Dublin, Feb. 06, 2026 (GLOBE NEWSWIRE) -- The "Geothermal Energy Market Report 2026-2036" report has been added to ResearchAndMarkets.com's offering.
Overall world revenue for the Geothermal Energy Market will surpass US$75.92 billion in 2026
This report will prove invaluable to leading firms striving for new revenue pockets if they wish to better understand the industry and its underlying dynamics. It will be useful for companies that would like to expand into different industries or to expand their existing operations in a new region.
Energy Security, 24/7 Baseload Renewables and the Need to Firm Wind and Solar Are Pushing Geothermal Energy from Niche Option to Strategic Asset
One of the strongest drivers for the global geothermal energy market is the combination of energy security concerns and the growing need for reliable, 24/7 low-carbon power to complement variable wind and solar. Unlike solar PV or onshore wind, geothermal plants deliver constant output with very high capacity factors, often above 90%, making them uniquely valuable as countries retire coal and gas but still need firm capacity for grids and data-intensive economies.
The International Energy Agency's 2024 special report on geothermal highlights its 'vast untapped potential' and stresses that geothermal can play an essential role in decarbonizing both electricity and heat systems if supported by the right policies. Rystad Energy now expects global geothermal investment to grow by around 20% per year through 2030 as utilities and governments recognise this firm-renewable advantage and seek to hedge against gas price volatility and geopolitical supply shocks.
A concrete illustration is Fervo Energy's Cape Station enhanced geothermal project in Utah, which has already contracted its full planned 500 MW of capacity with offtakers such as Southern California Edison, Clean Power Alliance and Shell Energy North America to provide around-the-clock clean power for the western U.S. grid. This kind of long-term power purchase agreement (PPA) shows how geothermal is moving from a specialist technology in a few hotspots to a strategic tool for grid operators and policymakers who must meet net-zero goals without sacrificing reliability.
High Upfront Capital Costs, Subsurface Risk and Long Development Timelines Still Constrain Geothermal's Scale-Up Pace
Despite its attractive operating economics, geothermal remains challenged by very high upfront capital requirements and significant subsurface risk, particularly in greenfield projects where reservoir properties are poorly known. Drilling constitutes the largest share of capex, and a single unsuccessful exploration well can cost tens of millions of dollars, as highlighted in multiple analyses of EGS and conventional projects.
Even with Fervo's 70% reduction in drilling time and roughly 50% cut in well cost, geothermal still compares unfavourably with solar and onshore wind on a pure capex-per-MW basis, especially in markets without explicit support schemes or risk-sharing mechanisms. Long lead times-often 5-8 years from exploration to commissioning-further dampen investor appetite compared with faster-to-deploy renewables. This means that while companies like Ormat, KenGen and Reykjavik Energy can expand within known fields with lower incremental risk, many potential projects elsewhere stall at the feasibility or exploration stage due to lack of early-stage financing and risk mitigation, slowing the overall market expansion trajectory.
What would be the Impact of US Trade Tariffs on the Global Geothermal Energy Market?
The imposition of U.S. tariffs on clean energy technologies, drilling equipment, steel components, and critical minerals has introduced new uncertainties for the global geothermal energy market. Since geothermal development depends heavily on specialized drilling rigs, casing materials, turbines, and heat-exchange systems, tariff-driven supply chain disruptions can increase project costs and elongate development timelines.
While domestic manufacturing in the U.S. may eventually benefit, the short- to medium-term impact is expected to reshape trade flows, shift sourcing strategies, and influence global investment decisions in both conventional geothermal and next-generation EGS technologies. The extent of this impact will largely depend on the duration of tariff measures and the speed at which markets and supply chains adjust, forming the basis of the V-shaped, U-shaped, and L-shaped recovery outlooks.
Key Questions Answered
- How is the geothermal energy market evolving?
- What is driving and restraining the geothermal energy market?
- How will each geothermal energy submarket segment grow over the forecast period and how much revenue will these submarkets account for in 2036?
- How will the market shares for each geothermal energy submarket develop from 2026 to 2036?
- What will be the main driver for the overall market from 2026 to 2036?
- Will leading geothermal energy markets broadly follow the macroeconomic dynamics, or will individual national markets outperform others?
