Power Market Size
|Fastest Growing Market:||North America|
|Largest Market:||Asia Pacific|
|CAGR:||> 3 %|
*Disclaimer: Major Players sorted in no particular order
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Power Market Analysis
Power Market is projected to register a CAGR of over 3% during the forecast period.
COVID-19 negatively impacted the market in 2020. Presently the market has now reached pre-pandemic levels.
- Over the medium term, factors such as the growing electricity generation along with energy consumption demand, with changing power generation industry dynamics, are expected to drive the demand for the power market.
- On the other hand, the phasing out of coal-based power plants, which account for a major share of power generation around the globe, and volatile crude oil prices leading to delays in several upstream projects are expected to hinder the growth of the Power Market.
- Nevertheless, the increasing closures of fossil-fueled generation, an influx of wind, solar, small hydro, and other renewables-based power generation, rising electric vehicle and heat pump demand, and increasing export requirements via interconnectors have resulted in increased requirements for installation of Transmission and Distributions (T&D) lines, creating several opportunities for the major companies.
- Asia-Pacific is expected to be the largest market during the forecast period, owing to the high urbanization growth rate and growing electricity demand, mainly from China and India.
Power Industry Segmentation
Generally, electricity generation is the process of generating electric power from primary energy sources. For utilities in the electricity industry, electricity generation is the process of delivering (transmission, distribution, etc.) electricity to end users or storing it.
Power Market is segmented by power generation, power Transmission and Distribution (T&D), and geography. By power generation, the market is segmented into thermal, hydroelectric, nuclear, and renewables. The report also covers the market size and forecasts for the power market across major regions. The market size and forecasts for each segment have been done regarding installed capacity (GW).
|Power Generation - Source|
|Middle-East and Africa|
Power Market Trends
This section covers the major market trends shaping the Power Market according to our research experts:
Thermal Source for Power Generation to be the Largest Market
- Power generation uses a variety of sources ranging from fossil fuels like coal and oil to renewable sources like wind and solar. The energy mix for electricity generation is dominated by fossil fuels like coal, oil, and natural gas, with the three constituting almost 65% of the global energy mix.
- The power generation mix is heavily skewed toward coal, with a major contribution, because of cheaper domestic fuel availability. Its share in the mix has increased over the years due to constraints in adding other conventional generation sources—hydro, nuclear, and gas.
- Coal thermal power plants are the most widely used thermal power plant and are expected to have the largest share in the electricity power (global) supply, in 2025, in the world. More efficient technologies like Ultra Supercritical Coal Technology, which reduces pollution (per KW), are likely to replace aging power plants.
- As per BP Statistical Review of World Energy 2022, in 2021, a coal-based thermal power plant holds the largest share in total global power generation. Globally, the amount of power generated from coal remained the dominant fuel for power generation in 2021, with its share increasing to 36%, up from 35.1% in 2020. In 2021, coal-based power generation had reached 10244 TWh.
- In March 2022, Comisión Federal de Electricidad (CFE), the state-owned electric utility of Mexico, issued direct awards on five projects expected to add 2.26 GW of gas-based power generation capacity. Wartsila was awarded contracts to build two internal combustion engine power plants: the 429 MW CCI Mexicali Oriente plant in Baja California, and the 202 MW CCI Parque Industrial in Sonora. The other three are combined cycle plants: CCC San Luis Potosí (442MW) in CCC San Luis Potosí and the 932MW CCC Salamanca plant in Guanajuato, both awarded to Mitsubishi Power; and finally, CCC El Sauz ll (256MW) in Querétaro, with the contract going to TSK and Siemens Energy.
- In November 2021, Wärtsilä signed a contract with the Brazilian Ministry of Mines and Energy to supply three gas engine power plants with a combined output of 150 MW in Brazil. The projects are going to be delivered on Engineering, Procurement, and Construction (EPC) basis to existing power plant sites UTE Luiz Oscar Rodrigues de Melo and UTE Viana 1, as well as a new power plant UTE Povoação1, all located in EspíritoSanto, a state in Southeast Region of Brazil.
- Therefore, based on the factors mentioned above, the thermal source for power generation is expected to be the largest segment of the Power Market during the forecast period.
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Asia-Pacific to Dominate the Market
- Asia-Pacific is home to more than 50% of the global population and 60% of the large cities, and in the future, the continent will face increasing demand for power as millions of new customers are gaining access to electricity, with rapid population growth and industrialization. For instance, according to the BP Statistical Review of World Energy 2022, the primary energy consumption in the region increased from 220,48 exajoules in 2013 to 272.45 exajoules in 2021.
- Many countries in Asia-Pacific have inadequate transmission and distribution (T&D) networks, and hence, electricity is not available in some of the remote and rural areas. To bring electricity to these areas, the countries in the region are investing heavily in building a transmission line network.
- China dominates the power market in the region, and the energy sector is moving in a new direction by transitioning toward cleaner and sustainable energy sources to reduce carbon emissions and achieve net zero carbon emissions by 2060.
