Geothermal Power Market Size, Share And Forecast To 2031

(MENAFN- Straits Research) Introduction

Geothermal power plants utilize steam to produce energy. The steam is generated from hot water reservoirs below the earth's surface. In the energy generation process, the steam rotates the turbine that starts a generator and releases energy. With the growing energy demand, the requirement for geothermal power generation is expected to increase notably. To generate electricity, geothermal power plants use the steam from the reservoirs to rotate a turbine. The steam is directed onto the turbine blades, causing it to spin rapidly. As the turbine rotates, it activates a generator, transforming mechanical energy into electrical energy. This electricity can then be transmitted through power lines to supply homes, businesses, and industries with clean and sustainable power. Geothermal power plants utilize steam to produce energy.

Market Dynamics Rise in Demand for Renewable Energy Drives the Global Market

The rise in interest in renewable energy is a major driver for the global geothermal power market. As the world becomes more aware of the environmental impact of traditional fossil fuel-based energy sources, there is a growing shift towards cleaner and sustainable alternatives. Geothermal power, a renewable energy source, is gaining significant attention and investment. Several factors drive the demand for renewable energy. First, there is increasing concern about greenhouse gas emissions and the need to reduce them. Geothermal power plants produce very low levels of carbon dioxide and other pollutants compared to fossil fuel-based power plants, making them an attractive option for mitigating climate change.

Second, the finite nature of fossil fuel reserves and the volatility of fossil fuel prices have made countries and energy companies seek more reliable and stable energy sources. Geothermal power, sourced from the Earth's heat, provides a constant and predictable energy supply unaffected by fuel price fluctuations or geopolitical issues.

Emerging economies present significant growth opportunities for the global geothermal power market. These countries, characterized by rapid industrialization, population growth, and increasing energy demand, offer a favorable environment for developing and expanding geothermal power projects. One of the key advantages of geothermal power is its local availability. Emerging economies often have abundant geothermal resources, including hot springs, geothermal reservoirs, and volcanic activity, which make them well-suited for geothermal power generation. These countries can leverage their natural resources to establish geothermal power plants and reduce their reliance on imported fossil fuels.

Furthermore, emerging economies often face energy challenges, such as inadequate power supply, unreliable grids, and high electricity prices. Geothermal power can address these challenges by providing a reliable and stable source of electricity. It can support the expansion of the energy infrastructure, improve grid stability, and contribute to the electrification of remote areas.

Regional Analysis

North America is the most significant global geothermal power market shareholder and is estimated to grow at a CAGR of 4.2% over the anticipated period.
One of the main forces fueling the growth of geothermal power in North America is the abundance of geothermal resources. The United States, in particular, has vast geothermal potential, with geothermal reservoirs located in various regions, including California, Nevada, and Oregon. These reservoirs provide a reliable and consistent renewable energy source, contributing to the country's overall energy mix.

Moreover, North America has a well-established infrastructure and expertise in geothermal power generation. The region has a history of successful geothermal projects, with numerous geothermal power plants already in operation. This experience and knowledge in geothermal technology and project development position North America as a leader in the industry, attracting investments and driving market growth.

Europe is anticipated to reveal a CAGR of 3.6% over the forecast period.
One of the main forces fueling the growth of the European geothermal power market is the region's strong focus on decarbonization and reducing greenhouse gas emissions. European countries have set ambitious renewable energy targets and are actively transitioning to cleaner energy sources. Geothermal power, a reliable and sustainable form of energy, aligns with these objectives and offers a viable solution to meet the growing energy demand while reducing carbon footprints.

Moreover, Europe has favorable policy frameworks and regulatory support for geothermal power development. Governments across the region have implemented feed-in tariffs, subsidies, and financial incentives to encourage investments in renewable energy projects, including geothermal power. These measures create a conducive environment for project developers and investors, stimulating market growth.

Key Highlights

• The global geothermal power market was valued at USD 7.87 billion in 2022. It is estimated to reach USD 11.79 billion by 2031, growing at a CAGR of 4.6% during the forecast period (2023–2031).
• Based on power station type, the global geothermal power market is bifurcated into dry steam power stations, flash steam power stations, and binary cycle power stations. The dry steam power stations segment dominates the global market and is projected to reveal a CAGR of 3.5% over the forecast period.
  
• Based on end use, the global geothermal power market is bifurcated into residential, commercial, industrial, and others. The residential segment dominates the global market and is projected to reveal a CAGR of 4.2% over the forecast period.
  
• North America is the most significant global geothermal power market shareholder and is estimated to grow at a CAGR of 4.2% over the forecast period.