by Geothermal power is a renewable source of energy that taps into the natural heat stored in the Earth to generate electricity. It uses steam or hot water generated from underground reservoirs to drive turbines that produce electricity with no direct fossil fuel burning or emissions involved. Geothermal power offers clean, base-load electricity production without interruption from weather or time of day. Countries like the United States, Indonesia, Philippines, Kenya are already harnessing geothermal energy through power plants to meet their electricity needs. With growing concerns over climate change and transition towards a low carbon economy, many nations are looking at expanding their renewable energy capacity through viable options like geothermal energy.
The global Geothermal Power Market is estimated to be valued at US$ 5.78 Bn in 2023 and is expected to exhibit a CAGR of 6.2% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Dynamics:
Growing demand for renewable energy sources (as mentioned in the heading) is a major driver boosting the geothermal power market. Geothermal energy provides clean base load power and many countries have recognized its potential to replace fossil fuel power plants and lower CO2 emissions from the energy sector to meet their climate commitments. Additionally, reducing cost of geothermal technology through advancements and economies of scale is also fueling the adoption of this source of renewable energy across regions. As the upfront cost of geothermal plants comes down, it will further strengthen its market position compared to other intermittent renewables like solar or wind energy.
Segment Analysis
The Geothermal Power Market Size can be segmented into EGS (Enhanced Geothermal Systems), Hydrothermal, and direct hydrothermal. Hydrothermal power is the largest and dominating sub-segment currently, accounting for over 80% of the market share. This is because hydrothermal resources are available across regions, and power generation from hydrothermal resources requires lower upfront investment and development compared to EGS or direct hydrothermal technologies.
PEST Analysis
Political: The governments across regions are promoting renewable energy sources through favorable policies and regulations to reduce dependence on fossil fuels and achieve climate change goals. This is positively impacting the growth of the geothermal power market.
Economic: Geothermal power provides a sustainable and stable option for baseload power at lower levelized cost of energy compared to other renewable sources. This makes it an attractive investment opportunity for utilities and independent power producers.
Social: Growing environmental concerns around the world related to greenhouse gas emissions are propelling the shift towards cleaner and greener sources of energy such as geothermal.
Technological: New exploration and drilling techniques are enhancing the identification and commercialization of additional geothermal resources globally. Projects leveraging hybrid renewable systems are also gaining traction.
Key Takeaways
The global Geothermal Power Market is estimated to be valued at US$ 5.78 Bn in 2023 and is expected to exhibit a CAGR of 6.2% over the forecast period 2023 to 2030.
The global geothermal power market is expected to witness high growth over the forecast period. The Asian Pacific region is expected to dominate the market and emerge as the fastest growing regional market due to favorable policies, presence of geothermal hotspots, and increasing investments in renewable power generation.
Key players operating in the geothermal power market are Honomobo Corporation, ATCO Ltd., Tempohousing, SG Blocks, Inc., Giant Containers Inc., Skanska AB, and Speed House Group of Companies. Government incentives and private sector investments for geothermal exploration and project development are stimulating market competition amongst these players.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
Ravina Pandya, Content Writer, has a strong foothold in the market research industry. She specializes in writing well-researched articles from different industries, including food and beverages, information and technology, healthcare, chemical and materials, etc. With an MBA in E-commerce, she has an expertise in SEO-optimized content that resonates with industry professionals.
