Geothermal Energy Market Report 2025 (Global Edition)

Global Geothermal Energy Market Report 2025 Market Size Split by Type (Binary Cycle Plants, Flash Steam Plants, Dry Steam Plants, Ground Source Heat Pumps, Direct Systems, Others), by Application (Res...

Geothermal Energy Market Report Description

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Impact of Trumph Tariff on Energy and Power Industry

In 2025, global trade entered a turbulent phase as the U.S., under President Donald Trump, introduced aggressive "Liberation Day Tariffs" to address trade imbalances. These tariffs, ranging from 10% to 46%, heavily impacted the energy and power sector, which relies on global supply chains for critical components like rare earth metals, solar panels, wind turbines, and lithium. The U.S.–China trade war escalated, with reciprocal tariffs and China's trade surplus with the U.S. reaching USD 102.6 billion. Retaliatory tariffs from the EU and Canada further disrupted energy supply chains, raising material costs and causing delays in key projects.

The U.S. imposed a 20% tariff on rare earths, impacting EVs and clean tech; 25% on solar panels, increasing installation costs; 15–25% on wind turbine parts, affecting project timelines; and 10–15% on oil and gas equipment, pushing producers to rethink supply networks. Sub-sectors like renewables, EVs, oil & gas, and power generation are all experiencing rising costs, supply bottlenecks, and delayed investments. For instance, solar and wind projects now face 10–30% higher costs, and EV producers are struggling with battery input inflation.

China remains central to the U.S. energy supply chain, with even indirect imports via countries like Vietnam and Malaysia tightly linked to Chinese inputs. As a result, U.S. energy firms are exploring alternative sourcing from Southeast Asia, Latin America, and domestic production to reduce exposure. However, switching suppliers requires significant investment, coordination, and time.

In this volatile environment, market research is critical. It helps energy firms map supplier risks, track price trends, and explore alternative sourcing. It enables supply chain optimization through AI and predictive analytics, while regulatory tracking and scenario planning allow companies to anticipate future disruptions. Energy firms like NextEra and First Solar are responding by diversifying suppliers, investing in local production, and leveraging digital tools to improve procurement and adapt to tariff-driven challenges. Those using data-driven strategies and flexible operations are best positioned to thrive amid rising trade tensions.

Competitive Landscape of the Geothermal Energy Market

The competitive landscape of the geothermal energy market is characterized by a diverse array of players, including technology providers, project developers, and service suppliers. Intense competition fosters innovation and drives down costs, while market consolidation and strategic partnerships shape industry dynamics.

Geothermal Energy Industry News

In March 2021, Ormat Technologies introduced a cutting-edge between-bearings turbine, boasting high performance and efficiency. The innovative design features a traditional radially split design, with the turbine rotor supported between axially spaced bearings. This hybrid approach combines optimal high temperature and pressure management with cost-effectiveness. 

(Source:https://www.ormat.com/en/company/news/view/?ContentID=9102#:~:text=Ormat's%20between%2Dbearings%20turbine%20design,for%20maximum%20performance%20and%20efficiency.)   

Top Companies Market Share in Geothermal Energy Industry: (In no particular order of Rank)

• Ormat Technologies
• Enel Green Power
• Calpine Corporation
• Chevron Corporation
• Mitsubishi Power
• Toshiba Energy Systems & Solutions Corporation
• Innergex Renewable Energy Inc.
• Contact Energy
• Reykjavik Geothermal
• Energy Development Corporation (EDC)
• KenGen (Kenya Electricity Generating Company)
• Pertamina Geothermal Energy
• Terra-Gen
• JFE Engineering Corporation
• Alterra Power Corp
• Confidential Data
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*List of Second Tier Companies, List of Third Tier/ Start-up Companies (Inquire with sales executive) Request Any Company Profile for Preview Purpose OR Data Validation!

If any Company(ies) of your interest has/have not been disclosed in the above list then please let us know the same so that we will check the data availability in our database and provide you the confirmation or include it in the final deliverables.

Regional Analysis of the Geothermal Energy Market

Which Region Dominates the Geothermal Energy Market in 2024?

