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The Geothermal Drilling Market for Power generation is estimated to grow at a CAGR of 4.31% between 2022 and 2027. The market size is forecast to increase by USD 205.01 million. The growth of the market depends on several factors such as the rising demand for energy worldwide, the need for efficient use of resources and reduction of emissions, and the volatility in oil prices and increase in electricity prices boost demand for geothermal energy.
This Geothermal Drilling Market for Power Generation report extensively covers market segmentation by application (binary plants and steam plants), area (below 1000m and 1000-2000m), and geography (APAC, North America, Europe, South America, and Middle East and Africa). It also includes an in-depth analysis of drivers, trends, and challenges. Furthermore, the report includes historic market data from 2017 to 2021.
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Our researchers analyzed the data with 2022 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
Volatility in oil prices and increase in electricity prices boost demand for geothermal energy is the key factor driving the growth of the market. Remarkable cost savings and environmental benefits are key factors driving geothermal drilling for the global power generation market. Additionally, various government initiatives are increasing the already growing demand for geothermal energy.
Furthermore, demand for geothermal drilling rig is expected to increase due to increased focus on the use of renewable energy to mitigate climate change and environmental degradation. Therefore, the geothermal drilling for power generation market is expected to witness significant growth during the forecast period.
The development of EGS technology is the primary trend in the market. Enhanced geothermal system (EGS) technology creates an artificial reservoir in a hot rock layer with low natural permeability. EGS technology has the potential to expand the geothermal resource base and open up new markets and opportunities for geothermal power generation. EGS technology enables geothermal power generation in areas that may not have ideal geological conditions for conventional geothermal systems.
Moreover, EGS technology is a breakthrough in geothermal technology, offering the potential to significantly expand the geothermal drilling rig market and enhance the role of geothermal power generation in the global energy transition. Therefore, the development of EGS technology will increase the utilization of geothermal energy, which in turn will fuel the growth of the market during the forecast period.
The location- or geography-specific nature of geothermal resources is a challenge that affects the growth of the market. Unlike oil, gas, and electricity, geothermal energy cannot be easily transported over long distances and once geothermal resources are extracted, they can only be used to power a single area around a power plant. Due to these challenges, geothermal power generation is restricted to specific regions, and its applications are limited. Apart from technical challenges, the market associated with geothermal drilling faces several challenges related to resource information.
Moreover, the most important parameters for geothermal project development are permeability, temperature, and reservoir size. Complete information about these parameters is available through 3G; geophysical, geological, and geochemical investigations. Projected resource requirements from 3G studies and actual resource consumption after drilling geothermal fields can vary significantly. This can negatively impact project cost projections. Thus, such factors will impede the growth of the global Geothermal Drilling Market for Power Generation for power generation during the forecast period.
The market research report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.
Global Geothermal Drilling Market for Power Generation Customer Landscape
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
The research report also includes detailed analyses of the competitive landscape of the market and information about 20 market companies, including:
Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
The binary plants segment is estimated to witness significant growth during the forecast period. A binary power plant is a closed-loop system in which nothing escapes into the atmosphere except water vapor. Dry steam and flash steam systems use geothermal brine to directly drive turbines. Therefore, these plants are not available as low-temperature geothermal reserves. However, binary power plants have a wider range of applications due to the availability of cold geothermal fluids.
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The binary plants segment was the largest segment and was valued at USD 394.99 million in 2017. Binary power plants are built where low to medium-enthalpy geothermal fields exist. These plants use low to moderately-heated geothermal fluids through heat exchangers to heat secondary or binary fluids such as ammonia-water mixtures or hydrocarbons. Heat from the geothermal fluid evaporates the binary fluid into steam, which drives a turbine that drives a generator to produce electricity. In such power plants, geothermal water and binary fluids are confined in separate closed systems, resulting in extremely low emission rates. Thus, such factors will drive the growth of the segment during the forecast period.
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APAC is estimated to contribute 41% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period. The geothermal drilling rig market for power generation in APAC is expected to see positive growth as population growth and rapid industrialization in the region are increasing the demand for electricity. Additionally, the vast geothermal potential, particularly in Indonesia and the Philippines, is driving the geothermal market in the region.
Moreover, Indonesia and the Philippines will become major producers of geothermal power in the region. Both countries have numerous geothermal projects in operation or in the planning stages and expanding their production capacity. These countries have invested in geothermal projects to diversify their energy mix and reduce emissions of greenhouse gas. Hence, such factors are expected to drive market growth in this region during the forecast period.
The outbreak of the COVID-19 pandemic in 2020 negatively affected the growth of the market in APAC. However, in 2021, the initiation of large-scale vaccination drives?lifted the lockdown restrictions, which led to the resumption of supply chain activities. Furthermore, changing preferences for sustainable energy sources and demand for green energy are expected to boost the adoption of geothermal energy, driving the growth of the regional market for geothermal drilling for power generation during the forecast period.
The Geothermal Drilling Market for Power Generation report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2017 to 2027.
Geothermal Drilling Market for Power Generation Scope |
|
Report Coverage |
Details |
Page number |
161 |
Base year |
2022 |
Historic period |
2017-2021 |
Forecast period |
2023-2027 |
Growth momentum & CAGR |
Accelerate at a CAGR of 4.31% |
Market growth 2023-2027 |
USD 205.01 million |
Market structure |
Fragmented |
YoY growth 2022-2023(%) |
4.11 |
Regional analysis |
APAC, North America, Europe, South America, and Middle East and Africa |
Performing market contribution |
APAC at 41% |
Key countries |
US, Turkey, Indonesia, The Philippines, and New Zealand |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
Baker Hughes Co., Deep Rock Manufacturing Co., Drillstar Industries, Fraste Spa, GA Drilling AS, Geotech Drilling Services Ltd., Gill Rock Drill Co. Inc., Halliburton Co., Huisman Equipment BV, Hydro Resources, KCA Deutag Alpha Ltd., KONYA SONDAJ, Laibe Corp., Marton Geotechnical Services Ltd., Ormat Technologies Inc., PT Pertamina Persero, Quaise Energy, Schlumberger Ltd., SIMCO Drilling Equipment Inc., and STDS Jantz GmbH and Co. KG |
Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, Market condition analysis for the forecast period. |
Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
We can help! Our analysts can customize this market research report to meet your requirements.
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Application
7 Market Segmentation by Area
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
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