Geothermal Power Generation Global Market Report 2024

The geothermal power generation market size has grown rapidly in recent years. It will grow from $9.83 billion in 2023 to $11.17 billion in 2024 at a compound annual growth rate (CAGR) of 13.7%. The growth observed in the historical period in the field of geothermal power generation can be attributed to several factors. Government incentives and subsidies played a pivotal role in encouraging the development of geothermal projects. Additionally, technological advancements in geothermal drilling and exploration techniques improved the efficiency and feasibility of harnessing geothermal energy. The increasing environmental concerns and regulations regarding greenhouse gas emissions also contributed to the growth, as geothermal power is considered a clean and renewable energy source. The rising global energy demand and growing investments in renewable energy further fueled the expansion of geothermal power generation during the historic period.

The geothermal power generation market size is expected to see rapid growth in the next few years. It will grow to $17.54 billion in 2028 at a compound annual growth rate (CAGR) of 11.9%. The anticipated growth during the forecast period can be ascribed to progress in enhanced geothermal systems (EGS) technology, the expansion of geothermal projects in developing nations, a heightened focus on decarbonization and sustainability, rising global energy demand, and supportive government policies and regulations. Key trends expected in the forecast period encompass the integration of geothermal energy into hybrid energy systems alongside other renewable sources, the rise of inventive financing models for geothermal projects, the incorporation of digital technologies to optimize geothermal plant performance, and an increase in geothermal power generation capacity.

The geothermal power generation market is set for substantial growth, fueled by the increasing demand for renewable energy. Renewable energy is derived from naturally replenishing sources that are virtually inexhaustible on human timescales. The surge in demand for renewable energy is driven by factors such as cost-effectiveness, environmental benefits, and the global transition towards sustainable energy systems. Geothermal power generation, as a form of renewable energy, contributes to sustainable development, environmental protection, and the transition towards a cleaner and more resilient energy future. Geothermal energy, considered clean and sustainable, relies on a constantly replenished heat source within the Earth and generates minimal greenhouse gases when used for power generation. According to the International Energy Agency (IEA) in December 2022, the global renewable power capacity is projected to grow by 2,400 gigawatts (GW) over the 2022-2027 period, reflecting a remarkable 30% increase compared to previous forecasts. This robust demand for renewable energy is a key driver for the growth of the geothermal power generation market.

Major companies in the geothermal power generation market are actively engaging in strategic partnerships to enhance their competitive position. Geothermal power project partnerships involve collaborative arrangements between entities to plan, develop, and operate geothermal power generation facilities. Google LLC, a US-based technology company, exemplifies this trend by partnering with Fervo, a US-based clean-energy startup, to develop a groundbreaking geothermal power project in Nevada. This project aims to provide carbon-free energy to support Google's data centers and operations. Fervo employs advanced drilling techniques, originally developed by the oil and gas industry, to extract heat from beneath the Earth's surface. The partnership showcases an innovative approach to harnessing geothermal energy for sustainable power generation, contributing to carbon-free electricity production.

In October 2023, Ormat Technologies Inc., a US-based company specializing in the manufacturing and development of geothermal power generation equipment, made a significant move by acquiring a 150 MW portfolio of geothermal and solar assets from Enel Green Power North America (EGPNA) for approximately $271 million. This acquisition positions Ormat as a key player in the renewable energy sector, expanding its portfolio of renewable energy assets. Enel Green Power North America (EGPNA), a US-based owner and operator of geothermal and renewable energy plants, is a strategic partner in this transaction, facilitating the growth and consolidation of renewable energy resources.

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.

Asia-Pacific was the largest region in the geothermal power generation market in 2023. The regions covered in the geothermal power generation market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the geothermal power generation market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

Geothermal power generation is the process of harnessing heat energy from beneath the Earth's surface to generate electricity. This method utilizes the heat extracted from geothermal reservoirs, often in the form of underground hot water and steam. The heat is used to drive turbines, converting thermal energy into mechanical energy, and subsequently, electrical energy. Geothermal power plants play a crucial role in producing electricity sustainably and can provide a continuous and reliable source of power, contributing to a cleaner and more environmentally friendly energy mix.

The main types of geothermal power generation include binary cycles, dry steam, and flash steam. Binary cycle power generation involves the utilization of moderate-temperature geothermal resources by transferring heat from the geothermal fluid to a secondary fluid with a lower boiling point. These systems are applied in various settings, including dry steam power stations, flash steam power stations, and binary cycle power stations. Geothermal power generation serves diverse end-user industries, including commercial, residential, industrial, and others, contributing to a sustainable and renewable energy landscape. Each type of geothermal power generation technology has its unique applications and advantages, catering to different resource conditions and operational requirements.

The geothermal power generation market research report is one of a series of new reports that provides geothermal power generation market statistics, including geothermal power generation industry global market size, regional shares, competitors with geothermal power generation market share, detailed geothermal power generation market segments, market trends, and opportunities, and any further data you may need to thrive in the geothermal power generation industry. This geothermal power generation market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenarios of the industry.

The geothermal power generation market consists of revenues earned by entities by providing services such as exploration, resource assessment, drilling services, plant design, and construction. The market value includes the value of related goods sold by the service provider or included within the service offering. The geothermal power generation market also includes sales of geothermal heat pumps, drilling rigs, and well casing. 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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