Geothermal Power Generation Market Size and Growth 2031

Geothermal Power Generation Market Size and Forecast (2021 - 2031), Global and Regional Share, Trend, and Growth Opportunity Analysis Report Coverage: By Plant Type (Direct Dry Steam, Flash Steam, and Binary Cycle), End User (Residential, Commercial, and Industrial), and Geography

  • Report Code : TIPTE100001351
  • Category : Energy and Power
  • Status : Published
  • No. of Pages : 150
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The geothermal power generation market size is projected to reach US$ 27,149.2 million by 2031 from US$ 15,453.3 million in 2023. The market is expected to register a CAGR of 7.3% during 2023–2031. Growing role of geothermal power in future energy transition is likely to remain key trend in the market.

Geothermal Power Generation Market Analysis

Geothermal power generation is a clean, sustainable, and environmentally friendly method that taps into the Earth's internal heat to produce electricity. This process involves harnessing the natural steam or hot water reservoirs found beneath the Earth's surface. Flash steam power plants accounted for 64.6% of the total geothermal power generation market share globally.

Further, the rising demand for electricity from end users, such as residential, commercial, and industrial sectors, is anticipated to fuel the market growth during the forecast period. Industrial users accounted for 45.4% of the total geothermal power generation in the world, owing to the rise in demand for electricity for various industrial applications such as manufacturing, chemical, petrochemical, processing, and others. Asia Pacific accounted for the largest geothermal power generation market share, i.e., about 40.4%, in 2022.

Geothermal Power Generation Market Overview

The geothermal power generation market growth is linked to the geological conditions favorable for tapping into the Earth's internal heat. The Earth's geology influences geothermal power's global distribution, and regions with high volcanic activity, tectonic plate boundaries, or hotspots are more likely to have significant geothermal resources. While some regions have been at the forefront of geothermal development, ongoing advancements in technology, such as enhanced geothermal systems (EGS), are expanding the reach of geothermal power, making it an increasingly viable option for clean and sustainable energy worldwide.

Geothermal power aligns with global energy transition goals, which aim to reduce carbon emissions and increase reliance on renewable energy sources. As countries commit to international agreements like the Paris Agreement, the role of geothermal power becomes more prominent in achieving carbon neutrality. The reliable and low-carbon nature of geothermal energy makes it an integral part of the clean energy transition. Governments worldwide incorporate geothermal power into their energy transition strategies, setting targets for increased renewable energy capacity and reduced reliance on fossil fuels. The global shift toward sustainable energy practices emphasizes the importance of geothermal power in achieving broader environmental and climate goals.

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Geothermal Power Generation Market: Strategic Insights

Geothermal Power Generation Market

  • CAGR (2023 - 2031)
    7.3%
  • Market Size 2023
    US$ 15,453.3 Million
  • Market Size 2031
    US$ 27,149.2 Million

Market Dynamics

GROWTH DRIVERS
  • Low greenhouse gas emissions from geothermal power
FUTURE TRENDS
  • Growing role of geothermal power in future energy transition
OPPORTUNITIES
  • Untapped Geothermal Potential in Emerging Economies

Key Players

  • Northern California Power Agency
  • Turboden SpA
  • Toshiba Energy Systems & Solutions Corp
  • Berkshire Hathaway Inc
  • NIBE Industrier AB
  • General Electric Co.
  • Fuji Electric Co Ltd
  • Kenya Electricity Generating Co Ltd
  • Carrier Global Corp.
  • Danfoss AS

Regional Overview

  • North America
  • Europe
  • Asia-Pacific
  • South and Central America
  • Middle East and Africa

Market Segmentation

Plant Type
  • Direct Dry Steam
  • Flash Steam
  • Binary Cycle
End User
  • Residential
  • Commercial
  • Industrial
  • Sample PDF showcases the content structure and the nature of the information with qualitative and quantitative analysis.

Geothermal Power Generation Market Drivers and Opportunities

Low greenhouse gas emissions from geothermal power to Favor Market

The global growth in energy demand, driven by population growth and industrialization, necessitates the expansion of energy production. The expansion of energy production from fossil fuel-based plants has resulted in a rise in greenhouse gas emissions, which, in turn, is expected to increase the need for renewable power generation. Thus, a rise in the demand for reducing greenhouse gas emissions is expected to drive the geothermal power generation market growth from 2023 to 2031.

