CHICAGO, Feb. 15, 2023 /PRNewswire/ -- Geothermal Energy Market is projected to reach USD 9.4 billion in 2027 from USD 7.0 billion in 2022 at a CAGR of 5.9% according to a new report by MarketsandMarkets™. Increasing use of geothermal energy for power generation, Favourable government policy, and increasing demand for ground source geothermal heat pumps due to the increase in heating costs are the major driving factor for the Geothermal Energy Market.
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Browse in-depth TOC on "Geothermal Energy Market"
144 - Tables
63 - Figures
286 - Pages
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 |
Surging demand for ground source/geothermal heat pumps |
Binary cycle plant by technology, is expected to be the largest geothermal market during the forecast period
By technology, the Geothermal Energy Market has been segmented into Binary Cycle plants, Flash Steam Plants, Dry Steam Plants, Ground Source Heat Pumps, Direct Systems, and others. The binary cycle segment is dominating the global market due to its increasing adaptation of renewable energy for power generation in medium-temperature reservoirs. Typically, binary plants are used for resource temperatures between 100°C and 170°C. In the future, binary power plants will become the most used type of geothermal power production. This is because lower-temperature water is suitable for installations of the binary cycle. They also do not lose any emissions, except water steam.
Medium temperature segment, by temperature, is expected to be the largest segment during forecast period
Based on temperature, the Geothermal Energy Market has been split into Low, Medium, and High. Low temperatures were estimated to account for a larger share of the Geothermal Energy Market in 2021. It is used in electricity generation or for combined heat and power. Due to the development of binary cycle technology, many regions across the world with medium temperature reservoirs have been made available for development. This is expected to provide a boost to the market.
Asia Pacific is expected be the largest Geothermal Energy Market during the forecast period
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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Portable Generator Market Dynamics:
Drivers:
1. Surging demand for ground source/geothermal heat pumps
2. Favourable government policies and initiatives
3. Use of geothermal energy for power generation
4. Focus on addressing climate crisis and reducing greenhouse gas emissions
Restraints:
1. High growth of solar, wind, gas, and other alternative renewable energy sources
2. Lack of exploration and drilling techniques required to identify and develop undiscovered geothermal resources
3. Expensive geothermal well drilling leading to high upfront project costs
Opportunities:
1. Emergence of advanced technologies and rise of Geothermal 2.0
2. Co-production and conversion of oil and gas wells for geothermal energy
3. Geothermal potential for low- and medium-temperature resources
4. Mineral extraction using geothermal energy
Challenges:
1. Acquisition of power purchase agreements (PPAs)
2. Multiple environmental reviews and assessments associated with geothermal projects
3. Absence of geothermal professionals, consultants, and businesses
Key Market Players:
The companies such as Ormat (US), Mitsubishi Heavy Industries (Japan), Baker Hughes Company (US), NIBE Group (Sweden), and SLB (US) are leading the Geothermal Energy Market.
Recent Developments:
- In July 2022, Ormat announced the commercial operation of the Casa Diablo-IV (CD4) 30 MW geothermal power plant. The CD4 facility provides 7 MW of geothermal power to two Community Choice Aggregators, Silicon Valley Clean Energy and Central Coast Community Energy, each under a 10-year power purchase agreement (PPA). In addition, the facility provides 16 MW of geothermal power to the Southern California Public Power Authority under a 25-year agreement.
- In March 2021, Ormat launched a new, high-performance between-bearings turbine. By utilizing the traditional radially split design, the turbine rotor in the new product is supported between the axially spaced bearings.
- In May 2021, Iberdrola and Mitsubishi Power, a subsidiary of Mitsubishi Heavy Industries signed a collaboration agreement to jointly develop competitive, clean and safe energy solutions based on renewable energy that promotes the decarbonization of industrial production in different regions around the world.
- In May 2022, Baker Hughes Company announced an investment in San Francisco-based GreenFire Energy Inc., a company involved in the development of closed-loop Advanced Geothermal Systems (AGS). The companies plan to expedite geothermal resources development by retrofitting both existing non-producing geothermal and oil and gas wells to closed-loop heat-producing wells for power generation and direct-use applications. In addition, Baker Hughes and GreenFire Energy will collaborate on project feasibility analyses, system installations, and global project developments.
- In February 2022, SLB announced the introduction of the GeoSphere 360 3D reservoir mapping-while-drilling service at the International Petroleum Technology Conference (IPTC). The service uses advanced cloud and digital solutions to deliver real-time 3D profiling of reservoir objects. This improves reservoir understanding and enhances well placement to improve the returns from complex reservoirs.
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