The geothermal energy market value is set to cross $50 Billion by 2027, as reported in the latest study by Global Market Insights.
There are a number of factors contributing to the current and forecast market growth, such as the growing concern about greenhouse gas emissions, which is causing governments to shift their focus toward clean energy development.
Also stimulating the growth of the geothermal market is the increasing demand for clean energy coupled with the limited utilisation of conventional fuels due to climate change goals. This shift away from fossil fuels is supported by strict government policies and mandates across various economies, encouraging the use of renewables and in turn accelerating the geothermal energy industry outlook.
Finally, the Geothermal Energy Market report emphasises the roles of growing industrialisation, rising electricity demand from off-grid areas along increasing adoption of clean energy production methods in complementing the industry scenario. Various advancements in the technological processes, together with ongoing research & development activities toward direct utilisation of geothermal in niche application areas, including heating for buildings, will further contribute to the business landscape.
Flash steam plants are the most common geothermal power plants that convert hot fluids into steam to drive the generator turbines. Large-scale adoption of flash steam plants is forecast in countries like Mexico, where huge potential exists for geothermal use in heating for buildings.
The growing adoption of district heating coupled with efforts to reduce the carbon footprint is anticipated to accelerate geothermal energy adoption across Europe. COVID-19 has affected the development of geothermal projects, leading to delays in a number of projects, however, the introduction of vaccines and the decreasing numbers of reported COVID cases will propel growth.
Italy’s geothermal energy industry is poised to witness over 1% CAGR through 2027. The availability of numerous unexploited natural hot springs across the peninsula is the major factor influencing the transition toward geothermal energy sources.
The US geothermal energy market share is set to surpass $300 million from 2021 to 2027. Growing funding from various research institutes & industry players toward renewable energy sources will positively influence the business scenario. According to the US Geothermal Rising, the country has more than 94 geothermal power plants with an installed capacity of 3,714MWe as recorded in 2020. Further, the signing of contracts & agreements by the leading industry players will accelerate the product demand in the forecast timeline. In addition, grants and funding provided by the government for geothermal research will further augment the business scenario in the economy.