The Report Covers Geothermal Energy Market Size & Share and It is Segmentation by Plant Type (Dry Steam Plants, Flash Steam Plants, and Binary Cycle Power Plants) and Geography (North America, Europe, Asia-Pacific, South America, and Middle-East and Africa). The Report Offers the Market Size and Forecasts Based On Installed Capacity for all the Above Segments.

According to Cognitive Market Research, the global geothermal energy market size is USD 6815.2 million in 2024 and will expand at a compound annual growth rate (CAGR) of 6.20% from 2024 to 2031.

North America held the major market of around 40% of the global revenue with a market size of USD 2726.08 million in 2024 and will grow at a compound annual growth rate (CAGR) of 4.4% from 2024 to 2031.
Europe accounted for a share of over 30% of the global market size of USD 2044.56 million.
Asia Pacific held the market of around 23% of the global revenue with a market size of USD 1567.50 million in 2024 and will grow at a compound annual growth rate (CAGR) of 8.2% from 2024 to 2031.
Latin America market of around 5% of the global revenue with a market size of USD 340.76 million in 2024 and will grow at a compound annual growth rate (CAGR) of 5.6% from 2024 to 2031.
Middle East and Africa held the major market of around 2% of the global revenue with a market size of USD 136.30 million in 2024 and will grow at a compound annual growth rate (CAGR) of 5.9% from 2024 to 2031.
The hybrid systems held the highest growth rate in geothermal energy market in 2024.

Key Drivers of Geothermal Energy Market

Government Incentives and Policies to Support Geothermal Energy Development

Government incentives and policies play a crucial role in fostering the development of geothermal energy. Many governments worldwide offer financial incentives such as tax credits, grants, and subsidies to encourage investment in geothermal projects. These incentives help offset the high upfront costs associated with drilling and infrastructure development, making geothermal energy more financially viable for developers and investors. Additionally, governments often establish supportive policies, including renewable energy targets, feed-in tariffs, and renewable portfolio standards, which create a favourable regulatory environment for geothermal energy deployment. Such policies provide long-term market certainty and incentivize utilities and industries to incorporate geothermal power into their energy portfolios. Moreover, government-funded research and development initiatives drive innovation in geothermal technology, leading to increased efficiency, reduced costs, and expanded geothermal resource exploration and utilization.

Growing Demand for Sustainable Heating and Cooling Solutions to Propel the Market

The escalating demand for sustainable heating and cooling solutions is a significant driver propelling the geothermal energy market forward. As awareness of environmental issues grows, businesses and consumers increasingly prioritize eco-friendly alternatives to traditional heating and cooling systems. Geothermal energy offers a compelling solution, leveraging the Earth's stable temperatures to provide efficient heating in winter and cooling in summer with minimal carbon footprint. This demand is particularly pronounced in sectors such as residential, commercial, and industrial, where reducing greenhouse gas emissions and energy costs are paramount. Furthermore, technological advancements in geothermal heat pump systems have made them more affordable and accessible, further fuelling adoption. As governments worldwide enact stricter regulations to curb carbon emissions, the demand for sustainable heating and cooling solutions like geothermal energy is expected to continue its upward trajectory, driving market growth.

Restraint Factors of Geothermal Energy Market

High Initial Investment Costs for Geothermal Exploration to Limit the Sales

The high initial investment costs for geothermal exploration pose a significant constraint on market sales. Developing a geothermal project involves substantial upfront expenses, including site assessment, drilling, and infrastructure construction. These costs can be prohibitive for many investors, particularly in regions with limited access to financing or uncertain regulatory environments. Additionally, the geological uncertainties associated with identifying viable geothermal resources further amplify the risk for potential investors, deterring them from committing to such ventures. Moreover, the relatively long payback periods for geothermal projects compared to conventional energy sources may discourage investment, especially in markets prioritizing short-term returns. Addressing these cost barriers through innovative financing ...

