Power Generation Market

Global Power Generation Market Size (2024-2032):

The size of the global power generation market was worth USD 1.98 Trillion in 2023. The global market is anticipated to grow at a CAGR of 8% from 2024 to 2032 and be worth USD 3.96 Trillion by 2032 from USD 2.14 Trillion in 2024. 

Current Scenario of the Global Power Generation Market

Power generation is done using conventional/non-renewable and renewable energy sources. While fossil fuels have dominated the world's energy production capacity, alternative energy sources have been highly adopted in recent years. The growing call for electricity has driven power generation activities. Conventional energy sources include fossil fuels and nuclear energy, while renewable energy sources include traditional biomass, hydroelectric energy, biofuels, solar, wind, and geothermal energy, among others. Electricity generation is one of the most important public services in any modern community. The power generation industry has two main tasks, namely producing energy and distributing it in a predefined network. These two aspects are currently the subject of much research due to their significant direct impact on human life. Therefore, securing new investments to improve production and distribution processes and, therefore, coming up with progressive designs for the general power supply system (EPS) will likely remain a key focus of the worldwide power generation marketing in the following years.

MARKET TRENDS

Traditional biomass combustion is a source of electricity that is employed mainly in rural areas of developing countries for purposes such as cooking and small-scale agricultural and industrial processing. Regulatory initiatives and standards to control non-renewable energy consumption are predicted to contribute to the growing call for alternative sources. Power generation capacity is escalating, with renewable accounting for more than 25% of the worldwide share in the review period. Although renewable power capacity has grown rapidly, the segment's share has grown slowly. This is mainly due to the fact that renewable capacity in the form of wind, solar, etc., operates with low capacity factors.

MARKET DRIVERS

The growing need for uninterrupted power supply, especially in developed and developing countries, is majorly attributed to holding the dominant share of the market.

The need to supply power without any outrages is one of the crucial things in urban cities. The presence of a high number of healthcare facilities and others that completely depend on the continuous power supply is ascribed to the rising demand for huge power generation in urban areas. According to the World Nuclear Association, the demand for electricity has continuously increased in the past many years, with the eventual growth of the population across the world. United Nations (UN) is estimating that the world’s population will reach 9.8 billion by 2050 from 8 billion in 2024. The number of people shifting to urban cities is also quietly increasing, and two-thirds of the world’s population will live in urban areas, as per the UN survey.  

In addition, the soaring temperatures due to climatic changes across the world are gearing up the need for the installation of air conditioners, which need a high power supply. The emerging demand for air conditioner installation all across the world is one of the top driving factors for the need to generate electricity in the coming years. According to the International Energy Agency, the demand for air conditioners to be installed in buildings will grow to 5.6 billion by 2050, which is a sign of the requirement for a huge supply of electricity in the coming years. All these statistics are predicted to showcase wonderful growth opportunities for the power generation market during the forecast period.  

MARKET RESTRAINTS

Lack of complete knowledge in completely adopting the new technology that eliminates the emissions of greenhouse gases, especially in developing and undeveloped countries, is likely to limit the strong growth rate of the market.

Government authorities are imposing stringent rules and regulations for clean electricity using advanced technology where small and medium-scale industries are not liable for adopting all the new technologies, which is also a factor that is straightly impeding the growth rate of the market. In addition, difficulty in understanding the complexity of the power grids due to the lower number of skilled labor in the industries also causes a decline in the growth rate of the power generation market.

MARKET OPPORTUNITIES

The trend towards the production of power through low-emitting source techniques is ascribed to prompting the growth rate of the power generation market.

The need to reduce environmental pollution by producing power through sustainability is all set to create growth opportunities for the market during the forecast period. According to the World Health Organization (WHO), the world is at high risk due to air pollution that is showing diverse effects in the climatic conditions, which is attributed to adopting new changes in producing power. Also, the pollution majorly arises from the industrial areas especially due to power generation. Due to this, the government is already taking several initiatives and steps to combat the emissions of harmful gases that influence the growth rate of the market during the forecast period. Swift changes in installing various equipment that produces clean energy with merely very less carbon emissions are likely to fuel the growth rate of the power generation market.  

MARKET CHALLENGES

Integration of modern technology with the present systems in the energy sector is a slightly difficult task and also needs huge investments from both government and non-government organizations. It is acting as a big challenging factor for the growth rate of the power generation market. 

REPORT COVERAGE

SEGMENTAL ANALYSIS

Global Power Generation Market Analysis By Application

The industrial segment is leading with the largest share of the market. The growing number of industries is augmented to elevate the need for a continuous power supply without outrages, which is a major factor for the market to grow in industrial applications. Residential and commercial segments are inclined to have a prominent growth rate during the forecast period 2024-2032. Expansion of commercial buildings like malls, shops, and others, especially in urban cities, requires a huge amount of power, which is escalating the growth rate of the market in these applications.

