Geothermal Drilling Market

Geothermal Drilling Market Overview 

Geothermal Drilling Market was valued at USD 11.1 billion in 2024 and is forecast to touch USD 14.1 billion in 2030, and the market is expected to grow at a CAGR of 3.1% from 2025-2032 primarily driven by global increase in demand for electricity, rising demand for clean & renewable energy, technological advancements in drilling.

Market Size, Forecast & Key Segment Insights

Market Size & Forecast:

• • 2024 – USD 11.1 Billion
  • 2032 – USD 14.1  Billion
  • Market Forecast – CAGR of 3.1% from 2025-2032

Segment Insights:

• • Well Type Insights: Slim segment is expected to grow at fastest CAGR during the forecast period.
  • Well Depth Type Insights: The 2001-3000m segment hold the largest market share.
  • Regional Insight: APAC market is forecast to grow at the fastest CAGR during the forecast period.

Geothermal drilling is the technique of creating boreholes in the earth to extract heat from the ground. It covers around 30% to 50% of the cost of a geothermal electricity project, which makes it a crucial part of the project. The same state of the art technology is used by the oil & gas industry for exploration & production activities, especially in low enthalpy sedimentary settings. For sustainable geothermal exploitation, deep-seated, large-diameter boreholes, and long-lasting well integrities are needed.

Major Geothermal Drilling Market Drivers

Rising global demand for energy and growing focus of several economies towards clean energy production stands to be one of the major growth drivers. According to the International Renewable Energy Agency (IRENA), geothermal energy has grown steadily from around 10GW worldwide in 2010 to 14 GW in 2020. The U.S. Department of Energy has quantified the presence of geothermal energy and concluded that such energy resources offer great potential to meet part of the global energy demand.

Furthermore, strategic developments by key players operating in the market are further augmenting market growth. For instance, in 2021, Parex Resources Inc. is producing geothermal energy via modular units to generate approximately 100 kilowatts of electricity for powering pumps and other equipment – a lower-cost and emissions-free alternative to bringing in fuel to the remote wellsite on the Las Maracas oil field in Colombia. In 2019, Eavor Technologies Inc. announced an innovative zero-emission energy system for geothermal drilling, Eavor Loop, in Canada. The system mitigates the risk of polluting nearby water bodies as it does not require water.

Restraint in the Geothermal Drilling  Market

However, high initial costs stand to act as market barrier in the geothermal drilling market. The cost of geothermal wells and field development is about 40% of the total investment cost for new high-temperature geothermal plants. This up-front cost makes geothermal plants more expensive to build than conventional plants.

Geothermal Drilling Market Segment Analysis 

Well Type Market Insights: Slim segment is expected to grow at fastest CAGR during the forecast period.

Based on well type, slim segment is expected to grow at fastest CAGR during the forecast period. The growth of this segment can be attributed to less material requirement in well preparation, less rig hold time and less man-power requirement. Moreover, due to small hole diameter and shallow depth, the well development costs can be minimized by 30%, thereby driving the growth of the slim segment.

Well Depth Type Market Insights: 2001-3000m segment hold the largest market share.

Based on depth, the 2001-3000m segment occupied the largest share in the market. The rising focus of drilling service contractors on reducing the operational risks along with providing reliable equipment’s to drill deep geothermal well is the major factor contributing to the growth of the geothermal drilling market in this segment. Furthermore, innovation in the geological 3D surveying method which can map the presence of geothermal fields at depth around 2000-3000 m is a major factor influencing the growth of this segment during the forecast period.

Regional Market Insights: APAC market is forecast to grow at the fastest CAGR during the forecast period.

Based on region, the APAC market is expected to witness fastest CAGR during the forecast period. The rising spending by the governments of the developing countries for the geothermal energy projects is a major factor responsible for the growth of the geothermal drilling market in Asia-Pacific region during the forecast period. Moreover, other factors such as increasing energy concerns, electrification of low-income and rural regions and rising environmental concerns are helping in the growth of the geothermal drilling market in this region.

Geothermal Drilling Market Major Players & Competitive Landscape

The major companies in the geothermal drilling market include Schlumberger, Baker Hughes Company, Halliburton, KCA Deutag, Huisman Equipment B.V., Geotech Drilling, Fraste Spa, DeepRock, Ormat, Marton Geotechnical Services Ltd. 

Key Geothermal Drilling Market Developments

• • In Aug 2024, H&P announced to acquire KCA Deutag for US$1.97 billion under a definitive agreement. KCA Deutag’s CEO, Joseph Elkhoury, called the deal a major milestone that benefits employees, customers, shareholders, and communities. He said the combined companies will create a stronger global organisation with expanded reach, service capabilities, and technology.
  • In 2024, ONGC is preparing to start a new geothermal drilling project in Ladakh as part of efforts to harness clean, emission-free energy. This initiative could enhance electricity generation, provide efficient heating, and support irrigation systems in the rough terrains of Ladakh. The initial target of two 1,000-meter wells is set for September completion, aiming for parallel drilling in June. Icelandic experts are assisting ONGC and believe that with proper execution, a 1 MW power plant is achievable by next year.
  • In 2021, Baker Hughes Company received a contract from Block Energy to support drilling operations in Georgia and assess and potentially develop geothermal, carbon capture, and hydrogen applications across the Samgori, Patardzeuli and West Rustavi fields.
  • In 2020, Schlumberger Limited and Texas-based geothermal firm Thermal Energy Partners LLC (TEP) have signed an agreement to create a geothermal project development company, Schlumberger New Energy. The first mission for STEP Energy will be to quickly mark the 100 MW of geothermal capacity.

Geothermal Drilling Market Scope of the Report

Geothermal Drilling Market Segment Analysis

The global geothermal market has been segmented on the basis of well type, depth and end-use and key regions. Based on well type, the market is segmented into production, slim and injection. Based on depth, the market is segmented into below 1000m, 1000-2000, 2001-3000, and above 3000m. Based on end-use, the market is segmented into power generation and Others. 

Global Geothermal Drilling Market by Well Type

• • Production
  • Slim
  • Injection

Global Geothermal Drilling Market by Depth

• • Below 1000 m
  • 1000-2000 m
  • 2001-3000 m
  • Above 3000 m

Global Geothermal Drilling Market by End-Use

• • Power Generation
  • Others

Global Geothermal Drilling Market by Region

• • North America Geothermal Drilling Market 

    • US Market All-Up
    • Canada Market All-Up

  • Europe Geothermal Drilling Market 

    • UK Market All-Up
    • Germany Market All-Up
    • France Market All-Up
    • Spain Market All-Up
    • Rest of Europe Market All-Up

  • Asia-Pacific Geothermal Drilling Market 

    • China Market All-Up
    • India Market All-Up
    • Japan Market All-Up
    • Rest of APAC Market All-Up

  • RoW Geothermal Drilling Market

    • Brazil Market All-Up
    • South Africa Market All-Up
    • Saudi Arabia Market All-Up
    • UAE Market All-Up
    • Rest of world (remaining countries of the LAMEA region) Market All-Up

Geothermal Drilling Market Leading players

• • Schlumberger

  • Baker Hughes Company

  • Halliburton

  • KCA Deutag

  • Huisman Equipment B.V.

  • Geotech Drilling

  • Fraste Spa

  • DeepRock

  • Ormat

  • Marton Geotechnical Services Ltd