Global Geothermal drilling market was estimated at USD 9.0 Billion in 2020 and is anticipated to reach over USD 11.4 Billion by the end of 2028, the market is expected to grow at a CAGR of 3.0% during the forecast period (2021-2028).

Introduction of the Geothermal Drilling  Market Report

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.

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Market Dynamic

Key Drivers and Emerging Trends

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.

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Well Type – Segment Analysis

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.

Depth – Segment Analysis

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.

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Regional – Segment Analysis:

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.

Top Market Players

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 Developments:

• • 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.

Segments covered in the Report:

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. 

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Key questions answered in this research report:

• • At what pace is global Geothermal Drilling market growing? What will be the growth trend in the future?
  • What are the key drivers and restraints in Geothermal Drilling market? What will be the impact of drivers and restraints in the future?
  • What are the regional revenues and forecast breakdowns? Which are the major regional revenue pockets for growth in the global Geothermal Drilling market?
  • Which depth type generated maximum revenues in 2020 and identify the most promising type during the forecast period?
  • What are the various end uses of global Geothermal Drilling market and how they are poised to grow?
  • What companies are the major participants in this market and their business strategies, how does the competitive landscape look like?

Market Segmentation

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 (Option 1: As a part of the free 25% customization)
    • By Well Type
    • By Depth
    • By End-Use
    • US Market All-Up
    • Canada Market All-Up
  • Europe Geothermal Drilling Market (Option 2: As a part of the free 25% customization)
    • By Well Type
    • By Depth
    • By End-Use
    • 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 (Option 3: As a part of the free 25% customization)
    • By Well Type
    • By Depth
    • By End-Use
    • China Market All-Up
    • India Market All-Up
    • Japan Market All-Up
    • Rest of APAC Market All-Up
  • RoW Geothermal Drilling Market (Option 4: As a part of the free 25% customization)
    • By Well Type
    • By Depth
    • By End-Use
    • 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