Power Generation Market Size, Share, and Trends 2024 to 2034

Power Generation Market (By Type: Hydroelectricity, Fossil Fuel Electricity, Nuclear Electricity, Solar Electricity, Wind Electricity, Geothermal Electricity, Biomass Electricity, Other Electricity; By End-User: Industrial, Commercial, Residential, Transportation; By Source: Conventional/Non-Renewable Source, Renewable Source; By Grid: Off Grid, On Grid) - Global Industry Analysis, Size, Share, Growth, Trends, Regional Outlook, and Forecast 2023-2032

  • Last Updated : February 2023
  • Report Code : 2626
  • Category : Energy and Power

The global power generation market size was estimated at USD 1.8 trillion in 2022 and it is expected to hit around USD 3.9 trillion by 2032, growing at a CAGR of 8.04% during the forecast period from 2023 to 2032.

Power Generation Market Size 2023 To 2032

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As electricity is one of the essential commodities of modern economies and is responsible for providing a rising share of energy services. The demand of electricity is expected to increase as a consequence of increased household incomes, with the increased rate of electrification of transport and heat, and surging demand for digitally connected devices and air conditioners. 

Growth Factors

The power generation market has experienced a great demand due to various factors like increasing population with eventually increasing the number of consumers with rapid urbanization. The growing demand of electricity is expected to increase in the future due to the rising share of energy services. The economic growth of a nation is possible through the growth of its infrastructure in terms of power. 

It leads to the overall welfare of a country. Developing the existing power infrastructure and creating new power infrastructure is extremely important for the growth of an economy

Sustainable ways are gaining popularity to introduce affordable power in many nations across the globe especially in the developing nations. Constant efforts are being made by the government in the recent times to reduce power shortage and create a surplus by installing more grids and increasing the network of distribution. The number of investments made for power generation in the developed as well as the developing nations of the world has grown in the recent times and this is expected to play a significant role in the growth of the market.

  • Increase in investment of various market players.
  • Environmental sustainability is a major factor leading to an increased use of renewable source of energy for the development of power. 
  • Increasing population of various nations across the globe is another factor driving the growth of power generation market. 
  • Rapid urbanization is one of the major reasons creating more demand for electricity.
  • Industrialization in the developing nations across the globe is having a positive impact on the power generation market. 
  • As the income of the consumers is increasing the amount of electricity consumed at the homes is also increasing.
  • Technological advancements and development are expected to have a major impact on the demand of electricity across the globe. 
  • Fluctuating temperatures and changes in the season may have a major impact on the consumption of electricity as such weather conditions could increase the consumption of electricity at homes. 

Power Generation Market Scope:

Report Coverage Details
Market Size in 2023 USD 1.94 Trillion
Market Size by 2032 USD 3.9 Trillion 
Growth Rate from 2023 to 2032 CAGR of 8.04%
Largest Market North America
Base Year 2022
Forecast Period 2023 to 2032
Segments Covered By Type, By Phases and By Distribution Channel
Regions Covered North America, Europe, Asia-Pacific, Latin America and Middle East & Africa


Power Generation Market Dynamics:

Key Market Drivers

  • Increase in population: The rapid increase in the population is serving as the key market driver for the power generation market. In the previous year, significant economic growth has been registered in many developing nations across the globe. The increasing population is one of the factors driving the growth of the global power generation market. Attractive growth opportunities and good potential will be provided by the nations like Mexico, Russia, Argentina, South Africa, South Korea, Indonesia, Thailand, Taiwan, China, Brazil, and India. The government policy is in these regions is supporting the growth of the global power generation market. Other favorable factors are the presence of renewable sources of energy production in most of these nations which have led to an increased amount of power generation through a sustainable source.  The offered opportunities by the developing countries have given chance to future market players of the power generation market.
  • Rise in urbanization: The rise in urbanization in developing countries have given the speedy increase in demand for electricity, which has eventually forced the respective governments across the world to revamp various initiatives to ensure adequate power supply on their country. 
  • Popularization of smart grid technologies: Smart grid technologies have gained popularity in the whole world due to the significant benefits in account to it efficiency and reliability. The surge in demand of smart grid has been expected as the major aspect that will affect the growth of the global power generation market in the upcoming years. 

Key Market Challenges

  • Old power generation infrastructure: The existing generation equipment and the system mostly rely on aging infrastructure they really struggle to meet the growing advance demand of electricity. The developing countries are especially suffering from infrastructure aging problems as the replacement requires high investment, so adding a significant inhibitor to the market. 
  • The decline in investment: The decline in investment in the power sectors is the biggest challenge in market growth. The investment in the coal-fired plant had already descended by 11% and the investment in gas-fired generation is affected by delays in gas-rich emerging economies. 

