Global Geothermal Orc Market Overview:
As per MRFR analysis, the Geothermal Orc Market Size was estimated at 7.08 (USD Billion) in 2022.The Geothermal Orc Market Industry is expected to grow from 8.01(USD Billion) in 2023 to 24.2 (USD Billion) by 2032. The Geothermal Orc Market CAGR (growth rate) is expected to be around 13.07% during the forecast period (2024 - 2032).
Key Geothermal Orc Market Trends Highlighted
Increased demand for renewable energy, supportive government policies, and technological advancements drive the global geothermal organic Rankine cycle (ORC) market. Governments worldwide incentivize renewable energy projects and provide tax breaks and subsidies to promote geothermal ORC installations.
The rising electricity demand, particularly in developing countries, creates opportunities for geothermal ORC systems to provide a reliable and sustainable power source. Recent trends include the development of more efficient and cost-effective ORC technologies, the integration of geothermal ORC systems with other renewable energy sources, and the growing interest in small-scale geothermal ORC applications.
Key market drivers include concerns over climate change, the depletion of fossil fuel reserves, and the rising cost of traditional energy sources. Geothermal ORC systems offer a clean, reliable, and cost-effective alternative to conventional power plants, contributing to global sustainability and energy security goals.
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
Geothermal Orc Market Drivers
Technological Advancements Driving Geothermal Orc Market Growth
There are many factors that are expected to result in significant growth in the geothermal ORC market over the next few years. It is mostly driven by the continually increasing need for renewable energy sources. Geothermal energy is one of those energy sources that are clean and sustainable. They can be used either to generate electricity or to heat peoples' homes and other buildings. As long as renewable energy is no longer an exotic twilight topic, it is going to attract more and more interest all over the world as people will be looking for new ways to reduce their necessity for traditional fossil fuels.
Another important driver of the geothermal ORC market is the falling cost of technology. Traditional geothermal ORC systems used to be incredibly expensive in terms of both installation and maintenance. The main factors that affected the price of the system involved the expenses concerned with the construction of wells and the high initial price of such technologies. However, what goes up must go down, and in our case, a new technical order led to a gradual reduction in price. Thanks to the ongoing technological progress ORC systems are now becoming more affordable.
It means that their use will become more widespread, and more different applications of the technology will appear. Finally, some government policies also favor the growth of the geothermal ORC market. There are many examples of governments offering considerable incentives to businesses and private individuals who are willing to contribute to the development of environmentally friendly sources of energy. These incentives can have a large impact on the price of already cheaper ORC systems and make them even more attractive.
Government Policies Supporting Geothermal Orc Market Expansion
The policies developed by the government have been crucial in enabling the growth of the geothermal ORC market. Governments have been providing incentives to businesses and individuals that invest in renewable sources of energy. These incentives make the geothermal ORC more affordable to install; hence, many businesses and individuals prefer them. For instance, there is a 30 % tax credit offered by the U.S. government to clients who install geothermal heat pump systems.Grants, rebates and loans have also been provided by governments to encourage the development of clean energy sources. They make the purchase and installation of the systems even cheaper. The geothermal ORC will, therefore, continue to grow exponentially in the next years amid the contributions from the governments. 2) The use of geothermal ORC in other sectors The sectors that have adopted the geothermal ORC applications will be crucial in ensuring the growth of the industry.Many companies that have used this clean energy depend on it to power their operations. The other firms or households that can use the energy can learn from other sectors and decide to use it. The users from these other sectors will also contribute significantly to the expansion of the geothermal ORC.
