Geothermal Exploration Market Size, Growth Drivers, Industry Analysis, Key Players, Regional Outlook, and Forecast Analysis (2025-2032)

Geothermal Exploration Market size was valued at USD 1.82 Billion in 2024 and the total Geothermal Exploration revenue is expected to grow at a CAGR of 6.50 % from 2025 to 2032, reaching nearly USD 3.01 Billion.

Geothermal exploration includes investigating the subsurface to identify viable geothermal regions suitable for building power plants, where hot fluids drive turbines to generate electricity. This exploration uses a wide range of disciplines, with geochemistry, geophysics, geology, and engineering.
Geothermal Exploration Market Overview:
The geothermal exploration market is presently active in only 32 countries, with a total installed capacity of 16,318 MW among 198 geothermal fields and 673 individual power units. Of these units, closely 37% are flash type, contributing a combined capacity of 8,598 MW, which signifies 52.7% of the total capacity. Binary ORC type units account for 25.1% of the installed capacity. Practically all operational geothermal fields use resources from hydrothermal, conventional reservoirs, with nearly 3,700 production wells averaging an annual production of nearly 3 MWh per well. This trend is projected to continue in the near future unless global efforts to limit warming to below the 1.5 °C threshold drive significant changes.



The world's geothermal installed capacity raised by 905 MW (5.8%), or less than 2% yearly, from 15,414 MW in 2018-2019 to 16,318 MW in 2020-2021. To put this into perspective, the global rise over these years is equivalent to more than half of Türkiye's current geothermal installed capacity. This growth contains of net capacity additions in various countries: the US (241 MW), Türkiye (168 MW), Indonesia (246 MW), Kenya (107 MW), Costa Rica (46 MW), Chile (33 MW), China (16 MW), the Philippines (34 MW), Nicaragua (10 MW), Canada (6 MW), and Taiwan (6 MW).
Geothermal Exploration Market Dynamics:
Geothermal Power Push Points to Record Geothermal exploration Activities in North America:

Geothermal companies operating in the United States have a combined 58 active developing projects and prospects across nine states. In the development projects, five of these projects are in phase 4, the phase immediately preceding project completion. There are currently 23 geothermal district heating (GDH) systems in the United States. Many oil and gas key players are investing in start-ups to see a new record in the number of wells drilled for power generation. According to the research, more than 1,100 geothermal wells were drilled for power generation, with an average of 180 per year in the period during the period 2019 to 2024. With the current high level of interest in geothermal, the pace of innovation has picked up high investment in geothermal exploration across the region.

The geothermal exploration market has traditionally been dominated by high-enthalpy regions where wells have been drilled at depths of between 2,000 and 3,000m. Currently, forward-looking to the active geothermal wells for power generation, most have reservoir temperatures of more than 200°C. The United States leads the world in the amount of geothermal electricity generation.To know about the Research Methodology :- Request Free Sample Report

Prominent Geothermal provinces of Europe provide scope for regional market growth:

The main geothermal provinces of Europe reflect the geological conditions. High enthalpy resources are associated with active volcanic areas (Iceland, Italy, Turkey), while medium enthalpy sedimentary basins are found in various geological settings, e.g. the Rhine graben, the Molasse basin in the Northern forefront of the Alps, the Paris basin, the Aquitanian basin, and the Pannonian basin, as well as vast areas in Northern Europe (across Denmark, Germany, Poland) where various rocks reservoir, forming the basement of the young sedimentary basins, store high-temperature thermal ground waters. Based on Europe’s geothermal potential, geothermal energy could contribute much more significantly to the decarbonization of the DH sector. A considerable growth of the district heating sector is expected in the EU28 until 2050 in geothermal exploration market

Indonesia, the Philippines, and New Zealand are the largest geothermal-producing countries in the Asia Pacific region:

Owing to Indonesia's tilting on the "ring of fire" formed by the confluence of three tectonic plates, this island nation is reported to have the greatest amount of geothermal potential in the world – around 28.5GW, which, if fully used, would account for over 40% of its current electricity generation capacity. As of 2020, the country is the world's second-largest geothermal power producer after the United States of America (USA), with a total installed capacity of approximately 2.1GW. It has four of the world's top ten geothermal projects, including the two biggest plants by active capacity: the 375MW Gunung Salak facility and the 330MW Sarulla facility.

