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.
Report Attribute
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Key Statistics
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Base Year
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2024
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Forecast Years
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2025-2033
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Historical Years
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2019-2024
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Market Size in 2024 | USD 1.82 Million |
Market Forecast in 2033 | USD 2.23 Million |
Market Growth Rate (2025-2033) | 2.10% |
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.
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:
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:
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:
The report has also provided a comprehensive analysis of all the major regional markets, which include Brazil, Mexico, Argentina, Colombia, Chile, Peru, and others.
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.
Report Features | Details |
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Base Year of the Analysis | 2024 |
Historical Period | 2019-2024 |
Forecast Period | 2025-2033 |
Units | Million USD |
Scope of the Report |
Exploration of Historical Trends and Market Outlook, Industry Catalysts and Challenges, Segment-Wise Historical and Future Market Assessment:
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Types Covered | Binary Cycle, Flash, Dry Steam, Others |
End Users Covered | Industrial, Residential, Commercial |
Regions Covered | Brazil, Mexico, Argentina, Colombia, Chile, Peru, Others |
Customization Scope | 10% Free Customization |
Post-Sale Analyst Support | 10-12 Weeks |
Delivery Format | PDF and Excel through Email (We can also provide the editable version of the report in PPT/Word format on special request) |
Key Questions Answered in This Report:
Key Benefits for Stakeholders: