. Key Questions Answered
   5. MARKET SEGMENTATION
2. EXECUTIVE SUMMARY
3. MARKET OVERVIEW
4. GROWTH OPPORTUNITIES BY SEGMENT
5. MARKET LANDSCAPE
   1. PORTER’S FIVE FORCES ANALYSIS
      1. Bargaining Power of Supplier
      2. Threat of New Entrants
      3. Threat of Substitutes
      4. Competitive Rivalry
      5. Bargaining Power Among Buyers
   2. INDUSTRY VALUE CHAIN ANALYSIS
   3. MARKET DYNAMICS
      1. Drivers
      2. Restraints
      3. Opportunities
      4. Challenges
   4. MARKET TREND ANALYSIS
   5. REGULATORY LANDSCAPE
   6. PESTLE ANALYSIS
   7. PRICE TREND ANALYSIS
   8. PATENT ANALYSIS
   9. TECHNOLOGY EVALUATION
   10. MARKET IMPACT OF THE RUSSIA-UKRAINE WAR
       1. Geopolitical Market Disruptions
       2. Supply Chain Disruptions
       3. Instability in Emerging Markets
   11. ECOSYSTEM
6. GEOTHERMAL POWER MARKET BY TECHNOLOGY (2017-2032)
   1. GEOTHERMAL POWER MARKET SNAPSHOT AND GROWTH ENGINE
   2. MARKET OVERVIEW
   3. DRY STEAM POWER PLANTS
      1. Introduction and Market Overview
      2. Historic and Forecasted Market Size in Value (2017-2032F)
      3. Historic and Forecasted Market Size in Volume (2017-2032F)
      4. Key Market Trends, Growth Factors and Opportunities
      5. Geographic Segmentation Analysis
   4. FLASH STEAM POWER PLANTS
   5. BINARY CYCLE POWER PLANTS
7. GEOTHERMAL POWER MARKET BY POWER (2017-2032)
   1. GEOTHERMAL POWER MARKET SNAPSHOT AND GROWTH ENGINE
   2. MARKET OVERVIEW
   3. UP TO 5 MW
      1. Introduction and Market Overview
      2. Historic and Forecasted Market Size in Value (2017-2032F)
      3. Historic and Forecasted Market Size in Volume (2017-2032F)
      4. Key Market Trends, Growth Factors and Opportunities
      5. Geographic Segmentation Analysis
   4. 5 MW TO 50 MW
   5. ABOVE 50 MW
8. GEOTHERMAL POWER MARKET BY APPLICATION (2017-2032)
   1. GEOTHERMAL POWER MARKET SNAPSHOT AND GROWTH ENGINE
   2. MARKET OVERVIEW
   3. RESIDENTIAL
      1. Introduction and Market Overview
      2. Historic and Forecasted Market Size in Value (2017-2032F)
      3. Historic and Forecasted Market Size in Volume (2017-2032F)
      4. Key Market Trends, Growth Factors And Opportunities
      5. Geographic Segmentation Analysis
   4. COMMERCIAL
   5. INDUSTRIAL
   6. AGRICULTURE
   7. POWER GENERATION
   8. COOLING
9. COMPANY PROFILES AND COMPETITIVE ANALYSIS
   1. COMPETITIVE LANDSCAPE
      1. Competitive Benchmarking
      2. Geothermal Power Market Share by Manufacturer (2023)
      3. Industry BCG Matrix
      4. Heat Map Analysis
      5. Mergers & Acquisitions
   2. ORMAT TECHNOLOGIES INC. (USA)
      1. Company Overview
      2. Key Executives
      3. Company Snapshot
      4. Role of the Company in the Market
      5. Sustainability and Social Responsibility
      6. Operating Business Segments
      7. Product Portfolio
      8. Business Performance (Production Volume, Sales Volume, Sales Margin, Production Capacity, Capacity Utilization Rate)
      9. Key Strategic Moves and Recent Developments
      10. SWOT Analysis
   3. MITSUBISHI HEAVY INDUSTRIES, LTD. (JAPAN)
   4. ENEL GREEN POWER S.P.A. (ITALY)
   5. CALPINE CORPORATION (USA)
   6. CHEVRON CORPORATION (USA)
   7. PERTAMINA GEOTHERMAL ENERGY (INDONESIA)
   8. KENGEN (KENYA)
   9. TURBODEN S.P.A. (ITALY)
   10. TOSHIBA ENERGY SYSTEMS & SOLUTIONS CORPORATION (JAPAN)
   11. CYRQ ENERGY, INC. (USA)
   12. U.S. GEOTHERMAL INC. (USA)
   13. ETHOSENERGY GROUP (UK)
   14. THERMASOURCE LLC (USA)
   15. FUJI ELECTRIC CO., LTD. (JAPAN)
   16. ENBW ENERGIE BADEN-WÜRTTEMBERG AG (GERMANY)
   17. ENERGY DEVELOPMENT CORPORATION (EDC) (PHILIPPINES)
   18. INNERGEX RENEWABLE ENERGY INC. (CANADA)
   19. HS ORKA HF. (ICELAND)
   20. ELECTRATHERM, INC. (USA)
   21. ANSALDO ENERGIA S.P.A. (ITALY)
