Geothermal energy is emerging as a powerhouse in the renewable energy sector. As the world moves toward cleaner energy, geothermal is gaining attention for its reliability and efficiency. Unlike solar and wind, which depend on weather conditions, geothermal provides a steady and uninterrupted source of power. But just how much will the industry grow by 2030?
1. Global geothermal power capacity is projected to grow from 16 GW in 2023 to approximately 30 GW by 2030
Geothermal power is set to nearly double in capacity over the next seven years. This growth is fueled by increased government support, new drilling techniques, and growing energy demands.
For businesses, this means now is the time to invest. Whether you are an energy company or an investor, positioning yourself in the geothermal market today could yield significant long-term gains.
2. The geothermal energy market is expected to grow at a CAGR of 5.5% to 7.2% between 2024 and 2030
What This Growth Means for Businesses and Investors
A compound annual growth rate (CAGR) of 5.5% to 7.2% signals strong and steady expansion in the geothermal energy sector. For businesses, this isn’t just a statistic—it’s an open door to lucrative opportunities.
Governments worldwide are ramping up clean energy policies, making now the perfect time to get ahead in this growing market.
If you’re an investor, this growth rate suggests a promising return on investment. As geothermal power becomes a more viable alternative to fossil fuels, companies that enter the market early stand to benefit from long-term profitability.
3. The total global investment in geothermal energy could exceed $50 billion by 2030
A Booming Market with Unprecedented Investment Potential
The geothermal industry is on the cusp of an investment boom. As global energy demands shift toward renewables, governments and private investors are allocating substantial capital to geothermal projects.
By 2030, the total investment in this sector could surpass $50 billion, but the real question is—where is this money flowing, and how can businesses position themselves to capitalize on it?
Why Geothermal is Attracting Billions in Capital
The allure of geothermal energy is clear. It offers a stable, 24/7 power source that isn’t subject to weather fluctuations like solar or wind. With global energy security concerns at an all-time high, policymakers are prioritizing geothermal expansion to reduce dependence on fossil fuels.
Private investors are also taking notice. Venture capital firms, energy conglomerates, and even tech giants are diversifying their portfolios with geothermal investments, particularly in enhanced geothermal systems (EGS) and direct-use applications.
This momentum is creating a competitive but lucrative space for businesses looking to enter the geothermal market.
4. The Asia-Pacific region is expected to account for over 40% of new geothermal capacity by 2030
A Rapidly Growing Market with Strategic Opportunities
The Asia-Pacific region is not just leading geothermal expansion—it is redefining the global energy landscape. With over 40% of new geothermal capacity expected to come from this region by 2030, businesses in the renewable energy sector must act fast to seize the opportunities.
This growth is driven by a combination of increasing energy demands, government incentives, and significant untapped geothermal potential.
Companies that enter this market now stand to benefit from first-mover advantages, including access to prime geothermal sites, partnerships with governments, and incentives that could reduce operational costs.
However, understanding the regional nuances is critical. Each country has distinct policies, permitting processes, and infrastructure challenges that must be navigated strategically.
5. The United States aims to double its geothermal power generation capacity, reaching 10 GW by 2030
The U.S. government is actively supporting geothermal projects through incentives, tax breaks, and research funding. The Department of Energy has outlined ambitious plans to accelerate development.
Businesses in the energy sector should align with federal programs to take advantage of available funding. Investors should keep an eye on emerging geothermal startups.
6. Indonesia is projected to become the world’s second-largest geothermal producer, adding 4–5 GW of capacity by 2030
Why Indonesia is the Next Big Geothermal Powerhouse
Indonesia sits on the Pacific Ring of Fire, giving it one of the world’s largest untapped geothermal reserves. With a government-backed push for renewable energy, the country is now on track to add 4–5 GW of new geothermal capacity by 2030.
This expansion isn’t just good for the environment—it’s a major business opportunity for energy companies, investors, and technology providers looking to establish themselves in a booming market.
Government Policies Fueling Indonesia’s Geothermal Growth
Financial Incentives and Subsidies
The Indonesian government is rolling out financial incentives, including tax breaks, subsidies, and low-interest loans for geothermal projects. Companies that tap into these incentives can significantly lower their development costs and increase their return on investment.
Streamlined Permitting and Regulations
Geothermal projects have historically faced regulatory bottlenecks, but Indonesia is making the permitting process faster and more investor-friendly.
Recent policy reforms have reduced the time it takes to secure exploration and development licenses, making it easier for new entrants to get projects off the ground.