Geothermal Energy Market Outlook

According to our latest research, the global geothermal energy market size reached USD 7.2 billion in 2024. The market is projected to expand at a robust CAGR of 7.8% from 2025 to 2033, reaching a forecasted value of USD 14.2 billion by 2033. This impressive growth trajectory is primarily driven by increasing demand for clean and renewable energy sources, supportive government policies, and technological advancements that are boosting the efficiency and viability of geothermal power plants worldwide.

One of the most significant growth factors propelling the geothermal energy market is the global shift towards sustainable energy solutions. As nations strive to reduce their carbon footprint and meet ambitious net-zero targets, geothermal energy stands out due to its minimal greenhouse gas emissions and ability to provide baseload power. Unlike intermittent renewables such as solar and wind, geothermal energy offers a consistent and reliable energy supply, making it highly attractive for grid stability. Furthermore, international agreements and policy frameworks, including the Paris Agreement, are encouraging greater investments in renewable energy infrastructure, with geothermal energy receiving increasing attention due to its long-term economic and environmental benefits.

Technological innovations are also playing a pivotal role in the expansion of the geothermal energy market. Recent advancements in drilling techniques, reservoir management, and binary cycle technology have significantly improved the efficiency and cost-effectiveness of geothermal power generation. Enhanced geothermal systems (EGS) are opening new possibilities for tapping geothermal resources in areas previously considered non-viable. Additionally, the integration of digital tools and data analytics is optimizing plant operations and maintenance, thereby reducing operational costs and increasing plant lifespans. These technological developments are lowering the barriers to entry and making geothermal projects more attractive to investors and utilities alike.

Another critical driver for market growth is the increasing application diversity of geothermal energy. While electricity generation remains the primary use, there is a growing trend towards direct use applications such as district heating, greenhouse heating, and industrial processes. Direct use applications are particularly gaining traction in regions with accessible low-to-medium temperature geothermal resources. These applications not only contribute to energy diversification but also enhance energy security and reduce dependence on fossil fuels. As urbanization and industrialization continue to rise, especially in emerging economies, the demand for reliable and sustainable heating solutions is expected to further boost the geothermal energy market.

From a regional perspective, Asia Pacific is emerging as a dominant force in the geothermal energy market, driven by robust investments in Indonesia, the Philippines, and Japan. North America, led by the United States, remains a mature market with ongoing capacity additions and modernization of existing plants. Europe is also witnessing significant growth, particularly in Iceland, Turkey, and Italy, where supportive regulatory frameworks and abundant geothermal resources are fostering market expansion. Meanwhile, Latin America and the Middle East & Africa are gradually increasing their geothermal capacities, supported by international funding and technology transfer initiatives. The regional dynamics are characterized by varying degrees of resource availability, regulatory support, and market maturity, which collectively shape the global geothermal energy landscape.

Technology Analysis

The geothermal energy market is segmented by technology into Dry Steam, Flash Steam, and Binary Cycle systems, each offering unique advantages and catering to different resource conditions. Dry steam technology, the oldest and most establ

The report covers Geothermal Energy Companies in Indonesia and the industry analysis provides insight into the installed capacity, government policies and regulations, competitive landscape, market dynamics, and opportunities. The report offers the market size and forecasts for installed capacity (megawatts).

Geothermal Energy Market is predicted to have a value of USD 11.0 Billion By 2035, with an annualized growth rate (CAGR) of 3.6%

