The global geothermal energy market size was valued at USD 59.4 billion in 2021 and reached a valuation of USD 62.65 billion in 2022. The market is expected to reach USD 95.82 billion by 2029 with a CAGR of 6.3% during the forecast period. Various uses of this energy, such as heating, cooling, and electricity, are expected to propel the market growth. Technological advancements in this type of energy have led to capturing of the energy in higher volumes. The increasing need for clean energy resources globally is propelling the growth of the market. Fortune Business Insights™ shares this information in its report titled “Geothermal Energy Market, 2022-2029.”
Key Industry Development
Ormat Technologies announced the 15-year Power Purchase Agreement (PPA) with Peninsula Clean Energy. The PPA will be effective from January 2023 and the community choice aggregator will purchase 26 MW of geothermal energy from Ormat's Heber 2 facility.
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Report Highlights:
Report CoverageDetailsForecast Period2022-2029Forecast Period 2022 to 2029 CAGR6.3%2029 Value ProjectionUSD 95.82 BillionBase Year2021Market Size in 2022USD 62.65 BillionHistorical Data for20218-2020No. of Pages237Segments coveredFuel Type, By End-User, Application and RegionGrowth DriversShift to Renewables to Surge Energy DemandCommercial Application to be Prime Part of the Segment Due to Increasing Uses of Heat Pumps
Market Drivers and Restraints
Shift to Renewables to Surge Energy Demand
Growing demand for renewable energy globally in the region is leading to a surge in the demand for renewable sources of energy, which is projected to drive the geothermal energy market growth. Various green government initiatives to reduce the dependency on energy generated from fossil fuels are expected to drive market. Geothermal energy is one of the reliable sources of energy, which is cost-effective and environment-friendly. Businesses have been adopting it as it emits 99% less carbon dioxide, which is anticipated to propel market growth.
However, various alternatives to renewable sources of energy are anticipated to hinder market development.
COVID-19 Impact:
Geothermal Capacity Addition Continued Despite Global Pandemic
Despite the pandemic, the renewable energy market, including geothermal energy across the globe, has shown steady year-on-year growth. According to the IEA report, the energy capacity increased by 500 MW in 2020. Although the capacity addition growth was lower than the previous year, the market performance was adequate overall.
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Segments
Binary Cycle to Govern the Segment Due to Low Costs
On the basis of type, the market is segmented into flash, binary cycle, and dry steam. The binary cycle segment is expected to hold the key part due to its various benefits and low costs. It is best suited for extracting moderate-temperature geothermal energy and is likely to propel the demand for binary cycle.
Commercial Application to be Prime Part of the Segment Due to Increasing Uses of Heat Pumps
Based on application, the market is categorized into residential, commercial, industrial, and others. The commercial segment is set to have a majority part during the forecast period due to increasing use of heat pumps for cooling down in high temperatures. The segment holds 33.8% in the market segmentation. The segment is set to have considerable growth due to applications in various industries such as paper and pulp, food, cement, aquaculture, lumber, and various other industries that use this energy.
Geographically, the market is divided into North America, Asia Pacific, Europe, Latin America, and the Middle East & Africa.
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