Global Geothermal Market Size By Type (Type I, Type II), By Application (Application I, Application II), By Region, And Segment Forecasts, 2023 to 2032

The Global Geothermal Market, valued at approximately USD 7.4 billion in 2023, is expected to surpass USD 12.8 billion by 2031, growing at a compound annual growth rate (CAGR) of 7.2% from 2023 to 2031. The market is driven by increasing demand for sustainable energy solutions, with geothermal energy emerging as a reliable, low-emission source. Growth is further supported by advances in geothermal technology, government incentives, and a heightened focus on reducing carbon footprints globally. Geothermal energy serves as a constant power source, significantly contributing to energy grids, heating, and cooling applications across multiple regions.

Drivers

Demand for Sustainable Energy: Rising awareness and demand for renewable energy sources drive the adoption of geothermal systems.

Technological Advancements: Innovations such as enhanced geothermal systems (EGS) and closed-loop systems are making geothermal projects more viable and efficient.

Government Incentives and Subsidies: Financial support from governments, including tax breaks and subsidies, is encouraging the adoption of geothermal projects worldwide.

Restraints

High Initial Installation Costs: Significant capital investment in drilling and infrastructure for geothermal systems limits widespread adoption.

Location Dependency: Geothermal energy extraction is highly location-specific, which restricts its application in certain regions and limits market expansion.

Opportunities

Expansion in Emerging Markets: Asia-Pacific and Latin America offer substantial growth potential due to increasing energy demands and untapped geothermal resources.

Integration with Advanced Technologies: Combining geothermal systems with smart grid technologies and energy storage enhances operational efficiency and reliability.

Market by System Type Insights

The geothermal power plant segment dominates, driven by high demand in regions with active geothermal reservoirs. Enhanced Geothermal Systems (EGS) are projected to witness the highest growth, as technological advancements make these systems more feasible in previously unsuitable locations.

Market by End-use Insights

Power generation remains the leading application, constituting the largest market share due to its role in meeting renewable energy targets. However, the heating and cooling segment is expected to grow significantly, especially in colder regions where geothermal heat pumps provide energy-efficient climate control.

Market by Regional Insights

North America leads the market, primarily due to extensive geothermal reservoirs in the U.S. and Canada, alongside strong government support. However, Asia-Pacific is anticipated to experience the highest growth, driven by increasing investments in renewable energy and the expansion of geothermal applications in countries like Indonesia, the Philippines, and Japan.

Competitive Scenario

Key players in the Global Geothermal Market include Ormat Technologies Inc., Calpine Corporation, Enel Green Power, Alterra Power, and Chevron Corporation. These companies are focusing on project expansions, partnerships, and technological innovations to enhance geothermal extraction and expand market reach. Recent developments include Enel Green Power’s new geothermal installations in Italy and Calpine’s partnerships to advance enhanced geothermal systems in North America.

Scope of Work – Global Geothermal Market

Key Market Developments

2023: Ormat Technologies expanded geothermal projects in the U.S., targeting increased power generation capacity.

2024: Enel Green Power completed a new geothermal plant in Italy, utilizing advanced heat recovery systems for improved efficiency.

2025: Calpine Corporation partnered with a tech firm to implement AI-driven predictive maintenance for geothermal operations, enhancing system reliability.

FAQs

What is the current market size of the Global Geothermal Market?

The Global Geothermal Market was valued at USD 7.4 billion in 2023.

What is the major growth driver of the Global Geothermal Market?

The primary growth driver is the rising demand for sustainable and renewable energy sources.

Which is the largest region during the forecast period in the Global Geothermal Market?

North America holds the largest market share, led by geothermal resources in the U.S. and Canada.

Which segment accounted for the largest market share in the Global Geothermal Market?

The power generation segment is the largest due to geothermal’s capacity to meet renewable energy targets.

Who are the key market players in the Global Geothermal Market?

Key players include Ormat Technologies Inc., Calpine Corporation, Enel Green Power, Alterra Power, and Chevron Corporation.