Report Overview:
The global geothermal power market is steadily growing and is expected to rise from USD 7.7 billion in 2024 to around USD 11.4 billion by 2034, showing a healthy CAGR of 4.0% over the forecast period. This growth is being led by the use of flash steam power plants, which now make up over 59.4% of the market. These systems are especially effective in places with high underground temperatures, such as the United States, Indonesia, and the Philippines. Most geothermal plants in the world fall under the up to 5 MW category, representing nearly 87.6% of all installations. This makes them ideal for small-scale power needs, particularly in remote or industrial areas.
A majority of geothermal energy production over 74.5% comes from high-temperature sources (above 150°C), which are more efficient and reliable for continuous power generation. Industrial applications take the lead in usage, accounting for 65.9% of the market, thanks to their constant need for both heat and power. On the regional front, North America is ahead, making up around 48.6% of the global market, with a valuation of USD 3.7 billion. The region’s dominance is supported by favorable government policies, tax incentives, and well-developed geothermal infrastructure. This highlights the continent’s strong commitment to clean and reliable energy.
Key Takeaways
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The market is on track to grow by nearly 48% by 2034.
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Flash steam plants dominate the market due to efficiency at high temperatures.
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Small-scale projects (up to 5 MW) are the most commonly deployed type.
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North America leads globally, driven by investment and policy support.
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Key Market Segments:
By Power Station
- Dry Steam Power Stations
- Flash Steam Power Stations
- Binary Cycle Power Stations
By Power
- Upto 5MW
- Above 5 MW
By Temperature Type
- Low Temperature (Up to 900C)
- Medium Temperature (900C – 1500C)
- High Temperature (Above 1500C)
By End-Use
- Industrial
- Residential
- Commercial
By Power Station
Flash Steam Power Stations dominate with 59.4% in 2024 due to high energy efficiency and wide deployment in geothermal-rich regions.
In 2024, Flash Steam Power Stations held a dominant market position, capturing more than a 59.4% share of the global geothermal power market. This significant share can be linked to the technology’s proven efficiency in harnessing high-temperature geothermal resources, particularly in regions like the United States, Indonesia, and the Philippines where geothermal reservoirs exceed 180°C. Flash steam systems are preferred for large-scale geothermal electricity generation as they offer better energy conversion efficiency compared to dry steam or binary cycle systems.
The technology works by separating steam from hot water under high pressure and then flashing it to produce usable steam to drive turbines, making it highly effective in mature geothermal fields. The strong presence of flash steam installations in North America and Southeast Asia continues to anchor their market lead. This technology is expected to maintain its leadership into 2025, supported by both government-backed renewable energy targets and steady advancements in geothermal drilling methods.
By Power
Upto 5MW leads the market with 87.6% share in 2024, driven by rising adoption of small-scale geothermal systems.
In 2024, Upto 5MW held a dominant market position, capturing more than an 87.6% share of the global geothermal power market by capacity segment. This remarkable dominance is largely due to the increasing use of small-scale geothermal plants for decentralized power generation, especially in remote and rural areas. These compact systems are cost-effective, easier to deploy, and require less infrastructure compared to larger installations, making them ideal for local grids and off-grid applications.
Countries with limited access to large power stations, such as Kenya, Turkey, and parts of Southeast Asia, are actively turning to sub-5MW geothermal units to meet local electricity needs sustainably. Additionally, government incentives and policy frameworks in developing nations have encouraged community-level renewable projects, further boosting the demand for this capacity range. The strong performance of this segment is expected to continue into 2025 as clean energy access and rural electrification remain high on the global energy agenda.
By Temperature Type
High Temperature (Above 150°C) leads with 74.5% share in 2024, fueled by its suitability for large-scale electricity generation.
In 2024, High Temperature (Above 150°C) held a dominant market position, capturing more than a 74.5% share of the global geothermal power market by temperature type. This strong lead is attributed to the efficiency and energy yield of high-temperature geothermal reservoirs, which are essential for flash steam and dry steam power generation. These systems are most effective when tapping into geothermal resources with temperatures above 150°C, commonly found in volcanic regions such as the Ring of Fire.
Countries like the United States, Indonesia, and Mexico heavily rely on these high-temperature zones to produce bulk geothermal electricity. The high energy conversion efficiency and ability to support utility-scale plants make this segment highly attractive for both public and private energy projects. In 2025, this trend is expected to continue, supported by expanding exploration activities and improved drilling technologies targeting deep, high-heat geothermal fields.
By End-Use
Industrial sector dominates with 65.9% share in 2024, driven by high energy demand and continuous operations.
In 2024, Industrial held a dominant market position, capturing more than a 65.9% share of the global geothermal power market by end-use. This dominance is mainly due to the sector’s constant need for reliable and cost-effective power to support round-the-clock operations. Industries such as mining, food processing, and manufacturing benefit from geothermal energy’s stable output, especially in areas with rich geothermal resources.
The use of geothermal heat for drying, chemical processing, and steam generation has become increasingly popular as companies look for ways to reduce their carbon emissions and energy costs. In countries like Iceland and the Philippines, geothermal power plays a direct role in powering industrial clusters, offering both electricity and direct heat. By 2025, the demand from the industrial sector is expected to grow further, backed by environmental regulations and the push toward energy transition in heavy industries.
DORT Analysis
Drivers
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Geothermal offers round-the-clock power, unlike solar or wind, making it a preferred baseload energy source.
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Flash steam technology is well-tested and works well in high-temperature regions, offering strong returns.
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Demand from industrial sectors remains steady, thanks to their need for both power and heat.
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Governments, especially in North America, are actively supporting geothermal with tax benefits and research funding.
Opportunities
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Expanding the use of modular plants could help bring geothermal to smaller regions or facilities.
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Emerging economies with geothermal resources are starting to invest more in clean energy.
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Oil and gas drilling technology can be adapted to cut costs in geothermal development.
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Long-term agreements with industrial clients can provide stable revenue streams for operators.
Restraints
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Initial project costs are high, especially due to deep drilling and exploration needs.
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Not every region has easy access to high-temperature underground sources.
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Navigating environmental permits and regulations can slow down project timelines.
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There’s a shortage of trained professionals who can operate and manage geothermal plants.
Trends
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Flash steam systems remain the top choice due to their high efficiency.
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Smaller plants (<5 MW) dominate the landscape, especially in isolated areas.
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Most installations use high-temp resources, ensuring consistent power output.
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Industrial use continues to be the biggest market segment.
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North America maintains its top position in the global geothermal sector.
Market Key Players:
- Iberdrola
- RWE
- SolarEdge Technologies
- NextEra Energy
- China Longyuan Power Group
- Siemens Gamesa Renewable Energy
- China Three Gorges Corporation
- Orsted
- EDP Renewables
- GE Renewable Energy
- Canadian Solar
- First Solar
- Brookfield Renewable Partners
- Vestas Wind Systems
- Enel