Geothermal Power Generation Market Size and Forecasts (2021 - 2031), Global and Regional Share, Trends, and Growth Opportunity Analysis

Geothermal Power Generation Market Size and Forecasts (2020 - 2030), 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

Publication Month : Feb 2024

  • Report Code : TIPTE100001351
  • Category : Energy and Power
  • Status : Data Released
  • No. of Pages : 150
Inquire Before Buy

PRICING

$5190

$4671

[Research Rep[ort] The geothermal power generation market size is projected to reach US$ 25,733.8 million by 2030 from US$ 14,146.0 million in 2022; it is expected to register a CAGR of 7.8% during 2022–2030.

Analyst Perspective:

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.

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.

Customize Research To Suit Your Requirement

We can optimize and tailor the analysis and scope which is unmet through our standard offerings. This flexibility will help you gain the exact information needed for your business planning and decision making.

Geothermal Power Generation Market: Strategic Insights

geothermal-power-generation-market
Market Size Value inUS$ 14,146.0 million in 2022
Market Size Value byUS$ 25,733.8 million by 2030
Growth rateCAGR of 7.8% from 2022 to 2030
Forecast Period2022-2030
Base Year2022
Analyst Image

Naveen

Have a question?

Naveen will walk you through a 15-minute call to present the report’s content and answer all queries if you have any.

Analyst Image  Speak to Analyst

Market Driver:

Low Greenhouse Gas Emissions:

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 2022 to 2030.

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.

  • Sample PDF showcases the content structure and the nature of the information with qualitative and quantitative analysis.
  • Request discounts available for Start-Ups & Universities

Segmental Analysis:

Based on plant type, the geothermal power generation market analysis is segmented into direct dry steam, flash steam, and binary cycle. The flash steam segment accounted for more than 64.6% of revenue in the market in 2022 and is expected to be the key segment during the forecast period. Flash steam power plants are a relatively common method used to convert geothermal energy into electricity when production wells produce a mixture of steam and liquid in one geothermal system. Compared to a single flash, the double flash steam power plant generates more electricity from geothermal fluid under the same conditions.

The energy transition in net-zero carbon emissions is a complex process that includes fossil fuels phasing out over time and being replaced by renewable and sustainable energy sources in combination with other measures, such as energy efficiency. Fossil fuel power generation plants are major emitters of greenhouse gases and are being shut down for environmental reasons. An average of 62 GW in 2020 and 2021 fossil fuels have been shut down yearly. Thus, the rise in decommissioning of fossil fuel-based power plants is expected to drive the geothermal power generation market trends in the coming years.

  • Sample PDF showcases the content structure and the nature of the information with qualitative and quantitative analysis.
  • Request discounts available for Start-Ups & Universities

Regional Analysis:

According to The Insight Partners’ analysis, the geothermal power generation market in Asia Pacific is expected to grow at a CAGR of 6.2% during the analyzed timeframe, owing to the investments in the geothermal power capacity additions and the 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.

New Zealand has harnessed its geothermal potential for electricity generation and heating applications. Opportunities include expanding capacity, optimizing existing plants, and integrating geothermal power into the country's diverse renewable energy mix. The development of innovative technologies, such as binary cycle systems, can enhance efficiency and make geothermal power more competitive. In addition, East African countries such as Kenya and Ethiopia are harnessing their geothermal potential. Kenya has invested significantly in geothermal power development, contributing to its energy mix. The East African Rift system offers favorable conditions for tapping into geothermal reservoirs.

Key Player Analysis:

The geothermal power generation market report includes company positioning and concentration to evaluate the performance of competitors in the market. Calpine Corporation, Comision Federal de Electricidad, Reykjavik Energy, Pertamina Geothermal Energy, CalEnergy Generation, Northern California Power Agency, Enel Green Power, Ormat Technologies Inc, Toshiba Energy Systems and Solutions Corporation, and US Geothermal Inc are among the key players profiled in the geothermal power generation market report.

Recent Developments: 

Inorganic and organic strategies such as partnerships, business expansion, mergers, and acquisitions are highly adopted by companies in the geothermal power generation market globally. As per company press releases, a few recent developments by key market players are listed below: 

Year

News

Region

2023

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.

North America

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).

Asia Pacific

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 are reasons behind the geothermal power generation market growth?

Rise in demand for power generation from less carbon emitting sources, rise in establishment of geothermal power plants, rise in awareness towards geothermal power untapped potential, regulations & goals towards carbon emission reductions, contributing to the growth of the geothermal power generation market.

What are market opportunities for the geothermal power generation market?

Ongoing research and innovation on advanced geothermal power generation technologies in potential countries such as Indonesia, Philippines, New Zealand, Chile, Mexico, and US where the adoption of the above-mentioned technology is maturing at a significant rate is expected to be the key opportunity in the market.

Which region to dominate the geothermal power generation market in the forecast period?

Regions such as Europe, North America and Asia-Pacific will boost the growth of the geothermal power generation market during the forecast period. This growth is owing to the rise in investment on construction of geothermal power plant and facilities projects in the regions.

What is the future trend for the geothermal power generation market?

Key role of geothermal power in future energy transition is anticipated to stimulate the geothermal power generation market growth in the coming years.

Who are the major vendors in the geothermal power generation market?

Calpine Corporation, Comision Federal de Electricidad, Reykjavik Energy, Pertamina Geothermal Energy, CalEnergy Generation, and Kenya Electricity Generating Company PLC are the key market players operating in the global geothermal power generation market.

The List of Companies - Geothermal Power Generation Market

  1. Calpine Corporation
  2. Comision Federal de Electricidad
  3. Kenya Electricity Generating Company PLC
  4. Reykjavik Energy
  5. Pertamina Geothermal Energy
  6. CalEnergy Generation
  7. Northern California Power Agency
  8. Sosian Energy Limited
  9. Exergy International Srl
  10. Enel Green Power
  11. Ormat Technologies Inc
  12. Toshiba Energy Systems and Solutions Corporation
  13. U.S. Geothermal Inc

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.

Trends and growth analysis reports related to Geothermal Power Generation Market