Geothermal Power Market: Current Analysis and Forecast (2021-2027)
There are different geothermal technologies with distinct levels of maturity. Technologies for direct uses like district heating, geothermal heat pumps, greenhouses, and for other applications are widely used and can be considered mature. The technology for electricity generation from hydrothermal reservoirs with naturally high permeability is also mature and reliable and has been operating since 1913. Deploying geothermal energy has additional benefits, as it also contributes to reduced global warming effects and public health risks resulting from the use of conventional energy sources. Furthermore, the deployment of geothermal energy helps reduce a country's dependence on fossil fuels. Geothermal project costs are highly site-sensitive. As per IRENA, Typical costs for geothermal power plants range from USD 1 870 to USD 5 050 per kilowatt (kW), noting that binary plants are normally more expensive than direct dry steam and flash plants. Additionally, there is a strong economic case for the deployment of geothermal energy. The costs for electricity generation from geothermal technologies are becoming increasingly competitive, and they are expected to continue to drop through 2050. However, some of the restraints in the market include High cost for establishment of Geothermal Power plant, negative impact of geothermal energy on the environment which are some factors impeding the growth of this market all over the world.
Based on power station type, the market is segmented into Dry Steam Power Stations, Flash Steam Power Stations, and Binary Cycle Power Stations. The Binary Cycle Power Stations segment grabbed XX% market share of the Global Geothermal Power Market and gathered revenue of USD XX billion in 2020. The segment is expected to grow at a CAGR of XX% during the forecast period to reach a market valuation of USD XX billion by 2027 as they can be operated at low-temperature reservoirs (200°F to 330°F) & has little or no emissions of greenhouse gases and particulate matter.
Based on End User type, the market is segmented into Residential, Commercial, Industrial, & Others. In 2020, the Industrial segment dominated the Geothermal Power Market and accounted for XX% market share. This segment will witness a considerable CAGR of XX% during the forecast period (2021-2027F) due to the increasing industrialization & its uses for many applications in different industries globally.
For a better understanding of the market adoption of Geothermal Power, the market is analyzed based on its worldwide presence in the countries such as North America (United States, Canada, Rest of North America), Europe (Germany, France, Italy, Spain, United Kingdom, and Rest of Europe), Asia-Pacific (China, Japan, India, Australia, and Rest of APAC), and Rest of World. North America constitutes the largest market for the industry and generated revenue of USD XX billion in 2020 due to the presence of a large number of geothermal reserves and growing technological advancement for the generation of geothermal power in the region. However, Asia Pacific is set to be fastest growing market due to factors such as electrification of low-income & rural communities along with vast untapped reserves of geothermal power in the region.
Some of the major players operating in the market include Enel Green Power S.p.A., Aboitiz Power Corporation, Calpine Corporation, Alterra Power Corp, ABB Ltd. etc. Several M&A's along with partnerships have been undertaken by these players to boost their presence in different regions.