Power Generation Market Trends

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