The global natural gas fired electricity generation market was valued at USD 33.72 billion in 2019 and is anticipated to register an estimated USD 56.13 billion by 2027, expanding at a CAGR of nearly 5.3% during the forecast period, 2020–2027. The growth of the market is attributed to rising demand for renewable energy source and growing development of new technologies for natural gas electricity generation.
Natural gas fired electricity generation involves a process of generating electricity power using natural resources. Natural gas-based electricity is a fast-growing market and a substantial rise in the demand for the power system is due to its clean and efficient source of energy, which is less harmful to environment. Rising global concern for carbon emission and the increasing global pressure for the use of renewable energy sources, the demand for natural gas-based electricity is rising significantly.

Market Drivers, Restraints, Trends, and Opportunities

• Rising needs for electricity power for newly developed industries is expected to drive the market growth during the forecast period.
• Increasing global environment concerns and slowly shutting down of coal-based power plants are anticipated to boost the overall market development over the analysis years.
• Growing government investment for the development of natural gas electricity generation is estimated to propel the market expansion in the coming years.
• High cost of electricity generation from natural resources and lack of suitable gas generation infrastructure are projected to hamper the market development during the targeted period.
• The market growth between 2019 and 2020 has been affected due to the adverse impact of the COVID-19 pandemic and the trend is expected to continue till mid-2021.
• Large R&D investment from key players is anticipated to offer immense opportunities for the market expansion during the projected period.

Scope of the Report

Global Natural Gas Fired Electricity Generation market size 2025 was XX Million. Natural Gas Fired Electricity Generation Industry compound annual growth rate (CAGR) will be XX% from 2025 till 2033.

Discover the booming natural gas-fired electricity generation market. Explore its $500 billion USD (2025 est.) size, 4% CAGR growth projections (2025-2033), key drivers, regional breakdowns, and leading companies. Learn about market trends, restraints, and future opportunities in this dynamic sector.

Global Natural Gas Fired Electricity Generation Market is segmented by Application (Base load power_Peak load power_Industrial power_District heating_Backup power), Type (Open cycle gas turbines_Combined cycle gas turbines_Reciprocating engines_Cogeneration units_Small modular gas plants), and Geography (North America_ LATAM_ West Europe_Central & Eastern Europe_ Northern Europe_ Southern Europe_ East Asia_ Southeast Asia_ South Asia_ Central Asia_ Oceania_ MEA)

Discover the booming natural gas-fired electricity generation market, projected to reach significant value by 2033. Explore market trends, regional breakdowns, key players, and technological advancements driving this growth in our comprehensive analysis. Learn about CCGT, OCGT, and the role of natural gas in the global energy transition.

Natural Gas-Fired Electricity Generation Market was valued at USD 44.75 Billion in 2024 and is expected to reach USD 56.05 Billion by 2030 with a CAGR of 3.67%.

A comprehensive analysis of the market for natural gas-fired electricity generation. This report focuses on South America and includes forecasts through 2017.

The size of the Natural Gas Fired Electricity Generation market was valued at USD XXX million in 2024 and is projected to reach USD XXX million by 2033, with an expected CAGR of XX% during the forecast period.

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The natural gas fired electricity generation market size is estimated to grow at a CAGR of 3.95% between 2022 and 2027. The market size is forecast to increase by 122.7 million toe. The growth of the market depends on several factors, including increased energy demand, rising support from governments worldwide, and increasing natural gas production.

This natural gas fired electricity generation market report extensively covers market segmentation by type (CGCT and OCGT), end-user (residential, commercial, and industrial), and geography (North America, APAC, Europe, Middle East and Africa, and South America). It also includes an in-depth analysis of drivers, trends, and challenges. Furthermore, the report includes historic market data from 2017 to 2021.

What will be the size of the Natural Gas Fired Electricity Generation Market During the Forecast Period?