The geothermal energy market is experiencing robust growth, driven by increasing concerns about climate change and the need for sustainable energy sources. The market's expansion is fueled by supportive government policies promoting renewable energy adoption, technological advancements leading to improved efficiency and reduced costs, and rising electricity demand globally. While the exact market size in 2025 is not specified, considering a plausible CAGR of 5% (a conservative estimate given the sector's growth potential) and assuming a 2024 market size of $10 billion (this is a reasonable estimation given the involvement of major players like Ormat and Enel Green Power), the 2025 market size could be estimated at approximately $10.5 billion. This growth is projected to continue throughout the forecast period (2025-2033). Key applications driving this growth include electricity generation and direct use in heating and industrial processes. Segment-wise, the electricity generation segment is likely the dominant contributor, followed by direct use applications. Geographic regions like North America, Europe, and Asia Pacific are expected to be major contributors, with emerging economies in Asia showcasing significant growth potential due to increasing energy demand and government initiatives. However, challenges remain, including high upfront capital costs associated with geothermal power plant development and geographical limitations of suitable geothermal resources. These restraints, while present, are not expected to significantly hamper the overall positive trajectory of market expansion. The competitive landscape is marked by a mix of established players and emerging companies. Major players like Ormat, Enel Green Power, and Calpine are continuously investing in research and development to improve geothermal technologies and expand their geographic reach. Government support and private sector investments will play a significant role in determining the rate of market expansion in the years to come. The continued focus on sustainable development and the need for energy security worldwide should further bolster the growth of the geothermal energy market. This positive trend is expected to translate into significant market expansion and increased opportunities for stakeholders throughout the forecast period.

The global geothermal energy market size was valued USD 7.39 billion in 2023 and is expected to increase to USD 12.99 billion by 2032 at a CAGR of 6.60%.

The global geothermal energy market is experiencing robust growth as a pivotal player in the transition to cleaner and more sustainable energy sources.

Geothermal Power Market valuation is estimated to reach USD 6.09 Bn in 2025 and is anticipated to grow to USD 8.74 Bn by 2032 with steady CAGR of 5.3% .

Geothermal Power Market size was valued at USD 5.7 Billion in 2024 and is projected to reach USD 8.43 Billion by 2031, growing at a CAGR of 5.01% from 2024 to 2031.

Key Market Drivers: • Environmental Sustainability: Geothermal power is a sustainable energy source with a low carbon footprint, making it an appealing alternative for lowering greenhouse gas emissions and mitigating climate change. The growing global emphasis on environmental sustainability, as well as the move to cleaner energy sources, are driving up demand for geothermal electricity. • Energy Security and Reliability: Geothermal power, unlike other renewable energy sources such as solar and wind, produces a consistent and continuous energy output regardless of weather conditions. This dependability boosts energy security and facilitates its incorporation into the energy grid, making it an important contribution to national energy portfolios. • Technological Aadvancements: Drilling technology innovations and enhanced geothermal systems (EGS) have made geothermal resources more accessible and cost-effective. These developments cut entrance and operating costs, boosting investment and development in the geothermal power sector. • Government Policies and Incentives: Government policies that encourage renewable energy projects, such as subsidies and incentives, are critical in pushing the Geothermal Power Market. Many nations are enacting favorable policies and giving financial assistance to encourage the development and usage of geothermal energy, resulting in increased market growth.

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Geothermal Power Market Size 2024-2028

The geothermal power market size is forecast to increase by USD 9.12 billion, at a CAGR of 21.1% between 2023 and 2028.

The market is experiencing significant growth, driven by escalating investments and government initiatives in renewable energy sources. This trend is reflected in the increasing geothermal capacity worldwide. However, the high initial capital investments required for establishing geothermal power plants poses a substantial challenge for market entrants. Despite this obstacle, the market's strategic landscape remains promising for companies seeking to capitalize on the growing demand for sustainable energy solutions. The potential for geothermal energy to provide consistent, reliable power makes it an attractive alternative to traditional fossil fuel-based energy sources.
As governments and businesses continue to prioritize reducing carbon emissions and increasing energy security, the market is poised for continued expansion. Companies in this sector can navigate the challenges by focusing on cost-effective technologies and strategic partnerships, ensuring a strong market presence and competitive edge.

What will be the Size of the Geothermal Power Market during the forecast period?

Explore in-depth regional segment analysis with market size data - historical 2018-2022 and forecasts 2024-2028 - in the full report.
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The market continues to evolve, driven by the ongoing pursuit of production optimization and electricity generation from hydrothermal resources. Geothermal exploration techniques advance, enabling the assessment of geothermal resources with increasing accuracy. Capital costs and operating costs are subject to constant scrutiny, as technology advancements in areas such as thermal energy storage and power transmission seek to improve efficiency and reduce carbon footprint. Geothermal energy finds applications across various sectors, including district heating, space heating, and industrial processes. Policy frameworks and financial incentives play a crucial role in shaping market dynamics, influencing investment opportunities and community acceptance.

