Market Overview
South Korea Geothermal Energy Market is currently valued at USD 115.90 Million in 2024 and is anticipated to generate an estimated revenue of USD 161.25 Million by 2034, according to the latest study by Polaris Market Research. Besides, the report notes that the market exhibits a robust 3.4% Compound Annual Growth Rate (CAGR) over the forecasted timeframe, 2025 - 2034
The South Korea Geothermal Energy Market is gaining momentum as the country focuses on diversifying its renewable energy mix to reduce dependence on imported fossil fuels and lower carbon emissions. Geothermal energy, a sustainable and consistent source of power derived from the Earth’s internal heat, is becoming a critical component of South Korea’s long-term energy transition strategy. While the country has traditionally focused on solar, wind, and hydropower, growing interest in geothermal technologies is driving new investments and research initiatives across the energy sector.
South Korea’s geographical conditions provide several opportunities for geothermal development, particularly in volcanic and tectonic zones. With strong government support, private sector participation, and international collaboration, the market is evolving toward integrated geothermal solutions for electricity generation, district heating, and industrial applications. The push for energy self-sufficiency, carbon neutrality, and sustainable development continues to shape the geothermal energy landscape in the country.
Key Market Growth Drivers
- Increasing national focus on renewable and low-carbon energy sources.
- Government incentives and policy support under the Korean New Deal and Green Growth Strategy.
- Rising energy demand in residential and industrial sectors.
- Technological advancements in deep geothermal drilling and heat pump systems.
- Collaboration between research institutions and energy companies to develop geothermal infrastructure.
Key Market Dynamics
- Expansion of ground-source heat pump systems for heating and cooling applications.
- Development of Enhanced Geothermal Systems (EGS) for power generation.
- Integration of geothermal energy with smart grid technologies for optimized distribution.
- Public and private sector initiatives to utilize geothermal energy in district heating projects.
- Growing investment in research to explore untapped geothermal reservoirs across the Korean Peninsula.
𝐌𝐚𝐣𝐨𝐫 𝐊𝐞𝐲 𝐏𝐥𝐚𝐲𝐞𝐫𝐬:
- Ansaldo Energia
- Atlas Copco Group
- General Electric
- Mitsubishi Heavy Industries
- Ormat Technologies
- TAS Energy
- Toshiba Corporation
- Turboden S.p.A.
𝐄𝐱𝐩𝐥𝐨𝐫𝐞 𝐓𝐡𝐞 𝐂𝐨𝐦𝐩𝐥𝐞𝐭𝐞 𝐂𝐨𝐦𝐩𝐫𝐞𝐡𝐞𝐧𝐬𝐢𝐯𝐞 𝐑𝐞𝐩𝐨𝐫𝐭 𝐇𝐞𝐫𝐞: https://www.polarismarketresearch.com/industry-analysis/south-korea-geothermal-energy-market
Market Challenges and Opportunities
Challenges:
- Limited availability of high-temperature geothermal reservoirs suitable for large-scale power generation.
- High initial exploration and drilling costs.
- Geological and technical uncertainties affecting resource evaluation.
- Lack of widespread public awareness about geothermal energy benefits.
Opportunities:
- Expansion of geothermal heat pump systems in residential and commercial buildings.
- Adoption of hybrid renewable systems combining geothermal with solar or wind power.
- Potential for regional cooperation with neighboring countries to share expertise and resources.
- Development of direct-use geothermal applications in agriculture, aquaculture, and industrial heating.
Market Segmentation
By Type:
- Hydrothermal Systems
- Enhanced Geothermal Systems (EGS)
- Ground-Source Heat Pumps
By Application:
- Power Generation
- District Heating and Cooling
- Industrial Processes
- Residential and Commercial Buildings
- Agriculture and Aquaculture
By Technology:
- Binary Cycle Power Plants
- Flash Steam Plants
- Dry Steam Plants
By End User:
- Utilities and Power Producers
- Industrial Sector
- Residential and Commercial Users
- Government and Public Institutions
Country-Wise Market Trends (South Korea Focused)
South Korea:
South Korea’s geothermal energy market is steadily evolving as the government intensifies efforts to achieve carbon neutrality by 2050. Although geothermal power generation capacity remains limited compared to other renewables, technological innovation and pilot projects are setting the foundation for future growth. Ground-source heat pumps have gained widespread acceptance, particularly in urban areas and public infrastructure projects, due to their high efficiency and reliability in heating and cooling applications.
The Korean Institute of Geoscience and Mineral Resources (KIGAM) and other research institutions are conducting detailed geological surveys to identify geothermal hotspots across the country. These studies aim to unlock deep geothermal potential for both power generation and direct-use applications. Additionally, several universities and energy companies are working on Enhanced Geothermal Systems (EGS), which can generate electricity even in regions with lower natural heat flow.
In Jeju Island and certain regions of the Korean Peninsula, geothermal projects are being integrated with tourism, spa resorts, and agricultural heating systems. The combination of geothermal and solar technologies is also being explored to provide hybrid renewable energy systems for off-grid and remote communities. As energy security becomes a national priority, geothermal energy is increasingly viewed as a dependable, 24-hour renewable resource capable of complementing intermittent power sources like solar and wind.
Future Outlook
The future of the South Korea Geothermal Energy Market is characterized by steady expansion, technological innovation, and stronger policy backing. Government initiatives under the Green New Deal and carbon neutrality roadmap will continue to provide financial incentives for geothermal exploration and development. The market is expected to benefit from advancements in deep drilling technologies, which will make resource extraction more efficient and economically viable.
In the coming years, the adoption of geothermal energy for district heating and industrial applications will gain traction, especially in densely populated urban areas. Collaboration with international partners in Japan, Iceland, and New Zealand is likely to accelerate technology transfer and operational expertise. Furthermore, increased investment in digital monitoring and remote sensing technologies will help optimize geothermal resource management and performance analysis.
As South Korea transitions to a cleaner energy future, geothermal energy will play a pivotal role in enhancing energy security, reducing carbon emissions, and diversifying the nation’s power mix. By integrating geothermal solutions into urban planning, industrial operations, and public infrastructure, the country will move closer to achieving its long-term sustainability and energy independence goals.
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