Visiongain has published a new report entitled Geothermal Energy Market Report 2026-2036 (Including Impact of U.S. Trade Tariffs): Forecasts 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), by Application (Electricity Generation, District/Greenhouse/Industrial Heating, Combined Heat & Power (CHP), Ground Source Heat Pumps (GSHPs), Desalination/Industrial, Other) AND Regional and Leading National Market Analysis PLUS Analysis of Leading Companies.

The global geothermal energy market is estimated at US$75,925.0 million in 2026 and is projected to grow at a CAGR of 6.0% during the forecast period 2026-2036.

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.

Heat Decarbonisation, Building Emissions and Policy Support for Clean Heating Are Opening a Massive New Market for Geothermal Direct Use and Heat Pumps

A second major driving factor is the urgent push to decarbonise heating in buildings and industry, where geothermal energy—both deep geothermal heat networks and ground-source heat pumps—can play a transformative role. Heating represents a huge share of final energy consumption, and governments are increasingly treating clean heat as a policy priority; for example, Germany’s economy ministry proposed a 2025 law to accelerate geothermal development and other clean heating technologies, granting them “overriding public interest” status and streamlining permitting for geothermal wells, heat pumps and district heating infrastructure. At the same time, Reuters and other outlets have covered the broader “heat transition,” noting that dozens of countries are now exploring large-scale heat pump deployment and district heating based on renewable sources. 

Global geothermal direct-use (excluding heat pumps) reached an estimated 205 TWh in 2023—around one-third higher than the previous year’s estimate. Parallel to this, the geothermal heat pump market is booming: Grand View Research estimates it at about USD 12.9 billion in 2024 with a CAGR of 5.6% to 2030, while other analyses place the broader ground-source heat pump space at roughly USD 7.9–15.6 billion in 2024 with strong mid-single to high-single-digit growth. Together, these trends mean that geothermal is no longer just about power plants in volcanic regions; it is becoming central to municipal heating strategies, campus and district networks, and high-efficiency building retrofits across Europe, North America and parts of Asia.

How will this Report Benefit you?

Visiongain’s 408-page report provides 124 tables and 191 charts/graphs. Our new study is suitable for anyone requiring commercial, in-depth analyses for the geothermal energy market, along with detailed segment analysis in the market. Our new study will help you evaluate the overall global and regional market for geothermal energy. Get financial analysis of the overall market and different segments including by drilling & well technology, plant type, business model, equipment & component, and application, and capture higher market share. We believe that there are strong opportunities in this fast-growing geothermal energy market. See how to use the existing and upcoming opportunities in this market to gain revenue benefits in the near future. Moreover, the report will help you to improve your strategic decision-making, allowing you to frame growth strategies, reinforce the analysis of other market players, and maximise the productivity of the company.

What are the Current Market Drivers?

Technological Breakthroughs in Enhanced Geothermal Systems and Drilling Efficiency Are Slashing Costs and Unlocking Non-Traditional Reservoirs

Historically, geothermal power was limited to regions with naturally high heat flow and permeable reservoirs, but advances in enhanced geothermal systems (EGS) and drilling are radically expanding the accessible resource base and improving project economics—making technology innovation itself a powerful growth driver. Fervo Energy is the most frequently cited example: by applying horizontal drilling and fiber-optic monitoring techniques borrowed from the shale industry, its FervoFlex approach has cut drilling times by about 70%, reducing cost per well from around USD 9.4 million to USD 4.8 million. Fervo’s commercial “Project Red” in Nevada, now supplying a Google data center, and its large upcoming Cape Station EGS project in Utah demonstrate that EGS can move beyond pilot status and deliver grid-scale, firm power. 

On the conventional side, companies like Ormat Technologies continue to refine binary and flash plant designs, boasting a 21% year-on-year increase in revenue in Q1 2024 and targeting 2.6–2.8 GW of total generating capacity by 2028 through a pipeline of projects in the U.S., Kenya, Indonesia and New Zealand. These innovations lower the levelised cost of electricity (LCOE) from geothermal and make the technology viable in sedimentary basins, rift zones and even some “cold” regions where engineered reservoirs and deep drilling can tap super-hot rock resources. As drilling rigs, completion techniques and reservoir stimulation methods mature, geothermal is increasingly seen as a scalable, technology-driven renewable akin to wind and solar a decade ago.

Rising Investment Momentum, Utility Offtake Confidence and New Financing Models Are De-Risking Geothermal Project Pipelines

The fourth driver is the rapid strengthening of investment momentum and the emergence of financing structures that are better suited to geothermal’s front-loaded risk profile. Rystad Energy’s latest geothermal economics model forecasts that geothermal capex will grow by about 20% annually through 2030 as more utilities, infrastructure funds and climate-tech investors allocate capital to the sector. High-profile deals help anchor market confidence: Fervo Energy’s USD 206 million raise in mid-2025 to develop what it calls the world’s largest EGS plant in the U.S. signals strong investor appetite for advanced geothermal plays. 

On the corporate side, Ormat recorded total 2024 revenues of roughly USD 935–975 million across its electricity, product and energy storage segments, with management emphasizing robust EBITDA and a growing backlog of contracted capacity, which reassures lenders and bondholders. In parallel, national utilities and state-backed players are moving: Kenya’s KenGen, a leading geothermal operator, continues to expand its Olkaria field and just received Cabinet approval for the 80.3 MW Olkaria VII project targeted for completion by 2027, further cementing geothermal as the backbone of Kenya’s power mix. As more of these projects secure long-term PPAs, multilateral support and green bonds, they help normalize geothermal as a mainstream asset class and encourage copy-cat investment pipelines in other regions.

