India's Geothermal Energy Market Size was valued at USD 1.22 Billion in 2022. The Geothermal Energy market industry is projected to grow USD 2.24 Billion by 2032, exhibiting a compound annual growth rate (CAGR) of 6.30% during the forecast period (2023 - 2032). Growing concerns about climate change, increasing the share of clean energy, and providing a stable and reliable power source are the main market drivers anticipated to propel the Geothermal Energy market in the United States.
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
The Indian geothermal energy market focuses on technological advancements and research to harness geothermal resources more efficiently. Research institutions, private companies, and government bodies are investing in developing enhanced geothermal systems (EGS) and other innovative technologies. EGS involves creating or enhancing fractures in hot rock formations to improve water circulation and increase heat extraction. By leveraging technological advancements, the efficiency and viability of geothermal projects can be enhanced, making them more competitive with different forms of renewable energy. Collaborations between research institutions and industry players are crucial in driving innovation and overcoming technical challenges associated with geothermal energy extraction in the Indian context.
Furthermore, the Indian government has actively promoted renewable energy sources to bolster energy demand while reducing greenhouse gas emissions. In recent years, geothermal energy has been a notable focus as part of the broader renewable energy mix. The government has introduced supportive policies and incentives to attract investments in geothermal projects. These policies include financial incentives, tax benefits, and favorable tariff structures for geothermal power producers. Additionally, the government has been working on streamlining regulatory processes and land acquisition for geothermal projects, further encouraging private sector participation. The push for geothermal energy aligns with India's goal of rising the share of renewables in its energy mix and deducting dependence on fossil fuels. Thus driving the Geothermal Energy market revenue.
The India Geothermal Energy market segmentation, based on application, includes Power Generation, Residential and Commercial Heating and cooling. The power generation segment mostly dominated the market. Geothermal power plants harness the Earth's natural heat for electricity production. India's increasing emphasis on sustainable energy sources positions geothermal power as a promising solution. The Power Generation segment within the geothermal energy market caters to the country's growing energy demand while aligning with environmental goals, making it a pivotal driver for adopting geothermal energy in India.
The India Geothermal Energy market segmentation, based on technology, includes Binary & Flash Cycle Plant, Dry Steam Plant, Ground Source Heat Pumps and Direct Systems. The binary & flash cycle plant category generated the most income. Binary plants harness lower-temperature geothermal resources using a secondary fluid to drive a turbine. At the same time, Flash Cycle Plants utilize high-temperature geothermal fluids to generate steam directly for power generation. These technologies showcase the diversity and adaptability of geothermal solutions, contributing to India's sustainable energy portfolio.
The India Geothermal Energy market segmentation, based on temperature, includes Low Temperature, Medium Temperature and High Temperature. The low temperature category generated the most income. Low-temperature geothermal resources, typically 50 to 150 degrees Celsius, offer opportunities for various applications, including direct heating and power generation. These resources are particularly relevant for regions with moderate temperature gradients. As India explores its geothermal potential, harnessing low-temperature sources can contribute significantly to sustainable energy initiatives and diversify the country's renewable energy portfolio.
Figure 1: India Geothermal Energy Market, by Temperature, 2022 & 2032 (USD Billion)
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
India's geothermal energy market is gaining momentum as the country seeks sustainable and renewable energy sources. The potential for geothermal power generation is significant, especially in regions with high geothermal heat flow. The government's commitment to deducting carbon emissions and promoting clean energy further drives investment in geothermal projects. The state of Himachal Pradesh and some parts of the Western Ghats show promising geothermal potential. However, challenges such as resource exploration, project financing, and technology development need attention. Despite these hurdles, India's geothermal sector holds promise for contributing to the nation's energy mix, aligning with its commitment to environmental sustainability and diversification of the energy portfolio. Continuous efforts are essential to unlock the full potential of geothermal energy in India and harness its benefits for a greener future.
Leading market players are investing majorly in research and development to expand their product lines, which will help the Geothermal Energy market grow even more. The participants are also undertaking various strategic activities to spread their footprint with important market developments, including product launches, contractual agreements, mergers and acquisitions, major investments, and collaboration with other organizations. To spread and survive in a more competitive and rising market climate, the Geothermal Energy industry must offer cost-effective items.
Major players in the Geothermal Energy market are attempting to raise market demand by investing in research and development operations, including Ormat (US), Mitsubishi Heavy Industries (Japan), Baker Hughes Company (US), NIBE Group (Sweden), and SLB (US).
July 2022:Ormat propounded the commercial operation of the Casa Diablo-IV (CD4) 30 MW geothermal power plant. The CD4 facility provides 7 MW of geothermal power to Community Choice Aggregators, Silicon Valley Clean Energy, and Central Coast Community Energy, each under a 10-year power purchase agreement (PPA). In Addition, the facility provides 16 MW of geothermal power to the Southern California Public Power Authority under a 25-year agreement.
| Report Attribute/Metric | Details |
| Market Size 2022 | USD 1.22 Billion |
| Market Size 2032 | USD 2.24 Billion |
| Compound Annual Growth Rate (CAGR) | 6.30% (2023-2032) |
| Base Year | 2022 |
| Market Forecast Period | 2023-2032 |
| Historical Data | 2018- 2022 |
| Market Forecast Units | Value (USD Billion) |
| Report Coverage | Revenue Forecast, Market Competitive Landscape, Growth Factors, and Trends |
| Segments Covered | Application, Temperature, Technology, and Region |
| Countries Covered | India |
| Key Companies Profiled | Ormat (US), Mitsubishi Heavy Industries (Japan), Baker Hughes Company (US), NIBE Group (Sweden), and SLB (US) |
| Key Market Opportunities | · Integration of advanced technologies · Rise of Geothermal 2.0 |
| Key Market Dynamics | · Growth in demand for power generation through sustainable means |
India Geothermal Energy Market Highlights:
Frequently Asked Questions (FAQ) :
The India Geothermal Energy market size was valued at USD 1.22 Billion in 2022.
The market is projected to grow at a CAGR of 6.30% during the forecast period, 2023-2032.
The key players in the market are Ormat (US), Mitsubishi Heavy Industries (Japan), Baker Hughes Company (US), NIBE Group (Sweden), and SLB (US).
The power generation category dominated the market in 2022.
The low-temperature category had the largest share of the market.
The binary cycle plants category had the largest share in the market.
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