Geothermal mapping and data analysis are essential for effective resource assessment and reservoir engineering. Geopressured systems and hydrothermal resources offer potential for increased production, while geothermal heat pumps and energy storage systems contribute to overall system flexibility and reliability. Environmental regulations and public perception shape the market's evolution, with a focus on minimizing greenhouse gas emissions and addressing induced seismicity concerns. Seismic monitoring, remote sensing, and lifecycle assessment are integral to ensuring sustainable energy practices and mitigating environmental impact. Power generation from geothermal resources remains a key focus, with geothermal fluids providing a consistent and renewable energy source.

Integration into the electricity grid and land use considerations are essential aspects of market development. Investment opportunities in the market are shaped by ongoing technological advancements and evolving market patterns. The continuous dynamism of the market underscores the importance of staying informed and adaptive.

How is this Geothermal Power Industry segmented?

The geothermal power industry research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in 'USD million' for the period 2024-2028, as well as historical data from 2018-2022 for the following segments.

Type

  Flash
  Binary
  Dry steam


End-user

  Industrial
  Commercial
  Residential


Geography

  North America

    US


  Middle East and Africa

    Turkey


  APAC

    Indonesia
    New Zealand
    Philippines


  Rest of World (ROW)

By Type Insights

The flash segment is estimated to witness significant growth during the forecast period.

Geothermal energy, derived from the Earth's heat, is a sustainable and renewable energy source that has gained significant attention due to its potential to reduce carbon footprint and provide continuous power generation. The market for geothermal energy is dynamic, with advancements in exploration techniques, technology, and policy frameworks driving growth. Geothermal exploration involves drilling deep wells to access hydrothermal resources, with well testing playing a crucial role in assessing the viability of these resources. Capital costs for geothermal power plants have decreased due to technological advancements, making it a cost-competitive option for renewable energy. Geothermal energy can be harnessed for various applications, including electricity generation, district heating, and space heating.

Direct use applications, such as greenhouse heating, are also gaining popularity. Geothermal power plants employ different techniques, including

Global Geothermal Energy Market is poised to witness substantial growth, reaching a value of USD 14.2 Billion by the year 2032, up from USD 8.09 Billion attained in 2023. The market is anticipated to display a Compound Annual Growth Rate (CAGR) of 6.46% between 2023 and 2032.

The Geothermal Energy market size to cross USD 14.2 Billion by 2032. [https://edison.valuemarketresearch.com//uploads/repo

According to Cognitive Market Research, the global Geothermal Power Equipment market size will be USD 28340 million in 2025. It will expand at a compound annual growth rate (CAGR) of 5.90% from 2025 to 2033.

North America held the major market share for more than 40% of the global revenue with a market size of USD 10485.80 million in 2025 and will grow at a compound annual growth rate (CAGR) of 4.4% from 2025 to 2033.
Europe accounted for a market share of over 30% of the global revenue with a market size of USD 8218.60 million.
APAC held a market share of around 23% of the global revenue with a market size of USD 6801.60 million in 2025 and will grow at a compound annual growth rate (CAGR) of 8.6% from 2025 to 2033.
South America has a market share of more than 5% of the global revenue with a market size of USD 1076.92 million in 2025 and will grow at a compound annual growth rate (CAGR) of 6.6% from 2025 to 2033.
Middle East had a market share of around 2% of the global revenue and was estimated at a market size of USD 1133.60 million in 2025 and will grow at a compound annual growth rate (CAGR) of 7.2% from 2025 to 2033.
Africa had a market share of around 1% of the global revenue and was estimated at a market size of USD 623.48 million in 2025 and will grow at a compound annual growth rate (CAGR) of 6.2% from 2025 to 2033.
Dry Steam Plants category is the fastest growing segment of the Geothermal Power Equipment industry

