Geothermal Energy Market Outlook:
Geothermal Energy Market size was valued at USD 9.4 billion in 2025 and is set to exceed USD 16.06 billion by 2035, registering over 5.5% CAGR during the forecast period i.e., between 2026-2035. In the year 2026, the industry size of geothermal energy is evaluated at USD 9.87 billion.
As it harnesses the Earth’s natural heat, which is virtually inexhaustible, geothermal energy use is a sustainable practice with minimal greenhouse gas emissions and a low environmental footprint. Additionally, each country is trying to build or find a method that is more advanced and eco-friendly and allows low-temperature geothermal resource utilization. As per the IEA World Energy Outlook 2024, the United States targets net zero emissions with a 50-52% reduction in greenhouse gas (GHG) by 2030 in comparison to 2005 levels. IEA further states that heat production is among the largest global energy-related CO2 emission contributors, accounting for up to 40% of the overall emissions, making geothermal energy use even more vital.
The launch of geothermal projects is a major driver of the global market as increasing investments are being channeled into exploration and development. The projects are focused on expanding geothermal energy’s role in the global energy mix, driven by its potential for providing reliable, low-emission, and baseload power. In September 2023, Fervo Energy launched a next-generation geothermal project to deliver 400 MW of 24/7 carbon-free electricity at Cape Station, aiming to commence distributing around-the-clock, clean power to the grid in 2026 and reach full-scale production in 2028.
The Climate Investment Funds (CIF) 2024, has allocated USD 810 million for geothermal investments in 15 countries, to break down the barriers of the power expansion. In Africa, the organizations invested USD 125.5 million for 710 MW, Asia USD 414.6 million for 2,200 MW, Europe & Central Asia USD 73.8 million for 79 MW, and Latin America and Caribbean USD 194.8 for 516 MW.