   22. ABENGOA S.A. (SPAIN)
   23. GRADIENT RESOURCES INC. (USA)
   24. MANNVIT ENGINEERING (ICELAND)
   25. ICELAND DRILLING COMPANY LTD. (ICELAND)
   26. ALTERRA POWER CORP. (CANADA)
10. GLOBAL GEOTHERMAL POWER MARKET BY REGION
    1. OVERVIEW
    2. NORTH AMERICA
       1. Key Market Trends, Growth Factors and Opportunities
       2. Key Manufacturers
       3. Historic and Forecasted Market Size By Technology
       4. Historic and Forecasted Market Size By Power
       5. Historic and Forecasted Market Size By Application
       6. Historic and Forecasted Market Size By Country
          1. USA
          2. Canada
          3. Mexico
    3. EASTERN EUROPE
       1. Key Market Trends, Growth Factors And Opportunities
       2. Key Manufacturers
       3. Historic And Forecasted Market Size By Segments
       4. Historic And Forecasted Market Size By Country
          1. Russia
          2. Bulgaria
          3. The Czech Republic
          4. Hungary
          5. Poland
          6. Romania
          7. Rest Of Eastern Europe
    4. WESTERN EUROPE
       1. Key Market Trends, Growth Factors And Opportunities
       2. Key Manufacturers
       3. Historic And Forecasted Market Size By Segments
       4. Historic And Forecasted Market Size By Country
          1. Germany
          2. United Kingdom
          3. France
          4. The Netherlands
          5. Italy
          6. Spain
          7. Rest Of Western Europe
    5. ASIA PACIFIC
       1. Key Market Trends, Growth Factors And Opportunities
       2. Key Manufacturers
       3. Historic And Forecasted Market Size By Segments
       4. Historic And Forecasted Market Size By Country
          1. China
          2. India
          3. Japan
          4. South Korea
          5. Malaysia
          6. Thailand
          7. Vietnam
          8. The Philippines
          9. Australia
          10. New-Zealand
          11. Rest Of APAC
    6. MIDDLE EAST & AFRICA
       1. Key Market Trends, Growth Factors And Opportunities
       2. Key Manufacturers
       3. Historic And Forecasted Market Size By Segments
       4. Historic And Forecasted Market Size By Country
          1. Turkey
          2. Bahrain
          3. Kuwait
          4. Saudi Arabia
          5. Qatar
          6. UAE
          7. Israel
          8. South Africa
    7. SOUTH AMERICA
       1. Key Market Trends, Growth Factors And Opportunities
       2. Key Manufacturers
       3. Historic And Forecasted Market Size By Segments
       4. Historic And Forecasted Market Size By Country
          1. Brazil
          2. Argentina
          3. Rest of South America
11. INVESTMENT ANALYSIS
12. ANALYST VIEWPOINT AND CONCLUSION
    1. Recommendations and Concluding Analysis
    2. Potential Market Strategies
       1. 1. Thailand
          2. Vietnam
          3. The Philippines
          4. Australia
          5. New-Zealand
          6. Rest Of APAC
    3. MIDDLE EAST & AFRICA
       1. Key Market Trends, Growth Factors And Opportunities
       2. Key Manufacturers
       3. Historic And Forecasted Market Size By Segments
       4. Historic And Forecasted Market Size By Country
          1. Turkey
          2. Bahrain
          3. Kuwait
          4. Saudi Arabia
          5. Qatar
          6. UAE
          7. Israel
          8. South Africa
    4. SOUTH AMERICA
       1. Key Market Trends, Growth Factors And Opportunities
       2. Key Manufacturers
       3. Historic And Forecasted Market Size By Segments
       4. Historic And Forecasted Market Size By Country
          1. Brazil
          2. Argentina
          3. Rest of South America
13. INVESTMENT ANALYSIS
14. ANALYST VIEWPOINT AND CONCLUSION
    1. Recommendations and Concluding Analysis
    2. Potential Market Strategies