The global geothermal energy market is estimated to garner a sizeable revenue by growing at a ~4% CAGR over the forecast period, i.e., 2022–2030. The growth of the market can be attributed to the various advantages of geothermal energy, including stable and independent power generation. In this renewable source, the steam generated from the hot springs is used to rotate the turbine and produce electricity. This is a relatively newer concept of low-carbon electricity generation, which is why there is tremendous untapped potential in this market. According to the report by the International Environment Agency geothermal electricity generation has increased by an estimated 3% in the past 5 years, as of 2019, and is further expected to grow. Major market players in the energy and power sector are increasingly investing in geothermal power plants, which is estimated to boost the market growth. Moreover, various government initiative to promote the adoption of geothermal energy is anticipated to generate growth opportunities for the market. For instance, the International Renewable Energy Agency (IRENA), established a platform called, Global Geothermal Alliance (GGA) to promote geothermal energy development on a global level.
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The global geothermal energy market is segmented by plant type into dry steam plants, flash steam plants, binary cycle power plants, and others out of which, the binary cycle power plants segment is anticipated to hold the largest share in the market during the forecast period on account of its ability of function at relatively lower temperatures, around 200-300°F.
In 2018, the world’s total energy supply was 14282 Mtoe, wherein the highest share in terms of source was captured by oil, accounting for 31.6%, followed by coal (26.9%), natural gas (22.8%), biofuels and waste (9.3%), nuclear (4.9%), hydro (2.5%), and other (2.0%). Where there was an increase in energy demand in 2018, the year 2019 witnessed slow growth as the energy efficiency improved owing to decline in the demand for cooling and heating. However, in 2020, the electricity demand decreased by 2.5% in the first quarter of 2020 due to the outbreak of Coronavirus resulting in government imposed shutdowns in order to limit the spread of the virus, which was further followed by shutdown of numerous business operations impacting their growth. This also resulted in decline of 5.8% in the worldwide CO2 emissions which was recorded to be five times larger than the one recorded during the global financial crisis in 2009. However, in 2021, the demand for oil, gas and coal is estimated to witness growth, which is further projected to create opportunities for market growth. Moreover, rising environment degradation and awareness related to climate change is motivating many key players to employ sustainable energy strategies and invest significantly in environment-friendly power generation technologies with an aim to promote sustainable development among various nations around the world. Such factors are anticipated to promote the growth of the market in upcoming years.
Regionally, the global geothermal energy market is segmented into five major regions including North America, Europe, Asia Pacific, Latin America and Middle East & Africa region. The market in Europe region is estimated to witness highest CAGR over the forecast period on the back of presence of various geothermal reservoirs in the countries, such as, Iceland, Italy and Turkey, among others. Moreover, government initiatives to promote the use of geothermal energy is anticipated to boost the regional market growth.
The market in the North America region is estimated to hold the largest share over the forecast period owing to the presence of large number of geothermal power plants in the United States and Canada, backed by the favorable climatic conditions in the region. According to the report of the U.S. Energy Information Administration (EIA), in 2020, seven states of US have geothermal power plants, generating more than 17 billion kilowatt per hours (kWh) energy, which amounted to 0.4% of the total U.S. utility-scale electricity generation.
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The global geothermal energy market is further classified on the basis of region as follows:
Our in-depth analysis of the global geothermal energy market includes the following segments:
FREQUENTLY ASKED QUESTIONS
Rising demand for renewable energy and stable nature of geothermal sources are the key factors driving market growth.
The market is anticipated to attain a ~4% CAGR over the forecast period, i.e., 2022-2030.
High capital investment is the major challenge that is estimated to hamper the market growth.
The market in the North America region will provide ample growth opportunities owing to the increasing number of geothermal powerplants and favorable landscape in the region.
The major players dominating the geothermal energy market are Siemens AG, GE group, KEPCO Group, ABB Ltd, Mitsubishi Power, Ltd., Engie SA, First Gen Corporation, and others.
The company profiles are selected on the basis of revenues generated from the product segment, geographical presence of the company which determine the revenue generating capacity as well as the new products being launched into the market by the company.
The market is segmented by plant type, end-user, and by region.
The binary cycle power plants segment is anticipated to hold the largest market share owing to its feature of operating even in a low-temperature reservoir.
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