Global Power Generation Market Analysis By Source

The renewable power segment is leading with the largest share of the power generation market. The importance of producing clean and effective electricity without impacting the environment is dominantly elevating the growth rate of the power generation market. Great deals between the companies to produce electricity using renewable energy sources are ascribed to gearing up the opportunities for the power generation market in the coming years. For instance, Jubilee and Lunsemfwa Hydro Power Company collaborated on a renewable Energy Deal in 2024 in South Africa. The Lunsemfwa Hydro Company is one of the leading companies in South Africa that produce electricity using renewable sources. It agreed to supply power for the Jubilee for three years. The Solar PV segment is gearing up to withstand the highest CAGR by the end of 2032. 

REGIONAL ANALYSIS

Regionally, the Asia-Pacific is likely to be one of the major contributors to the global power generation market in the coming years.

The growing call for advanced power generation and distribution infrastructure in Southeast Asian countries and proactive government support to improve power generation and distribution networks in dynamic economies such as India and China are the main drivers of the power generation business of Asia Pacific. The steady development of the renewable energy sector is likely to be a key feature of the Asia-Pacific market in the coming years. Though 70% of electricity is produced using fossil fuels in China, the trend towards the use of renewable sources in power plants is constantly growing; where more than half of the power capacity is now generated in China, which is clean and emits very little carbon emissions. India is also elevating the demand for power production using modern technology to settle environmental pollution. India is the world’s third-largest renewable energy producer, which is certainly a prominent factor in the power generation market's growth. The rising population in urban cities is escalating the need for the huge production of electricity, which is likely to promote huge growth opportunities for the market in this region. Huge investments in power generation by the public and private sectors in India are accumulated to leverage the prominent share of the market. As of July 2024 statistics, India installed renewable energy sources with a capacity of 197.20 GW, including large hydropower, which is likely to surge the growth rate of the market in the coming years.  

North America has significant potential in terms of wind and solar energy production.

Government regulations aimed at reducing greenhouse gas emissions have improved the use of renewable sources to generate electricity, resulting in a huge boost in the decentralized power generation market. Federal tax reform in the United States provides incentives to improve the energy efficiency of power systems with the goal of reducing overall electricity call and carbon emissions. Developed countries like the US and Canada are posing huge opportunities for the production of clean energy using modern technologies. The US and Canada are the major countries in swiftly launching innovative technology, especially in power generation. Iconic hydropower projects like Hoover Dam greatly emphasize the development of new renewable energy technologies. Canada is also one of the major countries that are contributing huge opportunities for the power generation market as 73% of the electricity produced in this country is from hydropower with the presence of dams that have quite a history of more than 100 years.  

Europe's power generation market is likely to hit the highest CAGR by the end of the forecast period. European Union is aiming to make the climate neutral by the end of 2050, which is free from greenhouse gas emissions. With the target to reach 55% of emissions cut by 2030, the plan to totally adopt decarbonization of electricity production, where the use of only renewable sources to produce electricity and completely eradicate the use of coal-fired powerhouses, is attributed to intensifying the growth rate of the market.  

The rest of the world markets, including Latin America and the Middle East, are also predicted to show high market potential during the forecast period. Companies operating in the power generation industry are divided according to the product segment they serve, and mergers and acquisitions are seen as key expansion strategies. 

KEY PLAYERS IN THE GLOBAL POWER GENERATION MARKET

Companies playing a prominent role in the global power generation market include Siemens, General Electric, ABB, Schneider Electric, SMA Solar Technology, Huawei Technology Bloom Energy, and Others.

RECENT HAPPENINGS IN THE GLOBAL POWER GENERATION MARKET

• In 2024, Siemens got a deal of USD 1.5 Billion from Saudi Arabia to strategically be involved in the implementation of modern and highly efficient gas-fired power plants, which will be a big step towards achieving the goal of net zero emissions by 2060. Siemens had already secured a pivotal role in generating 4GW of power for the United Kingdom earlier, and it is likely to follow the same strategies in Saudi Arabia to reach the goal.  
• In 2024, General Electric completed the modernization of the four gas turbines at Kuwait’s Sabiya power plant, which is exceptional to boost efficiency and increase output. The company is likely to meet the growing demand for electricity with these modernizations.

DETAILED SEGMENTATION OF THE GLOBAL POWER GENERATION MARKET INCLUDED IN THIS REPORT

This global power generation market research report has been segmented and sub-segmented based on application, source and region.

By Application

• Commercial
• Industrial
• Residential

By Source

• Non-Renewable
• Renewable Power
• Solar PV
• Others

By Region

• North America
• Europe
• Asia Pacific
• Latin America
• Middle East & Africa