Geothermal Power Generation Global Market Report 2026

Geothermal power generation is the process of harnessing heat energy from beneath the Earth's surface to generate electricity. This method utilizes the heat extracted from geothermal reservoirs, often in the form of underground hot water and steam. The heat is used to drive turbines, converting thermal energy into mechanical energy, and subsequently, electrical energy. Geothermal power plants play a crucial role in producing electricity sustainably and can provide a continuous and reliable source of power, contributing to a cleaner and more environmentally friendly energy mix.

The main types of geothermal power generation include binary cycles, dry steam, and flash steam. Binary cycle power generation involves the utilization of moderate-temperature geothermal resources by transferring heat from the geothermal fluid to a secondary fluid with a lower boiling point. These systems are applied in various settings, including dry steam power stations, flash steam power stations, and binary cycle power stations. Geothermal power generation serves diverse end-user industries, including commercial, residential, industrial, and others, contributing to a sustainable and renewable energy landscape. Each type of geothermal power generation technology has its unique applications and advantages, catering to different resource conditions and operational requirements.

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 machinery, turbines, heat exchangers, and power plant components have raised capital costs for geothermal power developers, with binary cycle and flash steam stations particularly affected due to their high equipment dependency. Regions in Asia-Pacific and Europe relying on imported machinery face the greatest delays. However, tariffs are also encouraging domestic manufacturing, fostering regional supply chain resilience, and driving innovation in cost efficient geothermal technologies, offering long term benefits for the sector.

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

The geothermal power generation market size has grown rapidly in recent years. It will grow from $12.59 billion in 2025 to $14 billion in 2026 at a compound annual growth rate (CAGR) of 11.2%. The growth in the historic period can be attributed to availability of naturally occurring geothermal steam, early deployment of dry steam plants, government incentives for renewable electricity, increasing need for stable baseload power, expansion of geothermal exploration projects.

The geothermal power generation market size is expected to see rapid growth in the next few years. It will grow to $21.18 billion in 2030 at a compound annual growth rate (CAGR) of 10.9%. The growth in the forecast period can be attributed to growth of binary cycle installations, rising demand for zero emission power sources, development of enhanced geothermal systems (egs), increasing investments in geothermal rich regions, advancements in drilling and reservoir engineering. Major trends in the forecast period include growing development of binary cycle power plants, increasing adoption of flash steam systems, rising deployment of enhanced dry steam technologies, growing investments in high temperature geothermal reservoirs, expansion of modular and small scale geothermal power projects.

The growing demand for renewable energy is expected to drive the growth of the geothermal power generation market going forward. Renewable energy refers to energy derived from naturally replenishing sources that are virtually inexhaustible on human timescales. The rising demand for renewable energy is fueled by its cost-effectiveness, environmental advantages, and the broader global transition toward sustainable energy systems. Renewable energy, including geothermal power generation, supports sustainable development, environmental protection, and the shift to a cleaner and more resilient energy future. Geothermal energy is considered a clean and sustainable energy source because it relies on a continually replenished heat source within the Earth and produces minimal greenhouse gas emissions when used for power generation. For example, in 2023, according to the International Energy Agency (IEA), a France-based intergovernmental organization, global renewable electricity capacity additions increased from around 338 GW in 2022 to approximately 507 GW in 2023, representing nearly a 50% year-on-year rise. Therefore, the growing demand for renewable energy is driving the growth of the geothermal power generation market.

Major companies in the geothermal power generation market are actively engaging in strategic partnerships to enhance their competitive position. Geothermal power project partnerships involve collaborative arrangements between entities to plan, develop, and operate geothermal power generation facilities. Google LLC, a US-based technology company, exemplifies this trend by partnering with Fervo, a US-based clean-energy startup, to develop a groundbreaking geothermal power project in Nevada. This project aims to provide carbon-free energy to support Google's data centers and operations. Fervo employs advanced drilling techniques, originally developed by the oil and gas industry, to extract heat from beneath the Earth's surface. The partnership showcases an innovative approach to harnessing geothermal energy for sustainable power generation, contributing to carbon-free electricity production.

In October 2023, Ormat Technologies Inc., a US-based company specializing in the manufacturing and development of geothermal power generation equipment, made a significant move by acquiring a 150 MW portfolio of geothermal and solar assets from Enel Green Power North America (EGPNA) for approximately $271 million. This acquisition positions Ormat as a key player in the renewable energy sector, expanding its portfolio of renewable energy assets. Enel Green Power North America (EGPNA), a US-based owner and operator of geothermal and renewable energy plants, is a strategic partner in this transaction, facilitating the growth and consolidation of renewable energy resources.

Major companies operating in the geothermal power generation market are Chevron Corp., Enel Green Power S.p.A., Mitsubishi Corporation, Siemens AG, General Electric SE, Sumitomo Corporation, ABB Ltd., Berkshire Hathaway Energy, Toshiba Corporation, Atlas Copco AB, Calpine Corporation, Fuji Electric Co. Ltd., Tata Power Company Limited, Aboitiz Power Corporation, First Gen Corporation, Ansaldo Energia S.P.A., Ormat Technologies Inc., Innergex Renewable Energy Inc., Climatemaster Inc., Green Mountain Energy Company, Exergy Inc., GEG Power Equipments Private Limited, ElectraTherm Inc., Fervo Energy Co., Climeon AB

Asia-Pacific was the largest region in the geothermal power generation market in 2025. The regions covered in the geothermal power generation 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 power generation market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Taiwan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The geothermal power generation market consists of revenues earned by entities by providing services such as exploration, resource assessment, drilling services, plant design, and construction. The market value includes the value of related goods sold by the service provider or included within the service offering. The geothermal power generation market also includes sales of geothermal heat pumps, drilling rigs, and well casing. 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 Power Generation 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 power generation 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 power generation ? 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 power generation 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 Type: Binary Cycle; Dry Steam; Flash Steam
• 2) By Application: Dry Steam Power Stations; Flash Steam Power Stations; Binary Cycle Power Stations
• 3) By End Users: Commercial; Residential; Industrial; Other End Users
• Subsegments:
• 1) By Binary Cycle: Organic Rankine Cycle (ORC) Systems; Other Binary Cycle Systems
• 2) By Dry Steam: Conventional Dry Steam Power Plants; Enhanced Dry Steam Systems
• 3) By Flash Steam: Single-Flash Steam Systems; Double-Flash Steam Systems
• Companies Mentioned: Chevron Corp.; Enel Green Power S.p.A.; Mitsubishi Corporation; Siemens AG; General Electric SE; Sumitomo Corporation; ABB Ltd.; Berkshire Hathaway Energy; Toshiba Corporation; Atlas Copco AB; Calpine Corporation; Fuji Electric Co. Ltd.; Tata Power Company Limited; Aboitiz Power Corporation; First Gen Corporation; Ansaldo Energia S.P.A.; Ormat Technologies Inc.; Innergex Renewable Energy Inc.; Climatemaster Inc.; Green Mountain Energy Company; Exergy Inc.; GEG Power Equipments Private Limited; ElectraTherm Inc.; Fervo Energy Co.; Climeon AB
• 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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