The global power generation market is poised to increase from USD 2.16 trillion in 2024 to USD 7.11 trillion by 2037, demonstrating a CAGR of more than 9.6% throughout the forecast timeline, from 2025 to 2037. Key industry players include Envision Group, Alstom S.A., General Electric Company, DuPont de Nemours, among others.

Power Generation Market size was valued at around USD 1651.06 Billion in 2024 and is projected to reach USD 2189.3 Billion by 2031, growing at a CAGR of 3.59% from 2024 to 2031.

Power Generation Market Drivers

Energy Demand Growth: Increasing global population and industrial activities drive the demand for energy. Economic development, particularly in emerging markets, leads to higher energy consumption.

Fuel Prices: The cost of fuel, such as coal, natural gas, and oil, significantly affects the economics of power generation. Fluctuations in fuel prices can influence the choice of power generation technology.

Investment and Financing: Availability of capital and investment for building new power plants and upgrading existing infrastructure is crucial. Economic incentives, subsidies, and the cost of capital can drive or hinder investment in power generation.

Explore the Power Generation Market trends! Covers key players, growth rate 5.7% CAGR, market size $2755.36 Billion, and forecasts to 2034. Get insights now!

The Report Covers Global Power Generation Market Trends & Industry Outlook and it is Segmented by Power Generation (Thermal, Hydroelectric, Nuclear, and Renewables), Power Transmission and Distribution (T&D), and Geography (North America, Asia-Pacific, Europe, South America, and Middle-East and Africa). The report offers market size and forecasts in installed capacity (GW) for all the above segments.

According to Cognitive Market Research, the global Electricity Generation market size will be USD 2154.2 million in 2024. It will expand at a compound annual growth rate (CAGR) of 9.80% from 2024 to 2031.

North America held the major market share for more than 40% of the global revenue with a market size of USD 861.68 million in 2024 and will grow at a compound annual growth rate (CAGR) of 8.0% from 2024 to 2031.
Europe accounted for a market share of over 30% of the global revenue with a market size of USD 646.26 million.
Asia Pacific held a market share of around 23% of the global revenue with a market size of USD 495.47 million in 2024 and will grow at a compound annual growth rate (CAGR) of 11.8% from 2024 to 2031.
Latin America had a market share of more than 5% of the global revenue with a market size of USD 107.71 million in 2024 and will grow at a compound annual growth rate (CAGR) of 9.2% from 2024 to 2031.
Middle East and Africa had a market share of around 2% of the global revenue and was estimated at a market size of USD 43.08 million in 2024 and will grow at a compound annual growth rate (CAGR) of 9.5% from 2024 to 2031.
Thermal Generation is the market leader in the Electricity Generation industry

Market Dynamics of Electricity Generation Market

Key Drivers for Electricity Generation Market

Rising need for cooling boosts the electricity generation market

The increased demand for cooling is projected to drive the electricity generating market in the future years. Cooling is the process of lowering the temperature of an object or environment, which is usually accomplished by transporting heat away from the intended location, typically utilizing air or a cooling medium. Power generation can be utilized to cool by running air conditioning (AC) and fans to keep indoor temperatures comfortable. For instance, According to the International Energy Agency, an autonomous intergovernmental body located in France, in July 2023, more than 90% of households in the United States and Japan had an air conditioner. Cooling accounts for around 10% of global electricity use. In warmer countries, this might result in a more than 50% increase in power demand during the summer months. As a result, increased demand for cooling is likely to drive expansion in the power generating industry.

Increasing applications of electricity in the transportation industry

The growing use of energy in the transportation industry is predicted to increase demand for electricity, hence pushing the power generation market. The electrification of railways in underdeveloped and developing countries, the establishment of public transportation networks such as rapid metro transit systems, and the growing use of electric vehicles in developed countries will all create significant market opportunities for power generation companies. For instance, in order to achieve net-zero carbon emissions, the Office of Rail and Road (ORR) predicts that 13,000 track kilometers - or roughly 450 km per year - of track in the UK will need to be electrified by 2050, with 179 km electrified between 2020 and 2021. According to the Edison Electric Institute (EEl), yearly electric car sales in the United States are estimated to exceed 1.2 million by 2025. Electric vehicles are projected to account for 9% of worldwide electricity demand by 2050.

Restraint Factor for the Electricity Generation Market

High initial capital investment for renewable projects

The high initial capital for renewable projects is indeed a limiting factor for the market growth of the electricity generation sector, as most such technologies, infrastructure, and installation depend on significant up-front funding. For instance, most renewable energy technologies are highly capital intensive-solar, and wind, in particular, scares investors away from taking action, especially if they are small or developing firms. There is thus an economic limitation that restricts competition and contributes toward slower development of cleaner energy solutions. Moreover, funding can be quite tricky and challenging-especially for a poor economic climate. The payback times attached to these investment options are long, leading to uncertainty and making stakeholders reluctant to commit. These financial constraints are, therefore, blighting the transition to renewable energy as well as, more broadly, the overall electricity generation market

Impact of Covid-19 on the E...