Strong Public and Private Investment
State-owned enterprises like Pertamina Geothermal Energy are aggressively expanding their geothermal portfolios, while private sector investments are also surging.
This blend of public and private funding creates a stable and lucrative environment for businesses entering the market.
7. The European Union aims to increase geothermal capacity by threefold, reaching 6 GW by 2030
Why the EU Is Betting Big on Geothermal Energy
The European Union has set an ambitious target: tripling its geothermal energy capacity to 6 GW by 2030. This isn’t just a policy goal—it’s a strategic move to secure energy independence, cut emissions, and stabilize energy prices.
Geothermal offers a unique advantage over wind and solar. It provides consistent, 24/7 power, making it an essential part of the EU’s transition to a sustainable energy mix.
With natural gas prices fluctuating and the push for decarbonization growing stronger, geothermal energy is emerging as a reliable alternative that reduces Europe’s dependence on fossil fuel imports.
8. Kenya is expected to increase its geothermal capacity from 950 MW to over 3,000 MW by 2030
Kenya is emerging as a geothermal leader in Africa. The country is leveraging its vast underground heat sources to power its economy.
Businesses in the African energy sector should look at partnerships with Kenyan firms. The country is offering incentives for foreign investments in geothermal projects.
9. Direct-use geothermal applications (heating and cooling) could grow at 8% CAGR, reaching a market value of $60 billion by 2030
A Multi-Billion-Dollar Market Poised for Expansion
Direct-use geothermal applications are no longer a niche sector—they are becoming a major force in the global energy transition.
With an expected compound annual growth rate (CAGR) of 8%, this market is projected to reach a staggering $60 billion by 2030. Businesses that recognize this opportunity early can carve out a significant share of this rapidly expanding industry.
The driving force behind this surge is the growing demand for sustainable, cost-effective heating and cooling solutions across multiple sectors. Industrial operations, commercial buildings, agricultural facilities, and district heating networks are all turning to geothermal energy for reliable, low-carbon alternatives to fossil fuels.
10. The number of countries utilizing geothermal power is projected to increase from 29 to 40+ by 2030
What This Expansion Means for the Global Energy Market
The rise in countries adopting geothermal energy signals a major shift in the global power landscape. With more nations investing in geothermal, competition in the renewable energy sector is heating up.
Businesses that position themselves strategically now—whether through technology development, investment, or partnerships—stand to gain a strong foothold in emerging markets before they become saturated.
This growth also presents a clear message: geothermal is no longer just for a handful of volcanic regions. Advancements in drilling and enhanced geothermal systems (EGS) are making this renewable resource viable in more places than ever before.
11. The cost of geothermal electricity generation is expected to drop to $50–$70 per MWh by 2030 due to technological advancements
Advances in drilling and energy conversion are making geothermal more affordable.
Businesses that adopt these cost-saving technologies early will have a competitive edge. Developers should focus on cutting operational expenses to maximize profitability.
12. Enhanced Geothermal Systems (EGS) could contribute 5–10 GW of new capacity by 2030
Why EGS Is a Game Changer for the Geothermal Industry
Geothermal energy has always been a powerful but underutilized resource. Traditional geothermal plants require specific geological conditions—naturally occurring hot water reservoirs—to generate electricity.
But Enhanced Geothermal Systems (EGS) are rewriting the rules.
EGS technology unlocks geothermal energy in regions where conventional methods wouldn’t work. By engineering artificial reservoirs through advanced drilling and fracturing techniques, EGS makes it possible to tap into Earth’s heat virtually anywhere.
This means geothermal energy is no longer limited to select locations—it can now be developed on a global scale.
The potential impact is staggering. Experts estimate that EGS could add 5–10 GW of new capacity by 2030, significantly expanding the role of geothermal in the global energy transition. For businesses, this presents a massive opportunity to invest, innovate, and lead in a rapidly emerging market.
13. The global geothermal heat pump market is expected to surpass $30 billion by 2030
A High-Growth Market with Unmatched Business Potential
The geothermal heat pump (GHP) market is on a steep upward trajectory, set to exceed $30 billion by 2030. This surge is driven by rising energy costs, tightening carbon emission regulations, and an increasing shift toward sustainable heating and cooling solutions.
For businesses, this presents a golden opportunity to enter a rapidly expanding industry that is reshaping how buildings and industries manage temperature control.
Geothermal heat pumps are no longer a niche technology; they are becoming mainstream, driven by advances in efficiency, affordability, and accessibility. Whether you are an investor, manufacturer, contractor, or service provider, now is the time to strategically position yourself in this booming market.
