Geothermal Power Market Analysis APAC, North America, Europe, South America, Middle East and Africa - US, Indonesia, Philippines, New Zealand, Turkey - Size and Forecast 2024-2028

Geothermal Power Market Size 2024-2028

The geothermal power market size is forecast to increase by USD 9.12 billion, at a CAGR of 21.1% between 2023 and 2028.

• The market is experiencing significant growth, driven by escalating investments and government initiatives in renewable energy sources. This trend is reflected in the increasing geothermal capacity worldwide. However, the high initial capital investments required for establishing geothermal power plants poses a substantial challenge for market entrants. Despite this obstacle, the market's strategic landscape remains promising for companies seeking to capitalize on the growing demand for sustainable energy solutions. The potential for geothermal energy to provide consistent, reliable power makes it an attractive alternative to traditional fossil fuel-based energy sources.
• As governments and businesses continue to prioritize reducing carbon emissions and increasing energy security, the market is poised for continued expansion. Companies in this sector can navigate the challenges by focusing on cost-effective technologies and strategic partnerships, ensuring a strong market presence and competitive edge.

What will be the Size of the Geothermal Power Market during the forecast period?

Explore in-depth regional segment analysis with market size data - historical 2018-2022 and forecasts 2024-2028 - in the full report.
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The market continues to evolve, driven by the ongoing pursuit of production optimization and electricity generation from hydrothermal resources. Geothermal exploration techniques advance, enabling the assessment of geothermal resources with increasing accuracy. Capital costs and operating costs are subject to constant scrutiny, as technology advancements in areas such as thermal energy storage and power transmission seek to improve efficiency and reduce carbon footprint. Geothermal energy finds applications across various sectors, including district heating, space heating, and industrial processes. Policy frameworks and financial incentives play a crucial role in shaping market dynamics, influencing investment opportunities and community acceptance.

Geothermal mapping and data analysis are essential for effective resource assessment and reservoir engineering. Geopressured systems and hydrothermal resources offer potential for increased production, while geothermal heat pumps and energy storage systems contribute to overall system flexibility and reliability. Environmental regulations and public perception shape the market's evolution, with a focus on minimizing greenhouse gas emissions and addressing induced seismicity concerns. Seismic monitoring, remote sensing, and lifecycle assessment are integral to ensuring sustainable energy practices and mitigating environmental impact. Power generation from geothermal resources remains a key focus, with geothermal fluids providing a consistent and renewable energy source.

Integration into the electricity grid and land use considerations are essential aspects of market development. Investment opportunities in the market are shaped by ongoing technological advancements and evolving market patterns. The continuous dynamism of the market underscores the importance of staying informed and adaptive.

How is this Geothermal Power Industry segmented?

The geothermal power industry research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in "USD million" for the period 2024-2028, as well as historical data from 2018-2022 for the following segments.

• Type
  • Flash
  • Binary
  • Dry steam
• End-user
  • Industrial
  • Commercial
  • Residential
• Geography
  • North America
    • US
  • Middle East and Africa
    • Turkey
  • APAC
    • Indonesia
    • New Zealand
    • Philippines
  • Rest of World (ROW)

By Type Insights

The flash segment is estimated to witness significant growth during the forecast period.

Geothermal energy, derived from the Earth's heat, is a sustainable and renewable energy source that has gained significant attention due to its potential to reduce carbon footprint and provide continuous power generation. The market for geothermal energy is dynamic, with advancements in exploration techniques, technology, and policy frameworks driving growth. Geothermal exploration involves drilling deep wells to access hydrothermal resources, with well testing playing a crucial role in assessing the viability of these resources. Capital costs for geothermal power plants have decreased due to technological advancements, making it a cost-competitive option for renewable energy. Geothermal energy can be harnessed for various applications, including electricity generation, district heating, and space heating.

Direct use applications, such as greenhouse heating, are also gaining popularity. Geothermal power plants employ different techniques, including flash power plants and binary cycle power plants, to convert thermal energy into electricity. Thermal energy storage and power transmission are essential components of the geothermal energy value chain, ensuring energy efficiency and grid integration. Policy frameworks and financial incentives from governments worldwide are promoting the adoption of geothermal energy. Lifecycle assessment and environmental impact assessment are critical considerations in the development of geothermal power projects. Operating costs, including those related to drilling, permitting processes, and reservoir engineering, are continually being optimized to improve the overall economics of geothermal energy.

Technology advancements, such as improved geothermal mapping, seismic monitoring, and remote sensing, are enhancing the exploration and production of geothermal resources. Geothermal drilling and well completion techniques have evolved to enable the extraction of geothermal fluids from deeper reservoirs. Community acceptance and public perception are essential factors in the successful implementation of geothermal energy projects. Geothermal energy offers numerous benefits, including the reduction of greenhouse gas emissions, the potential for energy independence, and the ability to provide reliable and consistent power generation. The market for geothermal energy is expected to continue growing, driven by the increasing demand for sustainable and renewable energy sources.

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The Flash segment was valued at USD 1.72 billion in 2018 and showed a gradual increase during the forecast period.