Indonesia is aiming to use this renewable power for at least 12% of its electricity requirements, with the installation of approximately 7GW of projects. To promote investment in the sector, it has recently passed policies to "de-risk" projects, including the provision of fiscal incentives, value-added tax exemptions on imports, and property tax reductions during resource exploration. It has implemented exploration-phase risk mitigation measures according to which government-backed entities are to explore prospective fields and tender them to developers for exploitation once proven.

Geothermal Exploration Market: Challenges and Risks

Early-stage exploration and development in the geothermal exploration market are both expensive and risky. In many countries, these risks are the primary barriers preventing geothermal energy from contributing more significantly to meeting energy demand. Public finance can help address these barriers. Globally, the costs and risks associated with the exploration and development phases of geothermal projects make securing early-stage financing a challenge. Exploration costs can account for up to 15% of the overall project capital cost, with success rates for wells drilled during this phase estimated at 50-59%. It typically takes 2-3 years to confirm that a geothermal resource is suitable for electricity generation. Despite this concentration of risk in the exploration phase, 90% of multilateral public finance globally has focused on the later stages of geothermal projects, offering concessional finance to build power plants once the major resource risks have been reduced. Public resources could be more effective if they targeted support for geothermal’s early-stage development risks and improved developers’ access to finance.

Higher risks coupled with higher capital expenditure create a complicated scenario in the geothermal exploration market. Hydrothermal and Enhanced Geothermal Systems (EGS) projects follow a development process like oil and gas projects, but geothermal developers face a relative shortage of information and must undertake more basic reconnaissance work than most oil and gas operators would consider acceptable. The goal of geothermal exploration, whether for hydrothermal or EGS development, is to identify high-temperature resources at a drillable depth with high permeability, favorable fracture systems, and sufficient water flow rates to transport the heat to the surface.
Geothermal Exploration Market Trends:
The geothermal exploration market is booming due to two exciting trends.

1. Engineered Geothermal Systems (EGS) technology is unlocking the potential of hot rock resources. EGS offers clean energy with minimal greenhouse gas emissions and the ability to operate in more locations than traditional hydrothermal systems. This expands the possibilities for geothermal energy production worldwide. Countries like Australia, China, the US, and others are heavily invested in EGS research and development, with successful pilot projects underway.

2. Existing geothermal projects rely on hydrothermal systems, which are naturally occurring hot water reservoirs. These developments are concentrated near volcanic zones where hot water is abundant and easy to access. This explains why countries on the Pacific Ring of Fire, like the US and New Zealand, have the biggest geothermal capacity. However, these areas often lack major population centers, which limits access to the generated electricity. EGS technology offers a compelling solution by creating geothermal energy in non-hydrothermal locations, bringing clean energy closer to where it's needed.
Geothermal Exploration Market Segment Analysis:
By Techniques, the Geophysical Techniques segment holds the largest market share in the Global Geothermal Exploration Market. According to MMR analysis, the segment is further expected to grow at a CAGR of 6.51 % during the forecast period. Geophysical techniques dominate the geothermal exploration market due to their pivotal role in accurately identifying subsurface structures and reducing exploration risk. These non-intrusive methods such as seismic imaging, magnetotelluric (MT) surveys, resistivity measurements, and gravity studies enable detailed mapping of geothermal reservoirs, fault zones, and heat sources without the high costs associated with drilling.

The advancement of high-resolution imaging tools, 3D modelling software, and machine learning-enhanced data interpretation has significantly improved the reliability and efficiency of geophysical exploration, making it the preferred choice for developers in early project phases.