Declining Costs Driving Geothermal Orc Market Adoption
The falling cost of technology is another major driving force behind the geothermal ORC market. Geothermal ORC systems have historically been expensive to install and operate, but the cost of technology has fallen in recent years. Technology advances are making geothermal ORC systems more cost-effective for a broader range of applications. For example, the cost of geothermal ORC turbines has decreased significantly in recent years. A mix of factors has contributed to this fall, including the increasing availability of low-cost materials and more efficient manufacturing processes.As a result, geothermal ORC systems have never been cheaper to install and operate. Aside from the falling cost of turbines, the cost of other components of the geothermal ORC system has also fallen in recent years. This includes the cost of heat exchangers, pumps, and other equipment. As a result, the overall cost of geothermal ORC systems has fallen significantly in recent years. The falling cost of technology means that geothermal ORC systems are more viable for a larger number of applications.As such, it is driving the growth of the geothermal ORC market and is expected to continue doing so for the foreseeable future.
Geothermal Orc Market Segment Insights:
Geothermal Orc Market Process Type Insights
The Global Geothermal Orc Market is segmented by Process Type into Dry Steam, Flash, and Binary. Among these, the Binary segment held the largest market share in 2023 and is expected to continue its dominance throughout the forecast period. The growth of this segment can be attributed to the increasing popularity of binary cycle power plants, which are more efficient and cost-effective than traditional geothermal power plants. The Dry Steam segment is expected to witness significant growth over the forecast period. This growth is driven by the increasing demand for geothermal energy in regions with high levels of geothermal activity, such as Iceland and New Zealand.The Flash segment is also expected to experience steady growth, as it is a relatively simple and cost-effective technology that can be used to generate electricity from geothermal resources. In terms of revenue, the Global Geothermal Orc Market is expected to reach USD 8.01 billion in 2023. The growth of the market is driven by increasing demand for renewable energy sources, rising concerns over climate change, and government initiatives to promote geothermal energy development.
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
Geothermal Orc Market Application Insights
The Global Geothermal Orc Market, based on application, is segmented into Electricity Generation, Direct Heat, and Other Applications. In 2023, the Electricity Generation segment is expected to account for the largest market share, as there has been a growing demand for renewable energy sources. The Direct Heat segment is also expected to grow significantly and the rising demand for geothermal heating systems is activating this growth in the segment. The Other Applications segment includes industrial process heat and geothermal cooling applications, which are also expected to drive the increase in the market.The Global Geothermal Orc Market revenue for the Electricity Generation segment is expected to total USD 12.1 billion by 2024, while the Direct Heat segment is expected to reach USD 7.2 billion. The Other Applications segment is expected to generate USD 5.1 billion in revenue by 2024. An increase in the use of geothermal energy for electricity generation and heating facilities is boosting the growth of the Global Geothermal Orc Market.
Geothermal Orc Market Capacity Insights
The Capacity segment is a crucial aspect of the Global Geothermal Orc Market, influencing market growth and revenue generation. The segment is categorized into four sub-segments: '5 MW', '5-20 MW', '20-50 MW', and '>50 MW'. The '5 MW' sub-segment held a significant market share in 2023. Its compact size and lower cost make it suitable for small-scale applications, such as residential heating and electricity generation. The '5-20 MW' sub-segment is projected to witness substantial growth during the forecast period, driven by its adaptability to various industrial and commercial applications.The '20-50 MW' sub-segment is expected to contribute a notable share to the Global Geothermal Orc Market revenue. Its higher power output capacity makes it feasible for larger-scale projects, including district heating and power plants. The '>50 MW' sub-segment represents the highest power output capability and is anticipated to gain traction in the coming years, driven by the growing demand for renewable energy sources. Overall, the Capacity segment offers diverse options tailored to specific project requirements, contributing to the market's growth and revenue generation.
Geothermal Orc Market End User Insights
The Global Geothermal Orc Market Segmentation by End User into Utilities, Industrial, Residential and Commercial offers valuable insights into the diverse applications of geothermal organic Rankine cycle (ORC) systems. Utilities, the dominant segment, accounted for over 55% of the market revenue in 2023 and is projected to maintain its stronghold throughout the forecast period. The growing demand for renewable energy sources to meet baseload power generation needs, coupled with the increasing adoption of ORC systems for geothermal power plants, is driving the growth of this segment.Industrial applications, capturing a significant share of the market, are expected to witness steady growth due to the rising demand for geothermal ORC systems in industries such as food processing, pulp and paper, and mining. Residential and commercial applications, though holding a smaller market share, are gaining traction owing to the increasing adoption of geothermal ORC systems for heating and cooling purposes in residential and commercial buildings. The overall market growth is influenced by factors such as government incentives for renewable energy adoption, technological advancements, and the rising awareness of sustainable energy solutions.