According to Cognitive Market Research, North America dominated the market in 2024 and accounted for around 40% of the global revenue due to established infrastructure, supportive government policies, and abundant geothermal resources, particularly in regions like the western United States and Canada. Moreover, increasing concerns about climate change and the desire for energy independence drive investments in renewable energy sources like geothermal. Technological advancements and partnerships between industry players further bolster market growth. Additionally, growing demand for sustainable energy solutions from both residential and industrial sectors propels the sales of geothermal systems in the region.

Which Region is Expanding at the Fastest CAGR?

Asia-Pacific is the fastest-growing region due to several factors. Government initiatives promoting clean energy adoption, coupled with rising energy demand and concerns over air pollution, drive investments in renewable energy sources, including geothermal. The region boasts significant untapped geothermal potential, particularly in countries like Indonesia, the Philippines, and Japan. Furthermore, technological advancements and declining costs make geothermal energy increasingly competitive compared to traditional fossil fuels. Strategic partnerships and collaborations within the industry also contribute to market expansion in the Asia-Pacific region.

The current report Scope analyzes Geothermal Energy Market on 5 major region Split (In case you wish to acquire a specific region edition (more granular data) or any country Edition data then please write us on info@cognitivemarketresearch.com

• North America (United States, Canada, Mexico)
• Europe (United Kingdom, France, Germany, Italy, Russia, Spain, Sweden, Denmark, Switzerland, Luxembourg, Rest of Europe)
• Asia Pacific (China, Japan, South Korea, India, Australia, Singapore, Taiwan, South East Asia, Rest of APAC)
• Latin America (Brazil, Argentina, Colombia, Peru, Chile, Rest of South America)
• Middle East (Saudi Arabia, Turkey, UAE, Egypt, Qatar, Rest of Middle East)
• Africa (Nigeria, South Africa, Rest of Africa)

The above graph is for illustrative purposes only.

North America Geothermal Energy Market Analysis

According to Cognitive Market Research, the global geothermal energy market size was estimated at USD 6815.2 Million out of which North America held the major market of around 40% of the global revenue with a market size of USD 2726.08 million in 2024 and will grow at a compound annual growth rate (CAGR) of 4.4% from 2024 to 2031. Sales of geothermal energy are set to increase in North America due to the region's abundant geothermal resources, particularly in the western United States and Canada. Additionally, government incentives and supportive policies promote renewable energy adoption, making geothermal projects financially attractive for investors. Furthermore, the reliability and stability of geothermal power contribute to grid resilience, addressing concerns about energy security. In North America, the commercial segment holds the highest market share, driven by increasing demand for sustainable heating and cooling solutions in commercial buildings.

Country Analysis

• According to Cognitive Market Research, The United States geothermal energy market had a market share of USD 2150.88 million in 2024 and is projected to grow at a CAGR of 4.2% during the forecast period. Sales of geothermal energy in the U.S. will increase due to abundant geothermal resources, supportive government policies, and the desire to reduce carbon emissions while ensuring energy security and grid stability.
• Canada geothermal energy market had a market share of USD 327.13 million in 2024 and is projected to grow at a CAGR of 5.2% during the forecast period. In Canada, geothermal energy sales will rise driven by government incentives, growing awareness of renewable energy benefits, and the need to diversify the energy mix to reduce dependence on fossil fuels.
• Mexico geothermal energy market had a market share of USD 248.07 million in 2024 and is projected to grow at a CAGR of 4.9% during the forecast period.

Europe Geothermal Energy Market Analysis

According to Cognitive Market Research, with a market value of USD 6815.2 million in 2024 and projected to expand at a compound annual growth rate (CAGR) of 4.7% from 2024 to 2031. Europe accounted for a share of around 30% of the global market size of USD 2044.56 million. Europe is poised to see a surge in geothermal energy sales, fuelled by the region's commitment to reducing carbon emissions and transitioning to clean energy sources. Government targets for renewable energy adoption create a favourable regulatory environment for geothermal development. Moreover, technological advancements in drilling and heat extraction techniques enhance the feasibility of geothermal projects across Europe. Additionally, the industrial sector is expected to drive growth in this region, leveraging geothermal energy to meet stringent emission regulations and reduce operational costs.