Where are the Market Opportunities?

Enhanced Geothermal Systems, Super-Hot Rock and Oil-and-Gas Skill Transfer Create a Once-in-a-Generation Technology Upside for the Sector

On the opportunity side, the most transformative prospect is the maturation of enhanced geothermal systems and eventually super-hot rock concepts, which together could unlock orders of magnitude more resource than traditional hydrothermal projects. The IEA notes that EGS could theoretically be deployed in many more regions if drilling and stimulation costs come down and operational experience accumulates. Fervo’s success with Project Red and the Cape Station project, which has contracted its full 500 MW output for clean, firm power to utilities and data centers, is a proof-of-concept that EGS can be commercially bankable. The ability to repurpose oil-and-gas drilling rigs, expertise and service companies—especially as hydrocarbon drilling demand plateaus—offers a significant industrial synergy; the Economist recently noted that Fervo has demonstrated up to 70% improvements in drilling times, which is exactly the kind of learning-curve geothermal needs to replicate wind and solar’s scaling story. If super-hot rock projects, which aim to tap much higher temperatures at depth, can be proven viable, geothermal could deliver not only power but also high-temperature process heat in a wide range of locations, opening an immense new addressable market.

Data Centers, Industrial Clusters and 24/7 Corporate PPAs Are a High-Margin Growth Frontier for Geothermal Power Developers

The rapid expansion of data centers, AI computing and high-reliability industrial loads is creating a fast-growing customer segment that values round-the-clock, low-carbon power—a perfect match for geothermal. Google’s partnership with Fervo Energy in Nevada, where an EGS project supplies 24/7 clean electricity to one of its data centers, is a headline example, and the Utah Cape Station plant’s full offtake by utilities and Shell Energy shows that commercial and industrial buyers are willing to lock in long-term PPAs for firm geothermal output. As AI workloads and hyperscale facilities proliferate, especially in regions with constrained transmission or limited land for solar/wind, geothermal can offer a compact, high-capacity solution that simplifies permitting and grid integration. Similar dynamics apply to industrial clusters needing both power and heat—such as chemical parks, food processing hubs or ports—where co-located geothermal plants can deliver baseload electricity and process heat with minimal carbon footprint. For developers and investors, these customer types typically carry strong credit ratings and are comfortable with long-term contracts, enabling project finance at attractive terms and improving the risk-return profile of geothermal portfolios.

Competitive Landscape

The major players operating in the geothermal energy market are 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, Halliburton Corporation, JARÐBORANIR HF. – Iceland Drilling Company Ltd., Mercury NZ Ltd., Ormat Technologies, Inc., PT Pertamina Geothermal Energy (PGE), Terra-Gen, LLC, These major players operating in this market have adopted various strategies comprising M&A, collaborations, investment in R&D, regional business expansion, partnerships, and new product launch.

Recent Developments

• 9 Nov 2025, Canary Media highlighted Eavor’s first-of-a-kind closed-loop geothermal project in Geretsried, Germany. EVP Jeanine Vany discussed major drilling performance gains using Insulated Drill Pipe (IDP), Active Magnetic Ranging (AMR), and Rock-Pipe™ sealant—lowering cost, improving precision, and achieving deeper/high-temperature reach.
• 5 Aug 2025, Pertamina and PLN signed an MoU to accelerate geothermal development. PGE and PLN Indonesia Power executed a Heads of Agreement (HoA), facilitated by Danantara Asset Management, to jointly develop a 530 MW geothermal project.
• 31 July 2025, Mercury welcomed the New Zealand Government’s plan to develop a national geothermal energy strategy. CEO Stew Hamilton emphasized geothermal’s importance for low-carbon baseload power and long-term security of supply and confirmed Mercury’s commitment to collaborate with government agencies, iwi partners, and regional stakeholders.
• 28 Feb 2025, GA Drilling announced raising USD 13.5 million Series C funding to scale its PLASMABIT® and ANCHORBIT® drilling technologies, aimed at unlocking ultra-deep geothermal for 24/7 baseload clean power. The company highlighted 23+ patents, 70+ engineers, and 20+ EU research grants.
• 23 Sept 2025, Factor2 Energy, a Siemens Energy spin-off, was presented as a startup revolutionizing geothermal energy by using CO₂ instead of water as the working fluid. The technology aims to enable geothermal power in regions without volcanoes or natural hot springs, potentially doubling electricity output compared to traditional geothermal systems.
• 15 May 2025, PGE hosted the “Youth Seminar PGEO–Investortrust” at Trisakti University to promote geothermal investment literacy and attract young investors to the renewable-energy and capital-market sectors.
• 11 Sept 2024, The new Plain Bearings Turbine (PBT) was introduced as a breakthrough turbine for geothermal and industrial power applications, offering up to 50 MW shaft power, hydrodynamic bearings, 10-year maintenance cycles, <2-day component replacement, up to 7-stage flexibility, lower outlet pressure capability, enhanced annual output, and high cost-efficiency.
• 4 Jan 2024, Enel Green Power North America sold ~150 MW of geothermal and small solar plants to Ormat for USD 271 million, reducing group net debt by ~€250 million and causing a ~€30 million negative impact on reported net income.

Notes for Editors

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