The Global Geothermal Energy 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).
The majority of natural heat obtained from the earth’s crust is currently being used for heating and other purposes, geothermal-based electricity generation is gaining the required momentum. It has been anticipated that in the next half decade geothermal-based energy generation will occupy a significant share of the renewable portfolio of individual countries.
Additionally, increasing demand for heating and cooling systems, including ground source heat pumps and district heating is expected to increase the demand for geothermal energy. Moreover, increasing government efforts to promote the use of geothermal energy, as Global carbon footprint is on a high, various government authorities are trying to lower the global carbon footprint by opting towards, renewable, clean energy.
By Plant Type
By Region
The unique insights provided by this report also includes the following:
Based on plant type, the binary power plant segment accounted for 43% market share during the period 2020-2027.
The binary cycle power plant can be operated at low-temperature reservoirs (200°F to 330°F) therefore, this segment is expected to witness considerable demand during the forecast period. In this type of plant, the steam or water below the earth does not come in direct contact with turbines. Instead, the water from the geothermal reservoirs is pumped through a heat exchanger. The dry steam geothermal power plants utilize superheated steam at pressures above atmospheric and can be directly fed into the turbines for power production.
Additionally, In the U.S. 1,826 MW geothermal energy is generated from the dry steam powered plants and 731 MW of the energy is generated from Binary cycle power plant. Flash plants and Dry-steam require shallow reservoirs, high temperature, produce higher power output owing to which they are economically efficient than binary plants. However, the demand for alternative energy sources such as wind & solar energy may hamper the market growth during the forecast period. At the same time, the demand for fossil fuels is high in countries such as the U.K., France, U.S. and Canada as compared to geothermal energy which is also one of the major factors hindering the market growth. According to the study conducted in 2018, the solar, wind, and geothermal energy accounted for only 4% of all energy sources in the U.S. Fossil fuels accounted for 84% of the U.S. energy demand which was way more than that of geothermal energy.
Based on regions, the market for Geothermal Energy in Europe accounted for the largest share in 2020, followed by Asia-Pacific.
The European market was valued at US$ 1,367.7 Mn in 2020 and is expected to reach US$ 2,564.8 Mn by 2027, expanding at a CAGR of 8.8% during the forecast period. Europe's geothermal energy market is experiencing exponential growth in current days. In 2019, Europe had 130 geothermal electricity plants in operations, 124 projects in the planning phase, and 36 projects under development. This thereby shows that the operating geothermal plants are expected to get doubled in the next 8 years. The German geothermal energy market is expected to reach USD 26.2 in 2027 growing with a CAGR of 14.0% during the forecast period. The construction of geothermal heating plants in Europe Munich along the Isar River is expected to supply 80,000 citizens in Germany. Additionally, the “Schäftlarnstraße” plant a geothermal energy plant is expected to supply 1.5 million Munich citizens by heat by 2035.
Additonally, The Indonesia geothermal energy market is expected to reach USD 1,673.5 Mn in 2027 growing with a CAGR of 9.6% during the forecast period. The Indonesian government's aim to set a target of 23% renewable energy by 2025 is creating a new opportunity for the geothermal energy market in the country. Geothermal projects such as Muara Laboh Geothermal Power Plant in West Sumatra are helping the government to meet its set goals. The State-Owned Enterprises Ministry of Indonesia announced its plan to merge PT Pertamina Geothermal Energy, PT Geo Dipa Energi, and PT PLN Gas the aim of this initiative is to form a giant geothermal holdings company to boost the country’s green energy usage.
The major players operating in the Global Geothermal Energy market
The report also provides in-depth analysis of Geothermal Energy market dynamics such as drivers, restraints and opportunities
Drivers
Restraints
Opportunities
The coronavirus pandemic has impacted the major industries and business segments across the globe. Major countries such as U.S., U.K., China, and India, among others were heavily impacted by the COVID-19 pandemic. The geothermal energy sector has witnessed significant growth in the past few years; however, due to the outbreak of the COVID- 19 pandemic, the market is projected to witness a slower growth in 2020. Travel restrictions and government-imposed lockdowns to slow the spreading of the virus had an impact on energy demand. In addition, reduced Labor capacities due to social distancing requirements and disrupted supply chain, the need for oil and other forms of energy was significantly lower.
The report also provides in-depth analysis of key trends in Geothermal Energy market
The report also provides in-depth analysis of recent news developments and investments
Priyanka has been writing chemicals & material market research reports for the last 12 years. A post-graduate, her specialization is in the chemicals sector. Preparing end-to-end reports covering minute details for market insights, competitive intelligence and trend analysis in the CMFE sector.
Research Methodology
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