Global Power Generation Market - 2024 - 2031

Report Overview

Global Power Generation Market reached US$ 1.6 billion in 2023 and is expected to reach US$ 2.2 billion by 2031, growing with a CAGR of 4.1% during the forecast period 2024-2031.

In contemporary economies, electricity is a fundamental resource that is increasingly contributing to the provision of energy services. Rising household incomes, the electrification of transportation and heating and the growing need for digitally connected devices and air conditioning are all factors that are expected to drive up electricity demand.

According to World Energy Outlook, the global electricity consumption is projected to grow at a pace of 2.1% year until 2040, which is twice the rate of primary energy demand in the Stated Policies Scenario. In addition, the electrification of key end-use sectors is projected to increase power demand by double by 2050. Moreover, it is estimated that renewable energy production would constitute for over 50% of the whole electricity generation after 2035.

New wind and solar PV projects developed over the past year have contributed to a nearly 3% increase in renewable electricity generation. Renewables are typically deployed before conventional sources of electricity. Furthermore, as technology continues to progress quickly, numerous countries, corporations and regions are adopting sustainable energy production, leading to a swift transformation of the industry. Numerous breakthroughs have been made in power generation technologies.

Market Dynamics

Growing Infrastructure Development and Sustainable Energy Initiatives

The electricity generation industry has seen significant demand driven by several factors, including the growing population and the subsequent rise in the number of users resulting from rapid urbanization. Expected future growth in the share of energy services is projected to drive up the demand for power. Economic development of a country is facilitated by the expansion of its electricity infrastructure components. It contributes to the general well-being of a nation.

Accelerating the development of the current power infrastructure and establishing new power infrastructure is crucial for the economic expansion. Sustainable methods are increasingly being adopted to enable the provision of cost-effective electricity in several countries worldwide, particularly in developing nations. Increased investments in power generation have been observed in both industrialized and developing countries worldwide and this trend is anticipated to have a substantial impact on market expansion.

The successive shutdowns of fossil-fueled power plants, the growing presence of wind, solar, small hydro and other renewable power generation sources, the increasing demand for electric vehicles and heat pumps and the growing export needs through interconnectors have led to a higher need for the installation of Transmission and Distributions (T&D) lines. This has created several prospects for the major companies.

Outdated Infrastructure and Investment Stagnation

The current generating equipment and system primarily depend on outdated infrastructure, which greatly challenges their ability to satisfy the increasing advanced electricity demand. Developing countries are particularly afflicted by infrastructure aging issues, since the replacement of existing infrastructure necessitates substantial investment, so posing a prominent obstacle to the market.

The stagnation in investment in the power industries poses the most significant obstacle to market expansion. The investment in the coal-fired plant has already decreased by 11%, while the investment in gas-fired production is being impacted by delays in developed economies abundant in natural gas.

Market Segment Analysis

The global power generation market is segmented based on source, grid, end-user and region.

Non-Renewable Sources Dominated The Market

Several significant reasons largely contributed to the non-renewable sector capturing the largest proportion. Above all, the current infrastructure for non-renewable energy sources, including coal, natural gas and oil, is comprehensive and well-established. Coal thermal power stations are the predominant type of thermal power plant and are projected to become the dominant contributor to the global electricity supply by 2025.

Advanced technologies such as Ultra Supercritical Coal Technology, which significantly decrease pollutants per kilowatt, are expected to supplant outdated power plants. According to the Energy Institute Statistical Review of World Energy 2023, a coal-fired thermal power plant accounted for the majority of absolute world power production in 2022. On a global scale, coal continued to be the primary fuel for power production in 2022, with its proportion rising to 35.37% from 35.1% in 2020. By 2022, the total electricity generated from coal had reached 10317.2 terawatt-hours.

For decades, these conventional energy sources have served as the fundamental support for worldwide power production, ensuring a dependable and steady influx of energy. Their advanced technological capabilities and cost-effectiveness make them the preferred option for many areas, particularly if the process of shifting to renewable energy remains financially or logistically difficult.

Market Geographical Share

The Power Generation Market In Asia Pacific Is Estimated To Account For The Largest Share

Asia-Pacific holds over 50% of the world's population and 60% of the major urban centers. In the next years, this continent will experience a surge in power consumption due to the rapid population increase and urbanization, which will result in millions of new consumers having access to energy. Specifically, the Energy Institute Statistical Review of World Energy 2023 reports that the main energy consumption in the region rose from 220.48 exajoules in 2013 to 277.60 exajoules in 2022.

