Global Geothermal Energy Market Size, Share, and COVID-19 Impact Analysis, By Type (Binary Cycle, Flash, and Dry Steam), By Application (Residential, Commercial, and Industrial), and By Region (North America, Europe, Asia-Pacific, Latin America, Middle East, and Africa), Analysis and Forecast 2025 - 2035.

Global Geothermal Energy Market Insights Forecasts To 2035

• The Global Geothermal Energy Market Size Was Estimated at USD 9.75 Billion in 2024
• The Market Size is Expected to Grow at a CAGR of around 5.24% from 2025 to 2035
• The Worldwide Geothermal Energy Market Size is Expected to Reach USD 17.10 Billion by 2035
• Europe is Expected to Grow the fastest during the forecast period.

According to a research report published by Spherical Insights and Consulting, the Global Geothermal Energy Market Size was worth around USD 9.75 Billion in 2024 and is predicted to grow to around USD 17.10 Billion by 2035 with a compound annual growth rate (CAGR) of 5.24% from 2025 and 2035. The market for geothermal energy has a number of opportunities to grow due to geothermal potential for low- and medium- temperature resources.   

Market Overview

The global industry for geothermal energy is focused on the use of Earth’s internal heat for power generation and direct heating. Geothermal energy is thermal energy extracted from the Earth’s crust, combining energy from the formation of the planet and from radioactive decay. The energy has been exploited as a source of heat and/or electric power for millennia. Technological advancements such as horizontal drilling and hydraulic fracturing are opening up new horizons for geothermal, making it an attractive option for countries and companies all around the world.

Innovation and market expansion are anticipated as a result of increasing investment in geothermal by the governments, oil & gas companies and utilities. The growing need for constant power supply among residential, commercial, and industrial sectors, along with an increasing need for electricity generation through sustainable means, is driving a huge surge in the global geothermal energy market.    

Report Coverage

This research report categorizes the geothermal energy market based on various segments and regions, forecasts revenue growth, and analyzes trends in each submarket. The report analyses the key growth drivers, opportunities, and challenges influencing the geothermal energy market. Recent market developments and competitive strategies such as expansion, type launch, development, partnership, merger, and acquisition have been included to draw the competitive landscape in the market. The report strategically identifies and profiles the key market players and analyses their core competencies in each sub-segment of the geothermal energy market. 

Driving Factors

The growing usage of geothermal energy for power generation is primarily driving the geothermal energy market. New geothermal power generating capacity of 0.1 GW came online in 2023, bringing the global total around 14.8 GW. Further, geothermal direct use reached an estimated 205 TWh (737 PJ) in 2023, around one-third higher than the previous year's estimate (155 TWh). Favorable government policies for balancing carbon emissions and strengthening energy security through diversified renewable energy sources in countries like India are promoting market growth. Further, the demand for ground source geothermal heat pumps, owing to their high efficiency, and renewable energy technology for space heating and cooling, is driving the market.

Restraining Factors

The geothermal energy market is restricted by factors including a lack of exploration and drilling techniques. Further, the alternative renewable options, including onshore wind, offshore wind power, and solar photovoltaic, are hampering the geothermal energy market demand.

Market Segmentation

The geothermal energy market share is classified into type and application.   

• The binary cycle segment dominated the market with a major share in 2024 and is projected to grow at a substantial CAGR during the forecast period.

Based on the type, the geothermal energy market is divided into binary cycle, flash, and dry steam. Among these, the binary cycle segment dominated the market with a major share in 2024 and is projected to grow at a substantial CAGR during the forecast period. A binary cycle power plant is used with a lower temperature geothermal source, making it a viable option for regions having low geothermal heat potential. The low cost with the best performance benefits of a binary cycle geothermal power plant is responsible for driving the market demand

.

• The residential segment accounted for the largest revenue share in 2024 and is anticipated to grow at a significant CAGR during the forecast period.

Based on the application, the geothermal energy market is divided into residential, commercial, and industrial. Among these, the residential segment accounted for the largest revenue share in 2024 and is anticipated to grow at a significant CAGR during the forecast period. The primary residential application of geothermal energy is geothermal heat pumps that use the stable temperature of the ground or groundwater to provide space heating, cooling and hot water for homes and buildings. The increased demand for residential cooling and heating applications for providing homeowners with a renewable alternative to traditional HVAC systems is propelling the market demand.  

