Certified Global Research Member
Key Questions Answered
- Global Market Outlook
- In-depth analysis of global and regional trends
- Analyze and identify the major players in the market, their market share, key developments, etc.
- To understand the capability of the major players based on products offered, financials, and strategies.
- Identify disrupting products, companies, and trends.
- To identify opportunities in the market.
- Analyze the key challenges in the market.
- Analyze the regional penetration of players, products, and services in the market.
- Comparison of major players’ financial performance.
- Evaluate strategies adopted by major players.
- Recommendations
Why Choose Market Research Future?
- Vigorous research methodologies for specific market.
- Knowledge partners across the globe
- Large network of partner consultants.
- Ever-increasing/ Escalating data base with quarterly monitoring of various markets
- Trusted by fortune 500 companies/startups/ universities/organizations
- Large database of 5000+ markets reports.
- Effective and prompt pre- and post-sales support.
The India Geothermal Energy market has been experiencing dynamic shifts in recent years, reflecting a complex interplay of various factors. Geothermal energy, derived from the Earth's internal heat, holds immense potential in the country's quest for sustainable and renewable energy sources. The market dynamics are shaped by a combination of government policies, technological advancements, investor interest, and environmental considerations.
Government initiatives play a pivotal role in steering the trajectory of the geothermal energy market in India. The Indian government, cognizant of the need for clean energy, has introduced favorable policies and incentives to encourage the development of geothermal projects. The National Geothermal Energy Policy, formulated to harness the vast geothermal potential, outlines regulatory frameworks and financial incentives to attract investments. These policy interventions create an enabling environment for both domestic and international stakeholders, fostering growth in the geothermal energy sector.
Technological advancements have also been instrumental in shaping the dynamics of the Indian geothermal energy market. Innovations in exploration techniques, drilling technologies, and power generation systems have increased the efficiency and viability of geothermal projects. The integration of advanced technologies not only enhances the overall performance of geothermal plants but also reduces the costs associated with exploration and extraction. This, in turn, contributes to making geothermal energy a more competitive and attractive option within the broader energy landscape.
Investor interest is a key driver in the market dynamics of India's geothermal energy sector. As the awareness of environmental sustainability grows, investors are increasingly drawn to renewable energy projects, including geothermal. The potential for long-term returns and a reduced carbon footprint make geothermal projects an appealing investment proposition. The influx of capital into the sector stimulates project development, creating a positive feedback loop that further fuels the market's growth.
Environmental considerations play a crucial role in shaping the market dynamics of geothermal energy in India. As the nation grapples with the challenges of climate change and strives to meet its international commitments, the emphasis on cleaner and greener energy solutions has intensified. Geothermal energy, being a low-carbon and environmentally friendly source, aligns with the country's sustainability goals. The growing awareness of environmental issues among policymakers, businesses, and the general public has created a conducive environment for the expansion of geothermal energy in India.
However, challenges persist in the market dynamics of India's geothermal energy sector. The high upfront costs associated with exploration and drilling, coupled with the uncertainty in resource assessment, pose financial risks for investors. Additionally, the lack of a robust supply chain and infrastructure for geothermal equipment and services can impede the seamless development of projects. Addressing these challenges requires collaborative efforts from the government, private sector, and research institutions to create a supportive ecosystem for the geothermal energy market to flourish.
The market dynamics of India's geothermal energy sector are marked by a dynamic interplay of government policies, technological advancements, investor interest, and environmental considerations. While positive strides have been made with supportive policies and technological innovations, challenges persist that necessitate concerted efforts from all stakeholders. As India continues to strive for a sustainable energy future, the geothermal sector is poised to play a crucial role in the country's evolving energy landscape.
India Geothermal Energy Market Highlights:
India Geothermal Energy Market Overview:
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
Geothermal Energy Market Trends
-
Technological Advancements and Research is driving the market growth
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.
Geothermal Energy Market Segment Insights:
Geothermal Energy Application Insights
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.
Geothermal Energy Technology Insights
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.
Geothermal Energy Temperature Insights
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
Geothermal Energy Country Insights
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.
Geothermal Energy Key Market Players & Competitive Insights
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).
Key Companies in the Geothermal Energy market include
- Ormat (US)
- Mitsubishi Heavy Industries (Japan)
- Baker Hughes Company (US)
- NIBE Group (Sweden)
- SLB (US)
Geothermal Energy Industry Developments
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.
Geothermal Energy Market Segmentation:
Geothermal Energy Application Outlook
- Power Generation
- Residential
- Commercial Heating & Cooling
Geothermal Energy Temperature Outlook
- Low temperature
- Medium Temperature
- High Temperature
Geothermal Energy Technology Outlook
- Binary Cycle Plants
- Flash Steam Plants
- Dry Steam Plants
- Ground Source Steam Plants
- Direct Systems
- Others
Leading companies partner with us for data-driven Insights
Kindly complete the form below to receive a free sample of this Report
Tailored for You
- Dedicated Research on any specifics segment or region.
- Focused Research on specific players in the market.
- Custom Report based only on your requirements.
- Flexibility to add or subtract any chapter in the study.
- Historic data from 2014 and forecasts outlook till 2040.
- Flexibility of providing data/insights in formats (PDF, PPT, Excel).
- Provide cross segmentation in applicable scenario/markets.
