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WELLESLEY, MA --(Marketwired - March 22, 2016) - Because geothermal energy uses renewable energy produced within the Earth, it involves no fossil fuel combustion, emits minimal CO2 into the atmosphere, and is sustainable as an inexhaustible resource. BCC Research reveals in its new report that the growing demand for electricity, increasing installations of power plant and transmission lines, and a geothermal potential of 8.9 GW for electricity generation should drive the overall demand and installations for geothermal power plants.
Geothermal energy is generated from within the Earth. The various sources of geothermal energy include radioactive decay occurring in the Earth's crust, extremely high-temperature magma, shallow grounds and hot rocks and hot water found beneath our planet's surface. The three main applications of geothermal energy include direct usage, geothermal heat pumps and electricity generation. In power generation, the three types of power plants are dry steam plants, flash steam plants and binary cycle power plants.
The global market for geothermal power generation was nearly $12.2 billion in 2014. This is expected to reach nearly $20.8 billion by 2020 from $12.9 billion in 2015, increasing at a compound annual growth rate (CAGR) of 10.0% from 2015 to 2020. This market had a total installed capacity of 12.2 GW in 2014. North America leads the market with a market share of 41.8%, or 5.1 GW, followed by Asia-Pacific and Europe with market shares of 38.5% and 17.5%, respectively.
The global geothermal power generation market for dry steam increased from 3,987.7 MW in 2014 to 4,090.8 MW in 2015, a year-on-year (YOY) growth rate of 2.6%. In addition, this market is expected to grow at a five-year (2015-2020) compound annual growth rate (CAGR) of 7.4%, to reach 5,837.8 MW in 2020. The market for flash steam increased from 5,793.6 MW in 2014 to 6,298.7 MW in 2015, a year-on-year (YOY) growth rate of 8.7%. This market should grow at a five-year CAGR (2015 to 2020) of 11.4%, to reach 10,801.4 MW in 2020. The market for binary increased from 2,339.0 MW in 2014 to 2,463.8 MW in 2015, a year-on-year (YOY) growth rate of 5.3%. Additionally, this market is expected to grow at a five-year CAGR of 9.7%, to reach 3,922.0 MW in 2020.
The global market for geothermal energy is growing, primarily driven by Asia-Pacific, Europe and North American regions due to the abundant availability of geothermal energy, coupled with higher demand for electric transmission and distribution with the revival of the global economy and increasing construction and infrastructure activities. However, in the longer term, countries with geothermal resources such as Honduras, Armenia, Spain, South Korea, Vietnam, Bolivia, Chile and Djibouti will create huge opportunities for the geothermal energy market.
Globally, the increasing demand for electricity, coupled with the handful geothermal resources available in various regions, will drive growth in the geothermal energy markets. In addition, favorable legislation and regulations focusing on reduction of CO2 emissions and energy saving are contributing to the growth in the geothermal energy market.
"In the long term, increasing demand for renewable energy production and infrastructure development in developing regions along with the increasing demand for power transmission across long distances and increasing investments in geothermal energy generation, smart grids and power infrastructure will be key drivers of this market," says BCC Research analyst Aneesh Kumar.
Global Markets for Geothermal Energy (EGY135A) analyzes the industry by technology, by type, and by end-user application. The report examines emerging applications, trends, pricing considerations, R&D, government regulations, and competitive technologies. Analyses of global market drivers and trends, with data from 2014, 2015, and projections of CAGRs through 2020 also are provided.
About BCC Research
BCC Research publishes market research reports that make organizations worldwide more profitable with intelligence that drives smart business decisions. These reports cover today's major industrial and technology sectors, including emerging markets. For more than 40 years we've helped customers identify new market opportunities with accurate and reliable data and insight, including market sizing, forecasting, industry overviews, and identification of significant trends and key market participants. We partner with analysts who are experts in specific areas of industry and technology, providing unbiased measurements and assessments of global markets. Recently selected as the world's greatest market research company, BCC Research is a unit of Eli Global, LLC. Visit our website at www.bccresearch.com. Contact us: (+1) 781-489-7301 (U.S. Eastern Time), or email firstname.lastname@example.org.
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