Enhanced Geothermal System Market: Current Analysis and Forecast (2020-2030)
Emphasis on Power Station Type (Dry Steam Power Stations, Flash Steam Power Stations, and Binary Cycle Power Stations); Depth (Shallow and Deep); Simulation Mode (Hydraulic, Chemical, Thermal, and Explosive); and Region/Country
Global Enhanced Geothermal System Market was valued at more than USD 4.6 billion in 2030 and is expected to grow at a CAGR of around 6.4% from 2022-2030. An Enhanced Geothermal System (EGS) produces geothermal power without the requirement for natural convective hydrothermal resources. Traditionally, geothermal energy systems could utilize only resources where naturally occurring heat, water, and rock permeability are sufficient to allow energy extraction. Most geothermal energy is in dry and impermeable rock which conventional geothermal energy systems were not able to extract. EGS technology enhances the existing geothermal resource and can even create a geothermal resource where conventional methods were not effective. EGS achieves this by injecting fluid in rocks where permeability is not sufficient by using various simulation methods such as hydraulic stimulation.
Enel SpA, Ormat Technologies, Inc., AltaRock Energy, Inc., Royal Dutch Shell Plc, Kenya Electricity Generating Company Limited, BESTEC GmbH, Siemens AG, Fuji Electric Co., Ltd., Calpine Corporation and Energy Development Corporation are some of the key players in the market. Several M&As along with partnerships have been undertaken by these players to facilitate customers with hi-tech and innovative products/technologies.
Insights Presented in the Report
“Amongst Power Station Type, Binary Cycle Power Stations segment accounted for a significant market share”
Based on Power Station Type, the Enhanced Geothermal System market is segmented into Dry Steam Power Stations, Flash Steam Power Stations, and Binary Cycle Power Stations. The Binary Cycle Power Stations segment accounted for a significant market share, and it is estimated to register substantial growth during the projected timeframe. Binary Cycle Power Station differs from dry steam and flash steam power stations as the geothermal reservoir fluids never encounter the power plant’s turbine units. Low-temperature geothermal fluids pass through a heat exchanger with a secondary fluid. According to National Renewable Energy Laboratory In the USA, other than one triple flash plant in 2011, all geothermal capacity additions from 2000 through 2020 have been binary plants. This trend is expected to continue in the USA due to the flexibility of binary technology, which enables the utilization of lower-temperature resources as well as being entirely emission-free.
“Amongst Depth, the deep segment caters to a significant market share in the Enhanced Geothermal System market”
Based on Depth, the Enhanced Geothermal System market is bifurcated into shallow and deep. Among them, the deep segment captured a significant market share and is expected to grow at a substantial growth rate during the projected period. There is no uniform definition for shallow and deep in the world and it differs in each country. In most countries, the depth separation is regulated by the Mining Act requiring a permit for drilling (mostly between 100 and 400 meters below the surface). The Mining Act influences the drilling market and the depth range.
“Amongst Simulation Mode, the hydraulic segment caters to a significant market share in the Enhanced Geothermal System market”
Based on Simulation Mode, the Enhanced Geothermal System market is segmented into Hydraulic, Chemical, Thermal, and Explosive. The hydraulic segment accounted for a significant market share, and it is estimated to register substantial growth during the projected timeframe. Hydraulic stimulation can be described as the injection of fluids at high flow rates into a reservoir to develop new fractures or reactivate and enhance the hydraulic performance of existing fractures. As the market for enhanced geothermal is still in the early stages, most countries are investing in EGS pilot projects in order to check the feasibility of the project. Countries such as the USA have given huge grants in order to develop EGS which has given a significant boost to the EGS market for the projected period. The longest-operating commercial EGS project currently generating power is the Soultz experimental EGS project in Alsace, France.
“Europe constitutes a major market for the Enhanced Geothermal System industry”
Europe caters extensive share of the Enhanced Geothermal System market and is expected to showcase the highest growth in the Enhanced Geothermal System during the forecast period due to their aggressive investments in the energy sector in order to achieve net zero emission goal of 2050. Europe has invested heavily in the renewable energy sector which includes the geothermal sector, and countries such as Germany, France, and U.K. are focusing on geothermal energy with Germany taking the lead. BloombergNEF estimates that net zero scenario of Europe would see investment of over $3.8 trillion by 2050, with almost 40% of the investment occurring before 2030.
Enhanced Geothermal System Market Report Coverage
Reasons to buy this report:
- The study includes market sizing and forecasting analysis validated by authenticated key industry experts.
- The report presents a quick review of overall industry performance at one glance.
- The report covers an in-depth analysis of prominent industry peers with a primary focus on key business financials, product portfolio, expansion strategies, and recent developments.
- Detailed examination of drivers, restraints, key trends, and opportunities prevailing in the industry.
- The study comprehensively covers the market across different segments.
- Deep dive regional level analysis of the industry.
Customization Options:
The global Enhanced Geothermal System market can further be customized as per the requirement or any other market segment. Besides this, UMI understands that you may have your own business needs, hence feel free to connect with us to get a report that completely suits your requirements.