Geothermal Orc Market Technology Insights
The Global Geothermal Orc Market is segmented by Technology into Organic Rankine Cycle (ORC) and Kalina Cycle. The ORC segment is expected to hold a larger market share in 2023 due to its wide applicability and cost-effectiveness. The Kalina Cycle segment is expected to grow at a faster rate during the forecast period due to its higher efficiency and ability to utilize lower-temperature geothermal resources. The Global Geothermal Orc Market revenue for the ORC segment is projected to reach USD 6.5 billion by 2032, growing at a CAGR of 12.5%. The Kalina Cycle segment is expected to reach a market value of USD 2.5 billion by 2032, registering a CAGR of 14.5%.
Geothermal Orc Market Regional Insights
The regional segmentation of the Global Geothermal Orc Market offers valuable insights into the market's geographical distribution and growth dynamics. North America is expected to dominate the market with a significant share, driven by the presence of established geothermal resources and government initiatives promoting renewable energy. Europe follows closely, with a growing focus on decarbonization and energy security. The Asia-Pacific region is projected to witness substantial growth, fueled by increasing energy demand and government support for renewable energy development.South America the Middle East and Africa regions are anticipated to contribute to the market's expansion, leveraging their geothermal potential and the need for sustainable energy solutions.
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
Geothermal Orc Market Key Players And Competitive Insights:
Major players in the Geothermal Orc Market industry are continuously focusing on developing innovative technologies to gain a competitive edge. Leading Geothermal Orc Market players are investing heavily in research and development to enhance the efficiency and performance of their products. The Geothermal Orc Market development is driven by the increasing demand for renewable energy sources and the growing awareness of environmental sustainability. The competitive landscape is expected to remain fragmented, with several key players holding significant market shares.Ormat Technologies, Inc. is a leading player in the Global Geothermal Orc Market. The company has a strong track record of developing and manufacturing high-quality geothermal power plants. Ormat's products are used in a variety of applications, including power generation, district heating, and industrial processes. The company has a global presence, with operations in North America, Europe, and Asia. Ormat is committed to providing innovative and reliable geothermal solutions to meet the growing demand for renewable energy.Another major player in the Global Geothermal Orc Market is Turboden.The company specializes in the design and manufacture of organic Rankine cycle (ORC) systems. Turboden's ORC systems are used to convert low-grade heat into electricity. The company's products are used in a variety of applications, including geothermal power plants, waste heat recovery systems, and solar thermal power plants. Turboden has a strong presence in Europe and is expanding its operations in other regions. The company is committed to providing efficient and cost-effective ORC solutions to meet the growing demand for renewable energy.
Key Companies in the Geothermal Orc Market Include:
- Mitsubishi Heavy Industries
- Toshiba Corporation
- Ecopiezo
- Hitachi Zosen
- Siemens Energy
- Gradient
- Nuovo Pignone
- Fuji Electric
- Baker Hughes
- IHI Corporation
- GE Renewable Energy
- Turboden
- Ormat Technologies
- Enexor
- Exergy
Geothermal Orc Market Industry Developments
The global geothermal Organic Rankine Cycle (ORC) market is projected to grow significantly over the forecast period, driven by increasing demand for renewable energy sources and government incentives for green energy projects. The market is expected to reach USD 24.2 billion by 2032, exhibiting a CAGR of 13.07% from 2024 to 2032.Recent news developments and current affairs in the market include: In February 2023, a new geothermal power plant with an ORC system was commissioned in Indonesia, adding 45 MW of renewable energy capacity to the national grid. In March 2023, a major geothermal energy company announced plans to invest USD 1 billion in developing new ORC projects in the United States. Governments worldwide are implementing supportive policies and offering financial incentives to promote the adoption of geothermal ORC systems, such as tax credits and feed-in tariffs.These developments indicate a positive outlook for the growth of the global geothermal ORC market in the coming years.
