The global geothermal power market is expected to reach USD 9.12 billion by 2028, growing at a CAGR of 21.1% during the forecast period. This surge is fueled by a growing demand for renewable energy sources and the abundance of geothermal resources across the globe. The report by Technavio, a leading technology research and advisory company, provides a comprehensive analysis of the market, exploring trends, segmentation, and growth drivers.
Key insights into the market evolution reveal a significant push towards geothermal energy. This is driven by rising investments, government initiatives, and a trend towards increasing geothermal capacity. However, high initial capital investments in establishing geothermal power plants pose a challenge. This report sheds light on the role of AI in transforming the market, analyzing key trends and identifying growth opportunities.
The increasing global demand for renewable energy sources, coupled with the abundance of geothermal resources in various countries, is pushing the geothermal power market towards significant growth. Countries like the Philippines, Kenya, Indonesia, and Chile are exploring untapped geothermal energy resources with the help of international organizations like the Japan International Cooperation Agency and Inter-American Development Bank, alongside private and public players.
Technological advancements in drilling techniques and power plant efficiency, particularly Enhanced Geothermal Systems (EGS), are expanding the potential of geothermal power generation. These advancements are lowering costs and reducing exploration risks, further encouraging the expansion of existing geothermal power capacities worldwide. This makes geothermal energy a promising investment opportunity in the renewable energy sector.
Geothermal power is a renewable energy source derived from the Earth’s core. It provides thermal energy for heating and cooling applications, as well as electricity generation. The market is trending due to its environmental benefits, including low atmospheric pollution and reduced greenhouse gas emissions (GHG). District heating systems using geothermal energy are gaining popularity, providing efficient heating and cooling solutions.
While the benefits are clear, geothermal power generation comes with high capital costs due to drilling wells and production wells. However, the advantages of energy security and reduced dependence on fossil fuels make it an attractive option. Power plants use different technologies like flash steam, dry steam, or binary cycle plants to convert thermal energy into electricity.
Environmental concerns, such as carbon dioxide emissions, are being addressed through the development of cleaner geothermal energy projects. The Department of Defense is also investing in geothermal energy to power military bases and reduce electricity consumption. Cash incentives and energy demand are driving the growth of geothermal power, making it a viable alternative to nuclear power and traditional electricity generation from fossil fuels.
The report further dives into the segmentation of the geothermal power market, analyzing different types of power plants (flash, binary, and dry steam) and their respective applications in industrial, commercial, and residential sectors. It also provides a geographical breakdown of the market, focusing on APAC, North America, Europe, South America, the Middle East, and Africa.
The market is brimming with key players, including Aboitiz Power Corp., Calpine Corp., Cyrq Energy Inc, DEEP Earth Energy Production Corp., Enel Spa, Energy Development Corp., EnergySource LLC, First Gen Corp, Geotherm Inc., Geothermal Engineering Ltd., HS Orka, Innergex Renewable Energy Inc., Kenya Electricity Generating Company PLC, KYUSHU ELECTRIC POWER CO., INC., NTPC Ltd., Ormat Technologies Inc., PT Pertamina Geothermal Energy Tbk, Reykjavik Geothermal, and Star Energy Geothermal. These companies are actively shaping the market landscape and driving innovation.
Technavio’s report on the geothermal power market provides invaluable insights into market trends, challenges, and opportunities. The report underscores the crucial role of AI in analyzing market evolution, identifying key growth drivers, and shaping future strategies. This report serves as a valuable resource for businesses looking to gain a competitive advantage in the ever-evolving renewable energy sector.