• The United Kingdom geothermal energy market had a market share of USD 343.49 million in 2024 and is projected to grow at a CAGR of 5.5% during the forecast period. Geothermal energy sales in the UK will grow due to government commitments to decarbonisation, favourable geology for geothermal projects, and increasing demand for sustainable heating and cooling solutions in commercial buildings.
• France geothermal energy market had a market share of USD 188.10 million in 2024 and is projected to grow at a CAGR of 3.9% during the forecast period.
• Germany geothermal energy market had a market share of USD 404.82 million in 2024 and is projected to grow at a CAGR of 4.9% during the forecast period. Germany will see an increase in geothermal energy sales owing to its ambitious renewable energy targets, technological advancements in geothermal technology, and the need to phase out nuclear power and reduce greenhouse gas emissions.
• Italy geothermal energy market had a market share of USD 175.83 million in 2024 and is projected to grow at a CAGR of 4.1% during the forecast period.
• Russia geothermal energy market had a market share of USD 316.91 million in 2024 and is projected to grow at a CAGR of 3.7% during the forecast period.
• Spain geothermal energy market had a market share of USD 167.65 million in 2024 and is projected to grow at a CAGR of 3.8% during the forecast period.
• Luxembourg geothermal energy market had a market share of USD 63.38 million in 2024 and is projected to grow at a CAGR of 4.8% during the forecast period.
• Portugal geothermal energy market had a market share of USD 42.94 million in 2024 and is projected to grow at a CAGR of 4.5% during the forecast period.
• Greece geothermal energy market had a market share of USD 24.53 million in 2024 and is projected to grow at a CAGR of 5.0% during the forecast period.
• Rest of Europe geothermal energy market had a market share of USD 316.91 million in 2024 and is projected to grow at a CAGR of 3.4% during the forecast period.

 

Asia Pacific Geothermal Energy Market Analysis

According to Cognitive Market Research, the global geothermal energy market size was estimated at USD 6815.2 Million out of which Asia Pacific held the market of around 23% of the global revenue with a market size of USD 1567.50 million in 2024 and will grow at a compound annual growth rate (CAGR) of 8.2% from 2024 to 2031. The Asia Pacific region is witnessing a rapid expansion of the geothermal energy market, driven by several factors. Rising energy demand, coupled with environmental concerns, stimulates investment in renewable energy sources like geothermal. Moreover, government initiatives and incentives encourage the deployment of geothermal projects, particularly in countries like Indonesia and the Philippines. Additionally, technological advancements in geothermal technology enhance efficiency and reduce costs, making it increasingly competitive. In the Asia Pacific, the fastest-growing segment is hybrid systems, offering flexibility and reliability to meet diverse energy needs across the region.

 

• According to Cognitive Market Research, China geothermal energy market had a market share of USD 705.37 million in 2024 and is projected to grow at a CAGR of 7.7% during the forecast period. Sales of geothermal energy in China will surge due to government support for renewable energy, rapid urbanization driving demand for heating and cooling solutions, and efforts to address air pollution and reduce reliance on coal.
• Japan geothermal energy market had a market share of USD 216.31 million in 2024 and is projected to grow at a CAGR of 6.7% during the forecast period.
• India geothermal energy market had a market share of USD 188.10 million in 2024 and is projected to grow at a CAGR of 10.0% during the forecast period. India's geothermal energy sales will rise due to increasing energy demand, government initiatives promoting renewable energy adoption, and the need to diversify the energy mix to achieve energy security and sustainability goals.
• South Korea geothermal energy market had a market share of USD 156.75 million in 2024 and is projected to grow at a CAGR of 7.3% during the forecast period.
• Australia geothermal energy market had a market share of USD 81.51 million in 2024 and is projected to grow at a CAGR of 7.9% during the forecast period.
• South East Asia geothermal energy market had a market share of USD 108.16 million in 2024 and is projected to grow at a CAGR of 9.2% during the forecast period.
• Rest of Asia Pacific geothermal energy market had a market share of USD 111.29 million in 2024 and is projected to grow at a CAGR of 8.0% during the forecast period.

