Geothermal Energy Market - Global Forecast 2025-2032

The geothermal energy market is evolving rapidly as global energy priorities shift, with advances in technology and policy aligning to elevate the sector within the renewable landscape.

Market Snapshot: Geothermal Energy Market

The geothermal energy market expanded from USD 7.73 billion in 2024 to USD 8.14 billion in 2025 and is projected to grow at a CAGR of 5.61%, reaching USD 11.98 billion by 2032. Growing decarbonization goals, renewed interest in reliable baseload renewables, and breakthroughs in subsurface heat extraction technologies are accelerating international interest among energy developers, investors, and policymakers. Strategic importance is being placed on geothermal energy due to its ability to deliver consistent clean power and to integrate with evolving energy grids.

Scope & Segmentation of the Geothermal Energy Market

This comprehensive report examines the geothermal ecosystem across technology, component, application, end-use, and regional segments, shaping tailored investment and operational strategies:

• Technology: Binary Cycle Power Plant, Dry Steam Power Plant, Flash Steam Power Plant, Double Flash, Single Flash
• Component: Condenser, Recuperator, Turbine, Vaporizer, Well & Separator
• Application: Energy Production, Geothermal Desalination, Heating & Cooling Systems, District Heating Systems, Space Heating
• End-Use: Commercial, Industrial, Residential
• Region: Americas (including United States, Canada, Mexico, Brazil, Argentina, Chile, Colombia, Peru); Europe, Middle East & Africa (incorporating United Kingdom, Germany, France, Russia, Italy, Spain, Netherlands, Sweden, Poland, Switzerland, United Arab Emirates, Saudi Arabia, Qatar, Turkey, Israel, South Africa, Nigeria, Egypt, Kenya); Asia-Pacific (covering China, India, Japan, Australia, South Korea, Indonesia, Thailand, Malaysia, Singapore, Taiwan)
• Company Coverage: ABB Ltd.; Ansaldo Energia SpA; AP Renewables Inc.; Baker Hughes Company; Berkshire Hathaway Energy; Calpine Corporation; Chevron Corporation; Cyrq Energy Inc.; Doosan Škoda Power; Electratherm Inc.; Enel Green Power S.p.A.; Energy Development Corporation; Engie SA; EthosEnergy Group; First Gen Corporation; Fuji Electric Co. Ltd.; Kenya Electricity Generating Company; Mitsubishi Power Ltd.; Ormat Technologies Inc.; PT Pertamina Geothermal Energy; Sosian Energy Limited; Star Energy Group; Terra-Gen Power LLC; Tetra Tech Inc.; Toshiba Corporation

Key Takeaways for Senior Decision-Makers

• Technological advancements, such as enhanced geothermal systems and digital optimization, are expanding resource accessibility and operational efficiency.
• Market growth is reinforced by supportive regulatory measures, including carbon pricing and renewable portfolio standards, which foster a favorable investment environment.
• Shift in investor focus toward environmental, social, and governance (ESG) criteria is elevating geothermal’s profile within diversified renewable energy portfolios.
• Innovative partnerships and hybrid solutions, integrating geothermal with solar and battery storage, are emerging as cornerstones for reliable sustainable power.
• Regional differences—such as mature frameworks in North America and Western Europe, new market opportunities in Latin America and East Africa, and robust expansion in Asia-Pacific—inform tailored partnership and market entry strategies.
• Collaboration among established players, new entrants, and leading equipment manufacturers is accelerating technological progress and local capacity building within the sector.

Tariff Impact: Navigating US Import Tariffs and Supply Chain Strategies

The 2025 introduction of United States tariffs on imported geothermal equipment is requiring developers to reassess procurement and financing approaches. Costs for heat exchangers, piping, and turbines have prompted a focus on domestic sourcing and new trade partnerships. Lenders are updating risk models to address budget uncertainties, prompting project stakeholders to look toward modular plant designs and adaptive contract terms. In response, North American manufacturers are collaborating with global leaders to strengthen local capabilities. Proactive supply chain management and contract restructuring are recommended to mitigate tariff-driven risks and maintain project viability.

Geothermal Energy Market: Methodology & Data Sources

This report is based on a robust methodology integrating qualitative insight and quantitative analysis. Data sources include in-depth technical reviews, proprietary interviews with industry leaders across the geothermal value chain, and validated performance metrics. Analytical frameworks applied ensure reliable trend identification and actionable insights for strategic planning.

Why This Report Matters for Decision-Makers

• Enables proactive assessment of emerging challenges, regulatory changes, and supply chain risks in the geothermal energy market.
• Provides in-depth segmentation and geographic coverage to guide targeted investment, partnership selection, and market entry strategies.
• Offers actionable recommendations to future-proof operations, strengthen competitive positioning, and shape policymaker engagement in this evolving energy segment.

Conclusion

As global decarbonization accelerates, geothermal energy’s strategic role grows. Stakeholders who invest in digital innovation, adaptive supply chains, and collaborative models will capture growing market opportunities and strengthen their competitive edge.

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