The global power generation market growth is expanding at a CAGR of 8.04% from 2023 to 2032 and it is expected to reach valuation around USD 3.9 trillion by 2032.

The rising population and growing energy demand due to surging industrialization are driving the demand for power generation. The rising disposable income of the people coupled with improvement in the standard of living is increasing the demand for power. Electricity generation is gaining momentum owing to the rising energy demand. Rising environmental concern is shifting the demand toward the renewable energy market. The rapid advancement of technology in developing economies is shifting the demand toward a sustainable source of energy. Smart grid technologies are also gaining immense popularity as they are reliable and efficient. Electricity across various end-user industries is expected to propel the overall demand during upcoming years.

The global power generation market size accounted for USD 1.8 trillion in 2022, and it is projected to be worth around USD 3.9 trillion by 2032 with a CAGR of 8.04% from 2023 to 2032.

As the need for power expands to the automobile sector the demand for energy is likely to experience a major surge. The Indian power sector is also experiencing transformation owing to the increasing penetration of renewable power. The prime minister of the country has set a target to achieve 450GW. Increasing penetration of the government of India towards 24/7 power for all along with rising initiatives such as Make in India is expected to drive the market growth.

Market Overview

The power generation market is expected to gain momentum during the upcoming years due to industrialization. Power generation can be carried out through conventional or renewable means. Rising awareness regarding the benefits of renewable energy is expected to drive the growth of the market. However, fossil fuels are dominating the overall power generation across the globe.

Increasing consumption of electricity in developing and developed economies owing to the rising disposable income is expected to create lucrative opportunities for market growth. Growing advancement of technology along with the development of infrastructure triggers the potential growth of the industry. Rising investment in research and development by the companies are also key drivers of the market.

Global power demand experienced growth in 2022 owing to the energy crisis due to Russia's invasion of Ukraine.

Asia Pacific led the market

Based on regions, the market is bifurcated into Europe, Latin America, North America, Africa, the Middle East, and Asia Pacific. The Asia Pacific acquired the maximum share in the overall market growth. The growth of the region is attributed to the increasing government initiatives leading to the improvement of various projects. Moreover, rising penetration towards the transition to renewable energy from traditional means.

European Union experienced a decline of more than 3% in 2022 owing to the high prices of energy in the region. Rising changes in weather and mild winder added to the downward burden on electricity consumption. However, the demand for electricity in India and United States grew. China's zero-COvid policy had a significant negative impact on its economy in 2022, and there is some ambiguity on how quickly it will develop its power sector.

Due to increased home consumption for both heating and cooling in the face of increased economic activity, the United States saw a significant 2.6% year-over-year increase in demand in 2022. China is anticipated to account for more than 40% growth in renewable generation followed by the EU in 15%. Global demand for electricity from natural gas and coal is anticipated to remain the same.

Middle Eastern economies will develop significantly, partially offsetting this decline.

Similarly, there will be an equal increase in Asia Pacific and a decrease in coal-fired production in Europe and the Americas. However, changes in the global economy, weather patterns, fuel pricing, and governmental policies continue to have an impact on the trends in fossil-fired power. Electricity share in China is also expected to rise to one-third by 2025.

Thermal power generation to dominate the market

Power is produced using a number of resources, including renewable energy sources like wind and sun as well as fossil fuels like coal and oil. Fossil fuels including coal, oil, and natural gas make up the majority of the energy mix used to generate electricity; together, they account for almost 65% of the world's energy mix.

Due to cheaper domestic fuel supply, coal makes up a significant portion of the power generation mix. Due to limitations in adding other conventional generation sources—hydro, nuclear, and gas—its proportion in the mix has risen over time.

The most popular type of thermal power plant, coal thermal power plants are predicted to account for the biggest portion of the world's electricity production by 2025.

Aging power plants will likely be replaced by more efficient technologies like Ultra Supercritical Coal Technology, which minimizes emissions (per KW). According to the BP Statistical Review of World Energy 2022, the biggest portion of the world's total power generation will come from coal-based thermal power plants in 2021. Coal continued to be the primary fuel used to generate electricity globally in 2021, with its share rising to 36% from 35.1% in 2020. The amount of electricity produced from coal in 2021 was 10244 TWh.

The state-owned electric company of Mexico, Comisión Federal de Electricidad (CFE), announced direct awards in March 2022 for five projects that will add 2.26 GW of gas-based power generation capacity.

Moreover, Wärtsilä and the Brazilian Ministry of Mines and Energy inked a contract in November 2021 for the supply of three gas engine power plants with a combined output of 150 MW. The projects will be carried out on an Engineering, Procurement, and Construction (EPC) basis at the UTE Luiz Oscar Rodrigues de Melo and UTE Viana 1 existing power plant sites as well as the UTE Povoaço 1 new power plant site, all of which are situated in the state of Esprito Santo in the Southeast region of Brazil.

Market Segmentation

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


• Middle East and Africa

Some of the prominent players 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 


• Centrica 

Get full access of this report@ https://www.precedenceresearch.com/checkout/2626

Call: USA - +1 9197 992 333 | IND - +91 93077 85324 | Email: sales@precedenceresearch.com