July 14, 2024
Geothermal Power Market

Geothermal Power Market Is Estimated To Witness High Growth Owing To Increasing Demand for Renewable Energy Sources and the Opportunity of Cost-effective Power Generation

The Geothermal Power Market is estimated to be valued at US$ 5.49 billion in 2022 and is expected to exhibit a CAGR of 5.3% over the forecast period 2023-2030, as highlighted in a new report published by Coherent Market Insights.

Market Overview:

Geothermal power is a renewable energy source that utilizes heat from the Earth’s core to generate electricity. It involves extracting hot water or steam from underground reservoirs and converting it into electricity through turbines and generators. Geothermal power plants offer a consistent and reliable source of electricity, as they are not dependent on external factors such as weather conditions. These plants have a lower carbon footprint compared to conventional power plants, making them an attractive option for countries aiming to reduce greenhouse gas emissions. Geothermal power can also be used for heating and cooling applications in residential and commercial buildings.

Market Dynamics:

The geothermal power market is driven by increasing environmental concerns and the need for sustainable energy sources. The transition towards clean energy is one of the major drivers of the geothermal power market. Governments and organizations worldwide are implementing supportive policies and regulations to encourage the adoption of renewable energy sources, including geothermal power. Moreover, the availability of abundant geothermal resources in certain regions presents growth opportunities for market players. However, high initial investments, technical challenges, and limited availability of suitable sites for geothermal power plants could hinder market growth. Continuous research and development activities are being conducted to address these challenges and improve the efficiency and cost-effectiveness of geothermal power generation.

Segment Analysis:

The geothermal power market can be segmented based on technology, application, and region. In terms of technology, the dominant segment in the market is the binary cycle segment. Binary cycle technology uses a medium (such as isobutane or isopentane) to capture heat from the geothermal fluid and transfer it to a secondary fluid to generate electricity. This technology is environmentally friendly and has high efficiency, making it the preferred choice in the market. Other technologies such as flash steam and dry steam are also used, but they have certain limitations and require specific geological conditions.

PEST Analysis:

Political: The political landscape plays a significant role in the geothermal power market. Government policies and regulations regarding renewable energy sources heavily influence the growth of the market. Supportive policies, tax incentives, and renewable energy targets by governments drive investments in geothermal power projects.

Economic: Economic factors also impact the geothermal power market. The installation and maintenance costs of geothermal power plants can be high. However, long-term cost savings due to low operational and maintenance costs make geothermal power an economically viable option. The availability of financing and favorable market conditions for investors contribute to market growth.

Social: The increasing global focus on reducing greenhouse gas emissions and combating climate change has a positive impact on the geothermal power market. Geothermal power is a clean, sustainable, and reliable source of energy. The growing awareness and acceptance of renewable energy sources among consumers drive the demand for geothermal power.

Technological: Technological advancements play a crucial role in the geothermal power market. Innovations in drilling techniques, heat extraction methods, and power plant designs have increased the efficiency and reliability of geothermal power generation. Advancements in energy storage solutions and grid integration technologies further enhance the market growth by addressing the intermittent nature of geothermal power generation.

Key Takeaways:

The global geothermal power market is expected to witness high growth, exhibiting a CAGR of 5.3% over the forecast period of 2023-2030. This growth is primarily driven by the increasing demand for clean and sustainable energy sources. Geothermal power has the potential to provide reliable baseload power and reduce greenhouse gas emissions, making it an attractive option for governments and investors.

In terms of regional analysis, the Asia-Pacific region is the fastest-growing and dominating region in the geothermal power market. Countries like Japan, Indonesia, and the Philippines have significant geothermal resources and have made substantial investments in the development of geothermal power plants. The supportive government policies, availability of financing, and increasing energy demand in the region contribute to its growth.

Key players operating in the geothermal power market include ABB, EDF, Enel SPA (Enel), General Electric (GE), The Tata Power Company Limited, Mitsubishi Hitachi Power Systems Inc., Toshiba Corporation, Korea Electric Power Corporation, Siemens AG, and Yokogawa Electric Corporation.

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