Geothermal Energy Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)

The Report Covers Geothermal Energy Market Size & Share and It is Segmentation by Plant Type (Dry Steam Plants, Flash Steam Plants, and Binary Cycle Power Plants) and Geography (North America, Europe, Asia-Pacific, South America, and Middle-East and Africa). The Report Offers the Market Size and Forecasts Based On Installed Capacity for all the Above Segments.

Geothermal Energy Market Size

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Geothermal Energy Market Summary
Study Period 2020 - 2029
Market Volume (2024) 15.68 gigawatt
Market Volume (2029) 17.91 gigawatt
CAGR (2024 - 2029) 2.69 %
Fastest Growing Market North America
Largest Market North America

Major Players

Geothermal Energy Market Major Players

*Disclaimer: Major Players sorted in no particular order


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Geothermal Energy Market Analysis

The Geothermal Energy Market size in terms of installed base is expected to grow from 15.68 gigawatt in 2024 to 17.91 gigawatt by 2029, at a CAGR of 2.69% during the forecast period (2024-2029).

  • Over the medium term, factors such as the increasing electricity security concerns due to clean and eco-friendly resources. In addition, increasing demand for heating and cooling systems, including ground source heat pumps and district heating, are driving the growth of the geothermal energy market.
  • On the other hand, the lucrative market for alternative clean energy sources like solar and wind is likely to hinder the market growth during the forecast period.
  • Nevertheless, government-undertaken initiatives such as financial benefits and tax refunds to promote sustainable energy production are estimated to generate numerous growth opportunities for the geothermal energy market during the forecast period.
  • North America is expected to be the largest market during the forecast period, with most of the demand coming from countries like the United States, Mexico, etc.

Geothermal Energy Market Trends

The Binary Cycle Power Plants Segment is Expected to Witness Significant Growth

  • In binary cycle power plants, the water or steam below the earth never comes in direct contact with the turbines. Instead, water from geothermal reservoirs is pumped through a heat exchanger where it heats a second liquid-like isobutene (which boils at a lower temperature than water).
  • This second liquid is heated into steam, which powers the generator's turbines. The hot water from the earth is recycled into the earth through the injection well, and the second liquid is recycled through the turbine and back into the heat exchanger, where it can be used again.
  • Dry-steam and flash plants, which require rarer, high-temperature, shallow reservoirs, produce higher power output and are more economically efficient than binary plants. However, they offer more options for suitable locations because binary plants can operate at reservoirs with lower temperatures.
  • Many new installations have been announced in recent years, which may support the growth of the geothermal energy market during the forecast period. For instance, in February 2021, Turboden SpA, a group company of Mitsubishi Heavy Industries Ltd (MHI) and Mitsubishi Power Ltd, jointly announced that it had received an order for 29 megawatts (MW) binary cycle power generation equipment to be installed at the geothermal power plant operated in Palawan, in the Philippines, by Energy Development Corporation (EDC).
  • Similarly, In January 2023, AP Renewable Inc. announced a groundbreaking ceremony to indicate the beginning of the 17-MW binary geothermal project's construction in the Tiwi geothermal site in the Philippines. The project will extract recoverable heat from geothermal brine to produce 17 MW of electricity, and this facility is expected to be completed by the end of 2023.
  • In 2022, the total geothermal energy installed capacity globally was around 14,877 MW in 2022, increasing from 14,696 MW in 2021. The capacity is increasing significantly across the world.
  • Therefore, based on the abovementioned factors and recent developments, the binary cycle power plants segment is expected to grow significantly during the forecast period.
Geothermal Energy Market: Geothermal Energy Capacity, In MW, Global, 2016-2022

