Geothermal Energy market size is expected to reach USD 152 Billion by the end of 2036, growing at a CAGR of 13% during the forecast period, i.e., 2024-2036. In the year 2023, the industry size of the geothermal energy was USD 35 Billion and the reason behind this growth is propelled by the growing need for sustainability thus the world today focuses on how to get a better, cleaner, and greener future. According to the International Energy Agency (IEA), 1 Jan 2024 report- the usage of renewable energy reaches an estimated 507GW in 2023, which is almost 50% higher than in 2022, and with continuous governmental support in 130+ countries, this market is expected to grow in the forecasted years.
Furthermore, geothermal energy is not only seen as a source of clean power but also as a cost-efficient, loads of energy generating source of energy, just what every country needs to think of for sustainable development and to plan accordingly for the near future.
Additionally, each country is trying to build or find a method that is more advanced and more eco-friendly and the one that allows the lower-temperature geothermal resources utilization According to the Economist Intelligence Unit, there has been an increase of about 71% in the online search of sustainable goods, globally.
Growth Drivers
Challenges
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Base Year |
2023 |
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Forecast Year |
2024-2036 |
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CAGR |
~ 13% |
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Base Year Market Size (2023) |
~ USD 35 Billion |
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Forecast Year Market Size (2036) |
~ USD 152 Billion |
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Regional Scope |
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Type (Binary Cycle, Dry Steam, Flash)
Binary type segment is predicted to account for 42% share of the global geothermal energy market during the forecast period. owing to the comparatively less water usage and also the less production of the by-products as compared to the conventional geothermal energy technologies. This helps in the reduction of the environmental impact and also makes it more sustainable.
Furthermore, commercial heating and cooling is also a part of the building and construction industries that specialize in HVAC technologies. Furthermore, the binary type also operates at a lower temperature while having a single-phase water-steam cycle, where only one phase of water is used. This reduces the risk of complications and hazards related to multiple phases of fluids and the need for special equipment.
Application (Commercial Heating & Cooling, Power Generation, Residential)
The commercial heating & cooling segment is set to garner a notable share shortly and is likely to remain the second largest segment in the application of the geothermal energy market as this commercial heating and Cooling is a component of the HVAC (heating, ventilation, and air conditioning) industry that involves the design, install, maintenance, and the repair of HVAC systems in several commercial buildings, such as offices, schools, retail stores, and restaurants as well.
These commercial heating and cooling activities can utilize geothermal energy-based systems and techniques mainly to reduce the energy that is being used for heating and cooling purposes, as well as the emissions associated with the use of such fossil fuels. This can contribute to the growth of the geothermal energy market, as it increases the demand for geothermal energy components and services.
End-users (Commercial, Residential, Industrial)
The commercial segment is estimated to hold a noteworthy share as it can be used to generate electricity using either direct-use heat engines or geothermal power plants. This directly contributes to the supply of renewable energy along with the reduction of the reliance on fossil fuels and this can be used to provide heating and cooling for commercial buildings through geothermal heat pumps which can also reduce the emissions that are associated with the traditional heating and cooling systems.
Our in-depth analysis of the global market includes the following segments:
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Type |
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Application |
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End-users |
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North American Market Forecast
The geothermal energy market in North America is estimated to have the largest share of approximately 46% in 2023, driven by the new bill- the Geothermal Energy Optimization Act, 2024 which was passed in the US that permits the geothermal projects on public lands and hence the investors would surely be attracted towards it. The federal and state levels are coming hand in hand with implementing the policies that are favorable for the geothermal industry.
Furthermore, this unlocks the fact that the latest report claims that the western US region can generate electricity up to 90 gigawatts as soon as 2050. These factors are expected to fuel the demand for Geothermal Energy in this region.
APAC Market Statistics
The Asia Pacific geothermal energy market is estimated to be the second largest, during the forecast timeframe led by the increasing demand for clean and renewable energy to move towards sustainability is playing a major role in the development of this sector. Taiwan International Geothermal Conference (TIGC 2024) is happening to allow the development of the geothermal sector. The government is also backing people up by implementing affordable and simply permitting initiatives, subsidies, and much more. This is the reason why the Asia Pacific region is growing and developing at a faster pace and is estimated to have the largest geothermal market in the forecasted period.
Author Credits: Payel Roy, Dhruv Bhatia
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