Power Generation Market size is anticipated to cross USD 4 Trillion by the end of 2035, growing at a CAGR of 9% during the forecast period, i.e., 2023-2035. In the year 2022, the industry size of power generation was over USD 1.8 Trillion. 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.
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Base Year |
2022 |
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Forecast Year |
2023-2035 |
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CAGR |
~9% |
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Base Year Market Size (2022) |
~ USD 1.8 Trillion |
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Forecast Year Market Size (2035) |
~ USD 4 Trillion |
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Regional Scope |
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Growth Drivers
Challenges
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 2035 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 2035, 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 2035. 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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APAC Market Forecast
The power generation market in the Asia Pacific is projected to be the largest with a share of about 34% by the end of 2035. 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 2035. 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.
Author Credits: Payel Roy, Dhruv Bhatia
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