Table of Contents
Research Methodology for the Enhanced Geothermal System Market Analysis (2022-2030)
Analyzing the historical market, estimating the current market, and forecasting the future market of the global Enhanced Geothermal System market were the three major steps undertaken to create and analyze the adoption of Enhanced Geothermal System in major regions globally. Exhaustive secondary research was conducted to collect the historical market numbers and estimate the current market size. Secondly, to validate these insights, numerous findings and assumptions were taken into consideration. Moreover, exhaustive primary interviews were also conducted, with industry experts across the value chain of the global Enhanced Geothermal System market. Post assumption and validation of market numbers through primary interviews, we employed a top-down/bottom-up approach to forecasting the complete market size. Thereafter, market breakdown and data triangulation methods were adopted to estimate and analyze the market size of segments and sub-segments of the industry pertains to. Detailed methodology is explained below:
Analysis of Historical Market Size
Step 1: In-Depth Study of Secondary Sources:
Detail secondary study was conducted to obtain the historical market size of the Enhanced Geothermal System market through company internal sources such as annual reports & financial statements, performance presentations, press releases, etc., and external sources including journals, news & articles, government publications, competitor publications, sector reports, third-party database, and other credible publications.
Step 2: Market Segmentation:
After obtaining the historical market size of the Enhanced Geothermal System market, we conducted a detailed secondary analysis to gather historical market insights and share for different segments & sub-segments for major regions. Major segments are included in the report as Power Station Type, Depth, and Simulation Mode. Further country-level analyses were conducted to evaluate the overall adoption of testing models in that region.
Step 3: Factor Analysis:
After acquiring the historical market size of different segments and sub-segments, we conducted a detailed factor analysis to estimate the current market size of the Enhanced Geothermal System market. Further, we conducted factor analysis using dependent and independent variables such as various Power Station Types, Depth, and Simulation Mode of Enhanced Geothermal System. A thorough analysis was conducted for demand and supply-side scenarios considering top partnerships, mergers and acquisitions, business expansion, and product launches in the Enhanced Geothermal System market sector across the globe.
Current Market Size Estimate & Forecast
Current Market Sizing: Based on actionable insights from the above 3 steps, we arrived at the current market size, key players in the global Enhanced Geothermal System market, and market shares of the segments. All the required percentage shares split, and market breakdowns were determined using the above-mentioned secondary approach and were verified through primary interviews.
Estimation & Forecasting: For market estimation and forecast, weights were assigned to different factors including drivers & trends, restraints, and opportunities available for the stakeholders. After analyzing these factors, relevant forecasting techniques i.e., the top-down/bottom-up approach were applied to arrive at the market forecast for 2028 for different segments and sub-segments across the major markets globally. The research methodology adopted to estimate the market size encompasses:
- The industry’s market size, in terms of revenue (USD) and the adoption rate of the Enhanced Geothermal System market across the major markets domestically
- All percentage shares, splits, and breakdowns of market segments and sub-segments
- Key players in the global Enhanced Geothermal System market in terms of products offered. Also, the growth strategies adopted by these players to compete in the fast-growing market
Market Size and Share Validation
Primary Research: In-depth interviews were conducted with the Key Opinion Leaders (KOLs) including Top Level Executives (CXO/VPs, Sales Head, Marketing Head, Operational Head, Regional Head, Country Head, etc.) across major regions. Primary research findings were then summarized, and statistical analysis was performed to prove the stated hypothesis. Inputs from primary research were consolidated with secondary findings, hence turning information into actionable insights.
Split of Primary Participants in Different Regions
Market Engineering
The data triangulation technique was employed to complete the overall market estimation and to arrive at precise statistical numbers for each segment and sub-segment of the global Enhanced Geothermal System market. Data was split into several segments & sub-segments post studying various parameters and trends in the areas of Power Station Type, Depth, and Simulation Mode in the global Enhanced Geothermal System market.
The main objective of the Global Enhanced Geothermal System Market Study
The current & future market trends of the global Enhanced Geothermal System market were pinpointed in the study. Investors can gain strategic insights to base their discretion for investments on the qualitative and quantitative analysis performed in the study. Current and future market trends determined the overall attractiveness of the market at a regional level, providing a platform for the industrial participant to exploit the untapped market to benefit from a first-mover advantage. Other quantitative goals of the studies include:
- Analyze the current and forecast market size of the Enhanced Geothermal System market in terms of value (USD). Also, analyze the current and forecast market size of different segments and sub-segments
- Segments in the study include areas of Power Station Type, Depth, and Simulation Mode.
- Define and analysis of the regulatory framework for the Enhanced Geothermal System
- Analyze the value chain involved with the presence of various intermediaries, along with analyzing customer and competitor behaviors of the industry.
- Analyze the current and forecast market size of the Enhanced Geothermal System market for the major region.
- Major countries of regions studied in the report include Asia Pacific, Europe, North and South America, and the Rest of the World.
- Company profiles of the Enhanced Geothermal System market and the growth strategies adopted by the market players to sustain in the fast-growing market
- Deep dive regional level analysis of the industry
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