In addition, geothermal power is characterized by its low greenhouse gas emissions during both construction and operation. Unlike fossil fuel-based power plants, geothermal facilities produce minimal carbon dioxide and other pollutants. The emissions are primarily from the release of gases in small amounts, such as hydrogen sulfide, which are effectively managed and mitigated. The environmental impact of geothermal power is significantly lower than traditional energy sources, making it a cleaner and more sustainable option. As countries strive to reduce their carbon footprint and combat climate change, the low emissions profile of geothermal power positions it as a crucial component in the transition to a greener and more sustainable energy landscape.

Untapped Geothermal Potential in Emerging Economies

Heat flows from the Earth's interior that covers twice the global energy demand. In order to harness this heat, there is a requirement to drill deep underground and convert that heat into a usable form of energy. This is considered a difficult and expensive process; hence, geothermal energy, sometimes referred to as the forgotten renewable energy, only accounts for ~0.3% of global electricity production.  Another main advantage of geothermal energy is that it can provide baseload capacity, which is the minimum amount of electricity that must be available on the grid at any given time. While solar and wind output fluctuates seasonally and throughout the day, geothermal generation can be adjusted in the same way that a fossil fuel power plant can increase or decrease output.

In addition, the government initiatives toward exploring the untapped geothermal potential globally. For instance, to help countries unlock the untapped potential of geothermal energy and promote its widespread use, the International Renewable Energy Agency (IRENA) established the Global Geothermal Alliance (GGA) in 2015 as a platform to improve dialogue, collaboration, and coordinated action to increase the share of geothermal power installed as well as heat generation worldwide. Moreover, Indonesia, Turkey, and Kenya are key economies expected to lead in geothermal electricity generation by the end of 2030. The economic development plan named Kenya Vision 2030 by the Government of Kenya aimed at reaching 5 GW of geothermal capacity by 2030. Thus, exploring the untapped geothermal potential in emerging economies is expected to create several opportunities for the geothermal power generation market growth during the forecast period.

Geothermal Power Generation Market Report Segmentation Analysis

Key segments that contributed to the derivation of the geothermal power generation market analysis are plant type, and end user.

  • Based on plant type, the geothermal power generation market is divided into direct dry steam, flash steam, and binary cycle. The flash steam segment held a larger market share in 2023.
  • By end user, the market is segmented into residential, commercial, and industrial. The industrial segment held the largest share of the market in 2023.

Geothermal Power Generation Market Share Analysis by Geography

The geographic scope of the geothermal power generation market report is mainly divided into five regions: North America, Asia Pacific, Europe, Middle East & Africa, and South & Central America.

Asia Pacific is leading the market. This is owing to the increasing investments in the geothermal power capacity additions and rise in demand for clean power generation in the coming years. Asia Pacific, particularly countries along the Pacific Ring of Fire, is rich in geothermal resources. The Philippines is a notable example, with a significant share of its electricity coming from geothermal power plants. Indonesia, New Zealand, the Philippines, and Japan also have active geothermal projects and exploration initiatives. Indonesia, New Zealand, and the Philippines accounted for more than 75% of the total global geothermal power generation market size globally in 2022 and are projected to maintain their dominance during the geothermal power generation market forecast period.

Geothermal Power Generation Market Report Scope

Report Attribute Details
Market size in 2023 US$ 15,453.3 Million
Market Size by 2031 US$ 27,149.2 Million
Global CAGR (2023 - 2031) 7.3%
Historical Data 2021-2022
Forecast period 2023-2031
Segments Covered By Plant Type
  • Direct Dry Steam
  • Flash Steam
  • Binary Cycle
By End User
  • Residential
  • Commercial
  • Industrial
Regions and Countries Covered North America
  • US
  • Canada
  • Mexico
Europe
  • UK
  • Germany
  • France
  • Russia
  • Italy
  • Rest of Europe
Asia-Pacific
  • China
  • India
  • Japan
  • Australia
  • Rest of Asia-Pacific
South and Central America
  • Brazil
  • Argentina
  • Rest of South and Central America
Middle East and Africa
  • South Africa
  • Saudi Arabia
  • UAE
  • Rest of Middle East and Africa
Market leaders and key company profiles
  • Northern California Power Agency
  • Turboden SpA
  • Toshiba Energy Systems & Solutions Corp
  • Berkshire Hathaway Inc
  • NIBE Industrier AB
  • General Electric Co.
  • Fuji Electric Co Ltd
  • Kenya Electricity Generating Co Ltd
  • Carrier Global Corp.
  • Danfoss AS
    • Sample PDF showcases the content structure and the nature of the information with qualitative and quantitative analysis.