Regional Segment Analysis of the Geothermal Energy Market

• North America (U.S., Canada, Mexico) 
• Europe (Germany, France, U.K., Italy, Spain, Rest of Europe)
• Asia-Pacific (China, Japan, India, Rest of APAC)
• South America (Brazil and the Rest of South America) 
• The Middle East and Africa (UAE, South Africa, Rest of MEA)

Asia Pacific is anticipated to hold the largest share of the geothermal energy market over the predicted timeframe.

Asia Pacific is anticipated to hold the largest share of the geothermal energy market over the predicted timeframe. The growing investment in geothermal projects across countries like China and Indonesia, with an increased environmental awareness, is driving the regional market growth for geothermal energy. The demand for geothermal energy has been driven by the region's increased emphasis on achieving net-zero CO2 emission goals. Furthermore, strategies like long-term service contracts, expanding service capabilities, and collaborations are promoting the market growth.  

Europe is expected to grow at a rapid CAGR in the geothermal energy market during the forecast period. The Europe area has a thriving market for geothermal energy due to the increasing adoption of clean energy solutions across both residential and commercial sectors. Supportive government policies with increased emphasis on enhancing building energy efficiency are promoting the market growth. Additionally, with rapid urbanization, the growing investment in increasing technological advancements is contributing to driving the market for geothermal energy.

Competitive Analysis:

The report offers the appropriate analysis of the key organizations/companies involved within the geothermal energy market, along with a comparative evaluation primarily based on their type of offering, business overviews, geographic presence, enterprise strategies, segment market share, and SWOT analysis. The report also provides an elaborative analysis focusing on the current news and developments of the companies, which includes type development, innovations, joint ventures, partnerships, mergers & acquisitions, strategic alliances, and others. This allows for the evaluation of the overall competition within the market.

List of Key Companies

• Turboden S.p.A.
• Alterra Power Corporation
• TAS Energy
• Atlas Copco Group
• Exergy
• Toshiba Corporation
• Mitsubishi Heavy Industries
• General Electric
• Ansaldo Energia
• Ormat Technologies
• Calpine
• Enel Green Power North America Inc.
• EthosEnergy
• GEG Power
• ElectraTherm
• Toshiba International Corporation
• First Gen Corporation
• Berkshire Hathaway Energy
• Others

Key Target Audience

• Market Players
• Investors
• End-users
• Government Authorities 
• Consulting And Research Firm
• Venture capitalists
• Value-Added Resellers (VARs) 

Recent Development

• In January 2025, Global energy technology company SLB and leading geothermal developer Star Energy Geothermal, a subsidiary of Indonesia’s largest renewable energy company Barito Renewables, announced a collaboration agreement to accelerate advanced technologies for geothermal asset development.  
• In February 2024, Terrapin Geothermics Inc., a Canadian geothermal energy developer specializing in generating clean, baseload electricity and heat from industrial waste heat and deep geothermal resources, announced that it is merging with award-winning California-based green infrastructure development and advisory firm, TerraScale Inc., into a new US-based entity, Climate Transition Development Corporation.
• In February 2024, Indonesia’s state-owned geothermal developer Pertamina Geothermal Energy (PEGO) signed a Confidentiality Agreement with Turkish energy company Kipas Holding (Kipas), signifying the start of cooperation in the geothermal energy sector.
• In December 2023, Google announced that it had begun using carbon-free electricity from a geothermal project to power data centers in the state of Nevada.

Market Segment

This study forecasts revenue at global, regional, and country levels from 2020 to 2035. Spherical Insights has segmented the geothermal energy market based on the below-mentioned segments: 

Global Geothermal Energy Market, By Type

• Binary Cycle
• Flash
• Dry Steam

Global Geothermal Energy Market, By Application

• Residential
• Commercial
• Industrial

Global Geothermal Energy Market, By Regional Analysis

• North America
  • US
  • Canada
  • Mexico
• Europe
  • Germany
  • UK
  • France
  • Italy
  • Spain
  • Russia
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Australia
  • Rest of Asia Pacific
• South America
  • Brazil
  • Argentina
  • Rest of South America
• Middle East & Africa
  • UAE
  • Saudi Arabia
  • Qatar
  • South Africa
  • Rest of the Middle East & Africa