14. Geothermal desalination projects could expand, producing over 500,000 cubic meters of freshwater daily by 2030
The Game-Changer for Water and Energy Security
The intersection of geothermal energy and desalination is transforming how the world approaches water scarcity.
By 2030, geothermal-powered desalination projects could generate over 500,000 cubic meters of freshwater daily—a breakthrough for arid regions struggling with water shortages.
This growth presents a massive opportunity for businesses and investors looking to lead in both renewable energy and water infrastructure.
Unlike traditional desalination, which relies on fossil fuels and is costly to operate, geothermal desalination is both sustainable and cost-efficient. It leverages geothermal heat to power the desalination process, making it an attractive solution for governments and corporations prioritizing long-term sustainability.
15. The geothermal drilling sector is expected to grow at a CAGR of 6%, driven by improved exploration technologies
Why Geothermal Drilling Is Becoming a High-Growth Industry
The geothermal drilling sector is on track to expand at a compound annual growth rate (CAGR) of 6%, fueled by breakthroughs in exploration and drilling technologies. As the demand for geothermal energy accelerates, drilling companies are at the center of this expansion.
Unlike traditional fossil fuel drilling, geothermal drilling requires precision engineering to reach superheated rock formations miles beneath the Earth’s surface. New innovations in drilling techniques are reducing costs, increasing efficiency, and making geothermal projects more viable worldwide.
The projected growth in this sector is not just about numbers—it represents a seismic shift in how we tap into Earth’s natural heat. For businesses in energy, technology, and investment, this presents a significant opportunity to enter a booming market with high potential returns.
16. Geothermal energy could reduce global CO₂ emissions by 1.5–2 gigatons annually by 2030
A Game-Changer for Global Carbon Reduction
The urgency to cut global CO₂ emissions has never been higher, and geothermal energy is emerging as a powerful solution.
By 2030, geothermal could eliminate up to 2 gigatons of carbon dioxide annually—a reduction equivalent to removing over 400 million gasoline-powered cars from the road. This impact positions geothermal not just as a renewable energy source but as a transformative force in the fight against climate change.
For businesses, this shift presents a massive opportunity. Companies investing in geothermal now will be at the forefront of an energy revolution that governments, industries, and consumers are prioritizing.
Whether through direct geothermal projects, partnerships, or carbon credit programs, the potential for impact and profitability is enormous.
17. Iceland will continue to lead in geothermal energy penetration, supplying over 90% of its heating needs from geothermal sources
Iceland is the global leader in geothermal energy use. The country has leveraged its volcanic activity to provide heating and electricity to almost all of its population.
While Iceland’s unique geography makes geothermal an obvious choice, other countries can still learn from its policies and innovations. Governments should study Iceland’s regulatory framework and incentive programs to encourage geothermal adoption in their own regions.
Energy companies can also collaborate with Icelandic firms to apply their expertise in new markets.
18. The African Rift Valley geothermal potential could reach 10 GW by 2030, with Ethiopia and Kenya leading growth
The African Rift Valley has enormous geothermal potential. Countries like Ethiopia and Kenya are already making significant strides in developing geothermal power.
For investors, Africa represents a high-growth market with long-term potential. Governments should accelerate licensing processes to attract foreign direct investment. Engineering firms should explore geothermal projects in the region, as the need for expertise and equipment is growing rapidly.
19. The Latin American geothermal market is expected to reach 5 GW capacity, led by Mexico, Chile, and Argentina
Latin America has vast geothermal reserves, particularly in volcanic regions. Mexico, Chile, and Argentina are investing heavily in geothermal energy.
Companies that specialize in renewable energy should consider expanding into Latin America. Policymakers in the region should create financial incentives for new geothermal projects to ensure continued expansion. Infrastructure firms can also explore opportunities to support plant construction.
20. The geothermal sector could generate over 500,000 new jobs worldwide by 2030
With increased investment and expansion, geothermal energy will become a significant job creator. Positions will range from drilling and engineering to project management and operations.
Governments should work with educational institutions to develop training programs for geothermal careers. Businesses should invest in workforce development to ensure a steady pipeline of skilled professionals.
Individuals looking for careers in renewable energy should consider geothermal as a stable and growing industry.
21. Geothermal energy could contribute to 5% of the world’s electricity mix by 2030
While still a small percentage compared to fossil fuels, geothermal’s contribution is increasing. With advancements in technology and policy support, it could become a major energy source in the coming decades.
Countries with geothermal potential should prioritize its development to diversify their energy mix. Energy companies should integrate geothermal into their renewable portfolios, balancing it with wind and solar to ensure continuous power supply.