    Geothermal Power Generation Market News and Recent Developments

    The geothermal power generation market is evaluated by gathering qualitative and quantitative data post primary and secondary research, which includes important corporate publications, association data, and databases. A few of the developments in the geothermal power generation market are listed below:

    • Fervo Energy breaks ground on the next-generation geothermal plant. This facility is 400 MW in Beaver County, Utah. Fervo Energy will use enhanced geothermal technology to harness heat sources. (Source: Fervo Energy, Press Release, September 2023)
    • Exergy International (Provider of clean energy technology) signed an agreement with Energy Development Corporation (EDC) for the supply of a 28 MW binary system plant in Leyte, Eastern Visayas (the Philippines). (Source: Exergy International, Press Release, August 2023)

    Geothermal Power Generation Market Report Coverage and Deliverables

    The “Geothermal Power Generation Market Size and Forecast (2021–2031)” report provides a detailed analysis of the market covering below areas:

    • Geothermal power generation market size and forecast at global, regional, and country levels for all the key market segments covered under the scope
    • Geothermal power generation market trends as well as market dynamics such as drivers, restraints, and key opportunities
    • Detailed PEST and SWOT analysis
    • Geothermal power generation market analysis covering key market trends, global and regional framework, major players, regulations, and recent market developments
    • Industry landscape and competition analysis covering market concentration, heat map analysis, prominent players, and recent developments for the geothermal power generation market
    • Detailed company profiles
    Report Coverage
    Report Coverage

    Revenue forecast, Company Analysis, Industry landscape, Growth factors, and Trends

    Segment Covered
    Segment Covered

    Plant Type, End User, and Geography

    Regional Scope
    Regional Scope

    North America, Europe, Asia Pacific, Middle East & Africa, South & Central America

    Country Scope
    Country Scope

    This text is related
    to country scope.

    Frequently Asked Questions


    What is the expected CAGR of the geothermal power generation market?

    7.3% is the expected CAGR of the geothermal power generation market.

    What would be the estimated value of the geothermal power generation market by 2031?

    US$ 27,149.2 million estimated value of the geothermal power generation market by 2031.

    Which are the leading players operating in the geothermal power generation market?

    Northern California Power Agency, Turboden SpA, Toshiba Energy Systems & Solutions Corp, Berkshire Hathaway Inc, NIBE Industrier AB, General Electric Co., Fuji Electric Co Ltd, Kenya Electricity Generating Co Ltd, Carrier Global Corp., and Danfoss AS are some of the leading players in the geothermal power generation market.

    What are the future trends of the geothermal power generation market?

    Growing role of geothermal power in future energy transition is the future trend of the geothermal power generation market

    Which region dominated the geothermal power generation market in 2023?

    Asia Pacific dominated the geothermal power generation market in 2023.

    The List of Companies - Geothermal Power Generation Market

    1. Northern California Power Agency
    2. Turboden SpA
    3. Toshiba Energy Systems & Solutions Corp
    4. Berkshire Hathaway Inc
    5. NIBE Industrier AB
    6. General Electric Co.
    7. Fuji Electric Co Ltd
    8. Kenya Electricity Generating Co Ltd
    9. Carrier Global Corp.
    10. Danfoss AS

    The Insight Partners performs research in 4 major stages: Data Collection & Secondary Research, Primary Research, Data Analysis and Data Triangulation & Final Review.

    1. Data Collection and Secondary Research:

    As a market research and consulting firm operating from a decade, we have published many reports and advised several clients across the globe. First step for any study will start with an assessment of currently available data and insights from existing reports. Further, historical and current market information is collected from Investor Presentations, Annual Reports, SEC Filings, etc., and other information related to company’s performance and market positioning are gathered from Paid Databases (Factiva, Hoovers, and Reuters) and various other publications available in public domain.

    Several associations trade associates, technical forums, institutes, societies and organizations are accessed to gain technical as well as market related insights through their publications such as research papers, blogs and press releases related to the studies are referred to get cues about the market. Further, white papers, journals, magazines, and other news articles published in the last 3 years are scrutinized and analyzed to understand the current market trends.

    1. Primary Research:

    The primarily interview analysis comprise of data obtained from industry participants interview and answers to survey questions gathered by in-house primary team.

