GEOTHERMAL POWER MARKET ANALYSIS

Market Challenges And Opportunities

Global Geothermal Power Market Drivers:

Rising demand for renewable energy worldwide to augment market growth

Geothermal power is an efficient renewable energy source that can help minimize greenhouse gas emissions by replacing conventional sources. Governments in many countries are promoting green energy production to curb the alarming rate of pollution across the world. As a result, there is a high focus on the need for alternative power generation methods such as geothermal.

Increasing electricity consumption to propel market growth

The electricity consumption in the recent years has increased due to growing use of electronics products for commercial and domestic purpose that require electricity. According to the Coherent Market Insights analysis, the global GDP projection is projected to achieve $83 trillion mark by 2022, thereby increasing the demand for electricity generation to cater to the spiraling demand for electricity in the industrial and consumer electronics sectors.

Global Geothermal Power Market Opportunities:

Increasing adoption of renewable energy technologies in the industrial sector is projected to provide significant growth opportunities in geothermal power market globally. This is primarily due to its advantages such as zero carbon emissions and cost efficiency. Moreover, the technology is easy to incorporate into existing power infrastructure. Moreover, this energy source is abundant and can be harnessed from a wide range of locations, which makes it a scalable and reliable option for energy supply.

The geothermal power market is undergoing a number of technological advancements that will help in improving its performance and reduce costs. In addition, the increasing number of projects in this field is further projected to propel the market growth over the next few years. According to the Coherent Market Insights analysis, the geothermal power market for industrial sector accounted for $1,679.3 million in 2018, and is projected to reach $ 2,465.1 million by 2026, growing at a CAGR of 5.0% from 2019 to 2026.

Global Geothermal Power Market Restraints:

High cost required for establishing infrastructure to hamper market growth

One of the major disadvantage of geothermal energy is that it is expensive to set up and run. However, the upfront costs of geothermal energy plants are projected to pay for themselves within 5-10 years, saving money on energy bills in the long run.

Limited availability of geothermal energy to hinder market growth

Geothermal energy is limited in availability because the suitable places for geothermal energy are located far away from cities and towns. As a result, many people do not have access to this type of clean energy. This is again hampering market growth.