세계의 첨단 지열 시스템 시장 : 예측 - 시추 방법별, 저류층 심도별, 프로젝트 파이낸스 모델별, 기술별, 용도별, 최종 사용자별, 지역별 분석(-2032년)

According to Stratistics MRC, the Global Advanced Geothermal Systems Market is accounted for $69.1 billion in 2025 and is expected to reach $123.2 billion by 2032 growing at a CAGR of 8.6% during the forecast period. Advanced geothermal systems are innovative technologies that harness Earth's heat for energy production, using enhanced methods like closed-loop systems or deep drilling to access geothermal reservoirs. These systems generate clean, renewable power or heating with minimal environmental impact. Designed for sustainable energy solutions, they offer reliable, low-carbon alternatives to traditional fossil fuels, catering to industries and regions seeking efficient, eco-friendly energy sources through advanced engineering and resource extraction.

According to the U.S. DOE, next-gen geothermal uses fracking-like techniques to create reservoirs anywhere, unlocking vast, constant baseload clean power potential.

Market Dynamics:

Driver:

Deep drilling advancements

The market is propelled by significant advancements in deep drilling technologies, particularly from the oil and gas industry. Innovations such as improved polycrystalline diamond compact (PDC) drill bits, enhanced downhole motors, and sophisticated steering systems allow for more efficient and cost-effective drilling into hard, hot rock formations at depths exceeding 3,000 meters. These technologies are critical for creating the extensive subsurface fracture networks necessary for AGS, making previously inaccessible geothermal resources economically viable.

Restraint:

High upfront investment

A major restraint is the exceptionally high capital expenditure required for exploration, drilling, and reservoir stimulation. AGS projects involve significant geological risk, with costly drilling needed before confirming a viable resource. The specialized equipment and expertise for deep, high-temperature drilling further escalate costs. This substantial financial barrier deters private investment and makes project financing challenging, slowing down development and limiting the pace of market expansion compared to other renewable energy sources.

Opportunity:

Hybrid plant integration

A significant opportunity lies in integrating AGS with other energy systems to create hybrid plants. Combining AGS with solar thermal or using waste heat from industrial processes can enhance overall plant efficiency and capacity factor. Furthermore, AGS can provide constant baseload power to complement intermittent renewables like solar and wind. This hybrid approach de-risks investment, maximizes infrastructure use, and creates more reliable and valuable energy assets, improving project economics and attracting a broader range of developers.

Threat:

Induced seismic activity

The market faces a persistent threat from the risk of induced seismicity associated with hydraulic fracturing used to create subsurface reservoirs. While typically minor, these seismic events can cause public concern, lead to stringent regulatory scrutiny, and potentially result in project delays or cancellations. Managing this risk requires sophisticated monitoring and mitigation protocols, which add complexity and cost. Public perception and regulatory hurdles remain significant challenges for widespread social license to operate.

Covid-19 Impact:

The COVID-19 pandemic initially disrupted supply chains and delayed project development due to lockdowns and travel restrictions. However, the long-term impact has been positive, as global recovery strategies heavily emphasized building resilient and decarbonized energy systems. Government stimulus packages and increased focus on energy security have brought greater attention and potential funding to renewable baseload power sources like advanced geothermal, accelerating policy support and investment in the sector.

The directional segment is expected to be the largest during the forecast period

The directional segment is expected to account for the largest market share during the forecast period, resulting from its critical role in maximizing reservoir contact and energy extraction from a single wellbore. Directional drilling allows developers to create complex well paths that intersect multiple natural fractures, significantly enhancing the heat exchange surface area. This technology, perfected in oil and gas, is essential for achieving the high flow rates and efficiency required for commercial AGS power generation, making it a fundamental and dominant component of any project's development cost.

The government-funded segment is expected to have the highest CAGR during the forecast period

Over the forecast period, the government-funded segment is predicted to witness the highest growth rate, propelled by the recognition of AGS as a critical baseload renewable technology, leading to unprecedented levels of public funding. Initiatives like the US Department of Energy's Frontier Observatory for Research in Geothermal Energy (FORGE) and similar programs worldwide are de-risking the technology for private investors. Grants, loan guarantees, and direct investment in pilot projects are accelerating R&D and demonstration, fueling the highest growth in this segment as governments seek to secure energy independence and meet climate goals.

