ID: MRFR/E&P/7259-HCR | February 2021 | Region: Global | 111 pages
Geothermal power is electricity generated from geothermal energy where steam from hot water located under the ground is used to rotate the turbine, which is connected to a generator for electricity production. Geothermal energy is obtained from fluids contained in the Earth’s sub-surface and is available abundantly around volcanic regions. The energy market trends will also witness a growing trend for geothermal power in the coming years.
Global geothermal power market size is projected to reach USD 6.9 Billion by 2025 and grow with a 7.24% CAGR between 2019 and 2025.
The major factors driving the growth of the geothermal power global market is the growing demand for electricity generation from renewable energy sources. Geothermal energy companies are focusing on reducing carbon emissions, which is expected to drive the need for geothermal power during the forecast period. Furthermore, government bodies across the globe have introduced various initiatives to increase the adoption of geothermal power. This is expected to drive market growth during the forecast period significantly. However, the high initial investments required in geothermal projects is a restraining factor for the growth of the geothermal power global market.
Many major players such as Enel Spa, Ansaldo Energia, and Reykjavik Geothermal are actively focusing on signing contracts and agreements with utilities and industries to provide geothermal power. For instance, in December 2019, Sumitomo Corporation signed a contract with the Indonesian government to develop geothermal projects, which will generate approximately 400 MW of electricity. Such developments in the market are expected to drive the growth of the global geothermal power industry during the forecast period.
Global geothermal power market has been segmented based on power plant Type, Power Output, and End-Use. Based on power plant type, the global market is divided into flash steam plants, dry steam plants, and binary cycle power plants. The binary cycle power plants segment is expected to hold the largest share of the market and grow at the fastest rate during the forecast period. However, flash steam plants also hold a substantial share of the market. Based on power output, the global market is bifurcated into up to 5 MW and above 5 MW. The above 5 MW segment held the larger market share in 2018 and is expected to grow with the highest CAGR during the forecast period as the power plants in this segment are mostly used to support grids. Based on end use, the global market of geothermal power has been segmented into residential, industrial, and commercial. The industrial segment is expected to hold the largest share within the global market due to the increasing industrialization, globally.
Global geothermal power market is expected to grow at 7.24% CAGR during the forecast period.
The geothermal industry is expected to witness high growth during the forecast period, owing to the increasing demand for electricity generation from renewable energy sources. This is expected to drive the demand for geothermal power in the global market during the forecast period.
Based on the region, the global geothermal power market is segmented into asia-pacific, north america, europe, the middle east & africa and south america. North America holds the largest share of the market due to the high availability of geothermal resources in the region. However, the geothermal power industry in asia-pacific is expected to grow at the fastest rate during the forecast period, primarily to the numerous government initiatives introduced in the region to increase the adoption of renewable energy sources.
The key players operating in the global geothermal power market are 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), and Fuji Electric Co Ltd (Japan).
Frequently Asked Questions (FAQ) :
The expected growth rate of the market can be 7.24%.
By 2025, the projected market value can be USD 6.9 Billion.
The high investments needed in geothermal projects can be a restraining factor in the market for geothermal power.
The power plant types considered in the report include flash steam plants, dry steam plants, and binary cycle power plants.
North America is currently the market leader.