Geothermal Electricity Market Report 2026

The geothermal electricity market size has grown strongly in recent years. It will grow from $8.58 billion in 2025 to $9.36 billion in 2026 at a compound annual growth rate (CAGR) of 9.1%. The growth in the historic period can be attributed to expansion of geothermal power capacity, advancements in drilling technologies, rising energy demand in remote regions, government incentives for renewable energy, development of binary and flash steam technologies.

The geothermal electricity market size is expected to see rapid growth in the next few years. It will grow to $13.76 billion in 2030 at a compound annual growth rate (CAGR) of 10.1%. The growth in the forecast period can be attributed to growing focus on low-carbon energy solutions, increasing investments in geothermal projects, adoption of hybrid geothermal systems, integration with smart grids, advancements in high-efficiency geothermal turbines. Major trends in the forecast period include rising adoption of advanced geothermal power cycles, integration of ai for geothermal resource management, growth of smart geothermal monitoring and control systems, enhanced efficiency through digital twin and predictive analytics, increasing deployment of iot sensors in geothermal plants.

The increasing demand for electricity is expected to drive the growth of the geothermal electricity market in the coming years. Electricity refers to the presence and flow of electric charge, typically involving the movement of electrons through a conductor to generate energy that powers devices and systems. Rising electricity demand is fueled by population growth, economic development, and the growing adoption of electric vehicles and digital technologies, particularly in developing and industrializing countries. Geothermal electricity contributes to energy security and sustainability by providing a reliable, low-emission source of power. For example, in September 2025, the International Energy Agency (IEA), a US-based intergovernmental organization, reported that total net electricity generation in the OECD reached 922.6 TWh in June, representing a 1.4% increase compared to June 2024. Consequently, the growing demand for electricity is a key factor supporting the expansion of the geothermal electricity market.

Leading entities operating in the geothermal electricity market are embracing strategic partnerships to fortify their capabilities and competitive positioning. Strategic partnerships involve a collaborative process wherein companies leverage each other's strengths and resources for mutual benefit and success. In March 2023, Geothermal Core Inc., a US-based geothermal exploration and production power company, partnered with GEG ehf, an Iceland-based geothermal developer and EPC company. Their joint objective is to establish a utility-scale geothermal power plant in Texas, emphasizing the production of clean baseload electricity for sustainable energy purposes.

In June 2025, Ormat Technologies Inc., a US-based geothermal and renewable energy company, acquired the Blue Mountain geothermal power plant from Cyrq Energy for $0.088 billion. Through this acquisition, Ormat aims to expand its geothermal electricity generation capacity, strengthen its renewable baseload energy portfolio, and create additional value through planned plant upgrades and the potential addition of a solar facility. Cyrq Energy Inc., also a US-based company, specializes in providing geothermal electricity.

Major companies operating in the geothermal electricity market are Calpine Corporation, Comisión Federal de Electricidad (CFE), Energy Development Corporation, Enel S.p.A., U.S. Geothermal Inc., Kenya Electricity Generating Company PLC (KenGen), Contact Energy Limited, Orkuveita Reykjavikur (Reykjavik Energy), Pertamina Geothermal Energy, CalEnergy Generation, Star Energy Ltd., Northern California Power Agency, Terra-Gen LLC, Ormat Technologies Inc., Aboitiz Power Corporation, Mercury NZ Limited, Cyrq Energy Inc., Sosian Energy Limited, GreenFire Energy Inc., Nevada Geothermal Power Inc.

Asia-Pacific was the largest region in the geothermal electricity market in 2025. Western Europe was the second-largest region in the geothermal electricity market. The regions covered in the geothermal electricity market report are Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the geothermal electricity market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Taiwan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The geothermal energy market consists of sales of dry steam, hydrothermal, geopressurized, hot dry rock, magma, and flash steam. Values in this market are factory gate values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors, and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

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