Table of Contents
Overview
New York, NY – June 09, 2025 – The global geothermal power market is expanding steadily, with a valuation of approximately USD 7.7 billion in 2024 and projected growth to USD 11.4 billion by 2034, at a CAGR of 4.0% from 2025 to 2034. This demand is propelled by the need for reliable, clean-baseload electricity that complements intermittent renewables. Geothermal’s appeal is growing due to its 24/7 power generation, low operating costs, and small land footprint. Opportunities lie in emerging technologies like enhanced geothermal systems, which unlock deeper, hotter resources. As nations prioritize energy security and decarbonization, geothermal is gaining popularity—especially in regions with volcanic activity—driving new infrastructure investment and market expansion in both developed and developing economies.
In 2024, Flash Steam Power Stations led the geothermal power market by power station type with a 59.4% share, while the Up to 5MW capacity segment dominated with 87.6% of the market due to its suitability for small-scale and off-grid installations. By temperature type, High Temperature (Above 150°C) resources accounted for 74.5% of the market, supporting large-scale electricity generation. In terms of end-use, the Industrial sector held the largest share at 65.9%, reflecting its high energy demand and reliance on continuous, cost-effective power sources.
In 2024, North America led the global geothermal power market with a 48.6% share, valued at USD 3.7 billion. The United States contributed significantly with an installed geothermal capacity of approximately 3,937 MW, including 1,590 MW from California’s Geysers field, which remains the world’s largest operational geothermal facility.
How Growth is Impacting the Economy
The expansion of the geothermal power market is positively impacting economies through job creation, energy security, and industrial efficiency. Countries like the U.S., Indonesia, and the Philippines are harnessing geothermal energy to reduce fossil fuel dependence and stabilize power grids. In rural and off-grid regions, small-scale geothermal systems offer reliable electricity, promoting economic development and improving living standards. The growth of industrial geothermal applications—such as in mining, food processing, and manufacturing—is reducing operational energy costs and cutting emissions, thereby boosting competitiveness.
Infrastructure investments in geothermal exploration, drilling, and power plant construction are supporting equipment suppliers, engineering services, and skilled labor markets. Additionally, governments are offering incentives, grants, and tax benefits to accelerate project deployment, further driving domestic economic activity. With increasing pressure to meet climate targets and diversify energy portfolios, geothermal energy is emerging as a dependable source, supporting national energy transitions and sustainable development goals worldwide.
Key Takeaways
- Geothermal Power Market size is expected to be worth around USD 11.4 Billion by 2034, from USD 7.7 Billion in 2024, growing at a CAGR of 4.0%.
- Flash Steam Power Stations held a dominant market position, capturing more than a 59.4% share of the global geothermal power market.
- Upto 5MW held a dominant market position, capturing more than an 87.6% share of the global geothermal power market.
- High Temperature (Above 150°C) held a dominant market position, capturing more than a 74.5% share of the global geothermal power market.
- Industrial held a dominant market position, capturing more than a 65.9% share of the global geothermal power market.
- North America emerged as the leading region in the global geothermal power market, capturing a substantial 48.6% share, equivalent to USD 3.7 billion.
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Experts Review
Businesses should invest in high-temperature field exploration and enhanced geothermal systems (EGS) to unlock untapped deep-heat resources. Focusing on modular, sub-5MW systems enables entry into off-grid and rural electrification markets. Strategic collaborations with governments can unlock permits and funding, while partnerships with industrial users offer stable power purchase agreements.
Integrating digital monitoring tools and automated control systems can boost plant efficiency and reduce downtime. Companies should also prioritize environmentally responsible drilling practices to align with ESG benchmarks. Expanding into emerging markets such as East Africa and Southeast Asia offers growth potential, especially as regulatory support and foreign investments increase in those regions.
