PUBLISHER: The Business Research Company | PRODUCT CODE: 1387892
PUBLISHER: The Business Research Company | PRODUCT CODE: 1387892
“Geothermal Electricity Global Market Report 2024 ” from The Business Research Company provides strategists, marketers and senior management with the critical information they need to assess the market.
This report focuses on geothermal electricity market which is experiencing strong growth. The report gives a guide to the trends which will be shaping the market over the next ten years and beyond.
Where is the largest and fastest growing market for geothermal electricity? How does the market relate to the overall economy, demography and other similar markets? What forces will shape the market going forward? “The geothermal electricity market global report ” from The Business Research Company answers all these questions and many more.
The report covers market characteristics, size and growth, segmentation, regional and country breakdowns, competitive landscape, market shares, trends and strategies for this market. It traces the market's historic and forecast market growth by geography.
Geothermal energy is the heat generated within the Earth's core, and it serves as a clean and renewable resource that can be utilized for both heating and electricity generation. This energy source is harnessed by tapping into the Earth's internal heat to produce steam through a network of wells, which is then directed to power plants to generate electricity.
The geothermal electricity market, as outlined in this report, is categorized into various types, including back pressure, binary, double flash, dry steam, single flash, and triple flash systems. Additionally, it is further divided by end-users, encompassing dry steam power stations, flash steam power stations, and binary cycle power stations.
The geothermal electricity market research report is one of a series of new reports from The Business Research Company that provides geothermal electricity market statistics, including geothermal electricity industry global market size, regional shares, competitors with a geothermal electricity market share, detailed geothermal electricity market segments, market trends and opportunities, and any further data you may need to thrive in the geothermal electricity industry. This geothermal electricity market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.
The geothermal electricity market size has grown rapidly in recent years. It will grow from $7.28 billion in 2023 to $8.07 billion in 2024 at a compound annual growth rate (CAGR) of 10.8%. The growth observed during the historical period can be attributed to several key factors, including the availability of geothermal resources, concerns about environmental sustainability, government incentives, and the desire for enhanced energy security.
The geothermal electricity market size is expected to see rapid growth in the next few years. It will grow to $12.27 billion in 2028 at a compound annual growth rate (CAGR) of 11.0%. The anticipated growth in the forecast period can be primarily attributed to factors such as the pursuit of climate-related goals, the ongoing transition to cleaner energy sources, market liberalization, and the global expansion of geothermal energy initiatives. Notable trends expected to shape this period include technological advancements, the increased deployment of Enhanced Geothermal Systems (EGS), hybridization of geothermal with other energy sources, the utilization of geothermal heat pumps, and the expansion of direct-use applications of geothermal energy.
The escalating global need for electricity is anticipated to be the driving force behind the geothermal electricity market in the upcoming forecast period. Factors such as expanding economies, rapidly growing populations, and heightened transportation demands, particularly in developing nations like China, India, Brazil, and certain African countries, are significantly contributing to the surge in electricity demand. Projections indicate a substantial increase in global electricity demand, estimated to reach 38,700 Terawatt-hours (TWH) by 2050, with electric vehicles expected to represent around 9% of this demand. As the global population is forecasted to increase by approximately two billion in the next two decades, a corresponding 49% surge in electricity generation is expected by 2040. Consequently, the mounting requirement for electricity is foreseen to steer the growth of the geothermal electricity market.
The upward trajectory in the utilization of heat pumps within the commercial sector is poised to propel the expansion of the geothermal electricity market in the foreseeable future. Commercial heat pumps, integral components of heating, ventilation, and air conditioning (HVAC) systems tailored for non-residential and commercial setups, rely on thermal electricity to facilitate the heat exchange process. This process enables the extraction or release of heat from the surrounding environment, thereby effectively delivering heating or cooling solutions for residential, commercial, or industrial applications. For instance, statistics from March 2023 published by the International Energy Agency (IEA) highlighted an 11% growth in global heat pump sales in 2022, marking a second consecutive year of double-digit expansion, primarily attributed to increased policy backing and incentives. Notably, in Europe, heat pump sales experienced exceptional growth, reaching nearly 40%. Consequently, the escalating utilization of heat pumps in the commercial sphere is a significant driver in the advancement of the geothermal electricity market.
