Chicago, April 03, 2023 (GLOBE NEWSWIRE) -- The global Geothermal Energy Market is expected to grow from USD 7.0 billion in 2022 to USD 9.4 billion in 2027, at a CAGR of 5.9% according to a new report by MarketsandMarkets™. Growing demand for electricity generation through sustainable means in industries and increasing demand for ground source geothermal heat pumps due to the increase in heating costs are some of the key factors accelerating the growth of the geothermal energy market.
The effective utilization of renewable energy can create a sustainable energy future globally. Therefore, if renewable sources such as geothermal energy can be added as a potential source of energy, then the demand and generation gap can be minimized. Geothermal energy is weather-independent and has the highest availability factor among the other renewables. Since the heat inside the earth's surface will not be depleted, it can ensure energy consistently at high efficiency with minimal environmental impact.
Geothermal energy technology captures the heat beneath the ground by harnessing steam or hot water from the earth to power electricity-generating turbines. The production of geothermal energy requires no fossil fuels, and the water can be injected back into the ground for reuse. Also, geothermal energy is not dependent on the weather, season, or time of day. It can be produced around the clock, all year long. Geothermal energy, while currently being only a marginal component of global energy utilization, will be indispensable in the fight against climate change. Geothermal energy can support deep decarbonization by providing clean baseload power and efficient means to heat and cool buildings, campuses, and cities. It also supports a host of agricultural and industrial applications.
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According to the IEA world energy outlook for 2022, geothermal power generation is expected to reach ~28 GW in 2030 under the stated policy scenario. Similarly, the total estimated installed capacity for geothermal direct use in 2019 was 107.7 gigawatts-thermal, representing a 52% increase over the 2015 data. Investments in direct-use geothermal projects are increasing, driven mainly by the energy savings associated with using geothermal energy. Countries such as the US, Turkey, Indonesia, and the Philippines are actively developing new geothermal projects to achieve their policy of net zero emissions. For instance, Turkey increased its number of geothermal plants from 3 to 49, between 2009 and 2019.
Geothermal Energy Market Scope:
| Report Coverage | Details |
| Market Size | USD 9.4 billion in 2027 |
| Growth Rate | 5.9% of CAGR |
| Largest Market | Asia Pacific |
| Market Dynamics | Drivers, Restraints, Opportunities & Challenges |
| Forecast Period | 2022-2027 |
| Forecast Units | Value (USD Billion) |
| Report Coverage | Revenue Forecast, Competitive Landscape, Growth Factors, and Trends |
| Segments Covered | Geothermal Energy Market by technology, temperature, application, and region. |
| Geographies Covered | Asia Pacific, North America, Europe, Middle East & Africa, and South America |
| Report Highlights | Updated financial information / product portfolio of players |
| Key Market Opportunities | Emergence of advanced technologies and rise of Geothermal 2.0 |
| Key Market Drivers | Rising demand for power generation through sustainable means |
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Geothermal Energy Market Dynamics:
Drivers:
- Surging demand for ground source/geothermal heat pumps
- Favourable government policies and initiatives
- Use of geothermal energy for power generation
- Focus on addressing climate crisis and reducing greenhouse gas emissions.
Restraints:
- High growth of solar, wind, gas, and other alternative renewable energy sources
- Lack of exploration and drilling techniques required to identify and develop undiscovered geothermal resources.
Opportunities:
- Emergence of advanced technologies and rise of Geothermal 2.0
- Co-production and conversion of oil and gas wells for geothermal energy
- Geothermal potential for low- and medium-temperature resources
- Mineral extraction using geothermal energy.
Challenges:
- Acquisition of power purchase agreements (PPAs)
- Multiple environmental reviews and assessments associated with geothermal projects
- Absence of geothermal professionals, consultants, and businesses
Asia Pacific likely to emerge as the largest geothermal energy market.
Asia Pacific accounted for a 43.8% share of the global geothermal energy market in 2021 and is the fastest-growing region in the market. In Asia Pacific, various countries are currently focused on geothermal energy to meet the increasing demand for electricity and to achieve the net zero emission of CO2 goal. For these factors, huge investments are going on from both government and private companies.
Geothermal resources are abundant in Asia Pacific countries such as Indonesia and New Zealand and can be utilized as climate-friendly energy sources in all weather. Currently, China is the largest user of geothermal heat pumps. China uses geothermal energy majorly for district heating and space heating applications. Indonesia has commissioned many geothermal power plants in the past decade which has enabled the country to meet its energy needs. Indonesia was the second-largest geothermal electricity producer after USA, at nearly 14 billion kWh of electricity, which was equal to about 5% of Indonesia’s total electricity generation.
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Key Market Players:
Some of the key players in the Geothermal Energy Market are Ormat (US), Baker Hughes Company (US), Mitsubishi Heavy Industries (Japan), NIBE Group (Sweden), and SLB (US).
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