Home Energy And Power Geothermal Turbines Market Size, Share & Analysis by 2031

Geothermal Turbines Market

Geothermal Turbines Market Size, Share & Trends Analysis Report By Type (Dry Steam, Flash Cycle, Binary Cycle), By Application (Industrial, Residential, Agricultural, Others) and By Region(North America, Europe, APAC, Middle East and Africa, LATAM) Forecasts, 2023-2031

Report Code: SREP55670DR
Study Period 2019-2031 CAGR 4.6%
Historical Period 2019-2021 Forecast Period 2023-2031
Base Year 2022 Base Year Market Size USD 61.7 Billion
Forecast Year 2031 Forecast Year Market Size USD 92.4 Billion
Largest Market Asia Pacific Fastest Growing Market North America
The sample report only takes 30 secs to download, no need to wait longer.

Market Overview

The global geothermal turbines market size was valued at USD 61.7 billion in 2022 and is projected to reach USD 92.4 billion by 2031, registering a CAGR of 4.6% during the forecast period (2023-2031). The growing demand for consistent power supply in the residential, commercial, and industrial sectors and the growing demand for electricity generation via sustainable ways in industries are the primary drivers of geothermal turbine market growth.

Geothermal turbines transform thermal energy from the Earth's natural heat into electricity and are essential to geothermal power plants. Geothermal energy is a renewable and sustainable energy source that uses the Earth's internal heat to generate power, making it an environmentally favorable option. Geothermal turbines are designed to capture this heat and convert it into power.

The increasing use of renewable energy sources and the demand for clean energy drive the global geothermal turbine market forward. Furthermore, increased demand for heating and cooling systems, such as district heating and ground source heat pumps, is expected to contribute significantly to the geothermal turbines market share. Furthermore, as renewable energy becomes a larger component of the total energy mix, the global geothermal turbine market is expected to grow rapidly during the projected period.

Market Dynamics

Global Geothermal Turbines Market Drivers:

Government Support and Incentives

Governments and regulatory bodies worldwide frequently provide financial incentives, subsidies, tax breaks, and favorable regulations to encourage geothermal energy development. Governments frequently offer feed-in tariffs (FiTs) and power purchase agreements (PPAs) that ensure set rates and long-term commitments to geothermal power companies. The Philippines, for example, has established FiTs to encourage geothermal energy development, with prices ranging depending on project size and location.

Furthermore, several countries offer investment tax credits, grants, and subsidies to help geothermal project developers minimize their financial burden. The federal Investment Tax Credit (ITC) in the United States provides incentives for qualifying geothermal projects. The ITC has been a strong driver of geothermal project investments in the United States. It provides a 26% tax credit for qualifying projects, resulting in greater development and capacity additions. Governments may also give loan guarantees and risk mitigation measures to entice private investment. For example, the U.S. Department of Energy's Loan Programs Office provides loan guarantees to geothermal projects, lowering developers' financing risks. As a result, government assistance and incentives are an important aspect of the global geothermal turbine market trend.

Global Geothermal Turbines Market Restraints:

High Initial Investment

Developing geothermal power projects requires exploration, drilling, and infrastructure investments. Exploration of geothermal resources can be costly, especially in areas with no recent geothermal development. With its immense geothermal potential, Indonesia exemplifies the difficulties of substantial initial investment. Creating new geothermal fields in remote places necessitates major investment in discovery, drilling, and power plant construction. For example, the Sarulla Geothermal Power Plant in North Sumatra, Indonesia, required a significant investment of more than USD 1.17 billion. The cost breakdown of a geothermal power project, according to the U.S. Department of Energy, typically includes exploration and drilling (up to 30% of total project cost), surface power plant (30-40%), and transmission and interconnection (10-20%).

Concurrently, the cost of producing geothermal electricity in India is considerable. If the site must be drilled more than 200 meters, it costs Rs 40 crores (about $5.3 million) to create 1 M.W. As a result of the large initial capital needs, emerging economies may struggle to attract investments, stifling the spread of geothermal energy in these countries.

