PUBLISHER: Visiongain | PRODUCT CODE: 1886181
PUBLISHER: Visiongain | PRODUCT CODE: 1886181
The global Geothermal Energy market is projected to grow at a CAGR of 6% by 2036.
The Geothermal Energy Market Report 2026-2036 (Including Impact of U.S. Trade Tariffs): This report will prove invaluable to leading firms striving for new revenue pockets if they wish to better understand the industry and its underlying dynamics. It will be useful for companies that would like to expand into different industries or to expand their existing operations in a new region.
Energy Security, 24/7 Baseload Renewables and the Need to Firm Wind and Solar Are Pushing Geothermal Energy from Niche Option to Strategic Asset
One of the strongest drivers for the global geothermal energy market is the combination of energy security concerns and the growing need for reliable, 24/7 low-carbon power to complement variable wind and solar. Unlike solar PV or onshore wind, geothermal plants deliver constant output with very high capacity factors, often above 90%, making them uniquely valuable as countries retire coal and gas but still need firm capacity for grids and data-intensive economies.
The International Energy Agency's 2024 special report on geothermal highlights its 'vast untapped potential' and stresses that geothermal can play an essential role in decarbonizing both electricity and heat systems if supported by the right policies. Rystad Energy now expects global geothermal investment to grow by around 20% per year through 2030 as utilities and governments recognise this firm-renewable advantage and seek to hedge against gas price volatility and geopolitical supply shocks.
A concrete illustration is Fervo Energy's Cape Station enhanced geothermal project in Utah, which has already contracted its full planned 500 MW of capacity with offtakers such as Southern California Edison, Clean Power Alliance and Shell Energy North America to provide around-the-clock clean power for the western U.S. grid. This kind of long-term power purchase agreement (PPA) shows how geothermal is moving from a specialist technology in a few hotspots to a strategic tool for grid operators and policymakers who must meet net-zero goals without sacrificing reliability.
High Upfront Capital Costs, Subsurface Risk and Long Development Timelines Still Constrain Geothermal's Scale-Up Pace
Despite its attractive operating economics, geothermal remains challenged by very high upfront capital requirements and significant subsurface risk, particularly in greenfield projects where reservoir properties are poorly known. Drilling constitutes the largest share of capex, and a single unsuccessful exploration well can cost tens of millions of dollars, as highlighted in multiple analyses of EGS and conventional projects. Even with Fervo's 70% reduction in drilling time and roughly 50% cut in well cost, geothermal still compares unfavourably with solar and onshore wind on a pure capex-per-MW basis, especially in markets without explicit support schemes or risk-sharing mechanisms. Long lead times-often 5-8 years from exploration to commissioning-further dampen investor appetite compared with faster-to-deploy renewables. This means that while companies like Ormat, KenGen and Reykjavik Energy can expand within known fields with lower incremental risk, many potential projects elsewhere stall at the feasibility or exploration stage due to lack of early-stage financing and risk mitigation, slowing the overall market expansion trajectory.
What would be the Impact of US Trade Tariffs on the Global Geothermal Energy Market?
The imposition of U.S. tariffs on clean energy technologies, drilling equipment, steel components, and critical minerals has introduced new uncertainties for the global geothermal energy market. Since geothermal development depends heavily on specialized drilling rigs, casing materials, turbines, and heat-exchange systems, tariff-driven supply chain disruptions can increase project costs and elongate development timelines. While domestic manufacturing in the U.S. may eventually benefit, the short- to medium-term impact is expected to reshape trade flows, shift sourcing strategies, and influence global investment decisions in both conventional geothermal and next-generation EGS technologies. The extent of this impact will largely depend on the duration of tariff measures and the speed at which markets and supply chains adjust, forming the basis of the V-shaped, U-shaped, and L-shaped recovery outlooks.
What Questions Should You Ask before Buying a Market Research Report?
You need to discover how this will impact the geothermal energy market today, and over the next 10 years:
Segments Covered in the Report
In addition to the revenue predictions for the overall world market and segments, you will also find revenue forecasts for five regional and 25 leading national markets:
The report also includes profiles and for some of the leading companies in the Geothermal Energy Market, 2026 to 2036, with a focus on this segment of these companies' operations.
Overall world revenue for Geothermal Energy Market, 2026 to 2036 in terms of value the market will surpass US$75,925.0 million in 2026, our work calculates. We predict strong revenue growth through to 2036. Our work identifies which organizations hold the greatest potential. Discover their capabilities, progress, and commercial prospects, helping you stay ahead.