Geothermal Energy Global Market Report 2026

Geothermal energy is thermal energy derived from the Earth's internal heat, primarily generated by the planet's formation and radioactive decay processes. This heat is stored in various reservoirs within the Earth's crust and can be harnessed for both heat and electricity generation. Geothermal resources include hot water and steam found at varying depths and temperatures beneath the Earth's surface. By tapping into these natural reservoirs, geothermal energy can be utilized as a sustainable and renewable source for various applications.

The main types of technologies in geothermal energy include binary cycle plants, flash steam plants, dry steam plants, ground-source heat pumps, direct systems, and others. Binary-cycle plants are a specific type of geothermal power plant that utilizes two separate fluid cycles to generate electrical power from geothermal resources. These plants find applications in various sectors, including power generation, residential heating and cooling, and commercial heating and cooling. The end-users of geothermal energy technologies encompass industrial, residential, and commercial sectors. Each technology type has its own set of advantages and applications, catering to diverse energy needs and environmental considerations.

Note that the outlook for this market is being affected by rapid changes in trade relations and tariffs globally. The report will be updated prior to delivery to reflect the latest status, including revised forecasts and quantified impact analysis. The report's Recommendations and Conclusions sections will be updated to give strategies for entities dealing with the fast-moving international environment.

Tariffs on drilling equipment, heat pump components, and power generation machinery have increased project costs for geothermal developers, especially in regions dependent on imported technology. Power generation and heating applications in Asia-Pacific and Europe face the greatest impact due to high equipment usage. However, tariffs have also accelerated domestic manufacturing, encouraged local sourcing, and stimulated innovation in geothermal technologies, helping strengthen long term market resilience and competitiveness.

The geothermal energy market research report is one of a series of new reports from The Business Research Company that provides geothermal energy market statistics, including geothermal energy industry global market size, regional shares, competitors with a geothermal energy market share, detailed geothermal energy market segments, market trends and opportunities, and any further data you may need to thrive in the geothermal energy industry. This geothermal energy market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

The geothermal energy market size has grown strongly in recent years. It will grow from $6.6 billion in 2025 to $6.99 billion in 2026 at a compound annual growth rate (CAGR) of 5.9%. The growth in the historic period can be attributed to availability of high temperature geothermal resources, early development of flash steam plants, government subsidies for renewable projects, rising demand for heating applications, expansion of geothermal exploration activities.

The geothermal energy market size is expected to see strong growth in the next few years. It will grow to $8.74 billion in 2030 at a compound annual growth rate (CAGR) of 5.7%. The growth in the forecast period can be attributed to growth of enhanced geothermal systems (egs), increasing adoption of ground source heat pumps, rising demand for low carbon power generation, expansion of hybrid geothermal systems, technological advancements in drilling and subsurface mapping. Major trends in the forecast period include growing adoption of geothermal power plants, rising demand for ground source heat pumps, expansion of direct heating applications, increasing development of enhanced geothermal systems, rising use of geothermal energy in industrial processing.

The rising investments in the renewable energy sector are expected to drive the growth of the geothermal energy market going forward. Investments in renewable energy refer to financial commitments made toward developing, deploying, and utilizing sustainable energy sources such as solar, wind, hydroelectric, geothermal, and biomass. These investments are increasing due to concerns about climate change, advancements in renewable energy technologies, improved efficiency, and declining costs. Investments support geothermal energy by funding various aspects of project development and deployment, enabling the harnessing of geothermal resources for sustainable energy production, plant construction, operation, and maintenance. For example, in 2023, according to the International Energy Agency (IEA), a France-based intergovernmental energy organization, global energy investment increased from about US $2.4 trillion in 2022 to approximately US $2.8 trillion in 2023. Therefore, rising investments in the renewable energy sector are driving the growth of the geothermal energy market.