Global Geothermal Turbines Market Opportunity:

Renewable Energy Transition

Geothermal energy is a reliable and consistent choice as the globe attempts to lessen its dependency on fossil fuels and migrate to renewable energy sources. The switch to renewables creates prospects for geothermal power capacity increase. Geothermal energy, being a renewable resource, meets a large portion of electricity demand in nations such as Iceland, El Salvador, New Zealand, Kenya, and the Philippines, and more than 90% of heating demand in Iceland. Iceland's Hellisheii Geothermal Power Plant. Iceland's Hellisheii Geothermal Power Plant is one of the world's largest geothermal plants. It generates power and hot water for district heating by combining geothermal and hydrothermal resources.

According to the International Geothermal Association (IGA), global geothermal power generation capacity could reach 28,000 MW within 15-20 years. With continued development, IGA intends to add 4,500 MW of power generation capacity over the next five years. Asia, Africa, Europe, and North America remain key growth markets.

Regional Analysis

Asia-Pacific Dominates the Global Market

The global geothermal turbines market analysis is conducted in North America, Europe, Asia-Pacific, the Middle East and Africa, and Latin America.

Asia-Pacific is the most significant global geothermal turbine market shareholder and is estimated to grow at a CAGR of 4.5% over the forecast period.The national government has been pushed to act and pass legislation due to these economies' immense potential for geothermal energy generation. These policies enable oil and gas companies to explore regional geothermal energy possibilities, promoting market expansion. Indonesia, the Philippines, and Japan are at the forefront of the geothermal sector in the Asia-Pacific area. Geothermal energy accounts for around 10% of electricity generation in the Philippines. As numerous new geothermal power projects are planned in the country, the country is projected to have a greater share of geothermal electricity shortly.

Furthermore, the Wayang Windu Geothermal Power Station is an example of an Asian-Pacific project. It uses Indonesia's extensive geothermal resources, adding to its renewable energy ambitions. The power station, which has a more than 200 MW capacity, employs binary cycle technology.

North America is anticipated to exhibit a CAGR of 4.9% over the forecast period. The United States is expected to increase greatly during the projection period. Geothermal energy presently accounts for 0.4% of U.S. electricity generation. The dominance of commercial and residential applications is the key reason for expanding the geothermal sector in the United States. Geothermal firms in the United States have 58 active developing opportunities and projects spread across nine states (the majority of which are in Nevada). Five of the projects are nearing completion, two of which are in California and three of which are in Nevada. According to the United States Department of Energy, there could be more than 100 GW of geothermal electric capacity in the continental United States, accounting for approximately 10% of present U.S. energy capacity and 40 times the existing installed geothermal capacity.

Europe's Geothermal Turbines market accounts for a large market share according to geothermal turbines market insights. The Region's significant expansion during the last decades has been the addition of geothermal capacity in Turkey. Furthermore, the German Geothermal Turbines market held the biggest market share, while the U.K. was the European Region's fastest expanding market.

Furthermore, over 20 nations in the Region have geothermal projects in the planning stages. The geothermal market has been centered on the greater European areas over the last half-decade, with an annual growth rate of more than 10%. The Region's significant expansion over the past decades has been the addition of geothermal capacity in Turkey.

The Latin American market is driven by increased electrical demand in the industrial, commercial, and residential sectors. Renewable and geothermal energy businesses are diversifying steadily across the Region to lessen reliance on fossil fuel-based electrical energy. Mexico has one of the most extensive renewable energy resource bases. The government might attract more investments by demonstrating the potential of renewables in their energy mix plans. The geothermal sector is Mexico's largest contribution to clean energy generation.

The Middle East and African markets are dominated by the East African Rift region. The Region has significant geothermal potential for direct consumption and electricity generation. East Africa is firmly committed to developing renewable energy sources, particularly geothermal, to satisfy the Paris Agreement's sustainable development and climate change goals. Kenya is the Middle East and Africa's top producer and consumer of geothermal energy. As a result of efforts in growing the renewable energy sub-sector, renewable energy sources accounted for 86.98 percent of energy generated in Kenya by 2022.

