What Fueled The Previous Growth In The Geothermal Power Generation Market?
The geothermal power generation market has seen considerable growth due to a variety of factors.
• Over the past few years, there has been a swift expansion of the geothermal power generation market. It is predicted to surge from $11.17 billion in 2024 to $12.69 billion in 2025, with a compound annual growth rate (CAGR) of 13.5%.
The historical growth can be credited to the influence of government incentives and subsidies, advancements in geothermal drilling and exploration technology, heightened environmental concerns and regulations, burgeoning energy needs, and increased investment in renewable energy.
What Can Be Expected from the Geothermal Power Generation Market Size?
The geothermal power generation market is expected to maintain its strong growth trajectory in upcoming years.
• The market size of geothermal power generation is projected to experience accelerated growth in the years to come, growing to a valuation of $19.43 billion by 2029, with a compound annual growth rate (CAGR) of 11.2%.
The projected growth during this period can be ascribed to advancements in enhanced geothermal systems (EGS) technology, proliferation of geothermal projects in developing nations, heightened focus on decarbonization and sustainability, rise in global energy demand, and supportive governmental regulations. Some key trends projected for this period include the combination of geothermal energy with other forms of renewable energy in hybrid energy systems, the development of innovative financing strategies for geothermal projects, the use of digital technologies to optimize geothermal plant performance, and the expansion of geothermal power generation capabilities.
What Are the Critical Driver Fuelling The Geothermal Power Generation Market's Growth?
The geothermal power generation market's expansion is anticipated to be propelled by the increasing requirement for renewable energy. This form of clean energy is obtained from sources that naturally replenish themselves, making them essentially endless on human scales. Factors contributing to the demand surge for renewable energy include its cost efficiency, environmental advantages, and the worldwide shift to more sustainable energy infrastructures. Renewable power sources, including geothermal energy, play an essential role in sustainable growth, environmental safeguarding, and facilitating a shift towards a greener, more robust energy future. Geothermal energy is favored as a green and sustainable energy alternative because it leverages an endlessly regenerated heat source from within the Earth and emits trivial greenhouse gases during power production. As reported by the France-based International Energy Agency (IEA) in December 2022, the global renewable power capacity is projected to witness a whopping growth of 2,400 gigawatts (GW) from 2022 to 2027. This anticipated growth signifies a noteworthy 30% increase relative to prior predictions. Consequently, the escalating demand for renewable energy sources is catalyzing the expansion of the geothermal power generation market.
How Is The Geothermal Power Generation Market segmented?
The geothermal power generation market covered in this report is segmented –
1) By Type: Binary Cycle, Dry Steam, Flash Steam
2) By Application: Dry Steam Power Stations, Flash Steam Power Stations, Binary Cycle Power Stations
3) By End Users: Commercial, Residential, Industrial, Other End Users
Subsegments:
1) By Binary Cycle: Organic Rankine Cycle (ORC) Systems, Dual-Flash Binary Cycle Systems, Other Binary Cycle Systems
2) By Dry Steam: Conventional Dry Steam Power Plants, Enhanced Dry Steam Systems
3) By Flash Steam: Single-Flash Steam Systems, Double-Flash Steam Systems
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What Trends Are Shaping The Geothermal Power Generation Market?
Leading companies within the geothermal power generation market are proactively seeking strategic partnerships to get an edge over their competitors. These geothermal power project partnerships represent a cooperative effort between several bodies to conceptualize, create, and manage a geothermal power generation station. For example, Google LLC, the U.S. technology giant, allied with Fervo, an American clean-energy startup, in November 2023 to pioneer a unique geothermal power project in Nevada. Its goal is to produce carbon-free energy to sustain Google's data centers and operations. Fervo utilizes sophisticated drilling methods, originally crafted by the oil and gas industry, to derive heat from beneath the Earth's surface. By integrating fiber-optic cables to supervise the flow, temperature, and efficiency of the geothermal system in real-time, Fervo has shown its capability to generate constant carbon-free electricity while utilizing less land compare to other sustainable energy resources.
Who Are the Key Players In The Geothermal Power Generation Market?
Major companies operating in the geothermal power generation market are:
• Chevron Corp.
• Enel Green Power S.p.A.
• Mitsubishi Corporation
• Siemens AG
• General Electric SE
• Sumitomo Corporation
• ABB Ltd.
• Berkshire Hathaway Energy
• Toshiba Corporation
• Atlas Copco AB
• Calpine Corporation
• Fuji Electric Co. Ltd.
• Tata Power Company Limited
• Aboitiz Power Corporation
• First Gen Corporation
• Ansaldo Energia S.P.A.
• Ormat Technologies Inc.
• Innergex Renewable Energy Inc.
• Climatemaster Inc.
• Green Mountain Energy Company
• Exergy Inc.
• GEG Power Equipments Private Limited
• ElectraTherm Inc.
• Fervo Energy Co.
• Climeon AB
What Is The Most Dominant Region In The Geothermal Power Generation Market?
Asia-Pacific was the largest region in the geothermal power generation market in 2024. The regions covered in the geothermal power generation market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.