The electricity generation market was valued at approximately 1.6 trillion U.S. dollars in 2023. The market is forecast to grow at a compound annual growth rate of 4.8 percent between 2024 and 2031, and surpass 2.16 trillion U.S. dollars by 2030. The Asia-Pacific region leads the way, accounting for more than half of the global electricity generation market's worth during the analyzed time period. More information on the global electricity generation market value can be found here.

The electricity generation market value in North America is forecast to grow at a compound annual growth rate of approximately three percent between 2024 and 2031. This figure will increase from 316 billion U.S. dollars in 2023 to 393 billion U.S. dollars by 2031. However, the North American share of the global electricity generation market is projected to stay marginal in comparison to the Asia-Pacific one. More information on the global electricity generation market value can be found here.

US Power Market size was valued to be USD 363.6 Billion in the year 2024 and it is expected to reach USD 517 Billion in 2031, at a CAGR of 4.5% over the forecast period of 2024 to 2031.

The North American Distributed Power Generation Market is Segmented by Technology (Solar PV, Wind, Combined Heat and Power (CHP), and Other Technologies) and Geography (United States, Canada, and Rest of North America). The report offers the installed capacity and forecasts for the market in gigawatts (GW) for the above segments.

Power Type Fossil Fuel Hydroelectricity Solar Other Electricity Source Renewable Non-renewable Key Companies Profiled AGL Energy BioTherm Energy Centrica Enel SpA Tata Power

The market is segmented by Source (Diesel, Natural Gas, and Others), Area of Generation (Onshore and Offshore), and Geography (North America, Europe, Asia-Pacific, South America, and Middle-East and Africa)

The Market Report Covers Global Distributed Power Generation Companies and is segmented by technology (solar PV, diesel generators, natural gas generators, microgrids, and other technologies) and geography (North America, Europe, Asia-Pacific, South America, the Middle East, and Africa). The market size and forecasts for the distributed power generation market are provided in terms of revenue (USD million) for all the above segments.

Global Power Generation Market reached US$ 1.6 billion in 2023 and is expected to reach US$ 2.2 billion by 2031

In 2023, the electricity generation market value in the Asia-Pacific region exceeded 800 billion U.S. dollars. Throughout the period under consideration, the region will account for the largest share of the electricity generation market in the world, followed by far by North America. More information on the global electricity generation market value can be found here.

Thermal Power Plant Market size was valued at USD 1486.9 Billion in 2024 and is projected to reach USD 1942.88 Billion by 2031, growing at a CAGR of 3.40% during the forecast period 2024-2031.

The market for thermal power plants is expanding significantly due to a number of important factors. First, the market is expanding because to the rising demand for power worldwide brought on by urbanization, industrialization, and population growth. Thermal power plants—which include those that run on coal, natural gas, and oil—continue to be vital producers of electricity, especially in areas with a plentiful supply of fossil fuels. Second, in order to fulfill the rising energy demand and maintain grid stability, investment in thermal power plants is being driven by the growing emphasis on energy security, grid dependability, and baseload power generation. Furthermore, technological developments are propelling market innovation and enabling reduced emissions and increased efficiency from thermal power plants. Examples of these developments include integrated gasification combined cycle (IGCC) systems, combined cycle plants, and supercritical and ultra-supercritical boilers. Furthermore, the Thermal Power Plant Market is expanding due to favorable government policies, incentives for clean coal technology, and expenditures in updating outdated power infrastructure.

Distributed Power Generation Market is expected to grow at a CAGR of 8.89% during the forecast period 2024-2031 | DataM Intelligence

The size and share of the market is categorized based on Type (Fossil Fuel Power Generation, Hydro Power Generation, Wind Power Generation, Solar Power Generation, Nuclear Power Generation, Biomass Power Generation, Geothermal, Others) and Application (Industrial, Commercial, Residential) and geographical regions (North America, Europe, Asia-Pacific, South America, and Middle-East and Africa).

As of June 2024, Tuas Power Generation Pte Ltd held the largest market share in Singapore with approximately 19.6 percent. The electricity generation capacity of Tuas Power Generaton Pte Ltd amounted to 1979.4 megawatts.

The Hydroelectric Power Generation Market is projected to grow at 4.4% CAGR, reaching $397.79 Billion by 2029. Where is the industry heading next? Get the sample report now!

Explore the Power Generation, Transmission And Control Equipment Market trends! Covers key players, growth rate 4.4% CAGR, market size $679.7 Billion, and forecasts to 2034. Get insights now!