Regional Analysis

APAC is estimated to contribute 36% 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.

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The market in Asia Pacific (APAC) is experiencing notable growth due to escalating electricity demand and the region's increasing focus on renewable energy sources. In 2023, China, the largest consumer of electricity in APAC, consumed approximately 9.22 trillion KW hours, representing a 6.7% increase from the previous year. Geothermal energy, as a sustainable and low-carbon alternative, is gaining traction to meet this growing demand and reduce greenhouse gas emissions. Geothermal exploration techniques, such as resource assessment, well testing, and drilling, are crucial for the development of geothermal power projects. Capital costs and operating expenses are significant factors influencing the market's growth.

Policy frameworks and financial incentives play a vital role in encouraging investment in geothermal power. Geothermal power generation encompasses electricity generation and district heating applications. Thermal energy storage and power transmission systems are essential components for optimizing production and ensuring grid integration. Hydrothermal resources, geopressured systems, and enhanced geothermal systems are the primary types of geothermal resources being explored. Technology advancements in geothermal drilling, reservoir engineering, and heat extraction have improved the efficiency and productivity of geothermal power plants. Seismic monitoring and remote sensing are essential for assessing the geothermal resources' environmental impact and ensuring community acceptance. Environmental regulations and public perception are crucial factors influencing the market's growth.

Power generation from geothermal sources produces minimal greenhouse gas emissions, making it an attractive alternative to traditional fossil fuel-based power generation. Induced seismicity is a concern, but advancements in seismic monitoring and reservoir engineering are mitigating these risks. Direct use applications, such as space heating and industrial processes, are also gaining popularity, further expanding the market's potential. The market's growth is expected to continue as governments and businesses increasingly prioritize sustainable energy solutions and reduce their carbon footprint.

Market Dynamics

Our researchers analyzed the data with 2023 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.

What are the key market drivers leading to the rise in the adoption of Geothermal Power Industry?

• The surge in investments from both the private sector and government, coupled with initiatives to promote geothermal energy, serves as the primary catalyst for market growth. (100 words)

• Geothermal power is an eco-friendly energy alternative, gaining traction due to increasing concerns over reducing carbon footprints. Renewable energy policies and funding worldwide encourage the exploration and utilization of geothermal resources. Geothermal exploration techniques, such as well testing and resource assessment, have seen advancements, leading to cost reductions. Geothermal energy is used for district heating, geothermal heat pumps, and electricity generation. Technological innovations continue to enhance well completion and drilling processes.
• Turkey, among other countries, is investing in sustainable energy sources to foster economic growth and decrease reliance on imports. This shift towards renewable energy sources is expected to continue, driven by policy frameworks and the need for cleaner energy solutions.

What are the market trends shaping the Geothermal Power Industry?

• Geothermal energy is gaining significant traction in the market as the capacity for this renewable resource continues to rise. The increasing demand for sustainable energy solutions has led to a surge in geothermal development projects worldwide.

• Geothermal energy, derived from thermal energy storage in the Earth's crust, is gaining significant traction as a renewable electricity generation source. The global market for geothermal energy is projected to expand due to the increasing demand for energy efficiency and the need to reduce carbon emissions. Several countries with abundant hydrothermal resources, such as the Philippines, Kenya, Indonesia, and Chile, are partnering with private and public players and major investment banks, like the Japan International Cooperation Agency and the Inter-American Development Bank, to explore untapped geothermal energy resources. This collaboration aims to diversify their energy mix and contribute to the Paris Climate Agreement's goal of reducing global CO2 emissions.
• Advancements in drilling techniques and power plant efficiency are crucial factors driving the growth of the geothermal energy market. Geothermal energy can provide consistent and reliable electricity generation, making it an attractive alternative to traditional energy sources. Additionally, thermal energy storage and geothermal mapping technologies are improving, enhancing the potential for space heating and electricity grid integration. The investment opportunities in this sector are vast, with potential for significant returns on investment in exploration, production optimization, and power transmission infrastructure.

What challenges does the Geothermal Power Industry face during its growth?

• The high initial capital investments required for establishing geothermal power plants poses a significant challenge to the industry's growth. This financial hurdle, a common issue in the renewable energy sector, can be mitigated through government incentives, technological advancements, and strategic partnerships. However, overcoming this challenge is crucial for the sustainable expansion and long-term success of the geothermal power industry.