Region with largest share:

During the forecast period, the Asia Pacific region is expected to hold the largest market share, attributed to abundant geothermal resources along the Pacific Ring of Fire, particularly in Indonesia, the Philippines, and Japan. Strong government mandates for renewable energy, growing electricity demand, and a need to reduce coal dependency are key drivers. The region has a long history of conventional geothermal development, providing a skilled workforce and institutional knowledge that is now being applied to advance more complex AGS projects, cementing its market leadership.

Region with highest CAGR:

Over the forecast period, the North America region is anticipated to exhibit the highest CAGR associated with, a potent combination of aggressive federal policy support (e.g., Inflation Reduction Act tax credits), significant venture capital investment in geothermal tech startups, and a strong oil and gas industry providing transferable skills and technology. The need for firm, clean baseload power, coupled with a favorable regulatory environment for pilot projects, is creating a highly innovative and fast-moving ecosystem, positioning North America for the most rapid market growth.

Key players in the market

Some of the key players in Advanced Geothermal Systems Market include Ormat Technologies, Inc., Calpine Corporation, Enel SpA, AltaRock Energy, Inc., KenGen, BESTEC GmbH, Fuji Electric Co., Ltd., Mitsubishi Heavy Industries, Aboitiz Power Corporation, First Gen Corporation, Energy Development Corporation, Ansaldo Energia S.p.A., Toshiba Corporation, Yokogawa Electric Corporation, Fervo Energy and Chevron Corporation.

Key Developments:

In September 2025, Ormat Technologies, Inc. launched its new modular "GeoNode" power plant design. The pre-fabricated, scalable units are engineered for faster deployment of Advanced Geothermal Systems (AGS) in remote locations, significantly reducing upfront capital costs and development time.

In August 2025, Mitsubishi Heavy Industries and Toshiba Corporation unveiled a new co-developed high-temperature turbine blade material specifically for the harsh, corrosive environments of supercritical geothermal resources. This breakthrough is critical for unlocking the next tier of efficiency in advanced geothermal power generation.

In July 2025, Yokogawa Electric Corporation introduced its new integrated control and AI-powered analytics platform for geothermal fields. The system is designed to optimize reservoir management in real-time, predicting output declines and automatically adjusting well flow rates to maximize the lifespan and productivity of AGS projects.

Drilling Methods Covered:

• Directional
• Horizontal
• Multi-Lateral
• Plasma/Advanced

Reservoir Depths Covered:

• Shallow (1-2 km)
• Medium (2-4 km)
• Deep (>4 km)

Project Financing Models Covered:

• Government-Funded
• IPP/Private
• PPP Models
• Community-Owned

Technologies Covered:

• Enhanced Geothermal Systems (EGS)
• Closed-Loop Systems
• Hybrid Systems

Applications Covered:

• Electricity Generation
• Direct Heating
• Industrial Heat Use
• Hybrid CHP

End Users Covered:

• Utilities
• Oil & Gas Repurposers
• District Heating Operators
• Industrial Manufacturers

Regions Covered:

• North America
  • US
  • Canada
  • Mexico
• Europe
  • Germany
  • UK
  • Italy
  • France
  • Spain
  • Rest of Europe
• Asia Pacific
  • Japan
  • China
  • India
  • Australia
  • New Zealand
  • South Korea
  • Rest of Asia Pacific
• South America
  • Argentina
  • Brazil
  • Chile
  • Rest of South America
• Middle East & Africa
  • Saudi Arabia
  • UAE
  • Qatar
  • South Africa
  • Rest of Middle East & Africa

What our report offers:

• Market share assessments for the regional and country-level segments
• Strategic recommendations for the new entrants
• Covers Market data for the years 2024, 2025, 2026, 2028, and 2032
• Market Trends (Drivers, Constraints, Opportunities, Threats, Challenges, Investment Opportunities, and recommendations)
• Strategic recommendations in key business segments based on the market estimations
• Competitive landscaping mapping the key common trends
• Company profiling with detailed strategies, financials, and recent developments
• Supply chain trends mapping the latest technological advancements

Free Customization Offerings:

All the customers of this report will be entitled to receive one of the following free customization options:

• Company Profiling
  • Comprehensive profiling of additional market players (up to 3)
  • SWOT Analysis of key players (up to 3)
• Regional Segmentation
  • Market estimations, Forecasts and CAGR of any prominent country as per the client's interest (Note: Depends on feasibility check)
• Competitive Benchmarking
  • Benchmarking of key players based on product portfolio, geographical presence, and strategic alliances