Leading companies operating in the geothermal energy market are prioritizing technological advancements, such as enhanced geothermal systems (EGS) that employ horizontal drilling combined with engineered reservoir stimulation. This approach involves advanced subsurface engineering methods that extract heat from deep, impermeable rock formations through horizontal well pairs and induced fractures to produce continuous power. For example, in July 2023, Fervo Energy, a U.S.-based geothermal technology firm, introduced its "Project Red" commercial pilot, which achieved a horizontal well pair length of 3,250 ft, a reservoir temperature of 191 °C, and a sustained flow rate of 63 liters per second, delivering 3.5 MW of baseload power output. This trend allows geothermal energy to expand beyond geographically limited resources and support round-the-clock clean power, although it still encounters high upfront drilling expenses, complex permitting requirements, and technical execution risks.

In October 2023, Gaia Energy Ltd., an Italy-based renewable energy and green hydrogen developer, made a strategic move by acquiring Aardyn BV, a Netherlands-based geothermal energy developer and producer. This acquisition is expected to accelerate Gaia Energy's goal of realizing a geothermal potential of 500 MW across more than 25 projects. The combined expertise and portfolio of both companies will play a crucial role in expanding and constructing new geothermal resources, contributing to the growth and development of the geothermal energy market.

Major companies operating in the geothermal energy market are Berkshire Hathaway Energy, Chevron Corporation, Mitsubishi Corporation, Enel Group, Engie SA, Siemens AG, General Electric Group, KEPCO Group, PT. Pertamina Geothermal Energy, Asea Brown Boveri Ltd, Toshiba International Corporation, Calpine Corporation, Tetra Tech Inc, Aboitiz Power Corporation, First Gen Corporation, Ormat Technologies, Energy Development Corporation, EthosEnergy Group, Therma Source LLC, Sarulla Operations Ltd, Turboden S.P.A., Terra-Green Power LLC, Gradient Resources, ElectraTherm, Reykjavik Geothermal

Asia-Pacific was the largest region in the geothermal energy market in 2025. North America is expected to be the fastest-growing region in the forecast period. The regions covered in the geothermal energy market report are Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.

The countries covered in the geothermal energy market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Taiwan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The geothermal energy market consists of revenues earned by entities by providing services such as electricity generation, industrial processes, greenhouse heating, and district heating. The market value includes the value of related goods sold by the service provider or included within the service offering. The geothermal energy market also includes of sales of geo-exchange systems, drilling equipment, geothermal power tools, geothermal heat pumps, and monitoring and control systems. Values in this market are 'factory gate' values, that is, the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors, and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

Geothermal Energy Market Global Report 2026 from The Business Research Company provides strategists, marketers and senior management with the critical information they need to assess the market.

This report focuses geothermal energy market which is experiencing strong growth. The report gives a guide to the trends which will be shaping the market over the next ten years and beyond.

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Where is the largest and fastest growing market for geothermal energy ? How does the market relate to the overall economy, demography and other similar markets? What forces will shape the market going forward, including technological disruption, regulatory shifts, and changing consumer preferences? The geothermal energy market global report from the Business Research Company answers all these questions and many more.

The report covers market characteristics, size and growth, segmentation, regional and country breakdowns, total addressable market (TAM), market attractiveness score (MAS), competitive landscape, market shares, company scoring matrix, trends and strategies for this market. It traces the market's historic and forecast market growth by geography.