 

South America Geothermal Energy Market Analysis

According to Cognitive Market Research, the global geothermal energy market size was estimated at USD 6815.2 Million out of which Latin America market of around 5% of the global revenue with a market size of USD 340.76 million in 2024 and will grow at a compound annual growth rate (CAGR) of 5.6% from 2024 to 2031. Latin America is experiencing a surge in geothermal energy sales due to its vast untapped geothermal potential and increasing focus on renewable energy development. Government support and incentives, along with favourable geothermal policies, attract investment in geothermal projects. Additionally, the region's geological characteristics make it conducive to geothermal exploration and development. Furthermore, the residential sector emerges as a significant driver of growth, as households seek reliable and cost-effective heating and cooling solutions. In Latin America, the fastest-growing segment is binary cycle technology, leveraging lower-temperature geothermal resources efficiently.

 

• According to Cognitive Market Research, Brazil geothermal energy market had a market share of USD 145.85 million in 2024 and is projected to grow at a CAGR of 6.2% during the forecast period. In Brazil, geothermal energy sales will increase due to the country's vast geothermal potential, government incentives for renewable energy projects, and the desire to reduce dependence on hydropower and fossil fuels.
• Argentina geothermal energy market had a market share of USD 57.25 million in 2024 and is projected to grow at a CAGR of 6.5% during the forecast period. Argentina will witness a surge in geothermal energy sales driven by favourable geothermal conditions, government support for renewable energy development, and the need to diversify the energy mix and enhance energy security.
• Colombia geothermal energy market had a market share of USD 30.33 million in 2024 and is projected to grow at a CAGR of 5.4% during the forecast period.
• Peru geothermal energy market had a market share of USD 27.94 million in 2024 and is projected to grow at a CAGR of 5.8% during the forecast period.
• Chile geothermal energy market had a market share of USD 24.53 million in 2024 and is projected to grow at a CAGR of 5.9% during the forecast period.
• Rest of Latin America geothermal energy market had a market share of USD 54.86 million in 2024 and is projected to grow at a CAGR of 4.7% during the forecast period.

 

Middle East Geothermal Energy Market Analysis

According to Cognitive Market Research, the global geothermal energy market size was estimated at USD 6815.2 Million out of which Middle East and Africa held the major market of around 2% of the global revenue with a market size of USD 136.30 million in 2024 and will grow at a compound annual growth rate (CAGR) of 5.9% from 2024 to 2031. The Middle East and Africa region are witnessing a growing interest in geothermal energy, driven by several factors. Increasing energy demand, coupled with the region's abundant geothermal resources, presents significant opportunities for geothermal development. Moreover, government initiatives aimed at diversifying the energy mix and reducing reliance on fossil fuels promote investment in renewable energy sources like geothermal. Additionally, technological advancements in geothermal exploration and extraction techniques enhance the feasibility of projects in the region. In MEA, the fastest-growing segment is closed-loop systems, offering efficient heating and cooling solutions for various applications.

• According to Cognitive Market Research, GCC Countries geothermal energy market had a market share of USD 58.34 million in 2024 and is projected to grow at a CAGR of 6.7% during the forecast period. Sales of geothermal energy in GCC countries will rise due to efforts to diversify the energy mix, reduce reliance on fossil fuels, and meet growing energy demand sustainably, supported by favourable government policies and incentives.
• Egypt geothermal energy market had a market share of USD 14.31 million in 2024 and is projected to grow at a CAGR of 6.2% during the forecast period.
• South Africa geothermal energy market had a market share of USD 21.54 million in 2024 and is projected to grow at a CAGR of 6.9% during the forecast period. Geothermal energy sales in South Africa will increase due to the country's geothermal potential, efforts to address energy security and reliability, and government initiatives promoting renewable energy development to combat climate change.
• Turkey geothermal energy market had a market share of USD 11.72 million in 2024 and is projected to grow at a CAGR of 5.4% during the forecast period.
• Nigeria geothermal energy market had a market share of USD 14.31 million in 2024 and is projected to grow at a CAGR of 5.0% during the forecast period.
• Rest of MEA geothermal energy market had a market share of USD 16.08 million in 2024 and is projected to grow at a CAGR of 4.9% during the forecast period.