This dominance is driven by the global push toward clean energy and the need for more reliable resource assessments before capital-intensive drilling begins. Countries with high geothermal potential, including the U.S., Kenya, Indonesia, and Iceland, are increasingly integrating geophysical surveys into their standard exploration workflows. The growing reliance on these techniques is not only accelerating project timelines but also attracting more private and institutional investment by minimizing geological uncertainty. As a result, the prominence of geophysical techniques is reshaping the market landscape, encouraging innovation, expanding exploration into new regions, and strengthening investor confidence in the long-term viability of geothermal energy projects.
Geothermal Exploration Market Regional Analysis:
North America held the largest market share of about 32.80% in 2024 for the geothermal exploration market and is expected to dominate the market at the end of the forecast period. The region boasts robust economies like the US and Canada, fueling investment in clean energy exploration like geothermal. This strong foundation is further bolstered by existing geothermal infrastructure, particularly in the US where power plants hum in western states. Supportive government policies, with Canada's focus on geothermal regulations as an example, add another layer of encouragement. The growing emphasis on clean energy due to climate change concerns creates a naturally receptive environment for geothermal exploration to flourish.

Finally, advancements in EGS technology open doors for geothermal projects beyond traditionally viable areas, pushing the boundaries of exploration even further. With its economic strength, existing infrastructure, supportive policies, and focus on clean energy, North America is poised to retain its leading position in the Geothermal Exploration Market for years to come.



In the United States, Davenport Newberry Holdings LLC's Newberry Geothermal Project in Bend, Oregon, is one example of a developing deep EGS project, with USD 26 million from Google, Kleiner Perkins, Khosla Ventures, and Vulcan Capital, as well as monies from the US Department of Energy (DOE). The Newberry project is currently in the testing and research phase, but after that, AltaRock Energy (one of the firms who launched this project with Davenport Newberry) plans to build a demonstration power plant on-site, followed by a utility-scale power plant.
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Geothermal Exploration Market 


Report Coverage
Details


Base Year:
2024
Forecast Period:
2025-2032


Historical Data:
2019 to 2024
Market Size in 2024:
USD 1.82 Billion.


Forecast Period 2025 to 2032 CAGR:
6.24%
Market Size in 2032:
USD 3.01 Billion.


 Segments Covered:
by Techniques
Geochemical Techniques
Geophysical Technique
Borehole Drilling
Remote Sensing Technique
Others


by Application
Power Generation
Direct Use
Geothermal Heat Pumps
Others



Geothermal Exploration Market, by Region
North America (United States, Canada and Mexico)
Europe (UK, France, Germany, Italy, Spain, Sweden, Austria and Rest of Europe)
Asia Pacific (China, South Korea, Japan, India, Australia, Indonesia, Malaysia, Vietnam, Taiwan, Bangladesh, Pakistan and Rest of APAC)
Middle East and Africa (South Africa, GCC, Egypt, Nigeria and Rest of ME&A)
South America (Brazil, Argentina Rest of South America)
Geothermal Exploration Market, Key Players:
1. SLB
2. Halliburton Company
3. Baker Hughes Company
4. Ormat Technologies Inc.
5. EGS Energy Limited
6. Enel Green Power
7. KenGen
8. Seequent
9. Geothermal Development Company
10. ThinkGeoEnergy
11. Pertamina Geothermal Energy
12. RESPEC.
13. GreenFire Energy
14. Transmark Renewables
15. Ruden AS
16. Geo-Energie Suisse AG
17. Mitsubishi Power
18. Atlas Copco
19. Fervo Energy
20. Contact Energy Ltd
21. EDC – Energy Development Corporation
22. GeoThermal Engineering GmbH (GeoT)
23. Geovista AB
24. Others
FAQs:
1. What are the growth drivers for the Geothermal Exploration Market?
Ans. The growth drivers for the Geothermal Exploration Market include increasing demand for renewable energy, technological advancements, government incentives, and environmental concerns.

2. What is the major Opportunity for the Geothermal Exploration Market growth?
Ans. he major opportunity for the Geothermal Exploration Market growth is the potential for untapped geothermal resources and the expansion into new geographical regions.

3. Which region is expected to lead the global Geothermal Exploration Market during the forecast period?
Ans. North America is expected to lead the Geothermal Exploration Market during the forecast period.

4. What is the projected market size and growth rate of the Geothermal Exploration Market? 
Ans. The Geothermal Exploration Market size was valued at USD 1.82 Billion in 2024 and the total Geothermal Exploration Market revenue is expected to grow at a CAGR of 6.50 %from 2025 to 2032, reaching nearly USD 3.01 Billion.

5. What segments are covered in the Geothermal Exploration Market report?
Ans. The segments covered in the Geothermal Exploration Market report are by Techniques Application, and Region.