• The market characteristics section of the report defines and explains the market. This section also examines key products and services offered in the market, evaluates brand-level differentiation, compares product features, and highlights major innovation and product development trends.
• The supply chain analysis section provides an overview of the entire value chain, including key raw materials, resources, and supplier analysis. It also provides a list competitor at each level of the supply chain.
• The updated trends and strategies section analyses the shape of the market as it evolves and highlights emerging technology trends such as digital transformation, automation, sustainability initiatives, and AI-driven innovation. It suggests how companies can leverage these advancements to strengthen their market position and achieve competitive differentiation.
• The regulatory and investment landscape section provides an overview of the key regulatory frameworks, regularity bodies, associations, and government policies influencing the market. It also examines major investment flows, incentives, and funding trends shaping industry growth and innovation.
• The market size section gives the market size ($b) covering both the historic growth of the market, and forecasting its development.
• The forecasts are made after considering the major factors currently impacting the market. These include the technological advancements such as AI and automation, Russia-Ukraine war, trade tariffs (government-imposed import/export duties), elevated inflation and interest rates.
• The total addressable market (TAM) analysis section defines and estimates the market potential compares it with the current market size, and provides strategic insights and growth opportunities based on this evaluation.
• The market attractiveness scoring section evaluates the market based on a quantitative scoring framework that considers growth potential, competitive dynamics, strategic fit, and risk profile. It also provides interpretive insights and strategic implications for decision-makers.
• Market segmentations break down the market into sub markets.
• The regional and country breakdowns section gives an analysis of the market in each geography and the size of the market by geography and compares their historic and forecast growth.
• Expanded geographical coverage includes Taiwan and Southeast Asia, reflecting recent supply chain realignments and manufacturing shifts in the region. This section analyzes how these markets are becoming increasingly important hubs in the global value chain.
• The competitive landscape chapter gives a description of the competitive nature of the market, market shares, and a description of the leading companies. Key financial deals which have shaped the market in recent years are identified.
• The company scoring matrix section evaluates and ranks leading companies based on a multi-parameter framework that includes market share or revenues, product innovation, and brand recognition.

Scope

• Markets Covered:1) By Technology: Binary Cycle Plants; Flash Steam Plants; Dry Steam Plants; Ground Source Heat Pumps; Direct Systems; Other Technologies
• 2) By Application: Power Generation; Residential Heating And Cooling; Commercial Heating And Cooling
• 3) By End Use: Industrial; Residential; Commercial
• Subsegments:
• 1) By Binary Cycle Plants: Organic Rankine Cycle (ORC) Systems; Dual-Flash Binary Cycle Systems; Other Binary Cycle Technologies
• 2) By Flash Steam Plants: Single-Flash Steam Systems; Double-Flash Steam Systems
• 3) By Dry Steam Plants: Conventional Dry Steam Systems; Enhanced Dry Steam Systems
• 3) By Ground Source Heat Pumps: Closed-Loop Ground Source Heat Pumps; Open-Loop Ground Source Heat Pumps
• 4) By Direct Systems: Direct Use Applications (Heating And Cooling); District Heating Systems
• 5) By Other Technologies: Enhanced Geothermal Systems (EGS); Hybrid Systems (Geothermal + Other Renewable Energy); Other Emerging Geothermal Technologies
• Companies Mentioned: Berkshire Hathaway Energy; Chevron Corporation; Mitsubishi Corporation; Enel Group; Engie SA; Siemens AG; General Electric Group; KEPCO Group; PT. Pertamina Geothermal Energy; Asea Brown Boveri Ltd; Toshiba International Corporation; Calpine Corporation; Tetra Tech Inc; Aboitiz Power Corporation; First Gen Corporation; Ormat Technologies; Energy Development Corporation; EthosEnergy Group; Therma Source LLC; Sarulla Operations Ltd; Turboden S.P.A.; Terra-Green Power LLC; Gradient Resources; ElectraTherm; Reykjavik Geothermal
• Countries: Australia; Brazil; China; France; Germany; India; Indonesia; Japan; Taiwan; Russia; South Korea; UK; USA; Canada; Italy; Spain.
• Regions: Asia-Pacific; South East Asia; Western Europe; Eastern Europe; North America; South America; Middle East; Africa
• Time Series: Five years historic and ten years forecast.
• Data: Ratios of market size and growth to related markets, GDP proportions, expenditure per capita,
• Data Segmentations: country and regional historic and forecast data, market share of competitors, market segments.
• Sourcing and Referencing: Data and analysis throughout the report is sourced using end notes.
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