Geothermal Energy Global Market Report 2024

The geothermal energy market size has grown strongly in recent years. It will grow from $5.74 billion in 2023 to $6.18 billion in 2024 at a compound annual growth rate (CAGR) of 7.8%. The growth observed in the historical period in the geothermal energy sector can be attributed to several factors, including early exploration and development efforts in harnessing geothermal resources, government incentives and supportive policies promoting the use of geothermal energy, growing environmental concerns that favor cleaner and renewable energy sources, international cooperation in sharing knowledge and technology, and geopolitical factors influencing energy choices. These combined elements contributed to the initial development and expansion of geothermal energy utilization during the historic period.

The geothermal energy market size is expected to see strong growth in the next few years. It will grow to $7.94 billion in 2028 at a compound annual growth rate (CAGR) of 6.5%. The anticipated growth in the forecast period for geothermal energy can be attributed to several factors, including the increasing focus on climate change mitigation, the electrification of transportation, the adoption of geothermal heating and cooling systems, and the ongoing trends of urbanization and industrialization. Notable trends expected in the forecast period involve the expansion of enhanced geothermal systems, the development of hybrid geothermal systems, the implementation of geothermal district heating and cooling solutions, and the decentralization of geothermal power generation. These trends collectively contribute to the continued evolution and broader utilization of geothermal energy in various applications, reflecting its role in sustainable and clean energy solutions.

The geothermal energy market is poised for growth, propelled by increasing investments in the renewable energy sector. Investments in renewable energy encompass financial commitments directed towards the development, deployment, and utilization of sustainable energy sources, including geothermal, solar, wind, hydroelectric, and biomass. These investments are driven by concerns related to climate change, technological advancements in renewable energy, improved efficiency, and reduced costs. In July 2022, the World Economic Forum reported that global energy investment has been steadily increasing, with a projected rise of over 8% in 2022, reaching $2.4 trillion. The Institute for Energy Economics & Financial Analysis further highlighted that investments in solar power generation totaled approximately $500 billion in 2022, reflecting an $80 billion increase from the previous year. The surging investments in the renewable energy sector, including geothermal energy, are key drivers for the growth of the geothermal energy market.

Major companies in the geothermal energy market are adopting strategic partnership approaches to offer comprehensive geothermal energy solutions. Strategic partnerships involve companies leveraging each other's strengths and resources to achieve mutual benefits and success. An example of this is the partnership between Robinson Oil Corporation, a US-based private-label fuel retailer, and Dandelion Energy, a US-based geothermal heating manufacturer and supplier. This partnership, formed in April 2022, aims to provide homeowners with sustainable and cost-effective geothermal heating and cooling solutions. By leveraging Dandelion Energy's geothermal technology, Robinson Oil Corporation aims to offer customers an environmentally friendly alternative to traditional heating and cooling systems, meeting the increasing demand for geothermal solutions in the residential sector.

In October 2023, Gaia Energy Ltd., an Italy-based renewable energy and green hydrogen developer, made a strategic move by acquiring Aardyn BV, a Netherlands-based geothermal energy developer and producer. This acquisition is expected to accelerate Gaia Energy's goal of realizing a geothermal potential of 500 MW across more than 25 projects. The combined expertise and portfolio of both companies will play a crucial role in expanding and constructing new geothermal resources, contributing to the growth and development of the geothermal energy market.

Major companies operating in the geothermal energy market are Berkshire Hathaway Energy, Chevron Corporation, Mitsubishi Corporation, Enel Group, Engie SA, Siemens AG, General Electric Group, KEPCO Group, PT. Pertamina Geothermal Energy, Asea Brown Boveri Ltd, Toshiba International Corporation, Calpine Corporation, Tetra Tech Inc, Aboitiz Power Corporation, First Gen Corporation, Ormat Technologies, Energy Development Corporation, EthosEnergy Group, Therma Source LLC, Sarulla Operations Ltd, Turboden S.P.A., Terra-Green Power LLC, Gradient Resources, ElectraTherm, Reykjavik Geothermal.

Asia-Pacific was the largest region in the geothermal energy market in 2023. North America is expected to be the fastest-growing region in the forecast period. The regions covered in the geothermal energy market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the geothermal energy market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

Geothermal energy is thermal energy derived from the Earth's internal heat, primarily generated by the planet's formation and radioactive decay processes. This heat is stored in various reservoirs within the Earth's crust and can be harnessed for both heat and electricity generation. Geothermal resources include hot water and steam found at varying depths and temperatures beneath the Earth's surface. By tapping into these natural reservoirs, geothermal energy can be utilized as a sustainable and renewable source for various applications.

The main types of technologies in geothermal energy include binary cycle plants, flash steam plants, dry steam plants, ground-source heat pumps, direct systems, and others. Binary-cycle plants are a specific type of geothermal power plant that utilizes two separate fluid cycles to generate electrical power from geothermal resources. These plants find applications in various sectors, including power generation, residential heating and cooling, and commercial heating and cooling. The end-users of geothermal energy technologies encompass industrial, residential, and commercial sectors. Each technology type has its own set of advantages and applications, catering to diverse energy needs and environmental considerations.

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

The geothermal energy market consists of revenues earned by entities by providing services such as electricity generation, industrial processes, greenhouse heating, and district heating. The market value includes the value of related goods sold by the service provider or included within the service offering. The geothermal energy market also includes of sales of geo-exchange systems, drilling equipment, geothermal power tools, geothermal heat pumps, and monitoring and control systems. 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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