Geothermal Energy Market Size

Global Geothermal Energy Market size was valued at USD 7.45 Billion in 2023 and is poised to grow from USD 7.68 Billion in 2024 to USD 9.81 Billion by 2032, growing at a CAGR of 3.1% in the forecast period (2025-2032).

The increasing demand for geothermal energy is governed by many factors. One of the most important drivers is the increasing demand for uninterrupted power supply for residential, commercial and industrial areas, and increasing demand for power generation through sustainable energy in various industries.

Increasing geothermal energy in various economic fields plays an important role in reducing fossil fuel addiction and reducing greenhouse gas emissions. Many countries actively integrate geothermal energy into their national energy strategies to meet the demand to increase the flow and reduce environmental footprint.

In 2024, for example, Kenya ordered geothermal power plant, gave a 35 MW clean energy in the national grid, and strengthened the country's commitment to reduce fossil fuel addiction. Similarly, integrated Iceland carbon capture technique and expanded its helicatic geothermal plant, which makes it possible to remove CO2 from the atmosphere by generating renewable power. Strategic partnerships and regional initiatives are reshaping the competitive landscape, particularly in emerging markets like the Middle East. Saudi Arabia has set an ambitious goal of achieving 1 gigawatt of geothermal energy capacity by 2030, indicating strong governmental commitment to sector development. Notable corporate collaborations include TAQA and Marubeni Corporation's acquisition of a 60% stake in a greenfield cogeneration power and water desalination project in Saudi Arabia, with Saudi Aramco holding the remaining 40%, demonstrating increasing private sector confidence in the commercial viability of geothermal energy companies. How Is AI Transforming the Geothermal Energy Market?

AI exploration changes the geothermal energy market by increasing the accuracy, adaptation of the operation and integration of geothermal power into energy-intensive industries. In 2024, the progress of the AI-operated sub-constitutional analysis significantly improved identification of gender resources, reduced exploration risk and drilling costs. Additionally, AI is streamlining operations, as seen in Star Energy Geothermal's partnership with Kyndryl to integrate generative AI and cloud solutions into its Indonesian facilities, improving efficiency and accelerating energy transition efforts. Another major development is the collaboration between Meta and Sage Geosystems, aiming to develop up to 150 megawatts of geothermal projects by 2027 to power AI-driven data centers. This increasing coordination between AI and geothermal's energy highlights its ability to fulfill the increasing energy requirements for infrastructure.