- Furthermore, as of 2021, China has the most significant renewable installed capacity globally. According to China's National Energy Administration, the country's renewable installed capacity reached 1.063 terawatts by the end of 2021, accounting for about 44.8% of the total installed generation capacity. In addition, China has set a target for about 1.2 terawatts of renewable installed capacity by 2030, which it is expected to reach comfortably, directly aiding the renewable power market in the nation.
- For instance, in 2022, the government of China announced that it plans to build 450 gigawatts of solar and wind energy power plants in the Gobi desert regions to achieve the renewable energy target by 2030.
- According to the International Energy Agency (IEA), India is the third largest energy-consuming country globally, owing to the rising income levels and improving standards of living, which directly aids the power market in the nation. Over the coming years, millions of Indian households will buy new appliances and air-conditioners, and to support the growth, the nation will have to add a large amount of power systems in the forecast period.
- In addition, the Government of India is investing heavily in renewable energy to reduce carbon emissions and undertaking various large-scale sustainable power projects, and promoting green energy heavily. As of 2021, India’s installed renewable energy capacity stood at 147 GW, and the country is targeting about 450 Gigawatt (GW) of installed renewable energy capacity by 2030, which will directly aid the market.
- For instance, in 2022, National Thermal Power Corporation (NTPC) and Bharat Heavy Electricals (BHEL) commissioned the largest floating solar power plant in India with a capacity of 100 MW in the state of Telangana, which will reduce the carbon dioxide emission by 2,10,000 tonnes per year.
- Therefore, based on the factors like expansions and upgrades, especially in the Asia-Pacific region, along with increased power demand, is expected to have a positive impact on the power market.
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Power Industry Overview
The Power Market is fragmented. Some of the major players (not in particular order) in the market include State Grid Corporation of China, Iberdrola, S.A., Tokyo Electric Power Company Holding Inc, NTPC Ltd, and Electricite de France S.A., among others.
Power Market Leaders
State Grid Corporation of China
Tokyo Electric Power Company Holding Inc
Electricite de France S.A.
*Disclaimer: Major Players sorted in no particular order
Power Market News
- July 2022: Dubai Electricity and Water Authority (DEWA) announced that the company aims to develop 4GW renewable energy projects with the Independent Power Producer (IPP). The total investment required in the projects would be more than AED 40 billion. DEWA is developing a solar project IPP model, The Mohammed bin Rashid Al Maktoum Solar Park. The project will have a production capacity of 5,000 MW by 2030.
- November 2021: Wartsila started the execution of 600 MW dual-fuel power plant projects in Mexico. The projects comprise a 400 MW facility, the Mexicali Oriente power plant located in Mexico’s Baja California state, and the Parque Industrial plant, a 200 MW generating unit located in Sonora, Mexico. The power plants are to be completed in phases during 2022 and 2023.
Power Market Report - Table of Contents
1.1 Scope of the Study
1.2 Market Definition
1.3 Study Assumptions
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET OVERVIEW
4.2 Installed Power Generation Capacity and Forecast in GW, till 2027
4.3 Electricity Generation and Forecast ,in TWh, Global, till 2027
4.4 Renewables Energy Mix, Global, 2021
4.5 Primary Energy Consumption, in MTOE, 2011-2021
4.6 Recent Trends and Developments
4.7 Government Policies and Regulations
4.8 Market Dynamics
4.9 Supply Chain Analysis
4.10 Porter's Five Forces Analysis
4.10.1 Bargaining Power of Suppliers
4.10.2 Bargaining Power of Consumers
4.10.3 Threat of New Entrants
4.10.4 Threat of Substitutes Products and Services
4.10.5 Intensity of Competitive Rivalry
5. MARKET SEGMENTATION
5.1 Power Generation - Source
5.2 Power Transmission and Distribution (T&D)
5.3.1 North America
5.3.4 South America
5.3.5 Middle-East and Africa
6. COMPETITIVE LANDSCAPE
*List Not Exhaustive
6.1 Mergers and Acquisitions, Joint Ventures, Collaborations, and Agreements
6.2 Strategies Adopted by Leading Players
6.3 Company Profiles
6.3.1 State Grid Corporation of China
6.3.2 Engie SA
6.3.3 Electricite de France S.A.
6.3.4 Iberdrola, S.A.
6.3.5 National Thermal Power Corporation Limited
6.3.6 NTPC Ltd
6.3.7 Tokyo Electric Power Company Holding Inc
6.3.8 Enel S.p.A.
6.3.9 Korea Electric Power Corporation (KEPCO)
6.3.10 Chubu Electric Power Co., Inc.
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
Power Market Research FAQs
What is the study period of this market?
The Power Market market is studied from 2019 - 2027.
What is the growth rate of Power Market?
The Power Market is growing at a CAGR of >3% over the next 5 years.
Which region has highest growth rate in Power Market?
North America is growing at the highest CAGR over 2021- 2026.
Which region has largest share in Power Market?
Asia Pacific holds highest share in 2021.
Who are the key players in Power Market?
State Grid Corporation of China, Iberdrola, S.A., Tokyo Electric Power Company Holding Inc, NTPC Ltd, Electricite de France S.A. are the major companies operating in Power Market.
Power Industry Report
Statistics for the 2023 Power market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Power analysis includes a market forecast outlook to 2028 and historical overview. Get a sample of this industry analysis as a free report PDF download.