PUBLISHER: AnalystView Market Insights | PRODUCT CODE: 1100676
PUBLISHER: AnalystView Market Insights | PRODUCT CODE: 1100676
The geothermal energy market size was USD 52,017.1 Million in 2021, growing at a 6.1% CAGR during 2022-2028.
Geothermal energy is a consistent and reliable source of energy that may be collected without the need of any external fuel. Underground sources of energy include shallow subsurface, heated rocks, and reservoirs of hot dry steam and wet steam. Steam and water temperature, accessibility and reservoir porosity, and permeability are all important aspects in geothermal applications.
Electricity consumption is rising all around the world, and the government is depending heavily on renewable energy to meet it. Renewable energy sources of this type of energy are becoming increasingly popular across the world. Geothermal energy is trustworthy and cost-effective, increasing the installation of this type of energy over the world. As a result, this generates prospects for growth of market. The global demand for heating and cooling systems utilizing district heating and ground source heat pumps is continuously expanding. Installation of this sort of energy aids in the reduction of greenhouse gas emissions, which promotes market expansion between 2021 and 2028. According to the Energy International Agency, the growth rate of renewable energy capacity will reach 45 percent in 2021, the highest annual rate rise since 1999, with over 260 GW of capacity constructed worldwide, 14,050 MW of which is geothermal energy.
Many governments have established a target of generating electricity from renewable sources, and they are working heavily on upgrading power producing units. Climate change legislation and policies are being implemented by governments across the world. In Indonesia, the government has developed a National Energy Policy that contains parameters such as energy diversification, conversion, and intensification. In order to foster development in this industry, the government is also offering different subsidies. For instance, In 2021, the Alberta government introduced Bill 36- the Geothermal Resource Development Act to encourage this market. The government is greatly focused on supporting the installation of this energy across the world.
The COVID-19 outbreak has had a detrimental influence on the renewable energy industry. The installation of severe government controls caused major supply chain disruptions throughout the world. Meanwhile, travel limitations crimp import and export activity. Strict lockdowns also contributed to worker shortages in numerous areas. As a result, the sector suffered a decrease in investment in planned projects, with numerous projects being postponed throughout the world.
Geothermal Energy market is segmented on the basis of type, application and region.
In terms of type, the market is divided into a binary cycle, flash, dry steam, and others. A binary cycle geothermal power plant pumps water from geothermal reservoirs via a heat exchanger, where it warms isobutene (a second liquid-like). In a binary cycle, steam or water reservoirs under the ground never come into direct touch with turbines. Because binary cycles are more flexible, this energy is migrating away from steam or flash. Binary cycle power plants can run at lower temperatures and provide more flexibility for different settings. During the projected period, the binary sector is expected to increase at a pace of 6.17 percent. This plant employs technology that assures zero emissions, excellent efficiency, and a cheap starting cost. The binary cycle plants are easily integrated with various energy sources.
Based on the application, the market can be segmented into residential, commercial, industrial, and others. During the projection period, the commercial segment is expected to increase at the fastest CAGR. The installation of this energy is rapidly expanding over the world, as is the use of power generated by this source. This is commonly used in the business sector for heating and other uses. Underground hot water is used in commercial settings to heat and cool buildings, among other things. During the projection period, this promotes growth in the commercial application category.
During the predicted period, the industrial segment is expected to increase significantly. Geothermal energy is also frequently employed in industry across the world. This energy is commonly used in industrial operations to provide heat. This type of energy may be utilized to replace fossil fuels and sustain industrial operations. This energy is a clean source of energy that contributes to the reduction of greenhouse emissions. During the predicted period, this fosters growth in the industrial sector.
The worldwide geothermal energy industry is extremely fragmented, with numerous large local and international firms present. To increase their market position, businesses throughout the world are implementing organic and inorganic growth methods. The majority of businesses are focusing on growing their manufacturing capacities by establishing new facilities or expanding current ones.
For instance, in October 2021, Mitsubishi Power has finished the renovation of Otake Geothermal Power Plant, and Mitsubishi is an Engineering and Procurement Contract for Otake plant. Ormat invested USD 377 million in May 2021, to acquire Terra-Gen's two contracted geothermal assets.
The scope of this report covers the market by its major segments, which include as follows: