U.S. Geothermal Energy Market Size Worth USD 3.15 Billion by 2034 | CAGR: 3.3%

The U.S. geothermal energy market size is expected to reach USD 3.15 billion by 2034, according to a new study by Polaris Market Research. The report “U.S. Geothermal Energy Market Size, Share, Trends, Industry Analysis Report By Technology (Flash Steam, Dry Steam, Binary Cycle Power Plants), By Power Output, By Application – Market Forecast, 2025–2034” gives a detailed insight into current market dynamics and provides analysis on future market growth.

Geothermal energy is heat derived from the Earth’s interior, generated by the natural decay of radioactive elements in the Earth’s core, mantle, and crust. This heat can be harnessed to produce electricity, provide direct heating, or support industrial processes.

Many U.S. states have introduced Renewable Portfolio Standards (RPS) or Clean Energy Standards that require utilities to generate a specific percentage of power from renewable sources. States such as California, Oregon, and Nevada have set aggressive targets, pushing utilities to diversify their energy mix. Geothermal energy, being both clean and consistent, is gaining attention as a way to meet these goals. Additionally, concerns about climate change and the need to reduce greenhouse gas emissions are leading to stronger support for geothermal initiatives. These state-level policies are a major driver for new geothermal developments across the country.

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The western U.S., particularly states such as California, Nevada, and Utah, has rich geothermal potential due to its location on the Pacific Ring of Fire. These areas have high underground heat levels, making them ideal for large-scale geothermal power generation. California leads in geothermal capacity, with the well-known Geysers complex producing electricity for thousands of homes. The availability of these natural heat resources reduces exploration risk and project costs. This regional advantage gives the U.S. a strong foundation to expand geothermal energy and meet increasing demand for clean and reliable power in the West, thereby driving the growth.

U.S. Geothermal Energy Market Report Highlights

• In 2024, the binary cycle power plants segment dominated with the largest share driven by their suitability for harnessing lower-temperature geothermal resources, conditions commonly found across the western U.S.
• In 2024, the above 5 MW segment dominated with the largest share due to the presence of large-scale facilities in states, including California, Nevada, and Utah, where high-temperature geothermal reservoirs are more accessible.
• The up to 5MW segment is expected to experience significant growth during the forecast period as these compact, modular systems are ideal for decentralized energy supply in remote or rural areas and help minimize transmission losses by being installed near the point of consumption.
• The industrial segment is expected to experience significant growth during the forecast period, driven by geothermal energy's ability to reliably deliver high-temperature heat for processes in industries such as food processing, chemical production, and paper manufacturing.
• A few key players in the U.S. geothermal energy market are Alterra Power Corporation, Ansaldo Energia, Atlas Copco Group, Exergy, General Electric, Mitsubishi Heavy Industries, Ormat Technologies, TAS Energy, Toshiba Corporation, and Turboden S.p.A.

Polaris Market Research has segmented the U.S. geothermal energy market report on the basis of technology, power output, and application:

By Technology (Revenue – USD Billion, 2020–2034)

• Flash Steam
• Dry Steam
• Binary Cycle Power Plants

By Power Output (Revenue – USD Billion, 2020–2034)

• Up to 5MW
• Above 5 MW

By Application (Revenue – USD Billion, 2020–2034)

• Residential
• Commercial
• Industrial