The geothermal power sector is expected to grow at 6.6% CAGR, with volume rising from 115,250.8 GWH in 2024 to 218,237.1 GWH by 2034. The demand for geothermal power is driven by its integration into residential, commercial, industrial, and others.
Volume Insights Strategic Overview
Allied Market Research announces the release of its comprehensive analysis of the global geothermal power sector. Geothermal power is a form of renewable energy that generates electricity by harnessing heat stored beneath Earth’s surface. This heat, originating from the planet’s core, is accessed through wells drilled into geothermal reservoirs containing hot water or steam. Steam or hot water is then used to drive turbines connected to generators, producing electricity. Since it relies on the Earth’s natural heat, geothermal power is a sustainable, low emission, and reliable energy source capable of providing continuous, base-load electricity throughout the year.
The increasing focus on reducing greenhouse gas (GHG) emissions is a key factor driving the demand for the geothermal power sector. As climate change concerns intensify, governments, industries, and global organizations are implementing stricter environmental regulations and setting ambitious carbon reduction targets. Geothermal power stands out as one of the cleanest energy sources, producing significantly lower emissions compared to fossil fuel-based power generation. It generates electricity with very low emissions of carbon dioxide, methane, and other harmful pollutants, make it a crucial solution for achieving net-zero goals by utilizing the Earth’s natural energy in a clean and sustainable way.
Moreover, international agreements such as the Paris climate accord and various national renewable energy mandates are pushing countries to invest in low-carbon technologies. Geothermal power’s capacity to deliver consistent, base-load electricity without the intermittency challenges associated with solar and wind energy makes it a crucial complement to other renewable sources in reducing overall carbon emissions. The growing adoption of decarbonization strategies by countries and corporations is expected to drive steady demand for geothermal energy, positioning it as a key component of the global clean energy transition. Collectively, these factors are anticipated to propel the growth of the geothermal power sector throughout the forecast period. All these factors are expected to drive the growth of the geothermal power market during the forecast period.
Rising investments in clean energy infrastructure are creating significant opportunities for the geothermal power sector. As governments, private investors, and international financial institutions channel more funds into renewable energy projects, geothermal is gaining attention as a reliable and sustainable option to diversify the global energy mix. Large-scale funding for clean energy helps to finance costly exploration and drilling activities are reduces investment risks associated with geothermal development. Moreover, initiatives such as green bonds, climate funds, and public–private partnerships are making capital more accessible, enabling countries with strong geothermal potential to accelerate project deployment. With a growing emphasis on building resilient, low-carbon energy systems, these rising investments are unlocking new geothermal projects, supporting technological innovations such as enhanced geothermal systems, and expanding opportunities for both established players and emerging sectors. All these factors are anticipated to offer new growth opportunities for the geothermal power sector during the forecast period.
The growing support from governments through incentives and sustainability funding is further accelerating innovation in the geothermal power sectors. As industries and utilities increasingly align with ESG (Environmental, Social, and Governance) objectives, the demand for renewable, low-emission, and circular energy solutions is rising rapidly. This global shift toward sustainable energy systems is creating new growth opportunities for geothermal power developers and technology providers that can effectively leverage green financing, adopt advanced drilling techniques, and enhance plant efficiency to meet the evolving clean energy goals. The global volume of geothermal power sector is expected to grow from 115,250.8 GWH in 2024 to 218,237.1 GWH by 2034, registering a CAGR of 6.6% during the forecast period.
Regional Geothermal Power sector Volume Growth
Asia-Pacific dominated the geothermal power sector with 35% share in 2024 and is expected to grow with a CAGR of 7.3%, while North America, Europe, and LAMEA are expected to show robust growth at 6.0%, 5.8%, and 7.1% CAGR, respectively.
The regional analysis highlights significant variations in adoption trends and industry potential across the globe. Asia-Pacific leads the geothermal power sector, contributing over 35% of the total volume in 2024 and is expected to grow at a CAGR of 4.3%, driven by increase in dry steam power stations, flash steam power stations, binary cycle power stations materials in countries such as Japan, Indonesia and the rest of Asia-Pacific. North America, led by the U.S. and Canada, is projected to maintain steady growth at 6.0% CAGR, fueled by rise in its applications in residential, commercial, industrial, and others. Europe, with key players such as Yokogawa Electric Corporation, Enel Spa, ABB Ltd., Toshiba Corporation, and General Electric is expected to grow at 5.8% CAGR, supported by advancements in automotive and stringent regulations favoring sustainable construction. All these factors are expected to offer growth opportunities for the LAMEA region with a CAGR of 7.1%. Countries such as Chile, Turkey, Kenya have witnessed surge in demand for cost-effective, moisture-resistant, and high-strength materials, further propelling industry expansion.
