Valued at $3,233.5 million in 2015, the global geothermal power market is expected to register a CAGR of 11.6% during the forecast period (2016–2022). Strong government support for geothermal energy projects and the need among countries to become self-reliant in terms of energy production and consumption are the major factors propelling the growth of the market.
Geothermal energy is increasingly being preferred over other forms of energy, including solar and wind, because it is not impacted by variations in weather or seasons. Moreover, geothermal power plants are distinguished on account of their low outage rate and high capacity. The high-capacity factor of these plants attracts investments from various private and government organizations. Additionally, geothermal energy can serve as a reliable source of electricity as compared to fossil fuels or nuclear power sources. Thus, these factors continue to support the growth of the geothermal power market across the world.
Another key driver for the market is the support from governments worldwide and stringent environment norms imposed to avoid the exhaustion of fossil fuels and curb global warming resulting from the usage of traditional energy resources. In view of this, several governments have initiated projects to encourage the production of power from geothermal energy.
Besides, stringent environmental regulations have been implemented globally, which have benefitted the market of cost-effective renewable energy sources. Several standards have been framed by international organizations to minimize greenhouse gas emissions. Moreover, tax benefits and other forms of financial support for geothermal energy projects are boosting investments in the domain, further supporting the growth of the geothermal power market.
Geographically, Asia-Pacific (APAC) is expected to continue leading the geothermal power market in the coming years. This can be mainly attributed to the growing focus of governments in the region on reducing dependence on fossil fuels, meeting high energy demand by optimizing renewable sources, and exploring the potential of geothermal energy for power generation.
Some of the major players operating in the global geothermal power market are Energy Development Corporation, Mitsubishi Heavy Industries Ltd., Calpine Corporation, Alterra Power Corp., U.S. Geothermal Inc., Mannvit Engineering, Ormat Technologies Inc., Cyrq Energy, NV Energy, Raya Group, and Contact Energy.
GEOTHERMAL POWER MARKET SEGMENTATION