Geothermal Orc Market Segmentation Insights
- Geothermal Orc Market Process Type Outlook
- Geothermal Orc Market Application Outlook
- Electricity Generation
- Direct Heat
- Other Applications
- Geothermal Orc Market Capacity Outlook
- 5 MW
- 5-20 MW
- 20-50 MW
- >50 MW
- Geothermal Orc Market End User Outlook
- Utilities
- Industrial
- Residential and Commercial
- Geothermal Orc Market Technology Outlook
- Organic Rankine Cycle (ORC)
- Kalina Cycle
- Geothermal Orc Market Regional Outlook
- North America
- Europe
- South America
- Asia Pacific
- Middle East and Africa
| Report Attribute/Metric |
Details |
| Market Size 2022 |
7.08(USD Billion) |
| Market Size 2023 |
8.01(USD Billion) |
| Market Size 2032 |
24.2(USD Billion) |
| Compound Annual Growth Rate (CAGR) |
13.07% (2024 - 2032) |
| Report Coverage |
Revenue Forecast, Competitive Landscape, Growth Factors, and Trends |
| Base Year |
2023 |
| Market Forecast Period |
2024 - 2032 |
| Historical Data |
2019 - 2022 |
| Market Forecast Units |
USD Billion |
| Key Companies Profiled |
Mitsubishi Heavy Industries, Toshiba Corporation, Ecopiezo, Hitachi Zosen, Siemens Energy, Gradient, Nuovo Pignone, Fuji Electric, Baker Hughes, IHI Corporation, GE Renewable Energy, Turboden, Ormat Technologies, Enexor, Exergy |
| Segments Covered |
Process Type, Application, Capacity, End User, Technology, Regional |
| Key Market Opportunities |
Government incentives, technological advancements, rising energy demand, and climate change concern the growing adoption of heating and cooling systems |
| Key Market Dynamics |
1.    Rising demand for renewable energy 2.    Government incentives 3.    Technological advancements 4.     Increasing geothermal exploration 5.    Growing environmental awareness |
| Countries Covered |
North America, Europe, APAC, South America, MEA |
Frequently Asked Questions (FAQ) :
The Global Geothermal ORC Market is expected to be valued at 8.01 Billion USD in 2023.
The Global Geothermal ORC Market is expected to be valued at 24.2 Billion USD in 2032.
The Global Geothermal ORC Market is expected to grow at a CAGR of 13.07% from 2024 to 2032.
North America region is expected to hold the largest market share in the Global Geothermal ORC Market in 2032.
The power generation segment is expected to hold the largest market share in the Global Geothermal ORC Market in 2032.
Some of the key competitors in the Global Geothermal ORC Market include Ormat Technologies, Turboden S.r.l., and Exergy.
Some of the key trends driving the growth of the Global Geothermal ORC Market include the increasing demand for renewable energy, the rising cost of fossil fuels, and the growing awareness of the environmental benefits of geothermal energy.
Some of the challenges facing the growth of the Global Geothermal ORC Market include the high upfront cost of geothermal ORC systems, the lack of skilled labor, and the regulatory barriers to geothermal development.
Some of the opportunities for growth in the Global Geothermal ORC Market include the increasing demand for geothermal energy in developing countries, the growing popularity of geothermal district heating systems, and the development of more efficient and cost-effective geothermal ORC technologies.
Some of the key factors that will shape the future of the Global Geothermal ORC Market include the development of new technologies, the increasing cost of fossil fuels, the growing demand for renewable energy, and the regulatory environment for geothermal development.