- How will the market shares of the national markets change by 2036 and which geographical region will lead the market in 2036?
- Who are the leading players and what are their prospects over the forecast period?
- What are the geothermal energy projects for these leading companies?
- How will the industry evolve during the period between 2026 and 2036? What are the implications of geothermal energy projects taking place now and over the next 10 years?
- Is there a greater need for product commercialisation to further scale the geothermal energy market?
- Where is the geothermal energy market heading and how can you ensure you are at the forefront of the market?
- What are the best investment options for new product and service lines?
- What are the key prospects for moving companies into a new growth path and C-suite?
Market Dynamics
Market Driving Factors
- Geothermal Energy as a Cleaner Alternative to Fossil Fuels Driving the Market Growth
- Government Policy and Regulatory Support Driving the Market Growth
- Advancements in Drilling, Binary Cycle Systems, and Enhanced Geothermal Systems (EGS) Driving the Market Growth
Market Restraining Factors
- High Initial Investment and Exploration Risks Limiting Market Expansion
- Geographical Constraints Restricting Large-Scale Deployment
Market Opportunities
- Strategic Collaborations and Partnerships to Accelerate Project Development
- Rising Investments in Geothermal Infrastructure and Technology
- Expanding Utilization of Geothermal Energy for Electricity Generation and Direct-Use Applications
U.S. Tariffs: What's the Impact on Global Geothermal Energy Market ?
Porter's Five Forces Analysis
PESTLE Analysis
Companies Featured
- Ansaldo Energia S.p.A.
- Atlas Copco Group
- Calpine Corporation
- Eavor Technologies Inc.
- ElectraTherm
- Enel S.p.A.
- Energy Development Corporation
- Factor2 Energy
- GA Drilling
- Haliburton Corporation
- Iceland Drilling Company Ltd.
- Mercury NZ Ltd.
- Ormat Technologies, Inc.
- PT Pertamina Geothermal Energy (PGE)
- Terra-Gen, LLC
- ADNOC
- Baker Hughes
- Calpine Corp
- Caltech
- Comision Federal de Electricidad (CFE),
- DEEP Earth Energy Production Corp
- Eastland Generation Limited (EGL)
- Eavor Technologies Inc
- Enel SpA,
- Energy Development Corp.,
- Fervo Energy
- Finnfund
- Fuji Electric
- FutEra Power Corp
- Geothermal Core
- Globeleq
- KenGen
- Machiokoshi Energy
- Microsoft
- Mitsubishi Power
- Ormat Technologies
- Pertamina Geothermal Energy
- PT Pertamina Geothermal Energy,
- PT Wijaya Karya (Persero)
- PW Energy
- Razor Energy Corp
- Reykjavik Geothermal
- SEPCO III Electric Power Construction Co., Ltd
- Sinopec
- Tabreed
- TAQA
- Toshiba Energy Systems & Solutions Corporation
- Viessmann
- Vulcan Energy Resources
Segments Covered in the Report
By Drilling & Well Technology
- Vertical Production Wells
- Directional / Multi-lateral Wells
By Plant Type
- Enhanced Geothermal Systems (EGS)
- Hybrid Plants
- Conventional Hydrothermal Plants
By Business Model
- Utility-Owned Power Plants
- Independent Power Producers (IPPs)
- Public-Private Partnerships (PPP)
- Community / Distributed Ownership Models
By Equipment & Component
- Turbines & Generators
- Heat Exchangers & Binary Cycle Equipment
- Wellheads, Pumps & Subsurface Equipment
- Monitoring & Reservoir Management Systems
- Other Equipment & Components
By Application
- Electricity Generation
- District/ Greenhouse/ Industrial Heating
- Combined Heat & Power (CHP)
- Ground Source Heat Pumps - GSHPs
- Desalination / Industrial
- Other Applications
By Region
North America
- U.S.
- Canada
Europe
- Turkiye
- Iceland
- Italy
- Germany
- France
- Rest of Europe
Asia Pacific
- Indonesia
- Philippines
- New Zealand
- Japan
- China
- Rest of APAC
Latin America
- Brazil
- Mexico
- Rest of Latin America
MEA
- GCC
- South Africa
- Rest of MEA
For more information about this report visit https://www.researchandmarkets.com/r/48c544
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