Power Generation Market - Historic Data (2019-2024), Global Trends 2025, Growth Forecasts 2037
Power Generation Market in 2025 is assessed at USD 2.33 trillion. The global Market size was around USD 2.16 trillion in 2024 and is likely to expand at a CAGR of more than 9.6%, surpassing USD 7.11 trillion revenue by 2037. Asia Pacific is estimated to reach USD 2.42 trillion by 2037, driven by rising demand for power due to urbanization and industrialization.
The burgeoning population globally and the growing power consumption is expected to drive market growth in the upcoming years.
The global energy sector's transition from fossil-based systems of energy to clean sources of energy and the increasing government initiatives all over the world for creating new energy infrastructure are facilitating rapid growth and advancement in power generation.
Moreover, as the ability to create energy from renewable resources such as wind, solar, and hydro has been made possible by technological advancements, the market is further anticipated to rise to further eliminate the utilization of conventional fossil fuels.
Power Generation Sector: Growth Drivers and Challenges
Growth Drivers
- Growing Demand for Electricity – The increasing industrial activities across the globe and the rise in demand for energy-intensive activities such as manufacturing, and mining together with the augmenting urban settlements are propelling the electricity demand. For instance, on the account of rise in world population, it is predicted that the energy demand would increase globally by more than 40% over the next 20 years. Hence, this rising demand for energy is expected to expand the investment in power generation to discover various types of technology for electricity production.
- Increasing Concern About Greenhouse Gas Emissions – For instance, in the U.S. alone, carbon dioxide (CO2) emissions from energy increased by over 290 million metric tons in 2021. The increasing air pollution across the globe and the rising need for cleaner and more sustainable energy sources are predicted to drive power generation market growth. Moreover, the rising awareness among people about the damaging effects of greenhouse gas emissions on the environment and the increasing adoption of steam boilers, wind turbines, biofuels, and other technologies to produce electricity is fueling market growth.
Challenges
- Regulatory Compliance - The development of new power generation technology must be in adherence to the emerging climate change regulations which is one of the major factors predicted to slow down the market growth. As the demand for clean energy is advancing to help mitigate climate change, funding new power plants with developed technology that have less environmental impact is a major challenge.
- Exorbitant Initial Cost
- Deteriorating Infrastructure for Electricity Production
Power Generation Market: Key Insights
| Report Attribute | Details |
|---|---|
|
Base Year |
2024 |
|
Forecast Year |
2025-2037 |
|
CAGR |
9.6% |
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Base Year Market Size (2024) |
USD 2.16 trillion |
|
Forecast Year Market Size (2037) |
USD 7.11 trillion |
|
Regional Scope |
|
Power Generation Segmentation
Type (Steam Turbine, Diesel Generator, Nuclear Reactor, Solar Power, Micro CHP)
The steam turbine segment in the power generation market is estimated to gain the largest revenue share of 40% by the year 2037 owing to the increasing electricity demand is fueling segment domination. For instance, the global energy demand is increasing by over 1% per year. To address the rising power demand, developing nations are increasing the utilization of steam turbines for steam power plants with the target of generating electricity. In addition, the conversion of thermal energy into mechanical energy by steam turbines is quite effective, since they can transform up to 90% of the heat energy into mechanical energy, which makes them a desirable alternative for generating electricity.
The nuclear reactor segment is projected to witness the highest growth through 2037, owing to the increasing emphasis being placed to reduce global carbon emissions with the rising erection of nuclear power plants worldwide.
Application (Residential, Industrial, Commercial)
Power generation market from the industrial segment is predicted to pool in significant revenue during 2037. To satisfy the energy demand, the industrial sector makes use of a variety of power generation. For instance, by harnessing the power of steam, steam turbines are utilized to produce energy in industrial settings. Besides this, CHP systems are frequently utilized in industrial settings, such as manufacturing factories, where there is a large need for both power and heat. All such factors are predicted to bring numerous opportunities for the growth of the segment in the upcoming years.
Our in-depth analysis of the global market includes the following segments:
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Type |
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Application |
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Vishnu Nair
Head - Global Business DevelopmentCustomize this report to your requirements — connect with our consultant for personalized insights and options.
Power Generation Industry - Regional Synopsis
APAC Market Forecast
The power generation market in Asia Pacific is projected to largest share of about 34% by the end of 2037. The growing population, urbanization, and industrialization in the region are driving up the demand for power in emerging countries such as China and India. The need for power in India dramatically grew by over 8% in 2022. To increase the effectiveness and dependability of their power grids, technologies such as smart grid technology that allows for more effective and efficient distribution of power, by reducing wastage are in demand in the Asia Pacific region.
Further, the growing demand for renewable energy sources, such as solar, wind, hydro, and geothermal, is also anticipated to contribute to the market growth in the region.
North American Market Statistics
The power generation market in North America is estimated to be the second largest, registering a share of about 28% by the end of 2037. The growth of the market can be attributed majorly to the increasing adoption of renewable energy sources including wind, solar, and hydropower specifically in the U.S. and Canada to meet the increasing energy demands in the region. Almost 20% of the total electricity in the United States is generated by renewable sources.
Moreover, the surging investment in new infrastructure, such as transmission lines and energy storage facilities to enable the grid integration of renewable energy sources in the region and the availability of a large number of power plants is also anticipated to contribute to the market growth in the region.
Companies Dominating the Power Generation Landscape
- Envision Group
- Company Overview
- Business Strategy
- Key Product Offerings
- Financial Performance
- Key Performance Indicators
- Risk Analysis
- Recent Development
- Regional Presence
- SWOT Analysis
- Alstom S.A.
- General Electric Company
- DuPont de Nemours, Inc.
- Siemens AG
- The Dow Chemical Company
- Cummins, Inc.
- Tokyo Electric Power Company Holdings (TEPCO)
- ExxonMobil
- ABB Ltd.
Recent Developments
- Envision Group collaborated with Analog Devices, Inc., to allow new levels of wind turbine safety by improving real-time monitoring of vibration, tilt, and other information that may be utilized to guide safer windmill operation and construction.
- DuPont de Nemours, Inc. acquired Rogers Corporation to strengthen its position in innovative materials. Further, these efforts will also accelerate top-line growth, strengthen operating EBITDA margins, and significantly improve cross-cycle earnings stability.
- Report ID: 3479
- Published Date: May 08, 2025
- Report Format: PDF, PPT
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Power Generation Market Report Scope
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