The Global Geothermal Energy Market is Expected to Reach US$ 5,711.1 Mn by 2027, expanding at a CAGR of 8.7%
The Global Geothermal Energy Market was valued at US$ 2,951.7 Mn in 2020, and is expected to reach US$ 5,711.1 Mn by 2027, expanding at a CAGR of 8.7% during the forecast period. (2020-2027).
Rising demand for clean energy due to environmental concerns and better sustainability of resources is boosting the geothermal power sector. The increasing demand for geothermal heat pumps in commercial and residential buildings in recent times is driving the market growth. Growing concerns towards energy security and environmental sustainability along with a shift in trends towards bio-economy-based development are also expected to drive market growth. Various regulatory bodies are thereby making efforts to reduce the carbon footprint in recent years which is also creating the demand for geothermal heat pumps globally. For instance, in 2016, the government of Germany announced the introduction of Climate Action Plan 2050 with an aim to reduce GHG emissions to 55% by 2030 compared to the levels of 1990.
Moreover, the government also offers incentives to boost the use of geothermal heat pumps in recent years. For instance, in December 2020, tax credits for geothermal heat pump installations were extended through 2023 in the U.S. The geothermal equipment which uses stored solar energy from the ground for cooling and heating, as well as the one that meets ENERGY STAR requirements at the time of installation is eligible for the tax credit.
The use of advanced technologies such as machine learning in geothermal energy is expected to create new opportunities for the market during the forecast period. Machine learning technology is used for identifying the presence of geothermal resources based on surface characteristics. Funding’s are made by the government bodies for applying machine learning technology for exploring geothermal energy. For instance, in May 2019, the U.S. Department of Energy announced a fund of USD 5.5 million for projects to use machine learning technology for the geothermal production and exploration. At the same time, projects are launched by the government of various countries for promoting technological enhancements in geothermal energy. In 2021, The Los Alamos National Laboratory a laboratory-based in Mexico developed an open-source cloud-based machine learning framework called Geothermal Cloud which incorporates regional, local, and continental-scale geothermal data to estimate cost, risk, and thermal production output for geothermal energy exploration. Thus, the deployment of machine learning and data analytics is increasing the efficiency of geothermal operations further proliferating the industry growth.
Furthermore, Current increased installation cost power plant restraining the growth of the market in the emerging countries. Cost effective machineries and material will create opportunities in the market for the new players. Geothermal energy needs supportive policies such as investment policies by countries a fair competition with carbon pricing, a smooth licensing and permitting framework and removing fossil fuel subsidies.
Global Geothermal Energy Market by Region Outlook (Revenue, USD Million, 2021-2027)
- North America
- Asia Pacific
- Latin America
- Middle East & Africa
In terms of region, the Europe accounted for the largest market share during the forecast period. The France geothermal energy market is expected to reach USD 18.4 in 2027 growing with a CAGR of 14.8% during the forecast period. The market growth can be attributed to The French Renewable Energy Trade Association’s aim to achieve a 33% renewable energy target by 2030. The country’s geothermal energy usage is increasing in current days. In 2019, the geothermal energy heat pumps accounted for 3% of the share of primary production of renewable energy in the metropolitan. Moreover, The Italy geothermal energy market is expected to reach USD 429.4 in 2027 growing with a CAGR of 8.6% during the forecast period. The market growth of Italy is steady due to lack of clarity on incentives in geothermal energy support.
The Global Geothermal Energy Industry Segmentation:
Global Geothermal Energy Market by Plant Type Outlook (Revenue, USD Million, 2021-2027)
- Dry Steam Power Plants
- Flash Steam Power Plants
- Binary Cycle Power Plants
- The binary cycle power plant segment is the most attractive segment and it is expected to gain significant market share during the forecast period.
- Growing demand for flash power plants in the high temperature regions is driving the market for the segment. Additionally, rising demand for clean energy due to environmental concerns and better sustainability of resources is boosting the geothermal power sector.
Company Profiles and Competitive Intelligence
The key players operating in the market are:
- Mitsubishi Power
- Ormat Technologies
- Toshiba Corporation
- Fuji Electric Co. Ltd
- Ansaldo Energia SpA
- Terra-Gen LLC
- Tetra Tech
- Kenya Electricity Generating Company PLC
- Baker Hughes Company
- Engie SA
- Turboden S.p.A.
- Green Energy Geothermal.
- Berkshire Hathaway Inc.
- Terra Gen.
- Reykjavik Geothermal.
- Alterra Power Corporation.
- TAS Energy.
- Atlas Copco Group
- In June 2021, KenGen received a contract from Office Djiboutien De Development De lenergie Geothermique (Djiboutian Office of Geothermal Energy Development) (ODDEG) to drill 3 geothermal wells in Djibouti
- In December 2020, Ormat Technologies Inc. announced the acquisition of an energy storage asset in Texas. The company has acquired the asset from Con Edison Development
- In December 2020, Mitsubishi Power Ltd. announced that it had received an order for one facility upgrade in the Philippines at the Makban Geothermal Power Plant. The company will supply a set of steam turbine components for the performance optimization along with to minimize geothermal steam consumption per power output.
- In October 2020, Mitsubishi Power Ltd. announced that the company has completed the renovation of the Otake Geothermal Power Station which is operated by Kyushu Electric Power Company
- In March 2020, Mitsubishi Power Ltd. announced that they introduced MHPS-TOMONI, its digital solution for Domo de San Pedro Geothermal Power Station in Mexico. The MHPS-TOMONI helps in real-time plant monitoring and while improving the plant efficiency