North America is Expected to Dominate the Market

  • North America is one of the leading markets for geothermal energy worldwide, with the United States leading the regional and global markets regarding installed capacity. In 2020, geothermal power plants produced about 17 billion kilowatt-hours (kWh), up to 0.4% of US utility-scale electricity generation.
  • Most of the geothermal power plants in the United States are in the western states and the island state of Hawaii, where geothermal energy resources are close to the Earth's surface. California generates the most electricity from geothermal energy, whereas Northern California's Geysers dry steam reservoir is the world's largest known dry steam field.
  • According to the IRENA, the total geothermal installed capacity was around 3,712 MW in 2022, increased from 3,656 MW in 2021. The countries such as the United States, Canada, and Mexico are increasing the capacities of geothermal energy.
  • Moreover, new projects are also planned in the region, which is expected to support the region's market growth. For example, in March 2023, The government in Mexico announced a new exploratory project under CFE through a tender called 'Acquisition of Geothermal Well Drilling Services.' This project will consider 6 geothermal wells in four areas in Mexico. These tenders focus on contracting a single drilling services provider with 2 drilling rigs available for geothermal wells, and this tender will be financed with USD 51 million from the Inter-American Development Bank (IDB) and World Bank.
  • Therefore, based on the above factors, North America is expected to dominate the geothermal energy market during the forecast period.
Geothermal Energy Market: Growth Rate by Region, 2023-2028

Geothermal Energy Industry Overview

The geothermal energy market is semi fragmented. Some of the major players in the market (in no particular order) include Mitsubishi Power Ltd, Ormat Technologies Inc., Engie SA, Tetra Tech Inc., and First Gen Corporation, among others.

Geothermal Energy Market Leaders

  1. Mitsubishi Power, Ltd.

  2. Ormat Technologies, Inc.

  3. Engie SA

  4. Tetra Tech, Inc.

  5. First Gen Corporation

*Disclaimer: Major Players sorted in no particular order

Geothermal Energy Market Concentration
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Geothermal Energy Market News

  • May 2023: Subterra Renewables, a leading Canadian geothermal developer and engineering firm, announced its winning bid in TerraScale Inc.'s Request for Proposal (RFP) for its Green Snow Project. The Green Snow Project is an ambitious geothermal energy initiative located in Northern Japan. It is a groundbreaking collaboration between TerraScale and Climate Transition Development Corporation and Global Family.
  • February 2023: Fuji Electric Co., Ltd. announced that it was awarded a contract for a supply of geothermal energy project for the Menengai geothermal power station in Kenya by Toyota Tsusho Corporation, which entered into an EPC contract with QPEA GT Menengai Limited.

Geothermal Energy Market Report - Table of Contents


    1. 1.1 Scope of the Study

    2. 1.2 Market Definition

    3. 1.3 Study Assumptions




    1. 4.1 Introduction

    2. 4.2 Geothermal Energy Installed Capacity and Forecast, till 2028

    3. 4.3 Recent Trends and Developments

    4. 4.4 Government Policies and Regulations

    5. 4.5 Market Dynamics

      1. 4.5.1 Drivers

        1. Increasing Electricity Security Concerns Due to Clean and Eco-Friendly Resources

        2. Increasing Demand for Heating and Cooling Systems, Including Ground Source Heat Pumps

      2. 4.5.2 Restraints

        1. Lucrative Market Opportunities for Alternative Clean Energy Sources Like Solar and Wind

    6. 4.6 Supply Chain Analysis

    7. 4.7 Porter's Five Forces Analysis

      1. 4.7.1 Bargaining Power of Suppliers

      2. 4.7.2 Bargaining Power of Consumers

      3. 4.7.3 Threat of New Entrants

      4. 4.7.4 Threat of Substitutes Products and Services

      5. 4.7.5 Intensity of Competitive Rivalry


    1. 5.1 Plant Type

      1. 5.1.1 Dry Steam Plants

      2. 5.1.2 Flash Steam Plants

      3. 5.1.3 Binary Cycle Power Plants

    2. 5.2 Geography (Regional Market Analysis {Market Size and Demand Forecast till 2028 (for regions only)})

