Latin America Geothermal Energy Market

Latin America Geothermal Energy Market Size and Share: 

The Latin America geothermal energy market size reached USD 1.82 Million in 2024. Looking forward, IMARC Group expects the market to reach USD 2.23 Million by 2033, exhibiting a growth rate (CAGR) of 2.10% during 2025-2033. Rising energy demand, government incentives, decarbonization goals, technological advancements, increasing private investments, grid stability needs, volcanic activity potential, enhanced drilling techniques, carbon credit opportunities, and growing industrial applications are fueling the growth of the Latin America geothermal energy market.

Latin America Geothermal Energy Market Trends:

Increasing Foreign Investments and Public-Private Partnerships

Latin America is attracting significant foreign investments and forming public-private partnerships (PPPs) to expand geothermal energy projects. Governments are opening their energy markets to international investors, offering incentives to accelerate geothermal development. For instance, the Inter-American Development Bank (IDB) allocated over $1 billion in financing for renewable energy projects in Latin America, with geothermal receiving a major focus in Mexico, Chile, and Central America. Moreover, Chile aims to expand its geothermal capacity from 90 MW to 200 MW by 2025. The country has one of the world’s largest untapped geothermal potentials, estimated at 16,000 MW. Besides this, Mexico, the largest geothermal producer in the region, is also enhancing capacity with projects such as the Cerro Prieto and Los Azufres expansions, contributing to its goal of reaching 2 GW of geothermal power by 2030. These investments are driven by rising electricity demand, the need for baseload renewable power, and favorable government policies, including tax incentives and risk mitigation mechanisms.

Advances in Enhanced Geothermal Systems (EGS) and Direct Use Applications

Technological advancements, particularly in EGS, are unlocking geothermal potential in areas previously deemed unsuitable for traditional methods. The introduction of EGS is expected to increase Latin America’s geothermal capacity by 40% by 2030. Countries like Argentina and Colombia are exploring EGS to overcome geological limitations. Beyond electricity, geothermal is increasingly used for industrial heating, agriculture, and desalination. Costa Rica has initiated projects to use geothermal heat for coffee and sugarcane processing. Furthermore, Chile and Mexico are integrating geothermal with green hydrogen production. Chile’s geothermal-powered hydrogen initiatives are expected to contribute 10% of its clean hydrogen supply by 2035. These advancements are enhancing efficiency, reducing costs, and expanding geothermal applications beyond electricity generation. Additionally, governments in the region are implementing policies and incentives to attract investment in geothermal energy. Financial support streamlined permitting processes, and public-private partnerships are fostering a favorable environment for EGS deployment. Research institutions and universities are also playing a crucial role in advancing geothermal technology through innovation and workforce development. As Latin America embraces geothermal energy, collaborations with international energy firms are accelerating knowledge transfer and infrastructure expansion. With these efforts, the region is poised to become a global leader in sustainable geothermal solutions.

Latin America Geothermal Energy Market Segmentation:

IMARC Group provides an analysis of the key trends in each segment of the market, along with forecasts at the region/country level for 2025-2033. Our report has categorized the market based on type, and end user.

Type Insights:

• Binary Cycle
• Flash
• Dry Steam
• Others

The report has provided a detailed breakup and analysis of the market based on the type. This includes binary cycle, flash, dry steam, and others.

End User Insights:

• Industrial
• Residential
• Commercial

A detailed breakup and analysis of the market based on the end user have also been provided in the report. This includes industrial, residential, and commercial.

Regional Insights:

• Brazil
• Mexico
• Argentina
• Colombia
• Chile
• Peru
• Others

The report has also provided a comprehensive analysis of all the major regional markets, which include Brazil, Mexico, Argentina, Colombia, Chile, Peru, and others.

Competitive Landscape:

The market research report has also provided a comprehensive analysis of the competitive landscape. Competitive analysis such as market structure, key player positioning, top winning strategies, competitive dashboard, and company evaluation quadrant has been covered in the report. Also, detailed profiles of all major companies have been provided.

Latin America Geothermal Energy Market News:

• February 2025: Mexican President Claudia Sheinbeum has proposed a revised Geothermal Law as part of a package of energy reforms. The bill seeks to streamline laws governing Mexico's geothermal resources, such as project registration and exploration licenses. It also acknowledges geothermal resources' many applications, such as urban heating, agricultural product drying, aquaculture, and food preservation.
• August 2024: GA Drilling collaborated with the Brazilian energy corporation Petrobras to develop next-generation deep geothermal drilling equipment. Petrobras and GA Drilling collaborated on technologies, including a downhole anchoring and drive system that provided the cornerstone for an advanced autonomous reeled drilling system.

Latin America Geothermal Energy Market Report Coverage:

Key Questions Answered in This Report:

• How has the Latin America geothermal energy market performed so far and how will it perform in the coming years?
• What is the breakup of the Latin America geothermal energy market on the basis of type?
• What is the breakup of the Latin America geothermal energy market on the basis of end user?
• What are the various stages in the value chain of the Latin America geothermal energy market? 
• What are the key driving factors and challenges in the Latin America geothermal energy market?
• What is the structure of the Latin America geothermal energy market and who are the key players?
• What is the degree of competition in the Latin America geothermal energy market? 

Key Benefits for Stakeholders:

• IMARC’s industry report offers a comprehensive quantitative analysis of various market segments, historical and current market trends, market forecasts, and dynamics of the Latin America geothermal energy market from 2019-2033.
• The research report provides the latest information on the market drivers, challenges, and opportunities in the Latin America geothermal energy market.
• Porter's five forces analysis assist stakeholders in assessing the impact of new entrants, competitive rivalry, supplier power, buyer power, and the threat of substitution. It helps stakeholders to analyze the level of competition within the Latin America geothermal energy industry and its attractiveness.
• Competitive landscape allows stakeholders to understand their competitive environment and provides an insight into the current positions of key players in the market.