Key Market Opportunities

  • Conventional biomass combustion causes various environmental pollution and is primarily used in rural areas of most developing countries for various purposes like cooking and small agricultural activities.  So to avoid the population hazards it has been the largest opportunity for the power generation market growth. 

Type Insights

The fossil fuel segment has dominated the power generation market in recent times with the maximum share in terms of the revenue generated through this type of power generation. On average, about 57% of the total share is held by the fossil fuel segment. The fastest compound annual growth rate will be registered by the solar segment in the anticipated time frame as this type of segment is gaining popularity due to several benefits offered by this type and the easy availability of solar energy will have a positive impact on the growth of this segment.

End-User Insights

The power generation market is segmented by end-user into Industrial, Commercial, Residential, and Transportation. As compared to all the other end users of electricity largest share is held by the residential segment in the power generation market and this accounts for 36% of the entire share in the market. 

The fastest growth will be registered by the transport segment as the use of electricity in this segment has grown tremendously in recent times due to an increased need for transportation for various reasons. Industrial use of electricity in various sectors like the healthcare sector, chemical industries, food, and beverages industry, and manufacturing industries have shown significant growth and this is expected to be the case during the forecast period.

Source Insights

Based on the source, the non-renewable source segment holds a dominant position as compared to the other source and this accounts for 69% of the total share of the global power generation market. The highest compound annual growth rate will be registered by the renewable source of the power generation market.

Power Generation Market Share, By Source, 2022 (%)

Renewable sources provide constant energy and the use of advanced technologies like storage and carbon capture are expected to play a significant role in the growth of this market. 

Grid Insights

Based on the type of grid used the on-grid segment has occupied the maximum market share of about 98% and it shall continue to grow during the forecast period. In the coming years there shall be an increase in the popularity of the off-grid segment and several favorable factors will influence the growth of this segment in the long run leading to a higher compound annual growth rate in the years to come. 

Regional Insights

In the past maximum share was held by the Asia Pacific region as the amount of power generated in this region was maximum. The growth of this market has been increasing in European and North American nations. Africa and Middle East regions will show significant growth in the years to come. The government support received by the countries in the Asia Pacific region will lead to major improvements in various projects undertaken by the government. The growing demand for power generation will have a significant impact on developing the infrastructure required for new projects.

Power Generation Market Share, By Region, 2022 (%)

Renewable energy sources are being utilized in a sound manner and this is expected to play a significant role in the growth of the power generation market of the Asia Pacific region during the forecast period. The use of solar energy and wind energy for power generation in the Asia Pacific region is largely because a major part of its area comes under the equator. Such favorable conditions will have a significant impact on the growth of this market in the Asia Pacific region. Technological advancements in the North American region will lead to employing efficient power generation activities for the increasing demand. 

Recent Developments

  • Smart power India and Adani solar signed a memorandum of understanding which is a non-commercial and non-financial agreement which aims at promoting the use of solar panels for the rural areas in India.
  • Commercial operations for a power generation plant located in Rajasthan which is about 80 megawatts shall provide a total of 160 megawatts and this announcement was made in the year 2021.
  • Assam government entered into a collaboration with SJVN in 2022 for developing the projects of renewable energy and hydro energy for this state.
  • The government of UK announcement in the year 2021 of making an investment of U.S. dollar 1.2 billion by using private investments and public investments for the green project undertaken by India and they shall support in reaching this nation's target of gaining 450 gigawatts of renewable energy by the end of 2030.

Power Generation Market Companies:

  • 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

Segments Covered in the Report

By Type 

  • Hydroelectricity
  • Fossil Fuel Electricity
  • Nuclear Electricity 
  • Solar Electricity
  • Wind Electricity
  • Geothermal Electricity 
  • Biomass Electricity
  • Other Electricity 

By End-User

  • Industrial
  • Commercial
  • Residential
  • Transportation

By Source

  • Conventional/Non-Renewable Source
  • Renewable Source

By Grid

  • Off Grid
  • On Grid

By Geography

  • North America
  • Europe
  • Asia-Pacific
  • Latin America
  • The Middle East and Africa

Frequently Asked Questions

The global power generation market size was accounted at USD 1.8 trillion in 2022 and it is expected to reach around USD 3.9 trillion by 2032.

The global power generation market is poised to grow at a CAGR of 8.04% from 2023 to 2032.

The major players operating in the power generation market 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 and Others.

The driving factors of the power generation market are an increase in investment of various market players, increase in population, rise in urbanization and popularization of smart grid technologies.

North America region will lead the global power generation market during the forecast period 2023 to 2032.

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