The future of the geothermal energy market will be influenced by concerns about increasing carbon emissions and the transition to clean and sustainable energy sources. Geothermal energy is a popular renewable energy source as it is clean, consistent, reliable, and carbon-free. Although traditionally used for district heating systems in colder regions like Iceland, it is also used for power generation and heating/cooling applications. Geothermal energy is considered renewable energy as the heat is harnessed from hot reservoirs, and its power output is not subject to fluctuation, unlike solar and wind energy.
However, for effective electricity generation, the geothermal site needs to have high or medium temperature resources, which are typically located near tectonically active regions. Geothermal energy can also have certain environmental impacts, such as the release of certain gases stored under the Earth's surface during digging. Despite these challenges, the market for geothermal energy holds lucrative prospects, with ongoing research and development activities expected to streamline the cost of setting up geothermal plants.
The Global Market Insights, Inc. projects that the global geothermal energy market will be worth $50.04 billion by 2027. The installation of geothermal plants is expected to be huge across regions that experience irregular solar and wind patterns. Countries in North America and Asia are benefiting from geothermal energy to meet their electricity demand. The US is one of the largest generators of geothermal electricity, followed by Indonesia, which generated nearly 14 billion kWh of electricity. Kenya is also becoming a promising market for geothermal electricity production.
Geothermal energy is currently used in over 25 countries globally. It is helping nations like El Salvador, Iceland, Kenya, New Zealand, and the Philippines meet their heating and electricity requirements. It is estimated that Eastern Africa could become a significant revenue pocket for geothermal energy firms, given that the region holds the potential to generate around 20 gigawatts of electricity from geothermal energy. Geothermal power plants are ideal options for energy generation across territories that are not dependent on weather conditions that mostly impact the performance of solar and wind energy generation systems.
However, geothermal energy generation comes with certain challenges like high drilling costs, exploration risks, permit issues, and low public awareness. These factors could affect the expansion of the geothermal energy industry. With ongoing technological development and spreading awareness, an additional 50 countries could shift their focus towards harnessing the potential of geothermal power generation in their energy mix. Key markets in North America, Africa, and Asia will help boost global geothermal energy generation capacity over the next two decades.
The future of geothermal energy market looks promising, with a rising focus on clean and sustainable energy sources and ongoing research and development activities to streamline the cost of setting up geothermal plants. As geothermal energy is a reliable, consistent, and carbon-free energy source, it is gaining widespread recognition across the globe. Despite certain environmental impacts, such as gas emissions during digging, the energy harnessed from hot reservoirs is completely renewable, making it an attractive option for meeting electricity and heating/cooling needs.
The geothermal energy market is estimated to be valued at $50.04 billion by 2027, with countries across North America, Asia, and Africa taking advantage of geothermal energy to meet their electricity demand. The US is one of the largest generators of geothermal electricity, and demand for geothermal heat pumps is also gaining momentum as they consume less electricity than conventional heating and cooling systems. However, high drilling costs, exploration risk, permit issues, and low public awareness present challenges to the expansion of the geothermal energy industry.
Geothermal energy is currently being harnessed by over twenty-five countries worldwide, and the potential for geothermal energy generation is particularly high in Eastern Africa. Geothermal power plants are an ideal option for energy generation in areas where electricity access is limited and are not dependent on weather conditions that impact the performance of solar and wind energy generation systems. The US topped the charts in terms of geothermal energy generation, followed by Indonesia, while Kenya is emerging as a promising market for geothermal electricity produced.
As ongoing technological development and spreading awareness continue, an additional 50 countries could shift their focus towards harnessing the potential of geothermal power generation in their energy mix. Key markets in North America, Africa, and Asia will help boost global geothermal energy generation capacity across the next 15-20 years.