July 21, 2024
Geothermal Power Market

Rising environmental concern to boost the growth of Geothermal Power Market

The global Geothermal Power Market is estimated to be valued at US$ 5.78 Bn in 2023 and is expected to exhibit a CAGR of 5.3% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.

Market Overview:

Geothermal power is a renewable source of energy that generates electricity by tapping into the natural heat of the earth. Geothermal power plants pump water or steam from underground reservoirs into turbines, which spin a generator to produce electricity. The heat comes from hot underground reservoirs of water or steam created by rainwater percolating deep underground in volcanic areas of the earth’s crust containing hot rocks or magma. Geothermal energy provides a sustainable, renewable and domestic source of energy. It has a small physical footprint as no large dams, wind farms or solar panels are required. Geothermal electricity generation produces negligible greenhouse gas emissions and air pollution.

Market key trends:

One of the key trends in the Geothermal Power Market Size is rising focus towards sustainable power generation. Stringent regulations towards reduction of carbon emissions are encouraging development of renewable energy sources including geothermal power. Geothermal energy emits significantly less greenhouse gases than fossil fuel based power generation. Moreover, geothermal power plants can operate 24×7 throughout the year independent of weather conditions providing a reliable source of baseload electricity. This stable output makes it attractive to complement intermittent renewable sources like solar and wind power. The inherent reliability and sustainability of geothermal energy is expected to drive its adoption in the coming years.

Porter’s Analysis

Threat of new entrants: Low to medium. Significant capital investments required in exploration, generation, and transmission infrastructure poses barriers for new players.

Bargaining power of buyers: Medium. Presence of existing players reduces options available to buyers. Switching costs associated with changing suppliers provide leverage to existing players.

Bargaining power of suppliers: Low. Access to advanced technologies and economies of scale enables existing players to source required components at competitive prices from global suppliers.

Threat of new substitutes: Medium. Adoption of renewable sources like solar and wind energy based power generation poses threat. However, geothermal has cost advantages for baseload power.

Competitive rivalry: High. Intense competition among existing players to gain market share and maximize capacity utilization. Price wars to acquire new projects further intensify competition.

Key Takeaways

The global geothermal power market is expected to witness high growth, exhibiting CAGR of 5.3% over the forecast period 2023 to 2030, due to increasing investments in renewable energy based power projects across regions. The market size for 2023 is estimated to reach US$ 5.78 Bn.

Regional analysis

North America dominates the global market with over 40% share, led by the United States. Abundant geothermal reserves and supportive government policies drive region’s dominance. Asia Pacific is the fastest growing market with CAGR of over 7%, led by China, Indonesia and Philippines. Increasing investments to substitute coal-fired plants with geothermal energy drives the region’s growth.

Key players

Key players operating in the geothermal power market are 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. Enel and Ormat Technologies are the global leaders with largest combined geothermal capacity.

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