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Natural Gas Fired Electricity Generation Market: Key Drivers, Trends, Challenges, and Customer Landscape

The increasing natural gas production is notably driving the market growth, although factors such as environmental concerns associated with the combustion of natural gas may impede the market growth. Our researchers analyzed the data with 2022 as the base year and the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.

Key Natural Gas Fired Electricity Generation Market Driver

The increasing natural gas production is notably driving market growth. The fastest-growing fossil fuel is now natural gas due to the increasing supply of tight gas, shale gas, and coalbed methane. Since 2008, successful shale oil and gas extraction in nations like the US has increased the global supply of natural gas. The US EIA estimated that shale gas production will reach 8.1 million barrels per day (bpd) by September 2020. Additionally, the IEA predicted that by 2022, US natural gas production would make up 40% of the world's total natural gas output. Furthermore, the Permian Basin, where natural gas production was anticipated to double by 2022, dominates US shale gas production.

Similarly, the IEA predicted that by 2022, the Middle East would increase global natural gas production by 2,472.03 bcf (70 bcm). The Yamal peninsula is also home to significant untapped natural gas production capacity for Russia, which is the second-largest natural gas producer in the world after the United States. Hence, natural gas will be readily available for use in generating electricity due to the increase in natural gas production around the world. Hence, such factors will boost the growth of the global market during the forecast period.

Significant Natural Gas Fired Electricity Generation Market Trends

A shift to gas generators is an emerging trend in market growth. Natural gas, one of the non-renewable fuels used by gas generators, is a cost-efficient and efficient source of energy for mobile power generation. Compared to other fossil fuels, natural gas is more efficient and has lower operating costs. The capacity utilization rate of natural gas-fired combined cycles was the highest among other fossil fuels in 2018, according to the US EIA. By 2030, it is anticipated that 80% of natural gas's capacity will be used, further promoting the use of this fuel for the production of natural gas-fired electricity.

Compared to diesel generators, gas generators emit fewer emissions and are cleaner. These generators produce a smaller amount of air pollutants. Additionally, unlike diesel generators, they do not produce ash and soot leftovers. The power industry has switched to gas generators as a result of these benefits. New government regulations that encourage the use of gas generators have also been created as a result of environmental concerns. As a result, gas generators are becoming more widely used. Moreover, new variations of natural gas generators are also being introduced by numerous vendors active in the target market. Hence, factors like these will fuel the growth of the global market during the forecast period.

Major Natural Gas Fired Electricity Generation Market Challenge

The environmental concerns associated with the combustion of natural gas are major challenges impeding market growth. Natural gas is a fossil fuel, and so it still releases a variety of hazardous pollutants when it is burned, even though the emissions of greenhouse gases (GHGs) are much lower than those from coal or oil. Additionally, the combustion of natural gas releases nitrogen oxides, which are precursors to smog. These emissions have also been linked to a number of human illnesses, including lung cancer, asthma, bronchitis, and heart disease, in addition to air pollution. Furthermore, exposure to high concentrations of these air pollutants may have negative health effects, including cancer, cardiovas

Natural Gas-Fired Electricity Generation Market size was valued at USD 13,500.75 million in 2024 and the revenue is expected to grow at a CAGR of 6.2% from 2025 to 2032

Discover the booming market for natural gas-fired electricity generation. Explore key drivers, trends, and challenges shaping this sector's future, including insights on major players, regional growth, and projected market size through 2033. Learn about the role of natural gas in a transitioning energy landscape.