22. The US Department of Energy (DOE) aims to reduce geothermal drilling costs by 30–50% by 2030
Drilling is one of the biggest expenses in geothermal development. The DOE is funding research to make it more affordable.
Businesses involved in drilling technology should seek government grants and partnerships to accelerate innovation. Energy developers should stay informed on cost-cutting advancements to make their projects more viable.
23. Geothermal-powered green hydrogen production could reach 50,000 tons annually by 2030
Hydrogen is emerging as a clean fuel, and geothermal power can play a key role in its production. Using geothermal energy for electrolysis creates hydrogen with almost zero emissions.
Energy companies should explore geothermal-powered hydrogen plants as a sustainable alternative. Policymakers should incentivize green hydrogen projects to reduce reliance on fossil fuels.
24. By 2030, over 70% of geothermal projects will incorporate digital monitoring and AI-driven efficiency improvements
Artificial intelligence and data analytics are making geothermal plants more efficient. Digital tools help optimize drilling, monitor underground reservoirs, and predict maintenance needs.
Technology firms should develop AI-driven solutions tailored for the geothermal industry. Energy companies should invest in smart monitoring systems to maximize efficiency and reduce downtime.
25. Deep geothermal projects could tap into resources over 10 km deep, unlocking vast new reserves
Most geothermal projects today access shallow reservoirs, but deeper drilling could unlock far more energy. Technologies like enhanced geothermal systems (EGS) make this possible.
Governments should fund pilot projects to test deep geothermal potential. Energy companies should invest in deep drilling techniques to access previously untapped resources.
26. The Philippines aims to add 1 GW of new geothermal capacity, maintaining its position as a top global producer
The Philippines has long been a leader in geothermal energy. The government is now pushing for further expansion.
Local and international investors should look at the Philippines for new geothermal projects. Companies should explore opportunities to provide equipment and services to this growing market.
27. Japan is expected to expand geothermal capacity by over 1.5 GW, overcoming past regulatory hurdles
Japan has massive geothermal potential but has been slow to develop it due to environmental regulations. Now, the government is easing restrictions and providing financial incentives.
Businesses should monitor regulatory changes in Japan and act quickly to seize new opportunities. Investors should consider funding geothermal projects in the country as it scales up capacity.
28. The Middle East is beginning to explore geothermal with pilot projects in Turkey, Iran, and Saudi Arabia by 2030
Why Geothermal Energy is Gaining Traction in the Middle East
The Middle East has long been synonymous with oil and gas, but a quiet revolution is underway—geothermal energy is beginning to make its mark.
With pilot projects emerging in Turkey, Iran, and Saudi Arabia, the region is taking its first major steps into geothermal power, signaling a shift toward diversifying its energy sources.
Historically, the Middle East has relied on abundant fossil fuel reserves. However, growing energy demand, climate commitments, and water-intensive industrial operations are driving governments and businesses to explore alternative energy solutions.
Geothermal, with its consistent, year-round energy supply, is now becoming a viable option.
29. Hybrid renewable energy projects integrating geothermal with solar and wind could increase efficiency by 20–30%
Combining geothermal with other renewables can create a more stable energy supply. Hybrid plants can use geothermal for baseload power and supplement it with solar and wind.
Energy companies should consider hybrid projects to optimize efficiency. Governments should fund research into hybrid renewable solutions to maximize energy output.
30. Policymaker support, including carbon pricing and tax incentives, is expected to drive $10–15 billion in annual geothermal investments by 2030
How Policy Support Is Fueling Geothermal Expansion
The geothermal industry is on the verge of a major financial surge, with policymakers worldwide paving the way for $10–15 billion in annual investments by 2030. This isn’t just a fortunate trend—it’s the result of deliberate policy decisions designed to accelerate clean energy adoption.
Governments recognize that geothermal energy is an untapped powerhouse, capable of delivering 24/7 renewable energy without the intermittency challenges of wind and solar.
To make geothermal projects more financially viable, they are rolling out aggressive incentives, carbon pricing mechanisms, and regulatory reforms. These measures are creating a fertile investment landscape that businesses and investors should not ignore.
wrapping it up
Geothermal energy is no longer an underdog in the renewable energy race. As the world seeks cleaner and more reliable energy solutions, geothermal is stepping up to fill the gap. The industry is set to nearly double in capacity by 2030, with governments, investors, and businesses pouring billions into its expansion.
From the United States to Kenya, Indonesia to Europe, and Latin America to the Middle East, geothermal energy is proving to be a stable, long-term power source that works day and night, regardless of weather conditions.