Region | 2024 | 2028 | 2034 | CAGR (2025–2034) |
North America | 38404 | 48447.4 | 68794.8 | 6.0% |
Europe | 18823.2 | 23512.5 | 32869.5 | 5.8% |
Asia-Pacific | 40352.8 | 53464.1 | 81677.1 | 7.3% |
LAMEA | 17670.8 | 23174.3 | 34895.7 | 7.1% |
Total | 115250.8 | 148598.3 | 218237.1 | 6.6% |
Geothermal Power Sector Sales
Indonesia is projected to lead the geothermal power sector and is expected to reach 218,237.1 GWH by 2034 at a CAGR of 5.0%. Japan is the fastest-growing country, followed by Philippines in terms of CAGR, where Japan has emerged as a high-growth region in the geothermal power sector, fueled by robust demand from the dry steam power stations, flash steam power stations, binary cycle power stations. The government’s emphasis on strengthening energy self-reliance, coupled with the rapid expansion of industrialization and infrastructure development, is driving the demand for sustainable and renewable energy sources such as geothermal power. This reliable, low-emission energy technology is gaining significant traction across regions due to its ability to provide continuous baseload electricity with minimal environmental impact. Countries such as Indonesia, the Philippines, Japan, and India are emerging as key growth hubs for the geothermal power sector, supported by abundant geothermal resources, favorable regulatory frameworks, and rising investments from both public and private stakeholders. The geothermal power sector growth is further propelled by increasing demand for clean, efficient, and cost-effective power generation solutions, growing environmental awareness, and global efforts to transition toward carbon neutrality through the adoption of advanced exploration, drilling, and energy conversion technologies.
The report identifies Japan and the U.S. as the largest contributors to the geothermal power sector in terms of volume. In Japan, the use of geothermal power has become popular due to increase in number of infrastructure and construction projects, where the geothermal power sector is projected to reach 7767.3 GWH by 2034, exhibiting a CAGR of 8.0%. However, the U.S. remains an important player in North America, growing at a CAGR of 5.7% by 2034, driven by rise in demand for geothermal power sector in the dry steam power stations, flash steam power stations, and binary cycle power stations. Japan is projected to grow at a CAGR of 8.0%, witnessing significant growth due to increase in demand for dry steam power stations, flash steam power stations, binary cycle power stations. Rise in the use of geothermal power in sustainable building solutions and energy-efficient applications further propels the expansion in these regions.
Country | 2024 | 2028 | 2034 | CAGR (2025-2034) |
Indonesia | 19983 | 26154.1 | 39218.7 | 7.0% |
Japan | 3593.9 | 4890.8 | 7767.3 | 8.0% |
U.S. | 28913.7 | 36014.9 | 50159.7 | 5.7% |
Germany | 325.9 | 483.8 | 837.0 | 9.8% |
France | 348.3 | 489.9 | 800.2 | 8.7% |
Turkey | 556.8 | 753.2 | 1186.7 | 7.9% |
Key Highlights by Stakeholders
Rising demand for clean, reliable, and sustainable energy solutions across industrial, commercial, and residential sectors is significantly driving the growth of the geothermal power sectors. As global industries increasingly shift toward renewable and low-emission energy sources, geothermal power has become essential for enabling continuous, eco-friendly, and cost-efficient electricity generation. Its unique advantages such as consistent baseload power, minimal greenhouse gas emissions, and small land footprint support a wide range of applications from power generation and district heating to industrial energy supply and greenhouse cultivation. These attributes ensure enhanced performance, energy security, and long-term scalability across diverse end-use sectors, positioning geothermal power as a key contributor to global clean energy transition.
He further added, “The Asia-Pacific region is witnessing a significant surge in geothermal power industry activity, particularly in countries such as Indonesia, the Philippines, Japan, and New Zealand. The growing presence of both established energy providers and innovative startups is driving advancements in geothermal exploration, drilling technologies, and power generation systems. These emerging players are introducing cutting-edge techniques and sustainable solutions to harness geothermal resources more efficiently and cost-effectively. This regional momentum is further strengthened by abundant geothermal potential, supportive government policies promoting renewable energy, and rapid industrialization. Together, these factors are contributing to the development of a robust, resilient, and dynamic geothermal power ecosystem across the Asia-Pacific region.
Continuous Geothermal Power Sector Volume Trends
The report emphasizes that the growing demand for geothermal power and advancements in geothermal exploration and energy conversion technologies are enabling the development of reliable, renewable, and high-performance energy systems with excellent efficiency, stability, and environmental compatibility. These systems are extensively utilized across critical applications in electricity generation, district heating, industrial processes, and agricultural operations. Their adaptability and scalability make geothermal power indispensable in achieving modern energy standards for efficiency, performance, and sustainability.
Furthermore, the study highlights the importance of adherence to industry-specific standards and environmental regulations that govern the geothermal power market share. The rapid expansion of enhanced geothermal systems (EGS) and binary cycle power plants is being driven by the growing demand for clean baseload energy, low-emission power generation, and sustainable heating solutions. From supplying continuous electricity to industrial operations and urban heating networks to supporting greenhouses and desalination plants, geothermal power is evolving to deliver superior reliability, performance, and environmental benefits. These innovations are transforming the sector, enabling the creation of sustainable, efficient, and long-term energy solutions that support the evolving needs of modern infrastructure, industry, and communities.
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