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
This steady growth rate suggests that geothermal is not just a passing trend. The sector is expanding at a pace comparable to other renewable sources.
Entrepreneurs looking to enter the clean energy space should explore geothermal projects. With the right strategy, companies can secure funding and capitalize on this sustained growth.
3. The total global investment in geothermal energy could exceed $50 billion by 2030
Governments, private investors, and venture capital firms are pouring money into geothermal energy. This funding is being used to develop new plants, improve drilling technology, and expand geothermal’s reach.
Businesses in construction, equipment manufacturing, and engineering services should consider forming partnerships with geothermal firms to tap into this investment surge.
4. The Asia-Pacific region is expected to account for over 40% of new geothermal capacity by 2030
Countries like Indonesia, the Philippines, and Japan are leading the charge. The region has rich geothermal resources, and governments are setting aggressive targets for expansion.
For investors, focusing on projects in the Asia-Pacific can be a lucrative strategy. Companies should explore partnerships with local governments and energy providers.
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
Indonesia is aggressively expanding its geothermal infrastructure. The country has some of the richest geothermal reserves in the world.
For companies in the energy supply chain, Indonesia represents a prime market. Equipment manufacturers, drilling service providers, and engineering firms should explore opportunities in the region.
7. The European Union aims to increase geothermal capacity by threefold, reaching 6 GW by 2030
Europe is integrating geothermal energy into its climate strategy. Countries like Germany, France, and Italy are leading the push.
Investors should track European geothermal projects for potential funding opportunities. Businesses in the heating sector can explore collaborations with geothermal heating providers.
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
Beyond electricity, geothermal energy is being used for direct heating. This includes district heating, industrial applications, and greenhouses.
Real estate developers should consider integrating geothermal heating into their projects. Cities should also explore geothermal district heating as a sustainable solution.
10. The number of countries utilizing geothermal power is projected to increase from 29 to 40+ by 2030
More nations are recognizing geothermal’s potential. Governments are setting policies to encourage development.
Companies in the renewable sector should look for emerging markets with new geothermal policies. Expanding into new countries can be a key growth strategy.
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
EGS is unlocking geothermal potential in regions without traditional hotspots. This could revolutionize the industry.
Investors should watch for startups and projects specializing in EGS. Energy companies should allocate R&D budgets toward this breakthrough technology.
13. The global geothermal heat pump market is expected to surpass $30 billion by 2030
Geothermal heat pumps are becoming a mainstream heating solution for homes and businesses.
HVAC companies should consider expanding their geothermal offerings. Property owners should explore geothermal heating for long-term cost savings.
14. Geothermal desalination projects could expand, producing over 500,000 cubic meters of freshwater daily by 2030
Geothermal energy is being used to power desalination plants. This is crucial for water-scarce regions.
Governments and water companies should invest in geothermal-powered desalination to address water shortages sustainably.
15. The geothermal drilling sector is expected to grow at a CAGR of 6%, driven by improved exploration technologies
Drilling costs have traditionally been a barrier to geothermal growth. New techniques are reducing expenses.
Companies in drilling technology should focus on R&D to develop more cost-effective solutions. Investors should look for firms innovating in geothermal drilling.
16. Geothermal energy could reduce global CO₂ emissions by 1.5–2 gigatons annually by 2030
As a clean energy source, geothermal can play a key role in lowering emissions.
Governments should offer incentives for industries to switch to geothermal energy. Companies should integrate geothermal into their sustainability strategies.
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
Traditionally, the Middle East has relied on oil and gas, but countries are now looking at geothermal as a way to diversify their energy mix.
Companies should explore partnerships with Middle Eastern governments for pilot projects. Policymakers should create incentive programs to attract geothermal investment.
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
Government policies will play a major role in geothermal expansion. Carbon pricing, subsidies, and tax credits will encourage investment.
Businesses should stay informed on policy changes to take advantage of financial incentives. Investors should monitor government programs supporting geothermal projects to identify high-potential opportunities.
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.
