Geothermal Power MarketSize and Trends

The global geothermal power market size was valued at US$ 5.49 Billion in 2022 and is anticipated to witness a compound annual growth rate (CAGR) of 5.3% from 2023 to 2030. Geothermal power market has witnessed a significant growth over the past few years on account of increasing demand for renewable energy sources.

Figure 1. Global Geothermal Power Market, By Region, 2023

Global Geothermal Power Market Trends:

Growing government support in the form of tax benefits and incentives

Geothermal power is a clean, sustainable and renewable energy source that can generate electricity. It is one of the most reliable and cost effective energy sources. It emits very little or no greenhouse gas emissions and thus is considered eco- friendly. Governments of various nations are promoting the use of geothermal energy by providing financial benefits and tax refunds. There is a huge demand for this form of energy worldwide and it is projected to continue growing during the forecast period.

Strict regulations regarding fossil fuel

Various strict regulations that have been implemented by governments and fossil fuel scarcity are some of the major factors creating demand for geothermal power. On September 23, 2021, EPA issued a final rule that will phase down the U.S. production and consumption of Hydrofluorocarbons by 85% over the next 15 years, as mandated by the AIM Act. A global phasedown of HFCs is expected to avoid up to 0.5°C of global warming by 2100.