Power Generation Technologies Market Analysis by Type (Steam Turbine, Diesel Generator, Nuclear Reactor, Solar Power, Micro CHP, and Others); and by Application (Residential, Industrial, and Commercial) – Global Supply & Demand Analysis & Opportunity Outlook 2023-2035
Buy Now Report ID: 3479 | Published Date: Apr 13, 2023
The global power generation technologies market size is estimated to reach ~USD 4000 Billion by the end of 2035 by growing at a CAGR of ~9% over the forecast period, i.e., 2023 – 2035. In addition to this, in the year 2022, the market size of power generation technologies was ~USD 1800 Billion. The growth of the market can be attributed to the increasing demand for renewable energy. Further, incentives and regulations are being implemented by governments all over the world to promote the use of renewable energy, which is also expected to add to the market growth. In 2020, the demand for all other fuels decreased while the usage of renewable energy climbed by over 2%.
In addition to these, factors that are believed to fuel the market growth of power generation technologies include the rise in advancement in power generation technologies. For instance, the ability to create energy from renewable resources such as wind, solar, and hydro has been made possible by technological advancements, making these sources more competitive with conventional fossil fuels.
|
Base Year |
2022 |
|
Forecast Year |
2023-2035 |
|
CAGR |
~9% |
|
Base Year Market Size (2022) |
~ USD 1800 Billion |
|
Forecast Year Market Size (2035) |
~ USD 4000 Billion |
|
Regional Scope |
|
Growth Drivers
Growing Industrialization – On account of the increasing industrial activities across the globe, the demand for energy-intensive activities such as manufacturing, mining, and transportation also increases, which in turn is expected to expand more in the upcoming years. As of 2023, India's industrial production increased by an average of 6%.
Rising Demand for Electricity – It is expected that as the world's population continues to grow, the demand for energy also increases. Increased population increases the need for electricity to run homes, companies, and industries. The global demand for energy is increasing by over 1% per year, reaching nearly 50% of this sector by 2050.
Increasing Greenhouse Gas Emissions – The increasing air pollution across the globe is anticipated to drive market growth. Further, there is a rising need for cleaner and more sustainable energy sources as people become more conscious of the damaging effects of greenhouse gas emissions on the environment. According to the most recent data, in the U.S. carbon dioxide (CO2) emissions from energy increased by over 290 million metric tonnes in 2021.
Growing Urbanization – It is expected as more people are moving to urban areas the demand for energy to power buildings, transportation systems, and other infrastructure in the cities has increased, which is anticipated to drive market growth. By 2050, more than 65% of the world's population, is anticipated to reside in cities.
Challenges
The global power generation technologies market is segmented and analyzed for demand and supply by type into steam turbine, diesel generator, nuclear reactor, solar power, micro CHP, and others. Out of the six types of power generation technologies, the steam turbine segment is estimated to gain the largest market share in the year 2035. The growth of the segment can be attributed to the increasing demand for energy. To address the rising demand for energy, developing nations are turning more and more to steam turbines, as it is an effective approach to satisfy this need. 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. On the account of rise in world population, it is predicted that the demand for energy would increase globally by more than 40% over the next 20 years.
The global power generation technologies market is also segmented and analyzed for demand and supply by application into residential, industrial, and commercial. Amongst these three segments, the industrial segment is expected to garner a significant share in the year 2035. To satisfy the demand for energy, the industrial sector makes use of a variety of power generation technologies. 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. This, as a result, is anticipated to create numerous opportunities for the growth of the segment in the coming years.
Our in-depth analysis of the global power generation technologies market includes the following segments:
|
By Type |
|
|
By Application |
|
The market share of power generation technologies in Asia Pacific, amongst the market in all the other regions, is projected to be the largest share by the end of 2035. The growth of the market can be attributed majorly to the increasing demand for electricity. For instance, the growing population, urbanization, and industrialization in the region are driving up the demand for power. To increase the effectiveness and dependability of their power grids, smart grid technology is also in demand in the Asia Pacific region. This technology allows for more effective and efficient distribution of power, by reducing wastage. 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. In addition, the region's expanding industrial sector is also anticipated to boost market growth during the forecast period. The need for power in India dramatically grew by over 8% in 2022.
The North American power generation technologies market is estimated to be the second largest, share by the end of 2035. The growth of the market can be attributed majorly to the increasing adoption of renewable energy. The region's energy demands are increasingly being met by renewable energy sources including wind, solar, and hydropower. In addition, in order to enable the grid integration of renewable energy sources in the region, investments have been made in new infrastructure, such as transmission lines and energy storage facilities. Further, the availability of a large number of power plants is also anticipated to contribute to the market growth in the region. In addition, the region's increasing demand for energy, and growing industrialization are also anticipated to boost the market growth during the forecast period.
Further, the market in the Europe, amongst the market in all the other regions, is projected to hold a majority of the share by the end of 2035. The growth of the market can be attributed majorly to the increasing demand for power generation technologies such as smart grids, and energy storage systems. There is a rising need for innovative power-generating technologies in the region, as these innovations aid in increasing energy efficiency and grid integration of renewable energy sources. For instance, smart grid technology is being applied in the area to control energy demand, integrate renewable energy sources such as solar and wind into the system, and boost the infrastructure's overall effectiveness. Further, the growing demand for electricity is also anticipated to contribute to the market growth in the region.
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.
In 2023, market players might incur losses due to huge gap in currency translation followed by contracting revenues, shrinking profit margins & cost pressure on logistics and supply chain.
Controlling Inflation has become the first priority for global economies from last quarter of 2022 and to be followed in 2023. With skewed economic situations, rise in interest rate by governments to control spending and inflation, spiked oil and gas prices, high inflation, geo-political issues including U.S. & China trade war, Russia-Ukraine conflict to intensify the global economic issues.
The interest rates in the U.S. may be less sensitive in 2023 as compared to 2022; sigh of relief for businesses. Positive business sentiments, healthy business balance sheets, growth in construction spending (private construction value in 2022 stood at $1,429.2 billion, 11.7 percent (±1.0 percent) above the $1,279.5 billion spent in 2021, Residential construction in 2022 was $899.1 billion, up by 13.3 percent (±2.1 percent) from $793.7 billion in 2021, non-residential construction touched $530.1 billion, 9.1 percent (±1.0 percent) above the $485.8 billion in 2021.) showcases minimal impact of recession in the country.
Similarly, spiked spending in the European and major Asia economics including, India, China & Japan to showcase less impact on the global demand.
Author Credits: Payel Roy, Dhruv Bhatia
Ans: Rise in advancement in power generation technologies and the growing industrialization are the major factors driving the market growth.
Ans: The market size of power generation technologies is anticipated to attain a CAGR of ~9% over the forecast period, i.e., 2023 – 2035.
Ans: Slow adoption of renewable energy, and exorbitant initial cost are estimated to be the growth hindering factors for the market expansion.
Ans: The market in the Asia Pacific region is projected to hold the largest market share by the end of 2035 and provide more business opportunities in the future.
Ans: The major players in the market are Alstom S.A., General Electric Company, DuPont de Nemours, Inc., Siemens AG, The Dow Chemical Company, Envision Group, and others.
Ans: The company profiles are selected based on the revenues generated from the product segment, geographical presence of the company which determine the revenue generating capacity as well as the new products being launched into the market by the company.
Ans: The market is segmented by type, application, and by others
Ans: The steam turbine segment is anticipated to garner the largest market size by the end of 2035 and display significant growth opportunities.
Submit Your Request For Proposal (RFP)