    For primary research, interviews are conducted with industry experts/CEOs/Marketing Managers/Sales Managers/VPs/Subject Matter Experts from both demand and supply side to get a 360-degree view of the market. The primary team conducts several interviews based on the complexity of the markets to understand the various market trends and dynamics which makes research more credible and precise.

    A typical research interview fulfils the following functions:

    • Provides first-hand information on the market size, market trends, growth trends, competitive landscape, and outlook
    • Validates and strengthens in-house secondary research findings
    • Develops the analysis team’s expertise and market understanding

    Primary research involves email interactions and telephone interviews for each market, category, segment, and sub-segment across geographies. The participants who typically take part in such a process include, but are not limited to:

    • Industry participants: VPs, business development managers, market intelligence managers and national sales managers
    • Outside experts: Valuation experts, research analysts and key opinion leaders specializing in the electronics and semiconductor industry.

    Below is the breakup of our primary respondents by company, designation, and region:

    Research Methodology

    Once we receive the confirmation from primary research sources or primary respondents, we finalize the base year market estimation and forecast the data as per the macroeconomic and microeconomic factors assessed during data collection.

    1. Data Analysis:

    Once data is validated through both secondary as well as primary respondents, we finalize the market estimations by hypothesis formulation and factor analysis at regional and country level.

    • 3.1 Macro-Economic Factor Analysis:

    We analyse macroeconomic indicators such the gross domestic product (GDP), increase in the demand for goods and services across industries, technological advancement, regional economic growth, governmental policies, the influence of COVID-19, PEST analysis, and other aspects. This analysis aids in setting benchmarks for various nations/regions and approximating market splits. Additionally, the general trend of the aforementioned components aid in determining the market's development possibilities.

    • 3.2 Country Level Data:

    Various factors that are especially aligned to the country are taken into account to determine the market size for a certain area and country, including the presence of vendors, such as headquarters and offices, the country's GDP, demand patterns, and industry growth. To comprehend the market dynamics for the nation, a number of growth variables, inhibitors, application areas, and current market trends are researched. The aforementioned elements aid in determining the country's overall market's growth potential.

    • 3.3 Company Profile:

    The “Table of Contents” is formulated by listing and analyzing more than 25 - 30 companies operating in the market ecosystem across geographies. However, we profile only 10 companies as a standard practice in our syndicate reports. These 10 companies comprise leading, emerging, and regional players. Nonetheless, our analysis is not restricted to the 10 listed companies, we also analyze other companies present in the market to develop a holistic view and understand the prevailing trends. The “Company Profiles” section in the report covers key facts, business description, products & services, financial information, SWOT analysis, and key developments. The financial information presented is extracted from the annual reports and official documents of the publicly listed companies. Upon collecting the information for the sections of respective companies, we verify them via various primary sources and then compile the data in respective company profiles. The company level information helps us in deriving the base number as well as in forecasting the market size.

    • 3.4 Developing Base Number:

    Aggregation of sales statistics (2020-2022) and macro-economic factor, and other secondary and primary research insights are utilized to arrive at base number and related market shares for 2022. The data gaps are identified in this step and relevant market data is analyzed, collected from paid primary interviews or databases. On finalizing the base year market size, forecasts are developed on the basis of macro-economic, industry and market growth factors and company level analysis.

    1. Data Triangulation and Final Review:

    The market findings and base year market size calculations are validated from supply as well as demand side. Demand side validations are based on macro-economic factor analysis and benchmarks for respective regions and countries. In case of supply side validations, revenues of major companies are estimated (in case not available) based on industry benchmark, approximate number of employees, product portfolio, and primary interviews revenues are gathered. Further revenue from target product/service segment is assessed to avoid overshooting of market statistics. In case of heavy deviations between supply and demand side values, all thes steps are repeated to achieve synchronization.

    We follow an iterative model, wherein we share our research findings with Subject Matter Experts (SME’s) and Key Opinion Leaders (KOLs) until consensus view of the market is not formulated – this model negates any drastic deviation in the opinions of experts. Only validated and universally acceptable research findings are quoted in our reports.

    We have important check points that we use to validate our research findings – which we call – data triangulation, where we validate the information, we generate from secondary sources with primary interviews and then we re-validate with our internal data bases and Subject matter experts. This comprehensive model enables us to deliver high quality, reliable data in shortest possible time.

    Your data will never be shared with third parties, however, we may send you information from time to time about our products that may be of interest to you. By submitting your details, you agree to be contacted by us. You may contact us at any time to opt-out.

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