What Has Been The Evolution of the Geothermal Energy Market in Recent Years?
The geothermal energy market has seen considerable growth due to a variety of factors.
• The size of the geothermal energy market has significantly increased in the past few years. The market, valued at $6.18 billion in 2024, is projected to grow to $6.66 billion in 2025, exhibiting a compound annual growth rate (CAGR) of 7.7%.
Factors contributing to the growth during the historical period include early exploration and development, government incentives and policies, environmental worries, global cooperation, and geopolitical influences.
How Will the Geothermal Energy Market?
The geothermal energy market is expected to maintain its strong growth trajectory in upcoming years.
• In the upcoming years, a significant increase is projected in the size of the geothermal energy market. The rise is expected to reach $8.4 billion in 2029, marking a compound annual growth rate (CAGR) of 6.0%.
Factors contributing to this growth during the forecast period include efforts to combat climate change, increased electrification of transport, usage of geothermal heating and cooling systems, as well as urbanization and industrialization. Key trends expected in this period involve the growth of advanced geothermal systems, hybrid geothermal systems, geothermal district heating and cooling, and the decentralization of geothermal power.
Which Factors Are Boosting Growth In The Geothermal Energy Market?
The increase in funding towards the renewable energy sector is anticipated to boost the expansion of the geothermal energy market. These funds are committed to developing, implementing, and using energy sources like solar, wind, hydroelectric, geothermal, and biomass that are renewable. This stems from concerns about climate change, advancements in sustainable energy methods, better efficiencies, and reduced expenses. These investments function as backing for various elements of geothermal project development and deployment, leveraging geothermal resources for building, operating, and maintaining sustainable energy manufacturing plants. For instance, in July 2022, the World Economic Forum, a non-governmental organization based in Switzerland, reported that the global energy investment has been on a consistent rise, with an average annual growth of 12% since 2020. It is anticipated to scale by over 8% in 2022, amounting to $2.4 trillion. Additionally, the Institute for Energy Economics & Financial Analysis, a nonprofit organization based in the US, reported that the total investment in solar energy production was nearly $500 billion in 2022, marking an increase of $80 billion from the prior year. Hence, the escalation in renewable energy investments is spurring the growth of the geothermal energy market.
What Key Areas Define The Segmentation Of The Global Geothermal Energy Market?
The geothermal energy market covered in this report is segmented –
1) By Technology: Binary Cycle Plants, Flash Steam Plants, Dry Steam Plants, Ground Source Heat Pumps, Direct Systems, Other Technologies
2) By Application: Power Generation, Residential Heating And Cooling, Commercial Heating And Cooling
3) By End Use: Industrial, Residential, Commercial
Subsegments:
1) By Binary Cycle Plants: Organic Rankine Cycle (ORC) Systems, Dual-Flash Binary Cycle Systems, Other Binary Cycle Technologies
2) By Flash Steam Plants: Single-Flash Steam Systems, Double-Flash Steam Systems
3) By Dry Steam Plants: Conventional Dry Steam Systems, Enhanced Dry Steam Systems
3) By Ground Source Heat Pumps: Closed-Loop Ground Source Heat Pumps, Open-Loop Ground Source Heat Pumps
4) By Direct Systems: Direct Use Applications (Heating And Cooling), District Heating Systems
5) By Other Technologies: Enhanced Geothermal Systems (EGS), Hybrid Systems (Geothermal + Other Renewable Energy), Other Emerging Geothermal Technologies
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What Trends Are Reshaping The Future Of The Geothermal Energy Market?
Critical players in the geothermal energy industry are employing strategic collaborations as a means to provide geothermal energy solutions. Such partnerships involve companies utilising each other's distinctive strengths and resources for mutual benefit and triumph. For instance, in April 2022, Robison Oil Corporation, a private fuel retailer based in the United States, joined forces with Dandelion Energy, a US-based manufacturer and supplier of geothermal heating. This collaboration focused on offering homeowners cost-effective and sustainable geothermal energy solutions. By delivering exemplary geothermal technology, Robison maintains its respected reputation as a trustworthy home comfort company. This alliance aims to present homeowners in the surrounding areas with a greener alternative to conventional heating and cooling systems. Furthermore, this affiliation underscores the escalating demand for geothermal solutions as both homeowners and governments aim to stimulate the adoption of renewable energy technology.
Who Are the Key Players In The Geothermal Energy Market?
Major companies operating in the geothermal energy market are:
• Berkshire Hathaway Energy
• Chevron Corporation
• Mitsubishi Corporation
• Enel Group
• Engie SA
• Siemens AG
• General Electric Group
• KEPCO Group
• PT. Pertamina Geothermal Energy
• Asea Brown Boveri Ltd.
• Toshiba International Corporation
• Calpine Corporation
• Tetra Tech Inc.
• Aboitiz Power Corporation
• First Gen Corporation
• Ormat Technologies
• Energy Development Corporation
• EthosEnergy Group
• Therma Source LLC
• Sarulla Operations Ltd.
• Turboden S.P.A.
• Terra-Green Power LLC
• Gradient Resources
• ElectraTherm
• Reykjavik Geothermal
What Is The Most Dominant Region In The Geothermal Energy Market?
Asia-Pacific was the largest region in the geothermal energy market in 2024. North America is expected to be the fastest-growing region in the forecast period. The regions covered in the geothermal energy market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.
