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
Power Generation Market: Key Insights
In 2018, the world’s total energy supply was 14282 Mtoe, wherein the highest share in terms of source was captured by oil, accounting for 31.6%, followed by coal (26.9%), natural gas (22.8%), biofuels and waste (9.3%), nuclear (4.9%), hydro (2.5%), and other (2.0%). Where there was an increase in energy demand in 2018, the year 2019 witnessed slow growth as the energy efficiency improved owing to decline in the demand for cooling and heating. However, in 2020, the electricity demand decreased by 2.5% in the first quarter of 2020 due to the outbreak of Coronavirus resulting in government imposed shutdowns in order to limit the spread of the virus, which was further followed by shutdown of numerous business operations impacting their growth. This also resulted in decline of 5.8% in the worldwide CO2 emissions which was recorded to be five times larger than the one recorded during the global financial crisis in 2009. However, in 2021, the demand for oil, gas and coal is estimated to witness growth, which is further projected to create opportunities for market growth. Moreover, rising environment degradation and awareness related to climate change is motivating many key players to employ sustainable energy strategies and invest significantly in environment-friendly power generation technologies with an aim to promote sustainable development among various nations around the world. Such factors are anticipated to promote the growth of the market in upcoming years.
|
Base Year |
2024 |
|
Forecast Year |
2025-2037 |
|
CAGR |
9.3% |
|
Base Year Market Size (2024) |
USD 2.16 trillion |
|
Forecast Year Market Size (2037) |
USD 6.86 trillion |
|
Regional Scope |
|
