April 21, 2024
Geothermal Power Market

Geothermal Power Market is Driven by Growing Demand for Renewable Energy Sources

Geothermal power is a renewable energy source generated from heat within the earth. Geothermal power plants capture this underground heat to produce steam that drives turbines and generates electricity with no emissions. Geothermal energy provides baseload power without reliance on weather conditions unlike solar and wind energy, making it a reliable source of renewable power. With growing Global concerns about climate change, many countries are shifting focus towards developing clean and renewable sources of energy to phase out dependence on fossil fuels. The Global demand for electricity is also rising steadily with increasing urbanization and industrialization. Geothermal energy is a viable option to fulfill this rising demand by providing clean and affordable power.

The Global Geothermal Power Market is estimated to be valued at US$ 5.78 billion in 2023 and is expected to exhibit a CAGR of 6.2% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.

Market key trends:
Growing demand for geothermal projects to drive market growth. Governments across the world are offering subsidies, tax incentives and supportive policies for geothermal energy projects to reduce emissions from the energy sector. For example, the US government has allocated $400 million in funding for geothermal projects under the Inflation Reduction Act 2022. Countries like Indonesia, Philippines and Kenya are also exploring extensive geothermal reserves within their territories to set up new power projects. This rising interest in geothermal energy development is expected to boost the Geothermal Power Market during the forecast period. However, high initial capital investment remains a major challenge for widespread adoption of geothermal power plants.

Porter’s Analysis

Threat of new entrants: Low, as setting up a geothermal power plant requires high initial capital investment and expertise.

Bargaining power of buyers: Moderate, as major buyers are utilities and power producers who have reasonable bargaining power.

Bargaining power of suppliers: Moderate, as equipment suppliers have established relationships with geothermal power producers.

Threat of new substitutes: High, as renewable sources like solar and wind power are substitutes with reducing costs.

Competitive rivalry: High, as major players Globally operate geothermal power plants to gain market share.

Key Takeaways

The Global Geothermal Power Market is expected to witness high growth over the forecast period of 2023 to 2030. The Global Geothermal Power Market Size is estimated to be valued at US$ 5.78 billion in 2023 and is expected to exhibit a CAGR of 6.2% over the forecast period 2023 to 2030.

Regional analysis: The North America region currently dominates the market owing to supportive government policies and initiatives regarding the adoption of clean renewable sources of energy such as geothermal power in the US and Mexico. The Asia Pacific region is expected to grow at the fastest rate during the forecast period due to increasing investments by countries such as Indonesia, Philippines and Japan in geothermal projects..

Key players: Key players operating in the Geothermal Power Market are Honomobo Corporation, ATCO Ltd., Tempohousing, SG Blocks, Inc., Giant Containers Inc., Skanska AB, Speed House Group of Companies, Supertech Industries, Bechtel Corporation, Lendlease Corporation.

Key players: Key players are focusing on capacity expansion and investments in regions with high geothermal potential like Latin America and Asia Pacific to tap the opportunities. Players are also focusing on technological advancements to reduce initial installation costs and improve efficiency of geothermal power plants.

*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it