Geothermal Turbines Market Size

Geothermal Turbines Market Size Snapshot

Note – Market size depicts the revenue generated over the financial year

The geothermal power industry is growing steadily, with a current value of $ 65.72 billion in 2024 and $ 83.84 billion in 2032. The CAGR for this period is 3.09%. The demand for renewable energy sources and the need for sustainable and reliable power generation are the main driving forces for the market. Known for its low emissions and low impact on the environment, geothermal energy is becoming an increasingly attractive option for countries that want to meet their energy needs while observing their climate commitments. There are several reasons why the geothermal power industry is growing. The first is the technological progress in drilling and the efficiency of the geothermal power plant. The second is the support from governments, which has led to an increase in the use of renewable energy sources. The third is the strategic initiatives of major companies such as Ormat, Siemens and Mitsubishi Power, which include joint ventures and investments in new geothermal energy. These efforts not only strengthen the position of these companies in the market, but also contribute to the overall development of the industry.

Regional Market Size

Regional Deep Dive

Geothermal Turbines Market is expected to experience a high growth rate owing to the rising energy demand and the shift towards the renewable energy sources. In North America, the market is characterized by the advanced technology and huge investment in geothermal projects, especially in the United States. Europe focuses on promoting the sustainable energy sources. Asia-Pacific is characterized by the rising energy demand and government support. The Middle East and Africa (MEA) are beginning to explore the geothermal energy as a viable alternative. Latin America is focusing on developing its geothermal resources to ensure the energy security and sustainability.

North America

• The U.S. Department of Energy is promoting geothermal energy production with a number of initiatives, including financial support for geothermal projects, which is expected to drive the market significantly.
• It is a question of a new and more efficient generation of electricity from the heat of the earth. The American companies Ormat and Calpine, for example, are at the forefront of this new and more efficient generation of electricity.
• The development of geothermal energy has been encouraged by government legislation in California and Nevada.

Europe

• The Green Deal of the European Union aims to increase the share of renewable energy, including geothermal energy, which drives the development and investment in geothermal power plants in the member countries.
• Iceland and Italy are the leading countries in the field of geothermal energy. Companies like Reykjavik Energy and Enel Green Power are developing new and more efficient ways to harness the energy.
• Regulatory frameworks in countries such as Germany and France are evolving to support geothermal energy projects. This is expected to lead to an increase in the penetration of the market and technological progress.

Asia-Pacific

• It is not surprising that countries like Indonesia and the Philippines are stepping up their geothermal energy initiatives. They are developing their own geothermal power plants and are incentivizing the development of new geothermal technology.
• The Asian Development Bank has been very active in the region in financing geothermal projects. This will increase the use of high-efficiency geothermal steam engines and the region's energy capacity.
• In countries like Japan, innovations in the field of steam-turbine technology, such as the so-called “bi-rotation system,” are being applied, and they are expected to improve the efficiency and reduce the cost of geothermal energy production.

MEA

• In Africa, countries like Kenya are leading the way in the development of geothermal energy. The Olkaria Geothermal Power Station is a significant project that has proved the potential of geothermal engines.
• The African Union is promoting geothermal energy in the context of its 2063 programme. It is expected that this will lead to an increase in geothermal projects on the continent and the development of regulatory frameworks.
• Private investors and international agencies are interested in geothermal energy.

Latin America

• The countries of Mexico and Chile are exploring their geothermal potential.
• The government of Mexico has promoted foreign investment in the geothermal industry, resulting in joint ventures with companies such as Grupo Bimbo and Enel Green Power.
• In Chile, for example, the Cerro Pabellon geothermal power plant is setting the standards for the most efficient and sustainable power generation in the region.

Did You Know?

“Geothermal energy is a constant source of energy, not dependent on weather conditions, and therefore a reliable source of renewable energy.” — U.S. Department of Energy

Segmental Market Size

The Geothermal Turbines Market is currently growing steadily, driven by the growing global demand for energy and the shift towards green energy sources. The main driving forces for this segment are the growing need for sustainable energy solutions, the favorable regulatory policies promoting clean energy, and the technological advancements in geothermal energy that increase efficiency and reduce costs. The countries with the most successful geothermal projects are Iceland and the Philippines.

Geothermal power plants and direct heat applications in residential and industrial sectors are the main uses of the geothermal steam. These include the Geysers in California, the world's largest geothermal complex, and the Hellisheii power plant in Iceland, which are notable for their efficient use of geothermal resources. Current trends such as government regulations on carbon-free electricity and sustainability initiatives are accelerating the development of this market. Similarly, new developments such as enhanced geothermal systems and binary cycle power plants are also accelerating the market's development by enabling a broader use of geothermal resources and improving efficiency.

Future Outlook

The Geothermal Turbines Market is expected to grow steadily from 2024 to 2032, and its value is forecast to rise from $65 billion to $83 billion, at a CAGR of 3.09%. This growth is driven by the increasing focus on the global adoption of renewable energy sources and the need to reduce carbon emissions. As countries strive to meet their climate goals, geothermal energy is gaining traction as a reliable and sustainable alternative to fossil fuels, especially in regions with significant geothermal resources. The geothermal energy share of the world's renewable energy supply in 2032 is expected to rise from 7% in 2024 to about 10%, which will be a significant increase in penetration and market share.

The development of geothermal energy is due to technological improvements in the field of enhanced geothermal systems (EGS) and in the efficiency of steam turbines. These innovations not only increase the potential for exploitation of previously untapped geothermal energy, but also reduce the cost of generating electricity. In addition, supportive government policies and financial incentives to promote the use of clean energy will further increase the growth of the market. Besides, the integration of geothermal energy with other forms of renewable energy and the development of hybrid systems are expected to open up new opportunities for market players. As the industry evolves, market players need to be flexible and responsive to these changes in order to be able to benefit from the growing demand for clean energy solutions.