Table of Contents

1 Executive Summary

2 Preface

• 2.1 Abstract
• 2.2 Stake Holders
• 2.3 Research Scope
• 2.4 Research Methodology
  • 2.4.1 Data Mining
  • 2.4.2 Data Analysis
  • 2.4.3 Data Validation
  • 2.4.4 Research Approach
• 2.5 Research Sources
  • 2.5.1 Primary Research Sources
  • 2.5.2 Secondary Research Sources
  • 2.5.3 Assumptions

3 Market Trend Analysis

• 3.1 Introduction
• 3.2 Drivers
• 3.3 Restraints
• 3.4 Opportunities
• 3.5 Threats
• 3.6 Technology Analysis
• 3.7 Application Analysis
• 3.8 End User Analysis
• 3.9 Emerging Markets
• 3.10 Impact of Covid-19

4 Porters Five Force Analysis

• 4.1 Bargaining power of suppliers
• 4.2 Bargaining power of buyers
• 4.3 Threat of substitutes
• 4.4 Threat of new entrants
• 4.5 Competitive rivalry

5 Global Advanced Geothermal Systems Market, By Drilling Method

• 5.1 Introduction
• 5.2 Directional
• 5.3 Horizontal
• 5.4 Multi-Lateral
• 5.5 Plasma/Advanced

6 Global Advanced Geothermal Systems Market, By Reservoir Depth

• 6.1 Introduction
• 6.2 Shallow (1-2 km)
• 6.3 Medium (2-4 km)
• 6.4 Deep (>4 km)

7 Global Advanced Geothermal Systems Market, By Project Financing Model

• 7.1 Introduction
• 7.2 Government-Funded
• 7.3 IPP/Private
• 7.4 PPP Models
• 7.5 Community-Owned

8 Global Advanced Geothermal Systems Market, By Technology

• 8.1 Introduction
• 8.2 Enhanced Geothermal Systems (EGS)
• 8.3 Closed-Loop Systems
• 8.4 Hybrid Systems

9 Global Advanced Geothermal Systems Market, By Application

• 9.1 Introduction
• 9.2 Electricity Generation
• 9.3 Direct Heating
• 9.4 Industrial Heat Use
• 9.5 Hybrid CHP

10 Global Advanced Geothermal Systems Market, By End User

• 10.1 Introduction
• 10.2 Utilities
• 10.3 Oil & Gas Repurposers
• 10.4 District Heating Operators
• 10.5 Industrial Manufacturers

11 Global Advanced Geothermal Systems Market, By Geography

• 11.1 Introduction
• 11.2 North America
  • 11.2.1 US
  • 11.2.2 Canada
  • 11.2.3 Mexico
• 11.3 Europe
  • 11.3.1 Germany
  • 11.3.2 UK
  • 11.3.3 Italy
  • 11.3.4 France
  • 11.3.5 Spain
  • 11.3.6 Rest of Europe
• 11.4 Asia Pacific
  • 11.4.1 Japan
  • 11.4.2 China
  • 11.4.3 India
  • 11.4.4 Australia
  • 11.4.5 New Zealand
  • 11.4.6 South Korea
  • 11.4.7 Rest of Asia Pacific
• 11.5 South America
  • 11.5.1 Argentina
  • 11.5.2 Brazil
  • 11.5.3 Chile
  • 11.5.4 Rest of South America
• 11.6 Middle East & Africa
  • 11.6.1 Saudi Arabia
  • 11.6.2 UAE
  • 11.6.3 Qatar
  • 11.6.4 South Africa
  • 11.6.5 Rest of Middle East & Africa

12 Key Developments

• 12.1 Agreements, Partnerships, Collaborations and Joint Ventures
• 12.2 Acquisitions & Mergers
• 12.3 New Product Launch
• 12.4 Expansions
• 12.5 Other Key Strategies

13 Company Profiling

• 13.1 Ormat Technologies, Inc.
• 13.2 Calpine Corporation
• 13.3 Enel SpA
• 13.4 AltaRock Energy, Inc.
• 13.5 KenGen
• 13.6 BESTEC GmbH
• 13.7 Fuji Electric Co., Ltd.
• 13.8 Mitsubishi Heavy Industries
• 13.9 Aboitiz Power Corporation
• 13.10 First Gen Corporation
• 13.11 Energy Development Corporation
• 13.12 Ansaldo Energia S.p.A.
• 13.13 Toshiba Corporation
• 13.14 Yokogawa Electric Corporation
• 13.15 Fervo Energy
• 13.16 Chevron Corporation