Power Generation Market

Power Generation Market Size (2024-2029):

The Global Power Generation Market was valued at USD 1646.92 billion in 2023 and is projected to reach a valuation of USD 2033.89 billion by 2029, growing at a CAGR of 4.31% during the forecast 2024 to 2029.

Market Overview:

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 world population is the main driver of the global power generation market. With the help of the rapid urbanization of emerging regions, the increase in the number of consumers has led to a steady increase in the call for electricity. This has forced governments around the world to take proactive steps to ensure a stable power supply in their jurisdiction, resulting in a steady stream of investments in the power generation sector. This is likely to remain one of the main drivers of the worldwide power generation market for years to come. Expansion in the historical period was the result of higher electricity consumption in developed and developing countries, government initiatives for energy infrastructure, economic development in emerging economies, and improved energy technologies in the production of electricity. In the future, the escalated use of electricity in transportation and the expansion of the world economy will drive a market boom.

Market Restraints:

Factors that may hamper future power generation market expansion include rising interest rates, ageing power generation infrastructure, and environmental regulations.

Market Opportunities:

The growing call for smart grids is likely to be a key feature of the development of the global power generation market in the coming years. Smart grid technologies are becoming more popular around the world due to the great advantage they offer in terms of efficiency and reliability. Smart grids are already in use in developed regions such as North America and Western Europe and are predicted to enjoy greater adoption in developing countries in the coming years. This is a key advance for the worldwide power generation business, as it will improve almost every aspect of power distribution networks.

Market Challenges:

The biggest obstacle to market expansion is declining investment in different parts of the energy sector.

POWER GENERATION MARKET REPORT COVERAGE:

Market Segmentation:

Power Generation Market - By Application:

• Commercial
• Industrial
• Residential

Industrial power generation refers to applications in sectors such as manufacturing, food and beverage, chemicals, healthcare, etc. With the escalating call for a secure, sufficient and sustainable energy supply, the industrial segment is predicted to grow at a good pace during the foreseen period.

Power Generation Market - By Source:

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

Currently, the main non-renewable energy source is fossil fuels, which include coal, gas oil, and nuclear energy. Various non-renewable energy sources are considered more reliable than renewable energy sources because they can provide continuous power regardless of weather conditions.

Market Regional Analysis:

• North America - U.S., Canada.

• Europe - UK, France, Spain, Germany, Italy, Russia, Sweden, Denmark, Switzerland, Netherlands, Turkey, and Czech Republic & Rest of Europe.

• Asia Pacific - India, China, Japan, South Korea, Australia & New Zealand, Thailand, Malaysia, Vietnam, Philippines, Indonesia, and Singapore & Rest of APAC.

• Latin America - Brazil, Mexico, Argentina, and Chile & the Rest of LATAM.

• Middle East & Africa - KSA, UAE, Israel, rest of GCC countries, South Africa, Ethiopia, Kenya, Egypt, Sudan, rest of MEA.

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.

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.

The Asia-Pacific region is also estimated to experience a growing call for energy in countries such as China, India, and ASEAN member states. This is due to rapid industrialization and a growing call for energy in countries such as China. 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.

Market Key Players

1. Siemens
2. General Electric
3. ABB
4. Schneider Electric
5. SMA Solar Technology
6. Huawei Technology
7. Bloom Energy

Market Recent Developments:

• Mitsubishi Power has partnered with the Green Hydrogen Coalition and the Western Interstate Energy Board to launch a new initiative on H2 infrastructure development in the western United States.
• Tesla started an energy plan for the residents of the UK with electric vehicles (EVs), which encourages them to use batteries and solar power at home to offer flexible energy services to the grid.