The global geothermal energy market is projected to experience substantial growth, with an estimated value of $125.9 billion by 2032, according to GM Insights.
This expansion is being driven by stringent government regulations aimed at reducing carbon emissions, which are increasingly pushing energy producers toward sustainable alternatives like geothermal energy. As nations around the world set ambitious clean energy targets, the adoption of geothermal projects is expected to rise, further boosting the market.
Investment in geothermal exploration and drilling is on the rise, as energy companies look to capitalize on this growing sector. A notable example is the February 2021 commissioning of a 29 MWe geothermal energy plant by Turboden for Energy Development Corporation in the Philippines. This facility, located at the Bacon-Manito geothermal site on Luzon Island, highlights the industry’s push into emerging markets, reinforcing the company’s position in the geothermal energy space.
The market is categorized by technology and geography, with the dry steam technology segment poised for growth from 2023 to 2032. As the first type of geothermal plant technology implemented worldwide, dry steam systems offer cost advantages by directly driving turbines with high-pressure steam from geothermal sources.
However, the high maintenance requirements of these systems can lead to increased project costs, potentially affecting their widespread adoption. Despite these challenges, supportive government policies and incentives in regions with rich geothermal resources are expected to encourage the adoption of dry steam technology.
Mexico’s geothermal energy market, in particular, is anticipated to expand at a compound annual growth rate (CAGR) of 7 percent during this period. The country’s geothermal sector is benefitting from heightened drilling and exploration activities. In February 2023, Mexico’s Secretary of Energy (Sener) announced the issuance of 22 exploration permits, signaling a strong commitment to boosting geothermal electricity production in the coming years.
The broader push towards renewable energy sources, such as geothermal, is being fueled by increasing awareness of the environmental impact of traditional power generation methods. As global concerns about carbon emissions grow, the shift to renewable energy is expected to accelerate, driving further growth in the geothermal energy market on a global scale.
The implementation of renewable energy sources such as wind, geothermal, and others will also be prompted by growing concerns about the high emissions from traditional power plants, which is expected to foster regional growth.