In order to provide power to these regions, the involved countries are making substantial investments in the construction of a transmission line network. China exerts significant control over the power market in the region and the energy industry is undergoing a shift towards cleaner and sustainable energy sources with the aim of mitigating carbon emissions and attaining net zero carbon emissions by 2060.

Furthermore, China has the largest renewable installed capacity in the world. The National Energy Administration of China reported that the country's renewable installed capacity reached 1,213 GW by the end of 2022, representing around 47.3% of the overall installed generation capacity. Specifically, in 2022, the Chinese government declared its intention to construct 450 gigawatts of solar and wind generating facilities in the Gobi Desert areas in order to meet the renewable energy goal by 2030.

India ranks as the third highest energy consumer country worldwide, as reported by the International Energy Agency (IEA). It attributed to the increasing income levels and progressing living standards, which directly contribute to the growth of the power market in the country. In the next years, a significant number of Indian families will purchase new appliances and air-conditioners, driving the demand for power generation systems.

Market Competitive Landscape

The major global players in the market include State Grid Corporation of China, Engie SA, Electricite de France S.A., Iberdrola, S.A., National Thermal Power Corporation Limited, NTPC Ltd, ExxonMobil, Chevron Corporation, ABB Ltd, Inc., AES Corporation and Huaneng Power International, Inc.

Russia-Ukraine War Impact Analysis

The ongoing conflict between Russia and Ukraine has significantly affected the electricity production industry in Europe, revealing the region's significant dependence on Russian fossil fuel inputs. Given Europe's reliance on Russia for 41% of its natural gas imports, 27% of oil and 46% of coal, the ongoing conflict has resulted in a supply crisis, compelling European nations to expand their energy streams swiftly.

Despite the residual dominance of fossil fuels in the energy mix, there has been a resurgence of interest in renewable energy and a concerted effort to expedite decarbonization legislation. Furthermore, the conflict has brought attention to the geopolitical pitfalls associated with energy dependence, leading the European Union to actively pursue other suppliers and enhance energy efficiency in order to decrease its dependence on Russia.

In the immediate aftermath, European countries have seen substantial difficulties in obtaining adequate energy supplies, resulting in price instability and the potential for energy shortages. The escalating gas usage in recent years, propelled by its presumed function as a transitional fuel, has now proven to be a susceptibility as the conflict interrupts supply networks.

By Source

Non-Renewable

Fossil Fuel

Nuclear

Renewable

Hydropower

Wind Power

Solar PV

Others

By Grid

Off-Grid

On-Grid

By End-User

Industrial

Commercial

Residential

Transportation

By Region

North America

US

Canada

Mexico

Europe

Germany

UK

France

Italy

Spain

Rest of Europe

South America

Brazil

Argentina

Rest of South America

Asia-Pacific

China

India

Japan

Australia

Rest of Asia-Pacific

Middle East and Africa

Key Developments

In 2022, the National Thermal Power Corporation (NTPC) and Bharat Heavy Electricals (BHEL) jointly established the largest floating solar power plant in India, with a capacity of 100 MW, in the state of Telangana. This facility is expected to provide an annual reduction of 2,10,000 tonnes in carbon dioxide emissions.

The order for 16 LM6000VELOX aeroderivative gas turbine package solutions, which include an LM6000 turbine and generator, was confirmed by GE Vernova in May 2024. These units will be installed at the Kingston Energy Complex of Tennessee Valley Authority (TVA) in Kingston, Tennessee, with the goal of generating a maximum of 850 megawatts of power.

Why Purchase the Report?

To visualize the global power generation market segmentation based on source, grid, end-user and region, as well as understand key commercial assets and players.

Identify commercial opportunities by analyzing trends and co-development.

Excel data sheet with numerous data points of the power generation market with all segments.

PDF report consists of a comprehensive analysis after exhaustive qualitative interviews and an in-depth study.

Product mapping available as Excel consisting of key products of all the major players.

The global power generation market report would provide approximately 86 tables, 85 figures and 224 pages.

Target Audience 2024

Manufacturers/ Buyers

Industry Investors/Investment Bankers

Research Professionals

Emerging Companies