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Key Market Segments
By Power Station
- Dry Steam Power Stations
- Flash Steam Power Stations
- Binary Cycle Power Stations
By Power
- Upto 5MW
- Above 5 MW
By Temperature Type
- Low Temperature (Up to 900C)
- Medium Temperature (900C – 1500C)
- High Temperature (Above 1500C)
By End-Use
- Industrial
- Residential
- Commercial
Regional Analysis
In 2024, North America dominated the geothermal power market with a 48.6% share, valued at USD 3.7 billion, led by the United States’ installed capacity of 3,937 MW. California’s Geysers field alone contributes 1,590 MW, reinforcing the region’s leadership. The Asia-Pacific region follows closely, with strong developments in Indonesia, the Philippines, and Japan, supported by geothermal-rich geology and government incentives. Africa and Latin America are emerging as attractive markets due to untapped geothermal potential and growing electrification needs. Regional policies, international funding, and infrastructure upgrades are expected to drive further expansion across these developing geothermal zones.
Top Use Cases
Baseload Electricity Generation: Geothermal power plants tap into Earth’s natural heat to generate consistent, round‑the‑clock electricity with capacity factors often exceeding 90%, making them reliable partners to intermittent renewables like solar and wind. This baseload capability enhances grid stability and reduces reliance on fossil fuels.
Enhanced Geothermal Systems (EGS): By drilling deep into hot rock and injecting fluid to create man‑made reservoirs, EGS can unlock heat in areas with limited natural permeability. These systems could power over 65 million U.S. homes, opening opportunities in regions beyond traditional geothermal zones.
District Heating & Cooling: Geothermal energy supports centralized heating and cooling for homes, businesses, and campuses, using ground-source heat pumps and hydrogeothermal systems. This reduces greenhouse gas emissions and energy costs in urban settings.
Industrial Process Heat: Industrial operations—such as chemical plants, food processors, and aquaculture—can use geothermal heat directly. This improves energy efficiency, lowers operational costs, and aids decarbonization by replacing fossil sources.
Greenhouse & Aquaculture Heating: Controlled thermal environments in greenhouses, fish farms, and pathway warming benefit from geothermal heat, offering stable, eco‑friendly temperature control without relying on external energy inputs.
Recent Developments
ABB has partnered with Sage Geosystems to develop next-generation geopressured geothermal systems in the U.S., targeting clean, 24/7 baseload power and energy storage capabilities. Under a Memorandum of Understanding signed in early 2025, ABB will provide automation, electrification, distributed control systems, and digital management solutions to help deliver up to 150 MW of geothermal power for **Meta’s** data centers, with phase one expected online by 2027.
Ansaldo Energia’s geothermal activities were identified in 2024–2025 from company or government sources. The company remains engaged in turbine and generator manufacturing but has not recently announced new geothermal projects or advancements.
Atlas Copco’s 2025 press releases. While the company excels in industrial, power, and vacuum technologies, no geothermal-specific developments were detected on its official website for early 2025.
Calpine is advancing its geothermal operations at The Geysers in California with the “North Geysers Incremental Development” (NGID) program. The company is drilling 11 new production wells and 2 injection wells to add 25 MW of reliable capacity. Expected to be fully operational by June 2026, the expansion supports California’s grid reliability and extends Calpine’s near 65 year legacy in geothermal generation.
EDF’s public platforms or government sources for 2024–2025. While EDF remains a major player in renewable energy, current disclosures do not highlight new geothermal power developments during this period.
Conclusion
The global appeal of geothermal power is strengthening steadily as countries seek reliable, clean baseload energy. With installed capacity nearing 16.7 GW worldwide—including around 3.9 GW across the United States—geothermal has proven its value. Its economic benefits are significant: construction of geothermal plants can generate approximately 26 jobs per MW, and foster long-term local employment.
Geothermal energy offers continuous power output, filling gaps left by intermittent renewables and providing grid stability. Further innovations—such as enhanced geothermal systems targeting deep reservoirs—promise to unlock vast new potential. Coupled with supportive policies and demand for clean energy, geothermal is emerging as a scalable, sustainable, and economically advantageous power solution worldwide.
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