Geothermal Power Market Expected To Record Substantial Growth In The Near Future
Market Overview
The Geothermal Power Market, which had a market value of $ 4.10 billion in 2021, is anticipated to increase to $ 6.17 billion by 2030, with a CAGR of 5.26% between 2023 and 2030.
A reliable and independent method of generating electricity, geothermal power harnesses the warm energy of the earth’s magma. The steam generated by hot water located a mile or more underneath the earth’s surface is used in geothermal power plants to turn turbines that ignite generators, which then generate electricity.
There are now three different types of geothermal power plants in operation: dry steam, binary cycle, and flash steam. Governmental agencies are working to lessen the reliance on oil for domestic energy needs. In order to employ renewable energy sources like an alternative energy source, a number of actions are investigated and utilized.
The Indonesian government created a National Energy Policy with rules for intensification, energy conservation, and diversification in order to accomplish this goal.
Key Players:
- Enel Spa (Roma)
- General Electric (US)
- Supreme Energy (Indonesia)
- Ansaldo Energia (Italy)
- Macquarie Group Limited (Australia)
- Sumitomo Corporation (Japan)
- Green Mountain Energy Company (US)
- Turboden S.p.A. (Italy)
- Reykjavik Geothermal (Iceland)
- Atlas Copco AB (Sweden)
- KenGen (Kenya)
- Halliburton (US)
- Calpine (US)
- Fuji Electric Co Ltd (Japan), among others
Market Segmentation
The power plant type, power output, and end-use categories have been used to segment the worldwide geothermal power market. The worldwide market is segmented into binary cycle power plants, dry steam plants, plus flash steam plants depending on the type of power plant. During the projected period, it is anticipated that the binary cycle power plants segment will dominate the market and expand the fastest. Flash steam plants, meanwhile, also control a sizeable portion of the market.
The worldwide market is divided into two segments depending on power output: up to 5 MW and over 5 MW. The geothermal energy industry has been divided into three categories depending on end use: industrial, residential, and commercial.
Because of the growing industrialization of the world, the industrial category is anticipated to occupy the highest share within the worldwide market.
Regional Classification
The Asia-Pacific, Europe, North America, Middle East & Africa, plus South America regions make up the worldwide geothermal power market. Because of the region’s extensive geothermal resource base, North America now retains the biggest market share.
The Asia-Pacific region’s Geothermal energy potential business is anticipated to expand at the quickest rate throughout the forecast timeframe, thanks largely to the various government efforts there that aim to promote the use of renewable energy sources.
Industry News
The implementation of strict government rules connected to climate change in developed and emerging economies is what is driving the growth of the worldwide geothermal power industry. The global geothermal power industry is increasing as a result of additional factors including fluctuating fossil fuel prices, the scarcity of fossil fuels, a rise in greenhouse gas emissions, the high capacity of geothermal power, its affordability, the reduction of pollution from geothermal power plants, as well as a rise in energy demand.
However, a significant development inhibitor for this industry is the high investment needed for geothermal power facilities and the adverse environmental effects of geothermal energy. Additionally, the market for wind and solar energy is expanding, which limits this market’s expansion. On the other hand, it is anticipated that over the next 5 years, increased government funding and continually evolving technologies in the field of renewable energy will present profitable opportunities for market expansion.
Because of geothermal energy’s high capacity, decreased pollution from geothermal power plants, affordability of geothermal energy, plus increasing energy demand, the industry is being pushed by an increase in the need for geothermal energy.
Related Reports