The Natural Gas-Fired Electricity Generation market plays a crucial role in the global energy landscape, serving as a key player in the transition toward cleaner energy solutions. Natural gas power plants utilize the combustion of natural gas to generate electricity, offering a more efficient and lower-emission alte

The global natural gas-fired electricity generation market, valued at approximately $XX million in 2025, is projected to experience steady growth, driven by several key factors. The increasing demand for cleaner energy sources compared to coal, coupled with the relatively lower carbon emissions of natural gas, positions it favorably in the global energy mix. Furthermore, the existing infrastructure for natural gas pipelines and distribution networks facilitates a smoother transition and widespread adoption. Technological advancements in combined cycle gas turbines (CGCT) and open cycle gas turbines (OCGT) are leading to improved efficiency and reduced costs, further stimulating market expansion. While regulatory hurdles and fluctuating natural gas prices represent potential constraints, the strategic investments in infrastructure development and the global shift towards a lower-carbon energy landscape are expected to outweigh these challenges. The market is segmented by technology type (CGCT and OCGT), with CGCT anticipated to hold a larger market share owing to its higher efficiency. Geographical growth is likely to be distributed across regions, with North America, Europe, and Asia-Pacific demonstrating significant market potential due to existing gas infrastructure and supportive government policies. Key players like General Electric, Siemens, and Mitsubishi Heavy Industries are actively investing in research and development, focusing on enhancing turbine technologies to maintain their competitive edge. The forecast period of 2025-2033 suggests a consistent CAGR of 3.95%. This growth reflects a continuous need for reliable and relatively cleaner electricity generation, particularly in developing economies experiencing rapid industrialization and urbanization. While regional variations in growth rates are expected based on specific energy policies and economic conditions, the overall trajectory points towards a sustained expansion of the natural gas-fired electricity generation market. The competitive landscape is characterized by both established energy giants and emerging technology providers. Strategic partnerships, mergers and acquisitions, and technological innovations are likely to shape the market dynamics over the forecast period. The market’s continued success hinges on addressing challenges related to natural gas price volatility and the integration of renewable energy sources into the overall energy grid.

Access Market Research Intellect's Natural Gas Fired Electricity Generation Market Report for insights on a market worth USD 400 billion in 2024, expanding to USD 600 billion by 2033, driven by a CAGR of 5.0%.Learn about growth opportunities, disruptive technologies, and leading market participants.

Snapshot img { margin: 10px !important; } The global natural gas-fired power generation market size will grow by 249.76 GW during 2019-2023. The natural gas-fired power generation industry research report provides a detailed analysis of the market based on type (CCGT and OCGT) and geography (APAC, Europe, MEA, North America, and South America). The report analyzes the market's competitive landscape and offers information on several natural gas-fired power generation companies including Chubu Electric Power Co. Inc., RWE AG, Southern Co., Tokyo Electric Power Company Holdings Inc., and Uniper SE.

The global natural gas-fired power generation market is expected to witness a CAGR of 2.79% during the forecast period. Certain factors that are driving the market growth include rising global energy demand, rising government support, and growth in natural gas production.

Key Insights on Natural Gas-fired Power Generation Market – Global Forecast 2019-2023

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The rapid growth in global energy demand is due to robust economic growth. The growth in the global energy demand was propelled by countries such as China and the US, which accounted for more than 70% of the growth in global energy demand. Further, there is a rapid growth in global electricity demand which is propelled by emerging economies such as China and India. The electrification of global energy systems is propelled by various factors such as the electrification of heat and transportation sector, the growth in the number of electronically connected devices, and digitalization of modern economies. Hence, with the increase in energy demand, the global natural gas-fired power generation market is expected to grow during the forecast period.

Natural Gas-Fired Power Generation Industry Overview

The government support to the adoption of clean energy technologies will be one of the primary drivers of the natural gas-fired power generation market. With the high demand for energy and growing focus on reducing carbon emissions, the need for less-carbon-intensive technologies like natural gas-fired power generation is also growing.
Use of coal-fired power generation has decreased across the world and further boosting the demand for natural gas-fired power generation.
Development of battery storage-augmented gas turbines will be one of the critical natural gas-fired power generation market trends. Battery storage-augmented gas turbines are highly productive when compared to traditional gas turbines.
Battery energy storage systems (BESS) reduce GHG emissions, enhance primary frequency response and voltage support, and ensures smooth transient response with lesser turbine thermal stress.
The development of technologically advanced gas turbines will enhance the efficiency of natural gas-fired power plants and consequently fuel the growth of the natural gas-fired power generation market at a CAGR of nearly 3% during the forecast period.

