Power Generation Global Market Report 2024

The power generation market size has grown strongly in recent years. It will grow from $1913.99 billion in 2023 to $2054.27 billion in 2024 at a compound annual growth rate (CAGR) of 7.3%. The expansion witnessed in the historical period can be linked to an increase in electricity consumption, governmental efforts to enhance energy infrastructure, the rise of emerging economies, technological advancements, and the liberalization of the market.

The power generation market size is expected to see strong growth in the next few years. It will grow to $2683.48 billion in 2028 at a compound annual growth rate (CAGR) of 6.9%. The anticipated growth in the upcoming period can be attributed to the expansion of the industrial sector, a surge in the demand for electricity, increased investments, and the growing utilization of electricity in transportation. Prominent trends expected in the forecast period encompass alterations in the business models of electric utilities, the adoption of batteries for energy storage, the integration of digital technologies in power generation, advancements in nuclear power generation, the evolution of solar tracking mounts technology, the deployment of advanced ultra-supercritical (AUSC) solutions, innovations in power plant transmissions, and advancements in waste-to-energy technologies.

The increasing use of electricity in the transportation industry is anticipated to boost the demand for electricity, thereby driving the power generation market. The electrification initiatives in underdeveloped and developing countries for railways, the establishment of public transportation networks such as rapid metro transit systems, and the growing adoption of electric vehicles in developed nations present significant opportunities for power generation companies. For example, to achieve net-zero carbon emissions, the Office of Rail and Road (ORR) estimates that the UK will need to electrify about 13,000 track kilometers by 2050, with 179 kilometers electrified between 2020 and 2021. The Edison Electric Institute (EEI) projects annual electric vehicle sales in the USA to exceed 1.2 million by 2025, with electric vehicles expected to contribute to 9% of global electricity demand by 2050.

The increasing demand for cooling is poised to fuel the growth of the power generation market in the forthcoming years. Cooling involves the process of reducing the temperature in an area, often accomplished by dissipating heat using air or a cooling medium. Power generation is instrumental in cooling through the operation of air conditioning (AC) and fans to maintain comfortable indoor temperatures. As of July 2023, the International Energy Agency reports that over 90% of households in both the United States and Japan own an air conditioner. Cooling activities consume about 10% of the world's total electricity usage, with warmer nations experiencing over a 50% surge in power demand during the summer season. Consequently, the escalating demand for cooling is expected to drive the growth of the power generation market.

Electric power generation companies are increasingly employing batteries to store solar energy during daylight hours, utilizing large lithium-ion batteries at energy storage sites. This approach is gaining popularity not only in solar power generation but also in various other types of power generation. These batteries serve as backup storage, absorbing solar power and redistributing it to the grid during periods of demand or disruptions in fuel supply. The deployment of such energy storage systems minimizes the reliance on capital-intensive power generation plants, improves transmission and distribution efficiencies, and lowers operational costs. The World Bank Group aims to fund 17.5 gigawatt-hours (GWh) of battery storage by 2025, a significant increase from the current 4-5 GWh installed across developing nations.

Key players in the power generation market are increasingly emphasizing collaboration to promote the use of hydrogen fuel cells for backup power, enhancing their competitive position in the market. Hydrogen fuel cells represent a modern and efficient solution for backup power, offering a reliable and decentralized source of electricity during emergencies or power outages. For example, in November 2021, Caterpillar Inc., a US-based power generator manufacturer, initiated a three-year project in partnership with Ballard Power Systems and Microsoft. The project aims to demonstrate a hydrogen fuel cell-based power system for providing sustainable and dependable backup power at Microsoft data centers. Supported by the U.S. Department of Energy's H2@Scale initiative and the National Renewable Energy Lab (NREL), Ballard will supply an advanced 1.5 MW ClearGenTM-II hydrogen fuel cell power generator, while Caterpillar will handle system integration, power electronics, and controls, all powered by low-carbon-intensity hydrogen.


Major companies operating in the power generation market report are Enel SpA, Electricite De France SA, State Power Investment Corporation, E.ON SE, Engie, Huaneng Power International, Inc., Exelon Corp, Endesa SA, Datang International Power Generation Company Limited, Inter RAO UES, Power Grid Corporation of India Limited, NTPC Limited, Tata Power, Adani Power, NHPC Limited, Guodian Corporation, Hokkaido Electric Power Company, Tohoku Electric Power Co, AGL Energy, EDF Energy, RWE, Scottish Power, Centrica, SSE, Drax Power Limited, Intergen, ESBI, Vattenfall AB, Fortum Oyj, Fennovoima Ltd., Areva, Horizon Nuclear Power, Unipro (E.ON Russia JSC), Territorial Generating Company Number One, Mosenergo, Gazprom Energoholding LLC, NextEra Energy, Duke Energy, Southern Company, Dominion Resources, American Electric, Public Service Enterprise Group, ENMAX Corporation, TransAlta Corporation, Comision Federal de Electricidad, Companhia Hidro Elétrica do São Francisco, Copel Geração e Transmissão SA, Eletrobras Eletronorte, Petroleo Brasileiro SA Petrobras, AES Gener, Colbún S.A, Empresas Públicas de Medellín E.S.P., Saudi Electricity Company, Dubai Electricity & Water Authority, Saudi Consolidated Electricity Company, Abu Dhabi Water and Electricity Authority (ADWEA), Abu Dhabi National Energy Company PJSC (TAQA), Israel Electric Corporation, Nuclear Power Production & Development Company of Iran (NPPD), Nawah Energy, Amu Power Company, Zimbabwe Power Company, BioTherm Energy, Kenya Electricity Generating Company, Globeleq Inc.

Asia-Pacific was the largest region in the power generation market in 2023. Western Europe was the second-largest region in the power generation market. The regions covered in the power generation market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.

The countries covered in the power generation market report are Australia, China, India, Indonesia, Japan, South Korea, Bangladesh, Thailand, Vietnam, Malaysia, Singapore, Philippines, Hong Kong, New Zealand, USA, Canada, Mexico, Brazil, Chile, Argentina, Colombia, Peru, France, Germany, UK, Austria, Belgium, Denmark, Finland, Ireland, Italy, Netherlands, Norway, Portugal, Spain, Sweden, Switzerland, Russia, Czech Republic, Poland, Romania, Ukraine, Saudi Arabia, Israel, Iran, Turkey, UAE, Egypt, Nigeria, South Africa. The power generation market includes revenue earned by entities by thermal energy generated from fossil fuels, coal, petroleum, natural gas, solar thermal energy, chemical energy, and potential energy from falling water. The market value includes the value of related goods sold by the service provider or included within the service offering. Only goods and services traded between entities or sold to end consumers are included.

The primary methods of power generation encompass hydroelectricity, fossil fuel electricity, nuclear electricity, solar electricity, wind electricity, geothermal electricity, biomass electricity, and other forms of electricity. Hydroelectricity, also referred to as hydroelectric power or hydroelectric energy, involves generating electricity by capturing the energy of moving water, such as water flowing over a waterfall. The energy for power generation is sourced from both conventional (non-renewable) and renewable sources. Power grids come in different types, including off-grid and on-grid, catering to the residential, commercial, industrial, and transportation sectors.

The power generation market research report is one of a series of new reports that provides power generation market statistics, including the power generation industry global market size, regional shares, competitors with a power generation market share, detailed power generation market segments, market trends and opportunities, and any further data you may need to thrive in the power generation industry. This power generation market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.