Market Dynamics of Geothermal Power Equipment Market

Key Drivers for Geothermal Power Equipment Market

Rising Global Demand for Renewable Energy to Boost Market Growth

With growing concerns over climate change, governments and industries are increasingly shifting toward clean and sustainable energy sources like geothermal. In 2023, renewable electricity capacity additions reached an estimated 507 GW, nearly 50% higher than in 2022, driven by continuous policy support in over 130 countries. Under current policies and market conditions, global renewable capacity is projected to reach 7,300 GW by 2028. The Paris Agreement and national commitments to net-zero carbon emissions are accelerating investments in renewable energy infrastructure, including geothermal power plants. Unlike solar or wind power, geothermal energy provides a constant and reliable power supply, making it an attractive renewable option. As more geothermal power plants are deployed, the demand for drilling rigs, turbines, heat exchangers, generators, and other essential equipment continues to rise.

https://www.iea.org/reports/renewables-2023/executive-summary

Rising Electricity Demand & Energy Security Concerns to Boost Market Growth

Global electricity demand is rising rapidly, driven by urbanization, industrialization, and digital transformation. In 2022, India experienced a strong 8.4% increase in electricity demand, fueled by its robust post-pandemic economic recovery and exceptionally high summer temperatures. The United States also recorded a notable 2.6% year-over-year increase in demand. As many countries seek energy security and aim to reduce their reliance on fossil fuel imports, geothermal power is becoming an attractive baseload energy source. The growing need for stable and uninterrupted power generation is accelerating the installation of geothermal plants, leading to a higher demand for power turbines, steam separators, condensers, and transformers.

Restraint Factor for the Geothermal Power Equipment Market

High Initial Capital Investment & Project Development Costs, Will Limit Market Growth

Geothermal power projects require substantial upfront investments in exploration, drilling, and power plant construction. The cost of drilling geothermal wells is particularly high, ranging from $2 million to $7 million per well, depending on depth and location. Compared to solar or wind energy, which involve lower initial investments, geothermal projects have longer payback periods, making investors more hesitant. High capital costs slow the development of new projects, thereby reducing the demand for drilling rigs, turbines, heat exchangers, and wellhead equipment. Additionally, smaller companies and emerging markets often struggle to secure funding, further restraining market growth.

Market Trends in Geothermal Power Equipment Market

Supportive Government Policies & Incentives

Many governments are implementing favorable policies, subsidies, and tax...

[229+ Pages Report] The global geothermal energy market size is expected to grow from USD 7.63 billion in 2023 to USD 13.68 billion by 2032, at a CAGR of 6.70% from 2024-2032

The global geothermal energy market size was valued at over USD 7.83 billion in 2024 and is expected to grow at a CAGR of more than 5.6%, surpassing USD 15.9 billion by 2037. The binary type segment is anticipated to hold a 42% share, driven by its low water usage and enhanced environmental sustainability.

The size of the Geothermal Energy Market was valued at USD XX Million in 2023 and is projected to reach USD XXX Million by 2032, with an expected CAGR of 2.69% during the forecast period. The geothermal energy sector is emerging as a significant contributor to the global shift towards sustainable and low-carbon energy alternatives. Harnessed from the Earth's internal heat, geothermal energy provides a dependable and consistent power supply, markedly lowering greenhouse gas emissions in comparison to fossil fuels. The expansion of this market is fueled by heightened awareness of climate change, favorable government initiatives, and technological progress that improves the efficiency and viability of geothermal projects. Recent developments, including advanced drilling methods and enhanced geothermal systems (EGS), are broadening the geographical and economic feasibility of geothermal energy. These innovations facilitate deeper and more effective heat extraction, rendering geothermal power attainable in areas previously considered unsuitable. Furthermore, the adaptability of geothermal energy—applicable for electricity generation, direct heating, and cooling—enhances its utility and market opportunities. Notwithstanding its advantages, the geothermal energy sector encounters obstacles, such as substantial initial capital investments and site-specific uncertainties. Nevertheless, ongoing funding and research efforts are working to mitigate these challenges, rendering geothermal energy increasingly competitive. The market is projected to maintain its growth trajectory, bolstered by rising environmental awareness, policy support, and the ongoing advancement of geothermal technologies, thereby establishing itself as an essential element of a sustainable global energy framework. Recent developments include: May 2023: Subterra Renewables, a leading Canadian geothermal developer and engineering firm, announced its winning bid in TerraScale Inc.'s Request for Proposal (RFP) for its Green Snow Project. The Green Snow Project is an ambitious geothermal energy initiative located in Northern Japan. It is a groundbreaking collaboration between TerraScale and Climate Transition Development Corporation and Global Family., February 2023: Fuji Electric Co., Ltd. announced that it was awarded a contract for a supply of geothermal energy project for the Menengai geothermal power station in Kenya by Toyota Tsusho Corporation, which entered into an EPC contract with QPEA GT Menengai Limited.. Key drivers for this market are: 4., Increasing Electricity Security Concerns Due to Clean and Eco-Friendly Resources4.; Increasing Demand for Heating and Cooling Systems, Including Ground Source Heat Pumps. Potential restraints include: 4., Lucrative Market Opportunities for Alternative Clean Energy Sources Like Solar and Wind. Notable trends are: The Binary Cycle Power Plants Segment is Expected to Witness Significant Growth.