• Geothermal power, derived from the Earth's heat, is an essential component of the green energy mix. The initial investment required to establish a geothermal power plant is substantial, encompassing expenses related to geothermal resource exploration, drilling wells, and constructing pipelines, in addition to designing and building the power plant. In the US, this investment ranges from USD2,000 to USD3,000 per installed kilowatt (kW). Operating and maintenance costs are relatively lower, averaging USD0.01 to USD0.05 per kilowatt-hour (kWh). The efficiency and reliability of geothermal power plants hinge on the geothermal gradient and the depth of the drilled well. The cost of a geothermal well is directly proportional to its depth, as drilling challenges and uncertainties regarding subsurface reservoir properties escalate with increasing depth.
• Geothermal power generation emits minimal greenhouse gases, making it an environmentally friendly alternative to traditional power sources. However, public perception and community acceptance are crucial factors influencing the growth of the market. Operating in compliance with environmental regulations is also essential to ensure the sustainability of this power generation technology. Geothermal resources can be harnessed through geopressured systems or direct use applications. Geothermal power plants employ various technologies, such as flash steam, binary cycle, and enhanced geothermal systems, to convert thermal energy into electricity. Induced seismicity is a potential concern associated with geothermal power generation, particularly in areas with high geothermal activity.
• Despite these challenges, the geothermal power sector continues to evolve, offering significant potential for power generation and direct use applications.

Exclusive Customer Landscape

The geothermal power market forecasting 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 geothermal power market report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their market growth analysis strategies.

Customer Landscape

Key Companies & Market Insights

Companies are implementing various strategies, such as strategic alliances, geothermal power market forecast, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the industry.

Aboitiz Power Corp. - A subsidiary of the company, AP Renewables Inc, spearheads its geothermal power initiatives.

The industry research and growth report includes detailed analyses of the competitive landscape of the market and information about key companies, including:

• Aboitiz Power Corp.
• Calpine Corp.
• Cyrq Energy Inc
• DEEP Earth Energy Production Corp.
• Enel Spa
• Energy Development Corp.
• EnergySource LLC
• First Gen Corp
• Geotherm Inc.
• Geothermal Engineering Ltd.
• HS Orka
• Innergex Renewable Energy Inc.
• Kenya Electricity Generating Company PLC
• KYUSHU ELECTRIC POWER CO., INC.
• NTPC Ltd.
• Ormat Technologies Inc.
• PT Pertamina Geothermal Energy Tbk
• Reykjavik Geothermal
• Star Energy Geothermal

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 industry 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.

Recent Development and News in Geothermal Power Market

• In January 2024, Ormat Technologies, a leading geothermal power company, announced the completion of the 110-megawatt (MW) Heikki Angervo Geothermal Power Plant in Iceland. This expansion marked a significant increase in the company's total installed capacity, strengthening its position in the market (Ormat Technologies Press Release, 2024).
• In March 2024, General Electric (GE) and Enel Green Power signed a strategic partnership to jointly develop geothermal projects worldwide. This collaboration aimed to combine GE's technology expertise with Enel Green Power's project development capabilities, targeting a total installed capacity of 500 MW by 2028 (GE Press Release, 2024).
• In May 2024, the European Investment Bank (EIB) approved a €200 million (USD 225 million) loan to fund the expansion of the Hellisheidi geothermal power plant in Iceland. This investment was expected to increase the plant's capacity by 40 MW, making it one of Europe's largest geothermal power plants (European Investment Bank Press Release, 2024).
• In February 2025, Cerro Dominador, a Chilean energy company, successfully commissioned the world's largest geothermal power project, the Cerro Dominador Geothermal Complex. The complex, with a total capacity of 110 MW, was the first large-scale project to use a binary cycle power plant with molten salt thermal energy storage, enabling it to provide continuous power generation (Cerro Dominador Press Release, 2025).

Research Analyst Overview

• The market is witnessing significant advancements, driven by the increasing economic feasibility of geothermal energy projects through comprehensive studies. Turbine technology and generator technology innovations are enhancing power plant efficiency, while adherence to industry standards ensures reliability and safety. Waste heat recovery and industrial process heat applications are expanding the market scope, and environmental regulations compliance is a crucial factor. Heat exchanger technology, geothermal desalination, and advanced drilling techniques are key areas of technological innovation. Investment capital is flowing in due to the potential of scalable projects and safety regulations. Seismic hazard mitigation, direct use heating, and fluid chemistry management are essential for efficient energy conversion.
• Pipeline technology, corrosion control, and hydraulic fracturing are addressing scaling prevention and improving wellbore stability. Public-private partnerships (PPPs), community engagement strategies, and power plant automation are essential for successful project implementation. Safety regulations, monitoring systems, and reservoir management are crucial for long-term success. Geothermal tourism and geothermal aquaculture are emerging applications, offering additional revenue streams. Lifecycle cost analysis and energy conversion efficiency are critical factors in the decision-making process for investors.

Dive into Technavio's robust research methodology, blending expert interviews, extensive data synthesis, and validated models for unparalleled Geothermal Power Market insights. See full methodology.

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What are the Key Data Covered in this Geothermal Power Market Research and Growth Report?

• CAGR of the Geothermal Power industry during the forecast period
• Detailed information on factors that will drive the growth and forecasting between 2024 and 2028
• Precise estimation of the size of the market and its contribution of the industry in focus to the parent market
• Accurate predictions about upcoming growth and trends and changes in consumer behaviour
• Growth of the market across APAC, North America, Europe, South America, and Middle East and Africa
• Thorough analysis of the market's competitive landscape and detailed information about companies
• Comprehensive analysis of factors that will challenge the geothermal power market growth of industry companies

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