Geothermal Energy Market: Size, Share, Trends & Forecast (2024-2029) 

The market report offers a detailed analysis segmented by Technology (Binary Cycle Plants, Flash Steam Plants, Dry Steam Plants, Ground Source Heat Pumps, Direct Systems); by Temperature (Low Temperature (Up to 900C), Medium Temperature (900C-1500C), High Temperature (Above 1500C)); by Application (Power Generation, Residential Heating and Cooling, Commercial Heating and Cooling); by Geography (North America, South America, Asia Pacific, Europe, The Middle East, Africa).

Outlook 

• The geothermal energy market is estimated to be at USD 7,440.12 Mn in 2024 and is anticipated to reach USD 9,330.32 Mn in 2029. 

• The geothermal energy market is registering a CAGR of 4.63% during the forecast period of 2024-2029. 

• The geothermal energy market is steadily expanding in the renewable energy sector. It leverages the Earth’s natural heat to generate electricity and provide direct heating solutions. The market is driven by a global shift towards sustainable energy, stringent environmental regulations, and technological advancements in geothermal systems.  

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Ecosystem 

• The participants in the global geothermal energy industry are always developing their strategies to preserve a competitive advantage. 

• New entrants and startups are bringing fresh ideas and technologies to the market. Companies focusing on Enhanced Geothermal Systems (EGS) and hybrid energy solutions are gaining attention for their potential to revolutionize geothermal energy production and expand its applications. 

• Several important entities in the geothermal energy market include Ormat Technologies, Inc.; Mitsubishi Electric Corp.; General Electric Co.; Ansaldo Energia S.p.A.; Fuji Electric Co., Ltd.; and others. 

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Findings 

Attributes	Values
Historical Period	2018-2022
Base Year	2023
Forecast Period	2024-2029
Market Size (2024)	USD 7,440.12 Mn
Market Size (2029)	USD 9,330.32 Mn
Growth Rate	4.63% CAGR from 2024 to 2029
Key Segments	Technology (Binary Cycle Plants, Flash Steam Plants, Dry Steam Plants, Ground Source Heat Pumps, Direct Systems); Temperature (Low Temperature (Up to 900C), Medium Temperature (900C- 1500C), High Temperature (Above 1500C)); Application (Power Generation, Residential Heating and Cooling, Commercial Heating and Cooling); Geography (North America, South America, Asia Pacific, Europe, The Middle East, Africa)
Key Vendors	Ormat Technologies, Inc.; Mitsubishi Electric Corp.; General Electric Co.; Ansaldo Energia S.p.A.; Fuji Electric Co., Ltd.
Key Countries	The US; Canada; Mexico; Brazil; Argentina; Colombia; Chile; China; India; Japan; South Korea; The UK; Germany; Italy; France; Spain; Turkey; UAE; Saudi Arabia; Egypt; South Africa
Largest Market	Asia Pacific

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Trends  

• Enhanced Geothermal Systems (EGS): Enhanced Geothermal Systems (EGS) are transforming geothermal technology by creating artificial reservoirs in hot rocks deep underground, generating steam for electricity. Unlike traditional methods, EGS doesn’t rely on naturally occurring steam or hot water, making it a scalable and commercially viable solution. In recent years, significant investment and research in EGS are expected, directing its potential to become a mainstream renewable energy source. 

• Geothermal District Heating: Geothermal district heating systems are becoming a preferred method for providing sustainable heating to residential and commercial sectors. These systems use geothermal energy to heat entire communities, reducing reliance on fossil fuels and lowering carbon footprints. An increasing number of cities around the world are likely to adopt this eco-friendly heating solution, which supports global initiatives to foster cleaner and more sustainable urban living. 

• Geothermal and Hybrid Systems: The adoption of hybrid energy systems that combine geothermal with other renewable sources, such as solar and wind, is on the rise. These hybrid systems offer resilience by compensating for fluctuations in one energy source with another, providing a more consistent electricity supply. As the demand for balanced and sustainable energy solutions grows, geothermal-solar and geothermal-wind hybrids are becoming key components in the renewable energy landscape. 

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Catalysts 

• Surging Demand for Geothermal Heat Pumps: The increasing adoption of geothermal heat pumps for residential and commercial heating is driving growth in the geothermal energy market. These systems offer a highly efficient and sustainable alternative to conventional heating and cooling methods. The focus on energy-efficient solutions and reduced carbon emissions is accelerating the installation of geothermal heat pumps, particularly in regions with favorable geological conditions. 

• Use of Geothermal Energy for Power Generation: Geothermal energy’s application in power generation is a major driver of market growth. Technology leverages the Earth’s internal heat to generate electricity in a reliable and continuous manner. As nations seek to diversify their energy portfolios and reduce dependence on fossil fuels, geothermal power plants are being increasingly developed to provide stable and renewable electricity. 

• Favorable Government Initiatives: Supportive government policies and incentives are significantly boosting the geothermal energy market. Subsidies, tax credits, and grant programs aimed at promoting renewable energy sources are making geothermal projects more financially viable. Additionally, government commitments to reducing greenhouse gas emissions and meeting renewable energy targets are encouraging investments in geothermal technology. 