Report Scope

Report Metric Details
By Type
  1. Dry Steam
  2. Flash Cycle
  3. Binary Cycle
By Application
  1. Industrial
  2. Residential
  3. Agricultural
  4. Others
Company Profiles Toshiba Energy Systems & Solutions Mitsubishi Power Ltd. Ormat Technologies Inc. Fuji Electric Eavor Ansaldo Energia Turboden S.p.A Halliburton Calpine Enel Spa GE ElectraTherm Inc.
Geographies Covered
North America U.S. Canada
Europe U.K. Germany France Spain Italy Russia Nordic Benelux Rest of Europe
APAC China Korea Japan India Australia Singapore Taiwan South East Asia Rest of Asia-Pacific
Middle East and Africa UAE Turkey Saudi Arabia South Africa Egypt Nigeria Rest of MEA
LATAM Brazil Mexico Argentina Chile Colombia Rest of LATAM
Report Coverage Revenue Forecast, Competitive Landscape, Growth Factors, Environment & Regulatory Landscape and Trends
Need a Custom Report?

We can customize every report - free of charge - including purchasing stand-alone sections or country-level reports

Segmental Analysis

The global geothermal turbines market is segmented based on type, application, and Region.

By Type, the market is further segmented into Dry Steam, Flash Cycle, and Binary Cycle.

Binary Cycle holds the maximum share of the market.

For lower-temperature geothermal resources, binary cycle power plants are constructed. They use a secondary working fluid with a lower boiling point (e.g., isobutane) to collect heat from geothermal water. To create energy, the working fluid vaporizes and drives a secondary turbine. During the forecast period, the binary Cycle is the fastest-growing segment. This is because most binary plants are used in low- or medium-enthalpy geothermal sources, where resource fluid is heated in a closed loop by process fluid, increasing market demand.

Flash cycle power plants are the most frequent type of geothermal power facilities. They employ high-temperature geothermal water from a depressurized reservoir or "flashed" to generate steam. This steam is then utilized to power turbines, which produce electricity.

The market can be bifurcated by application into Industrial, Residential, and Agricultural.

Industrial application is the most common application in the market.

Geothermal energy is used in various industrial applications, such as direct heat utilization in manufacturing processes, space heating, and cooling. Geothermal energy is frequently used for process heating and other thermal needs in food processing, manufacturing, and mining industries. Geothermal heating can meet the heating needs of certain companies as long as they do not require exceptionally high temperatures. Geothermal heating has the potential to replace fossil fuels while also providing continuous industrial output.

Geothermal energy can heat, chill, and supply hot water to homes. Residential geothermal heat pump systems are becoming increasingly popular for residential space conditioning. They exploit the Earth's constant temperature to provide efficient heating in the winter and cooling in the summer.

Market Size By Type

Market Size By Type
  • Dry Steam
  • Flash Cycle
  • Binary Cycle
  • Recent Developments

    Key Players

    Geothermal Turbines Market Share of Key Players

    Geothermal Turbines Market Share of Key Players
    Toshiba Energy Systems & Solutions Mitsubishi Power Ltd. Ormat Technologies Inc. Fuji Electric Eavor Ansaldo Energia Turboden S.p.A Halliburton Calpine Enel Spa GE ElectraTherm Inc. Others

    Frequently Asked Questions (FAQs)

    How big is the Geothermal Turbines Market?
    The global geothermal turbines market size was valued at USD 61.7 billion in 2022 and is projected to reach USD 92.4 billion by 2031, registering a CAGR of 4.6% during the forecast period (2023-2031).
    Government Support and Incentives are the key drivers for the growth of the Geothermal Turbines Market.
    North America has the highest growth rate in the market.
    The key players in the global market include Toshiba Energy Systems & Solutions , Mitsubishi Power Ltd. , Ormat Technologies Inc. , Fuji Electric , Eavor , Ansaldo Energia , Turboden S.p.A , Halliburton , Calpine , Enel Spa , GE , ElectraTherm Inc.
    The global market is segmented by type and application.

    We are featured on :