The Asia-Pacific geothermal energy market is segmented by Geothermal Power Plant Type (Dry Steam, Flash Plants, Binary Plants), Geography (Indonesia, Philippines, Japan, Rest of Asia-Pacific).

The geothermal energy market is projected to be valued at $5.5 billion in 2024, driven by factors such as increasing consumer awareness and the rising prevalence of industry-specific trends. The market is expected to grow at a CAGR of 7.7%, reaching approximately $11.6 billion by 2034.

The global geothermal energy market exhibits robust growth potential, projected to reach a significant market size in the coming years. While the exact market size for the base year 2025 is not explicitly provided, considering a CAGR of 2.69% and referencing industry reports showing substantial investment and project development in geothermal energy, a reasonable estimate for the 2025 market size would fall within the range of $10 billion to $15 billion (USD). This growth is fueled by several key drivers: the increasing urgency to transition to renewable energy sources to mitigate climate change, supportive government policies and incentives promoting geothermal energy development worldwide, and technological advancements leading to enhanced efficiency and reduced costs of geothermal power generation. Furthermore, the rising energy demand, particularly in developing economies, and the inherent reliability and baseload power generation capabilities of geothermal energy are further bolstering market expansion. However, the market also faces some challenges. High upfront capital costs associated with geothermal power plant construction and exploration can deter investment. Geographical limitations, as geothermal resources are not evenly distributed globally, pose another restraint. Furthermore, potential environmental concerns, such as induced seismicity in certain geological settings, require careful management and mitigation strategies. Despite these limitations, the long-term outlook for the geothermal energy market remains positive, driven by the increasing global focus on sustainable energy solutions and technological advancements addressing the existing challenges. The market is segmented across various players, including power plant equipment manufacturers, EPC companies, and operators, with prominent companies such as Ormat Technologies, Fuji Electric, Engie SA, and Enel SpA driving innovation and market expansion. The forecast period from 2025 to 2033 promises substantial growth, with continuous development and deployment of geothermal energy projects expected across various regions. Key drivers for this market are: 4., Increasing Electricity Security Concerns Due to Clean and Eco-Friendly Resources4.; Increasing Demand for Heating and Cooling Systems, Including Ground Source Heat Pumps. Potential restraints include: 4., Lucrative Market Opportunities for Alternative Clean Energy Sources Like Solar and Wind. Notable trends are: The Binary Cycle Power Plants Segment is Expected to Witness Significant Growth.

The Netherlands Geothermal Energy Market Report is Segmented by Technology Type (Dry Steam, Flash Steam, Binary Steam, And Others Steam), Subsurface Type (Heat and Cold Storage, Geothermal Energy, And Ultra-Deep Geothermal Energy). The Market Size and Forecasts are Provided in Terms of Installed Capacity (Megawatt) for all the Above Segments.