Geothermal Power Market Revenue Forecast Report: Size, Share, Recent Trends, Strategic Developments, Segmentation Analysis, and Evolving Opportunities, 2024–2030

Market Overview

The geothermal power market is valued at USD 7,232.4 Million (E) in 2023, and it will reach USD 10,452.8 Million by 2030, advancing at 5.6% compound annual growth rate between 2024 and 2030.

The growth of this industry is because of the robust support from the government for geothermal energy projects, as well as the surging emphasis of nations on energy security and energy independence.

Geothermal energy is produced by utilizing the heat naturally present under the crust of the earth. Such power plants use steam, generated from the hot fluids existing underneath the surface of the Earth, for turbine rotation, which later produces power. 

Geothermal power is more beneficial as compared to other renewable sources of energy, for instance, wind, bioenergy, and hydropower. Some benefits related to this kind of power include the utilization of less land, low atmospheric pollution, extensive accessibility, and zero or no pollution of the liquid on effluent fluid re-injection. 

Move toward Renewable Energy Is Key Driver

The production of geothermal power is steadily increasing all over the world owing to the surging need for renewable power. Governments are introducing green initiatives to control the emission of greenhouse gases. Producing power with few or zero emissions of greenhouse gases will significantly reduce air pollution and lessen the reliance on the power produced using fossil fuels.

Geothermal energy plants release 99% less carbon dioxide compared to those utilizing fossil fuels. As the heat trapped under the earth is a reliable source of sustainable and eco-friendly electricity, the need for equipment that helps produce it will increase continuously.

Unexplored Potential of Geothermal Energy

As geothermal power remains untapped to a great level, there is an enormous potential for the progress of this industry. As per the World Bank, the earth holds a geothermal power potential of up to 80 GW, of which a mere 13 GW has been tapped so far. The rising requirement for lessening the emissions of greenhouse gases will serve as a key opportunity for the geothermal power industry growth. Various nations have also framed guidelines to reduce their dependence on petroleum, which costs a fortune to import.

Nations including France, China, India, Ethiopia, Portugal, Germany, and Australia are progressively funding geothermal power, thereby providing ample opportunities for the expansion of plants. For instance, in February 2023, Geothermal Core, a company based in Texas, announced plans to invest INR 820 crore to produce geothermal energy in Uttar Pradesh.

Geothermal Power Market Report Coverage

Report Attribute	Details
Market Size in 2023	USD 7,232.4 Million (E)
Revenue Forecast in 2030	USD 10,452.8 Million
Growth Rate	5.6% CAGR
Historical Years	2017-2023
Forecast Years	2024-2030
Report Scope	Market Trends, Drivers, and Restraints; Revenue Estimation and Forecast; Segmentation Analysis; Impact of COVID-19; Companies’ Strategic Developments; Market Share Analysis of Key Players; Company Profiling

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Binary Category Is Leading Technology Type Segment

The binary cycle category, based on technology, is a key contributor to the geothermal power industry, as this technology offers a better performance and is cheaper than others. At a binary-cycle plant, hot water contained inside the earth’s crust is sent to a heat exchanger, in which isobutene is heated. Since isobutane has a lower boiling point than water, it vaporizes into steam, which is then used to drive the turbine-cum-generator.

Furthermore, most sites of geothermal power are characterized by moderate temperatures, of less than 182 °C (360 °F). Binary-cycle plants are ideal for moderate-temperature geothermal reservoirs; therefore, their overall installed capacity is much larger than flash-steam and dry-steam plants. Another reason for the high revenue generation in this category is that these plants cost more to set up than those utilizing the other two technologies.

Industrial Category Is Largest Contributor

The industrial category, based on end user, is the largest contributor to the geothermal power industry, and it will remain so throughout this decade. This can be attributed to the surging utilization of geothermal energy in milk pasteurization, food dehydration, and gold mining. Moreover, various sectors, such as pulp & paper, lumber, and cement, utilize geothermal energy. Since industries are a significant contributor to air pollution, they are now mandated to reduce their emissions, which is pushing up their usage of clean electricity.

The commercial category will advance at a significant rate during this decade. This will be because of the rampant urbanization, reflected in the increasing construction of hotels, office buildings, hospitals, and schools. Compared to an average household, a commercial space demands much more energy because it is larger and has more electrical appliances, such as HVAC systems and lights. Moreover, just like industries, commercial spaces are also now mandated to reduce their energy consumption.

North America Accounts for Significant Share

North America accounts for a significant share of the industry, mainly because of the growing pace of technological enhancements to enhance the efficiency of geothermal energy production. In addition, businesses are planning capacity enlargement of the existing energy plants. Moreover, as per the EIA, the U.S. is the largest producer of geothermal electricity in the world, with an output of 17,002,000 MWh in 2022.

The demand for the equipment used to produce such electricity in APAC is likely to propel at a lucrative rate throughout this decade. The rampant industrialization and urbanization are generating an enormous requirement for electricity. Moreover, there are various initiatives from the government that encourage the sustainable generation of power on a large scale. For instance, in April 2023, the Government of India declared a plan to accomplish a 500-GW non-fossil fuel energy generation capacity by 2030.

Furthermore, Japan has a massive potential for geothermal energy due to its location in the Pacific Ring of Fire, which is strewn with volcanoes. Japanese companies are already working on such projects in Indonesia and Kenya, which hints at their technical prowess in this area. Additionally, a miserly 0.3% of the country’s energy is produced from geothermal sources against a potential for over 23 GW.

Already, the phase 1 of the Sansui Geothermal Power Plant, which will produce 350 MWh of geothermal energy, is about to be commissioned. Moreover, once phase 2 is complete, energy production will rise to 700 MWh each year. Further, with the government relaxing some of its regulations that restricted tapping into this source within national parks, the market in Japan could boom in the near future.

Key Companies in Geothermal Power Market

• Ormat Technologies Inc.
• GRADIENT RESOURCES INC.
• ENEL GREEN POWER NORTH AMERICA INC.
• Toshiba Corporation
• ThermaSource LLC
• Reykjavik Geothermal Limited
• ETHOS ENERGY GROUP LIMITED
• Chevron Corporation
• Terra-Gen Power LLC
• Lopez Holdings Corporation
• Berkshire Hathaway Inc.
• Electratherm Inc.
• Mitsubishi Heavy Industries
• Baker Hughes Company
• Sumitomo Corporation Group
• ABB Ltd.
• Engie SA
• First Gen Corporation
• GEG Power