Natural Gas-Fired Power Generation Market Report Offers:

A complete backdrop analysis, which includes an assessment of the parent market
Important changes in market dynamics
Market segmentation up to the second or third level
Historical, current, and projected size of the market from the standpoint of both value and volume
Reporting and evaluation of recent industry developments
Market shares and strategies of key players
Emerging niche segments and regional markets
An objective assessment of the trajectory of the market
Recommendations to companies for strengthening their foothold in the market  

Top Companies in Natural Gas-Fired Power Generation Market

The global natural gas-fired power generation market is fairly fragmented. To help clients improve their revenue share, the natural gas-fired power generation market research report provides an analysis of the market's competitive landscape and offers information on the products offered by various companies. Key insights provided by the natural gas-fired power generation market analysis report will enable companies to make informed business decisions.

The report offers a detailed analysis of several leading natural gas-fired power generation companies, including:

Chubu Electric Power Co. Inc.
RWE AG
Southern Co.
Tokyo Electric Power Company Holdings Inc.
Uniper SE

Market Segmentation

Natural Gas-Fired Power Generation Market Forecast by Type

The combined cycle gas turbine (CCGT) segment held the largest natural gas-fired power generation market share in 2018 because of its environmental and economic benefits.
However, the market share of the CCGT segment will decrease, and the open cycle gas turbine (OCGT) segment will emerge as the market leader by the end of the next five years.

Natural Gas-Fired Power Generation Market Analysis by Region

North America accounted for the largest natural gas-fired power

Discover the booming natural gas-fired electricity generation market, projected to reach $750B by 2033. Explore key drivers, trends, restraints, and regional market shares in our comprehensive analysis. Learn about leading companies and investment opportunities in this crucial energy sector.

The United States consumes 4.2 trillion kilowatt-hours of electricity and over half of that power is produced by the coal and natural gas power plants. Coal-based power has historically been the leading source of electricity in the United States. The outburst of natural gas availability and the implementation of burdensome environmental regulations have caused the industry to undergo a major structural transformation. Industry revenue is set to swell at a CAGR of 2.1% to $105.2 billion through 2025, including a 1.8% uptick in 2025 alone. Gas-fired power overtook coal-fired power as the nation's primary electricity generation method in 2016. Not only had natural gas prices become significantly more affordable than coal, but highly efficient and low emissions combined cycle combustion engines were also gaining national traction. Unregulated wholesale markets provided a competitive battleground where more efficient independent power producers could offer their electricity to consumers at more affordable costs while still earning higher profit than coal-fired plants. While electric power consumption will swell, up to one-fifth of coal-based energy will be retired by the end of 2030 as the United States aims to achieve a renewable future. Natural gas will be important in helping deliver affordable and clean power throughout our nation. Nonetheless, while renewable energy has made its mark through 2025, it will be significantly slowed down through 2030 as the One Big Beautiful Bill Act will phase out tax credits for solar and wind power much earlier than expected. The Department of Energy will also provide $625.0 million in funding for coal power plants to improve their lifespan. While plants are set to retire, it is set to move at a much slower rate than previously anticipated. Nonetheless, the US Energy Information Administration expects both coal and natural gas output to push down through 2030, hindering growth. Overall, revenue is set to push down at a CAGR of 1.6% to $96.8 billion through 2030.

Discover the booming Natural Gas-Fired Electricity Generation market! This comprehensive analysis reveals market size, CAGR, key drivers, trends, and regional breakdowns, highlighting opportunities and challenges for 2025-2033. Explore insights from leading companies and understand the future of this crucial energy sector.

Find detailed analysis in Market Research Intellect's Natural Gas Fired Power Generation Market Report, estimated at USD 450 billion in 2024 and forecasted to climb to USD 600 billion by 2033, reflecting a CAGR of 4.2%.Stay informed about adoption trends, evolving technologies, and key market participants.