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Restraints 

• Acquisition of Power Purchase Agreements (PPAs): Securing Power Purchase Agreements (PPAs) for geothermal projects can be challenging due to the long development timelines and high upfront costs associated with geothermal energy. Negotiating favorable PPAs is crucial for project financing and economic viability, but the process can be complex and lengthy, potentially delaying project implementation. 

• Multiple Environmental Reviews Associated with Geothermal Projects: Geothermal projects often require extensive environmental reviews and permits, which can complicate and lengthen the development process. Addressing concerns related to land use, water usage, and ecological impacts requires thorough assessments, which add to the time and cost of geothermal project development. 

• Absence of Geothermal Professionals and Expertise: The shortage of specialized geothermal professionals and consultants can hinder the development and implementation of geothermal projects. The need for expertise in geology, engineering, and project management specific to geothermal energy can create challenges in securing skilled personnel, impacting project efficiency and effectiveness. 

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Table of Contents 

1.       Introduction         1.1.    Research Methodology         1.2.    Scope of the Study  2.       Market Overview / Executive Summary         2.1.    Global Geothermal Energy Market (2018 – 2022)         2.2.    Global Geothermal Energy Market (2023 – 2029)  3.       Market Segmentation         3.1.    Global Geothermal Energy Market by Technology                3.1.1.    Binary Cycle Plants                3.1.2.    Flash Steam Plants                3.1.3.    Dry Steam Plants                3.1.4.    Ground Source Heat Pumps                3.1.5.    Direct Systems         3.2.    Global Geothermal Energy Market by Temperature                3.2.1.    Low Temperature (Up to 900C)                3.2.2.    Medium Temperature (900C- 1500C)                3.2.3.    High Temperature (Above 1500C)         3.3.    Global Geothermal Energy Market by Application                3.3.1.    Power Generation                3.3.2.    Residential Heating and Cooling                3.3.3.    Commercial Heating and Cooling  4.       Regional Segmentation         4.1.    North America                4.1.1.    The US                4.1.2.    Canada                4.1.3.    Mexico         4.2.    South America                4.2.1.    Brazil                4.2.2.    Argentina                4.2.3.    Colombia                4.2.4.    Chile                4.2.5.    Rest of South America         4.3.    Asia Pacific                4.3.1.    China                4.3.2.    India                4.3.3.    Japan                4.3.4.    South Korea                4.3.5.    Rest of Asia Pacific         4.4.    Europe                4.4.1.    The UK                 4.4.2.    Germany                4.4.3.    Italy                4.4.4.    France                4.4.5.    Spain                4.4.6.    Rest of Europe         4.5.    The Middle East                4.5.1.    Turkey                4.5.2.    UAE                4.5.3.    Saudi Arabia                4.5.4.    Rest of the Middle East         4.6.    Africa                4.6.1.    Egypt                4.6.2.    South Africa                4.6.3.    Rest of Africa  5.       Value Chain Analysis of the Global Geothermal Energy Market  6.       Porter Five Forces Analysis         6.1.    Threats of New Entrants         6.2.    Threats of Substitutes         6.3.    Bargaining Power of Buyers         6.4.    Bargaining Power of Suppliers         6.5.    Competition in the Industry  7.       Trends, Drivers and Challenges Analysis         7.1.    Market Trends         7.1.1.    Market Trend 1         7.1.2.    Market Trend 2         7.1.3.    Market Trend 3         7.2.    Market Drivers         7.2.1.    Market Driver 1         7.2.2.    Market Driver 2         7.2.3.    Market Driver 3         7.3.    Market Challenges         7.3.1.    Market Challenge 1         7.3.2.    Market Challenge 2         7.3.3.    Market Challenge 3  8.       Opportunities Analysis         8.1.    Market Opportunity 1         8.2.    Market Opportunity 2         8.3.    Market Opportunity 3  9.       Competitive Landscape         9.1.    Ormat Technologies, Inc.         9.2.    Mitsubishi Electric Corp.         9.3.    General Electric Co.         9.4.    Ansaldo Energia S.p.A.         9.5.    Fuji Electric Co., Ltd.         9.6.    Company 6         9.7.    Company 7         9.8.    Company 8         9.9.    Company 9         9.10.  Company 10

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Geothermal Energy Market – FAQs 

1.  What is the current size of the geothermal energy market? 

Ans. In 2024, the geothermal energy market size is USD 7,440.12 Mn. 

2.  Who are the major vendors in the geothermal energy market?  

Ans. The major vendors in the geothermal energy market are Ormat Technologies, Inc.; Mitsubishi Electric Corp.; General Electric Co.; Ansaldo Energia S.p.A.; Fuji Electric Co., Ltd. 

3.  Which segments are covered under the geothermal energy market segments analysis?  

Ans. The geothermal energy market report offers in-depth insights into Technology, Temperature, Application, and Geography.