Geothermal Energy Metal Market: By Channel Type(Online Segment), By End User Type(Industrial Sector, Residential Sector, Commercial Sector), By Application(Electricity Generation, Distinct Heating Systems) and Region (North America, Europe, Asia-Pacific, Middle East & Africa)—Forecast till 2028

Description

Market Overview:

The global geothermal energy metal market was valued at USD 6.4 billion in 2022 and is expected to expand at a CAGR of 6.7% from 2022 to 2028. Regular demand for consistent power supply has enhanced geothermal systems, and heat extraction methods have made geothermal energy more accessible and cost-effective. This has led to the growth of the industrial, commercial as well as residential sectors of the market in the forthcoming years.

Market Size for Global Geothermal Energy Metal Market on the Basis of Revenues in USD Bn , 2018-2023

Source: Maven Market Research

What Factors are Leading to the Growth of the Global Geothermal Energy Metals Market:

• The rising growth in geothermal energy projects necessitates metals like lithium, which are essential for geothermal power plants and associated technologies. This has been escorted to underwrite the progress of the market in the review period.
• Regular advancements in the technologies coupled with innovations in drilling techniques, resource mapping, and energy conversion systems are reducing costs and making geothermal projects more viable. This technological progress also boosts the demand for specialized metals in the geothermal energy metals market.
• Numerous government policies and incentives for renewable energy projects play a critical role. Subsidies, tax benefits, and grants for geothermal energy projects encourage investment and development. Additionally, governments worldwide are promoting renewable energy projects, providing incentives and subsidies, which is driving the adoption of geothermal energy worldwide.

Which Industry Trends have been Fueling the Growth of the Market?

Performance by Key Players: Numerous key players are shaping the geothermal energy landscape through strategic investments, acquisitions, and innovations, contributing to the growth and diversification of renewable energy sources globally. For instance, Ormat is a leading geothermal company known for its extensive global operations. They have a significant installed capacity and have been expanding through acquisitions, such as the purchase of Terra-Gen’s geothermal portfolio. This has propelled the growth of the market in the review period.

Regular Advancements of Technology: The revolutionizing technology is enhancing the efficiency, feasibility, and economic viability of geothermal energy projects, which in turn boosts the demand for metals used in geothermal energy systems. Enhanced Geothermal Systems, one of the leading technological progress, involves drilling deep into the earth, fracturing rock, and injecting water to create steam, which can then be used to generate electricity. The expansion of EGS increases the demand for geothermal energy in the market. Hence, it has expanded its market share globally.

Growing Environmental Concerns: Geothermal energy is a low-emission and sustainable energy source, making it attractive for meeting carbon reduction goals. This eco-friendly nature boosts the adoption of geothermal energy technologies, thereby increasing the demand for the necessary metals. Hence, the increasing awareness of environmental issues and the push for sustainability are driving the market.

What is the Current Structure of the Global Geothermal Energy Metals Market?

By Channel Type, Online Segment Dominated the Largest Market Share in the Global Geothermal Market

The online segment dominated the market growth, by registering a growth rate of 4% every year globally. The emergence of online platforms facilitates easy access to geothermal energy metal products and services, enabling seamless transactions and information dissemination. This segment enables real-time transactions, broader market access, and enhanced price transparency. Additionally, it helps in facilitating efficient supply chain management, reducing transaction costs, and improving market intelligence through advanced analytics and data integration, which is predicted to elevate the growth of the market in the upcoming years.

By End User Type, the Industrial Sector has Dominated the Largest Market Revenue in the Global Market

The industrial sector is leading in the global market, by having the largest market revenue. Industries are leveraging geothermal energy for process heating, powering operations, and reducing carbon footprint. However, the growing demand for geothermal energy in commercial buildings, hotels, and institutions for heating, cooling, and electricity generation has also contributed to the growth of the commercial market. Moreover, residential sectors are also majorly contributing to the adoption of geothermal heating and cooling systems in residential buildings due to their energy efficiency and cost-effectiveness.

By Regional Type, North America, and Canada are Leading the Market

North America and Canada lead the geothermal energy market, driven by supportive government policies, abundant resources, and technological advancements. Asia-Pacific regions have observed rapid industrialization, coupled with increasing energy demand, which is fueling the growth of the geothermal energy market in countries like Indonesia, the Philippines, and Japan. Moreover, Countries like Iceland, Italy, and Germany are at the forefront of geothermal energy adoption, with investments in geothermal power plants and heating systems in the Europe region. These are the numerous aspects predicted to accelerate the growth of the market in the forthcoming years.

Competitive Analysis

However, addressing challenges such as high costs, geological constraints, regulatory hurdles, and technological risks is crucial for unlocking the full potential of geothermal energy as a sustainable energy source. Leading companies in the global geothermal energy metal market like Ormat Technologies, Inc., Toshiba Corporation, and Mitsubishi Heavy Industries Ltd. are working on competitive market strategies focused on product innovation, strategic partnerships, mergers and acquisitions, and geographical expansion to gain a competitive edge. With continuous investments, collaborative efforts, and innovation, the geothermal energy sector can play a significant role in shaping the future of clean energy worldwide.

Market Segmentation

By End User Type

• Residential sector
• Commercial sector
• Industrial sector
• Agriculture sector
• Healthcare facilities

By Application Type

• Electricity generation
• Direct use applications
• Industrial processes
• Agriculture and aquaculture
• District heating systems
• Desalination
• Geothermal heat pumps

By Channel Type

• Direct sales
• Distributors
• Online channels
• E-commerce platforms
• Energy service companies (ESCOs)
• Government procurement
• Renewable energy auctions

By Region Type

• North America
• Europe
• Asia Pacific
• Latin America
• Middle East & Africa

Key Players:

• Ormat Technologies Inc.
• Enel Green Power
• Chevron Corporation
• Reykjavik Geothermal
• Calpine Corporation
• Toshiba Corporation
• Mitsubishi Corporation
• General Electric Company
• Innergex Renewable Energy Inc.
• Terra-Gen Power LLC
• Pertamina Geothermal Energy
• Exergy Development Group
• Energy Development Corporation