Geothermal Power Market Expected to Reach $6.8 Billion by 2026

According to a new report published by Allied Market Research, titled, " Geothermal Power Market by Power Station Type and End-use Industry: Global Opportunity Analysis and Industry Forecast, 2019–2026," the global geothermal power market was valued at $4.6 billion in 2018, and is projected to reach $6.8 billion by 2026, growing at a CAGR of 5.0% from 2019 to 2026. The geothermal power market growth is driven by rise in investment in renewable energy projects in the region. Moreover, significant increase in energy demand due to rapid industrialization and rise in population in countries such as China and India are expected to boost the market growth. 

Geothermal power plants utilize steam to produce energy. The steam is generated from reservoirs of hot water found below the earth's surface. In the process of energy generation, the steam rotates a turbine that activates a generator to produce energy. With growing demand for energy, it is expected that the requirement of geothermal power generation will increase notably. 

The industrial sectors are expected to consume more energy during the forecast period attributed to rise in use of geothermal power plants in the industrial sector. Furthermore, India possesses significant growth potential due to increase in investments in renewable energy projects in India. Thus, India is one of the major countries experiencing rapid growth in the Asia-Pacific geothermal power market. For instance, in March 2019, Eversource Capital, a Joint venture between Everstone and Lightsource, planned to invest $1 billion in renewable energy in India through its Green Growth Equity Fund. These investments and developments will increase the acceptability of geothermal power in the renewable energy market. Thus, increase in investments and developments in renewable energy project is expected to offer remunerative opportunities for the growth of the geothermal power market. 

The global geothermal power market is segmented on the basis of power station type, end use, and region. By power station type, the market is divided into dry steam power stations, flash steam power stations, and binary cycle power stations. The binary cycle power stations segment was the highest contributor and is estimated to grow at a CAGR of 4.5% during the forecast period. This is attributed to increase in use of binary cycle power stations for generating electricity. In addition, binary cycle power plants are utilized to generate additional electricity from the geothermal fluid after its use in flash power plants. These binary cycle power plants are called bottoming plants. As the demand for electricity increases due to growing urbanization, it is expected that the demand for binary cycle power station will increase significantly, which will propel the growth of the market.

Market segmentation on the basis of end use includes residential, commercial, industrial, and others. The industrial segment was the highest contributor to the market in 2018 and is expected to grow at a CAGR of 5.0% during the forecast period. The industrial and residential segments collectively accounted for around 69.7% market share in 2018, with the former constituting around 36.2% share. 

Region-wise, the market is analyzed across North America, Europe, Asia-Pacific, and LAMEA. Among these regions, Asia-Pacific was the highest revenue contributor in 2018 and is expected to grow with a CAGR of 5.8%. Asia-Pacific and North America collectively accounted for around 68.6% share in 2018, with the former constituting around 35.0% share.

The key players operating in the global geothermal power industry include ABB, EDF, Enel Spa, 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. 

Key Findings of the Study:

• In 2018, the Asia-Pacific market accounts for 34.9% share in the geothermal power market.
• The binary cycle power stations segment is expected to hold a dominant position in the geothermal power market size during the forecast period.
• The dry steam power stations segment is projected to grow at a CAGR of 3.9% by 2026.
• The Industrial segment dominated the geothermal power market share in 2018 and is expected to grow with the CAGR of 5.0% during the forecast period.
• The qualitative data in the report aims on the geothermal power market trends, dynamics, and developments, while the quantitative data provides information about the market share and market size in terms of revenue and volume.