 

Geothermal Energy Market Analysis

Geothermal Energy Market Type Segment Analysis

According to Cognitive Market Research, flash held the major market share over the forecast period, due to its high efficiency in converting geothermal energy into electricity. Its widespread adoption is driven by its ability to produce power from high-temperature geothermal resources efficiently. Additionally, on-going technological advancements improve flash plants' performance and reduce operational costs, making them increasingly attractive to developers. Moreover, favourable government policies and incentives further bolster the sales of flash technology in the geothermal energy market.

Binary cycle is the fastest-growing category over the forecast period, owing to several factors. It utilizes lower-temperature geothermal resources efficiently, expanding the accessible resource base for geothermal power generation. Moreover, advancements in binary cycle systems enhance their performance and reliability, making them more competitive compared to other technologies. Additionally, growing environmental concerns and stringent regulations drive demand for low-emission energy sources like geothermal, further boosting sales of binary cycle technology in the market.

• Binary Cycle
• Flash
• Dry Steam

The above Chart is for representative purposes and does not depict actual sale statistics. Access/Request the quantitative data to understand the trends and dominating segment of Geothermal Energy Industry. Request a Free Sample PDF!

Geothermal Energy Market Application Segment Analysis

According to Cognitive Market Research, commercial hold a prominent market share due to increasing awareness of the cost-effectiveness and environmental benefits of geothermal heating and cooling systems. Businesses and institutions are increasingly adopting these systems to reduce energy costs and carbon emissions while meeting sustainability goals. Additionally, favourable government incentives and regulations encourage commercial entities to invest in geothermal technology. Furthermore, advancements in geothermal heat pump technology make these systems more reliable and efficient, further driving sales in the commercial segment.

 

Industrial is the fastest-growing category over the forecast period, due to several key factors. Industrial facilities have substantial energy demands, making them increasingly interested in reliable and cost-effective renewable energy sources like geothermal. Geothermal energy offers a stable and continuous power supply, reducing the risk of production interruptions and enhancing operational resilience. Moreover, as industries face pressure to reduce greenhouse gas emissions, geothermal presents an attractive option for achieving sustainability targets. Additionally, advancements in geothermal technology and increased investment in industrial applications further drive growth in this segment.

• Residential
• Commercial
• Industrial
• Others

The above Graph is for representation purposes only. This chart does not depict actual Market share.

Geothermal Energy Technology Segment Analysis

According to Cognitive Market Research, closed loop systems hold a prominent market share due to their reliability, efficiency, and versatility in various applications. These systems offer consistent heating and cooling performance while minimizing environmental impact. Additionally, the relatively low maintenance requirements and long lifespan of closed loop systems make them attractive to customers. Moreover, advancements in technology have improved the efficiency and affordability of closed loop systems, further driving sales in this segment.

 

Hybrid systems is the fastest-growing category over the forecast period due to several factors. Hybrid systems combine different renewable energy sources such as geothermal, solar, and wind to optimize energy production and maximize efficiency. This flexibility allows customers to tailor their energy systems to meet specific needs and environmental conditions. Additionally, hybrid systems offer increased reliability and resilience compared to single-source systems, making them attractive in regions with variable weather patterns. Furthermore, government incentives and regulations promoting renewable energy adoption further drive sales of hybrid systems in the market.

• Closed Loop Systems
• Open Loop Systems
• Hybrid Systems

Geothermal Energy Temperature Segment Analysis

• Low Temperature (Up to 900C)
• Medium Temperature (900C — 1500C)
• High Temperature (Above 1500C)

Geothermal Energy Temperature Segment Analysis

• Low Temperature (Up to 900C)
• Medium Temperature (900C — 1500C)
• High Temperature (Above 1500C)

Author's Detail

Vinayak Bali

Senior Research Analyst at Cognitive Market Research

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