      1. 5.2.1 North America

        1. United States

        2. Canada

        3. Rest of North America

      2. 5.2.2 Europe

        1. Germany

        2. France

        3. United Kingdom

        4. Rest of Europe

      3. 5.2.3 Asia-Pacific

        1. China

        2. India

        3. Japan

        4. South Korea

        5. Rest of Asia-Pacific

      4. 5.2.4 South America

        1. Brazil

        2. Argentina

        3. Rest of South America

      5. 5.2.5 Middle-East and Africa

        1. Saudi Arabia

        2. United Arab Emirates

        3. South Africa

        4. Rest of Middle-East and Africa


    1. 6.1 Mergers and Acquisitions, Joint Ventures, Collaborations, and Agreements

    2. 6.2 Strategies Adopted by Leading Players

    3. 6.3 Company Profiles

      1. 6.3.1 Geothermal Power Plant Equipment Manufacturers

        1. Toshiba Corporation

        2. Ansaldo Energia SpA

        3. Fuji Electric Co. Ltd.

        4. Baker Hughes Company

        5. Doosan Škoda Power

      2. 6.3.2 Geothermal Power Plant EPC Companies and Operators

        1. Mitsubishi Power Ltd

        2. Ormat Technologies Inc.

        3. Kenya Electricity Generating Company (KenGen)

        4. Sosian Energy Limited

        5. Tetra Tech Inc.

        6. Engie SA

        7. First Gen Corporation

        8. PT Pertamina Geothermal Energy

        9. Enel SpA

        10. Aboitiz Power Corporation

    4. *List Not Exhaustive

    1. 7.1 Rising Government-Undertaken Initiatives such as Financial Benefits and Tax Refunds

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Geothermal Energy Industry Segmentation

Geothermal energy is heat energy from the earth. Geothermal resources are reservoirs of hot water that exist or are human-made at varying temperatures and depths below the earth's surface.

The geothermal energy market is segmented by plant type and geography. The market is segmented by plant type into dry steam plants, flash steam plants, and binary cycle power plants. The report also covers the market size and forecasts for the geothermal energy market across each region. The market sizing and forecasts for each segment have been done based on installed capacity.

Plant Type
Dry Steam Plants
Flash Steam Plants
Binary Cycle Power Plants
Geography (Regional Market Analysis {Market Size and Demand Forecast till 2028 (for regions only)})
North America
United States
Rest of North America
United Kingdom
Rest of Europe
South Korea
Rest of Asia-Pacific
South America
Rest of South America
Middle-East and Africa
Saudi Arabia
United Arab Emirates
South Africa
Rest of Middle-East and Africa
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Geothermal Energy Market Research FAQs

The Geothermal Energy Market size is expected to reach 15.68 gigawatt in 2024 and grow at a CAGR of 2.69% to reach 17.91 gigawatt by 2029.

In 2024, the Geothermal Energy Market size is expected to reach 15.68 gigawatt.

Mitsubishi Power, Ltd., Ormat Technologies, Inc., Engie SA, Tetra Tech, Inc. and First Gen Corporation are the major companies operating in the Geothermal Energy Market.

North America is estimated to grow at the highest CAGR over the forecast period (2024-2029).

In 2024, the North America accounts for the largest market share in Geothermal Energy Market.

The challenges hindering the growth of the Geothermal Energy Market are a) Competition from alternative clean energy sources like solar and wind b) High upfront costs associated with geothermal power plant development c) Limited availability of suitable geothermal resources in some regions

Geothermal Energy Industry Report

The global geothermal energy market is experiencing a remarkable surge in growth, driven by the increasing demand for renewable and clean energy solutions across residential, commercial, and industrial sectors. This market is characterized by its diversity across various technology segments, including binary cycle plants, flash steam plants, dry steam plants, and ground source heat pumps, which are crucial for the production of sustainable power. Geothermal energy's reliability and ability to provide a constant power supply make it a sought-after option for sustainable power generation. The opportunity to exploit low- and medium-temperature geothermal resources for electricity generation and direct-use applications, such as district heating and industrial heating, presents a promising path for market expansion. Market dynamics are influenced by a global shift towards renewable energy, increasing demand for heating solutions in residential and commercial settings, and competition from other renewable sources. As the market continues to evolve, geothermal power companies are set to play a pivotal role in shaping a sustainable energy future, presenting an opportune moment for investors and stakeholders to engage with some of the best geothermal companies leading the way towards greener energy solutions. For a comprehensive understanding of the geothermal energy market share, size, revenue growth rate, and a forecast outlook, Mordor Intelligence™ Industry Reports offer detailed analysis and historical overviews, available as a free report PDF download.

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Geothermal Energy Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)