Natural Gas Fired Electricity Generation Market Report 2026

The natural gas fired electricity generation market size has grown strongly in recent years. It will grow from $49.83 billion in 2025 to $53.07 billion in 2026 at a compound annual growth rate (CAGR) of 6.5%. The growth in the historic period can be attributed to availability of natural gas supply, demand for reliable power generation, lower emissions compared to coal, expansion of gas turbine technology, grid stability needs.

The natural gas fired electricity generation market size is expected to see strong growth in the next few years. It will grow to $67.48 billion in 2030 at a compound annual growth rate (CAGR) of 6.2%. The growth in the forecast period can be attributed to renewable energy intermittency, investments in flexible power plants, retirement of coal plants, demand for low carbon electricity, advancements in turbine efficiency. Major trends in the forecast period include expansion of combined cycle power plants, growing role in grid balancing, rising use as transition fuel, increased deployment for peak load generation, integration with renewable energy systems.

The increasing demand for cleaner energy sources is expected to drive the growth of the natural gas-fired electricity generation market in the future. Cleaner energy sources are those generated from renewable or low-emission options, such as solar, wind, and hydropower, which have a lower environmental impact compared to fossil fuels. This rising demand stems from growing environmental concerns that emphasize the need to reduce carbon emissions and address climate change. Natural gas-fired electricity generation supports cleaner energy sources by offering a lower-emission alternative to coal and oil, facilitating the transition to a more sustainable energy mix. It provides a flexible and efficient power supply that helps balance renewable energy integration and improve grid reliability. For example, in March 2025, the International Renewable Energy Agency (IRENA), an intergovernmental organization based in the United Arab Emirates, reported that global renewable energy capacity increased from 3,862,881 megawatts (MW) in 2023 to 4,448,051 megawatts (MW) in 2024. Thus, the growing demand for cleaner energy sources is contributing to the expansion of the natural gas-fired electricity generation market.

Leading companies in the natural gas-fired electricity generation market are focusing on developing innovative solutions, such as high-efficiency combined cycle plants, to boost energy output while lowering fuel consumption and emissions. High-efficiency combined cycle plants combine gas and steam turbines in a single cycle to maximize energy generation from fuel, usually natural gas. For instance, in August 2024, LS Power Development, LLC, a US-based manufacturing firm, launched Lightning Power, an independent power producer with 11 GW of high-efficiency natural gas-fired generation. This initiative leverages advanced combined cycle and combustion turbine technologies to enhance energy efficiency. Lightning Power’s portfolio includes 18 natural gas-fired power projects, featuring baseload combined cycle plants and flexible peakers designed to maintain grid stability and provide reliable, affordable power for various energy demands.

In January 2025, Shell plc, a UK-based oil company, acquired RISEC Holdings LLC for an undisclosed sum. Through this acquisition, Shell aims to secure a long-term, reliable power supply and strengthen its strategic presence in the growing ISO New England market. This move supports Shell’s energy transition objectives and expands its trading opportunities. RISEC Holdings LLC is a US-based energy firm that operates a natural gas-fired electricity generation facility.

Major companies operating in the natural gas fired electricity generation market are TotalEnergies SE, Petróleo Brasileiro S.A., RWE AG, Siemens Energy AG, NRG Energy Inc., Duke Energy Corp., NextEra Energy Inc., Exelon Corp., Dominion Energy Inc., S.N.G.N Romgaz S.A, China Resources Holdings Co. Ltd., CLP Holdings Limited, Sembcorp Industries Ltd., Centrais Eletricas Brasileiras SA, Central Puerto S.A., Calpine Corporation, Mesa Natural Gas Solutions LLC, Engie SA, AES Corporation, E.ON SE, EDF SA, Uniper SE, PPL Corporation, Southern Company.

North America was the largest region in the natural gas fired electricity generation market in 2025. The regions covered in the natural gas fired electricity generation market report are Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the natural gas fired electricity generation market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Taiwan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The natural gas fired electricity generation market consists of revenues earned by entities by providing services such as base load power, backup for renewable energy, grid stability, and ancillary services. The market value includes the value of related goods sold by the service provider or included within the service offering. The natural gas-fired electricity generation market also includes sales of gas turbines, gas-fired generators, heat recovery steam generators, and control and monitoring systems. Values in this market are ‘factory gate’ values, that is, the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors, and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

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.

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