Natural Gas Fired Electricity Generation Global Market Report 2025

The natural gas-fired electricity generation market size has grown strongly in recent years. It will grow from $46.78 billion in 2024 to $49.83 billion in 2025 at a compound annual growth rate (CAGR) of 6.5%. The growth observed in the historic period is due to the increasing availability of shale gas reserves, improvements in the efficiency of combined-cycle gas turbines, rising investments in domestic natural gas infrastructure, higher energy demand during peak periods, and the growing preference for cleaner energy sources.

The natural gas-fired electricity generation market size is expected to see strong growth in the next few years. It will grow to $63.58 billion in 2029 at a compound annual growth rate (CAGR) of 6.3%. The anticipated growth in the forecast period is driven by the increasing demand for flexible and peaking power plants, the expanding integration of renewable energy requiring backup power, the rising need for grid stability, the implementation of carbon pricing and emission trading schemes, and the improving reliability of natural gas supply chains. Key trends during this period include advancements in turbine materials, the development of modular gas power units, the adoption of artificial intelligence-based predictive maintenance, the integration of energy storage systems, and innovations in emissions monitoring and control technologies.

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 players in the natural gas fired electricity generation market are TotalEnergies SE, Petróleo Brasileiro S.A., Iberdrola SA, 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, Snam S.p.A, Kawasaki Heavy Industries Ltd., Central Puerto S.A., Calpine Corporation, and Mesa Natural Gas Solutions LLC.

North America was the largest region in the natural gas fired electricity generation market in 2024. The regions covered in natural gas fired electricity generation report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East and Africa.

The countries covered in the natural gas fired electricity generation market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

Natural gas fired electricity generation involves producing electricity by burning natural gas in turbines or engines. The primary objective is to provide reliable and efficient power while emitting less carbon compared to coal or oil. This method helps maintain grid stability and accommodates varying energy demands.

The main technologies used in natural gas fired electricity generation are combined cycle, open cycle, and cogeneration. Combined cycle technology integrates both gas and steam turbines to generate electricity more efficiently. These systems offer power outputs ranging from under 100 MW to over 1000 MW and can use different fuel types such as conventional natural gas, liquefied natural gas (LNG), compressed natural gas (CNG), and biogas. They are designed for various load demands including base, mid, peak, and backup power, serving residential, commercial, and industrial users.

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

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 and 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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