Geothermal Energy Market Trends

Growth Drivers

• Increasing energy demand- With the increasing global population along with the growing economies, there is also an increasing energy demand. The increased demand for such energy creates a highly positive market environment for the geothermal energy sector, as it can provide a reliable and affordable source of energy. According to a report, global consumption increased by 69% owing to the increasing population by 47% from 1990 to 2020.
• Growing consumer demand- Growing awareness of the benefits of geothermal energy has led to an increasing surge in the demand for geothermal services and its solutions. Consumer demand acts as a key growth driver for the geothermal energy industry.
• Supportive government policies- Government policies in several countries emphasize the importance of many renewable energy sources along with the need for a transition to green and sustainable energy systems. This creates a highly favorable surge in the market environment for the geothermal energy sector.
• Growing research and development- Research and development in the geothermal energy sector is increasing along with more funding and incentives being allocated to develop and test new technologies and solutions. This drives innovation and further reduces the cost of geothermal energy.

Challenges

• Limited research and development- Research and development in the geothermal energy sector is still relatively limited, as this technology is still relatively new and is under research at present. This can limit the pace of innovation and several developments of new technologies, which can act as a restraining factor on market growth.
• Limited availability- Geothermal sources are not available everywhere, which directly limits where the geothermal projects can be placed and developed. This creates a highly limited supply of geothermal energy projects and can also act as a restraining factor for market growth.
• High initial investment, as they require a complicated technology.