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3. Geothermal Energy Market Size & Share - Future Growth Expectations

The global geothermal energy market size is projected to reach USD 9.4 billion by 2027 from an estimated USD 7.0 billion in 2022, at a CAGR of 5.9% during the forecast period. The major factors driving the growth of this market include the growing demand for geothermal heat pumps, and the rising use of geothermal energy for power generation.

The geothermal energy market has been steadily expanding as a result of several significant factors.

• Renewable Energy Transition
• Rich Resource Potential
• Stable and Regular Energy Supply
• Diverse Applications
• Environmental Benefits
• Technological Innovations

To know about the assumptions considered for the study download the pdf brochure

Renewable Energy Transition:

• Interest in renewable energy sources, such geothermal energy, is rising as nations work to lessen their dependency on fossil fuels and combat climate change. Because it generates baseload power and emits little greenhouse gases, geothermal energy is regarded as a clean and sustainable energy source.

Rich Resource Potential:

• Geothermal energy is a nearly infinite and extensively accessible energy source since it uses heat that is found beneath the surface of the Earth. High-geothermal potential areas, such the Rift Valley, the Ring of Fire, and volcanic zones, are actively investigating and creating geothermal projects in order to take use of this plentiful energy source.

Stable and Regular Energy Supply:

• Geothermal energy offers a steady and predictable energy supply, in contrast to sporadic renewable energy sources like solar and wind. In order to fulfill base and peak electricity demand, geothermal power plants run continuously, improving grid stability and energy security.

Diverse Applications:

• In addition to producing electricity, geothermal energy is employed for a number of additional purposes, such as district heating, industrial operations, greenhouse heating, and direct use applications like hot springs, spas, and agricultural drying. Geothermal energy is attractive to a variety of industries due to its versatility, which promotes market diversity and expansion.

Environmental Benefits:

• Compared to traditional fossil fuel-based power generation, geothermal energy production has a negligible environmental impact. It is a recommended option for achieving sustainability goals and minimizing environmental effect since it operates with no greenhouse gas emissions or air pollutants and needs a small amount of land.

Technological Innovations:

• The efficiency and economics of producing geothermal energy have increased thanks to developments in geothermal exploration, drilling, and reservoir management technology. The exploitation of geothermal resources in previously unreachable locations is made possible by enhanced geothermal systems (EGS), binary cycle power plants, and creative drilling techniques, which increases the market potential.

The geothermal energy market is going to keep rising as more and more stakeholders, utilities, and governments come to understand the social, economic, and environmental advantages of geothermal energy. Global geothermal energy market growth will be fueled by ongoing investments in R&D, legislative assistance, and market incentives.

Geothermal Energy Market Share - Global Industry Landscape

The geothermal energy market is characterized by the presence of several key players competing for market share. Some of the leading companies in the geothermal energy industry include:

• SLB (US)
• Ormat (US)
• Mitsubishi Heavy Industries (Japan)
• Baker Hughes Company (US)

These companies support the expansion of the geothermal energy sector on a worldwide scale, as do numerous government departments, academic institutions, and trade groups. Market share in the geothermal energy industry may change depending on things like the accessibility of resources, developments in technology, support from policymakers, and patterns of investment in renewable energy.

SLB (US)

• SLB primarily operates in the oil and gas industry, providing various products and services related to exploration, drilling, production, and reservoir management. While Schlumberger's core focus is on oil and gas, the company has also been involved in providing technologies and expertise for geothermal energy projects and contributes to the advancement of this renewable energy source. As the demand for clean and renewable energy continues to grow, Schlumberger's involvement in geothermal energy may expand further.

Ormat (US)

• Ormat is one of the leading vertically integrated companies primarily engaged in the geothermal energy power business. Ormat conducts its operations through three business segments, namely, Electricity, Product, and Energy Storage. The company's Electricity business segment, which represented 88.3 % of total sales in 2021, develops, builds, owns, and operates geothermal, solar PV, and recovered energy-based power plants in the US and geothermal power plants in other countries and sells the electricity they generate. The Electricity section provides geothermal and recovered energy-based electricity generation and remote power units. The company also provides as an EPC contractor for geothermal and recovered energy power plants on a turnkey basis. Ormat operates in over 100 countries across regions, namely, Europe, North America, South America, Asia, and the Middle East & Africa. It has more than 30 geothermal plants globally and operational projects in Chile, Costa Rica, Guadeloupe, Thailand, Austria, Iceland, Ethiopia, Guatemala, Philippines, New Zealand, Turkey, the US, Kenya, Indonesia, Japan, and many more countries.

Mitsubishi Heavy Industries (Japan)

• Mitsubishi Heavy Industries is a Japanese multinational corporation specializing in shipbuilding, transportation systems, commercial aircraft, and power systems. The company offered its products and services to various end-use industries, such as energy, marine, automotive, defense, transportation, environment, and aerospace. The company operates its business through four segments namely, Energy Systems; Aircraft Defence & Space; Logistics, Thermal & Drive Systems; and Plants & Infrastructure Management. Through its Energy Systems business sector, the company provides Geothermal energy systems and services, accounting for 42.4% of the total revenue of the company in 2021. Under the Energy Systems business segment company offers thermal power generation systems (gas turbine combined cycle and steam power), nuclear power generation systems (light-water reactors, nuclear fuel cycle & advanced solutions), wind power generators, engines for aircraft, compressors, air quality control system, marine machinery, and renewable energy solutions. The company offers geothermal energy systems through the Mitsubishi Power and Turboden subsidiaries. The company has operations across Europe, North America, the Middle East, South America, Africa, and the Asia Pacific region. The corporation includes regional offices, warehouses, research and development facilities, and sales offices in over 150 countries worldwide.

Baker Hughes Company (US)

• Baker Hughes is a global oilfield service company that provides various products and services to the energy industry, including geothermal energy solutions. Geothermal energy harnesses the heat stored beneath the Earth's surface to generate electricity or provide heating and cooling for buildings. Baker Hughes may play a role in various aspects of the geothermal energy value chain, providing technologies, services, and expertise to support the development and operation of geothermal projects worldwide. As the demand for clean and renewable energy sources grows, geothermal energy is expected to play an increasingly important role in the global energy transition, and companies like Baker Hughes can contribute to its advancement.

Related Reports:

Geothermal Energy Market by Application (Power Generation, Residential & Commercial Heating And Cooling), Temperature, Technology (Binary & Flash Cycle Plant, Dry Steam Plant, Ground Source Heat Pumps, Direct Systems) & Region - Global Forecast to 2027