Geothermal Energy Market Size Expected to Grow $9.4 Billion by 2027

­The global Geothermal Energy Market is expected to grow from USD 7.0 billion in 2022 to USD 9.4 billion in 2027, at a CAGR of 5.9% according to a new report by MarketsandMarkets™. Growing demand for electricity generation through sustainable means in industries and increasing demand for ground source geothermal heat pumps due to the increase in heating costs are some of the key factors accelerating the growth of the geothermal energy market.

The effective utilization of renewable energy can create a sustainable energy future globally. Therefore, if renewable sources such as geothermal energy can be added as a potential source of energy, then the demand and generation gap can be minimized. Geothermal energy is weather-independent and has the highest availability factor among the other renewables. Since the heat inside the earth's surface will not be depleted, it can ensure energy consistently at high efficiency with minimal environmental impact.

Geothermal energy technology captures the heat beneath the ground by harnessing steam or hot water from the earth to power electricity-generating turbines. The production of geothermal energy requires no fossil fuels, and the water can be injected back into the ground for reuse. Also, geothermal energy is not dependent on the weather, season, or time of day. It can be produced around the clock, all year long. Geothermal energy, while currently being only a marginal component of global energy utilization, will be indispensable in the fight against climate change. Geothermal energy can support deep decarbonization by providing clean baseload power and efficient means to heat and cool buildings, campuses, and cities. It also supports a host of agricultural and industrial applications.

According to the IEA world energy outlook for 2022, geothermal power generation is expected to reach ~28 GW in 2030 under the stated policy scenario. Similarly, the total estimated installed capacity for geothermal direct use in 2019 was 107.7 gigawatts-thermal, representing a 52% increase over the 2015 data. Investments in direct-use geothermal projects are increasing, driven mainly by the energy savings associated with using geothermal energy. Countries such as the US, Turkey, Indonesia, and the Philippines are actively developing new geothermal projects to achieve their policy of net zero emissions. For instance, Turkey increased its number of geothermal plants from 3 to 49, between 2009 and 2019.