Globally, the geothermal electricity market is experiencing substantial financial backing from governments. This support is in the form of grants and other incentives aimed at fostering sustainable energy sources. An illustrative instance is the Geothermal Energy from Oil and Gas Demonstrated Engineering Funding Opportunity (FOA), announced in 2022 by the U.S. Department of Energy (DOE). The initiative is set to allocate up to $165 million to expand the deployment of geothermal energy in the United States, utilizing technologies and expertise from the oil and gas sector. The initial FOA plans to earmark $10 million for the establishment of a consortium, envisaged to devise a roadmap addressing technological and knowledge gaps in geothermal energy. Subsequently, leveraging this roadmap, the U.S. Department of Energy (DOE) plans to allocate an additional $155 million for research purposes aimed at filling these identified gaps.
The development of the geothermal electricity market is impeded by the environmental repercussions associated with drilling into the earth's surface. Geothermal energy production involves altering pathways for subsurface heat to generate power, resulting in surface fractures and potential seismic instability. Construction of geothermal power plants contributes to uneven terrain, heightening the risk of earthquakes. Concerns also encompass sudden emissions of sulfur dioxide and silica. In 2021, a canceled geothermal project, reported by France's National Seismic Monitoring Network (Renass), led to a 3.9 magnitude earthquake in Strasbourg, France. The cumulative risk of earthquakes and related environmental challenges poses limitations on the growth of the geothermal electricity market.
Enterprises within the geothermal electricity sector are investing in innovative technologies to make geothermal energy more accessible for electricity generation and heating purposes. Presently, significant geothermal energy extraction occurs in areas abundant in easily accessible, high-temperature water. Yet, regions like the UK and France possess limited availability of such resources compared to volcanic regions like Iceland and Indonesia. Consequently, companies are channeling investments into novel methodologies to enhance the extractability and accessibility of geothermal energy. An example is Climeon, a Sweden-based company that developed technology functioning within temperature ranges of 70 °C to 120 °C. This innovation utilizes temperature differentials between hot and cold water to produce electricity, providing a continuous power source unaffected by weather conditions, unlike solar and wind power.
Leading entities operating in the geothermal electricity market are embracing strategic partnerships to fortify their capabilities and competitive positioning. Strategic partnerships involve a collaborative process wherein companies leverage each other's strengths and resources for mutual benefit and success. In March 2023, Geothermal Core Inc., a US-based geothermal exploration and production power company, partnered with GEG ehf, an Iceland-based geothermal developer and EPC company. Their joint objective is to establish a utility-scale geothermal power plant in Texas, emphasizing the production of clean baseload electricity for sustainable energy purposes.
Major companies operating in the geothermal electricity market include Calpine Corporation, Comision Federal de Electricidad (CFE), Energy Development Corporation, Enel S.p.A., Chevron Corporation, U.S. Geothermal Inc., Kenya Electricity Generating Company PLC (KenGen), Contact Energy Limited, Orkuveita Reykjavikur (Reykjavik Energy), Pertamina Geothermal Energy, CalEnergy Generation, Star Energy Ltd., Northern California Power Agency, Terra-Gen LLC, Ormat Technologies Inc., Aboitiz Power Corporation, Mercury NZ Limited, PT Pertamina Geothermal Energy, Raya Group Limited, Cyrq Energy Inc., Fuji Electric Co. Ltd., Baker Hughes Company, Doosan Skoda Power s.r.o., Sosian Energy Limited
Asia-Pacific was the largest region in the geothermal electricity market in 2023. Western Europe was the second-largest region in the geothermal electricity market. The regions covered in the geothermal electricity market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa
The countries covered in the geothermal electricity market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Italy, Spain, Canada
The geothermal energy market consists of sales of dry steam, hydrothermal, geopressurized, hot dry rock, magma, and flash steam. Values in this market are factory gate values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors, and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.
The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).
The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.