Energy and Power

Power Generation Market

Global Industry Analysis and Forecast 2023-2030

Pages : 120

Base Year : 2022

Released Year : September 2023

Format :Pdf Ppt Xls

Report ID:KR159

Author : Saket A.

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Base Year


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Forecast Year


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Historical Years


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Market Value (2022)

USD 1.67 Trillion

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Forecasted Value (2030)

USD 2.48 Trillion

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CAGR (2023 - 2030)


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Fastest Growing Region (2023 - 2030)


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Largest Region


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By Source

Non-Renewable, Renewable

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By End-Use Sector

Industrial, Commercial, Residential

Market Perspective

The global Power Generation Market was valued at USD 1.67 trillion in 2022 and is projected to reach USD 2.48 trillion by 2030, growing at a CAGR of 5.05% from 2023 to 2030.

The global power generation market has experienced significant growth in recent years due to increasing energy demands, industrialization, urbanization, and the global transition towards cleaner energy sources. Fossil fuels have historically dominated the market, but the shift towards renewables is gaining momentum, driven by environmental concerns and government incentives. Solar and wind power installations have seen substantial growth in many regions. Additionally, advancements in technologies such as smart grids and energy storage solutions are shaping the market's future. Key players in the industry include power generation companies, equipment manufacturers, and utility providers. Geographically, Asia-Pacific holds a substantial market share due to its rapid economic growth and infrastructural developments.

Analyst’s Review on Power Generation

The global power generation market witnessed a remarkable transformation in 2021 driven by the growing demand for sustainable energy solutions. Renewable sources, especially solar and wind power, played a significant role in reshaping the industry landscape. The momentum towards decarbonization and energy storage solutions showcased the sector's commitment to a cleaner and more efficient future. Despite challenges posed by conventional energy sources, the market's trajectory highlighted a promising shift towards a more sustainable and environmentally responsible power generation ecosystem.

Market Definition

The power generation market is a significant industry that encompasses electricity production, transmission, and distribution. It is a vital component of every economy, and its importance cannot be overstated.

The power generation market majorly comprises non-renewable and renewable sources of energy. Non-renewable sources include coal, natural gas, oil, and nuclear energy, while renewable sources include wind, solar, geothermal, and hydroelectric power, among others. The power generation market encompasses several segments, including generation equipment, transmission systems, distribution networks, and related services. Generation equipment includes turbines, engines, generators, and other equipment used in power generation. Transmission systems are responsible for transporting energy generated at power plants to the end-user, while distribution networks bring power from transmission lines to homes, businesses, and public utilities.

Market Dynamics

Several factors drive the progress of the global power generation market. The rising global population and urbanization contribute to increased electricity consumption while growing industrial activities and infrastructural projects have further increased the consumption and demand for the generation of power. Additionally, the push towards reducing carbon emissions and combating climate change has fueled the adoption of renewable energy sources. Government incentives, regulations, and initiatives promoting clean energy has played a vital role in driving the market's growth. Advancements in energy storage technologies enhance grid stability and further promote renewable integration. Furthermore, the need for energy security and diversification of energy sources drives investment in the power generation sector.

Rapid advancements in technology, such as improved solar panels, wind turbines, and energy storage systems, create opportunities for more efficient and cost-effective renewable power generation. The increasing focus on decentralized and off-grid solutions presents new avenues for renewable energy adoption in remote areas.

Furthermore, collaborations between countries and international organizations can enable energy trade and cooperation, enhancing energy security and resilience. These factors are anticipated to offer lucrative growth opportunities to established as well as new players during 2023 – 2030.

Despite these opportunities, the market is likely to face several challenges such as high capital costs and initial investments, and associated operational & maintenance costs. In certain developing or underdeveloped countries, the integration of intermittent renewable sources into existing grids is another factor that impacts market growth. Integration of power requires robust storage and grid management solutions that are not easily available in many countries. The variability of renewable energy production may lead to imbalances in supply and demand. Moreover, geopolitical tensions and trade disputes can impact the global supply chain for power generation equipment, or trade of power between two or more countries.

Segmentation Analysis

Based on source, the power generation market is bifurcated into non-renewable and renewable sources. Non-renewable energy sources have dominated the power generation market for decades and remain the primary source of power for many countries. However, there has been a shift towards renewable energy sources in recent years, driven by environmental concerns and the need to reduce greenhouse gas emissions. Renewables are increasingly becoming a cost-competitive alternative to non-renewables, and renewable energy sources are expected to account for an increasing share of the power generation market in the coming years.

Non-renewable sources have been dominating the segment in recent years and is estimated to continue its dominance throughout the forecast period. However, renewable sources have shown exponential rise in the generation of electricity owing to increasing climate-related concerns and imposition of government regulations.

Based on end-user, the power generation market is categorized into industrial, commercial, and residential. The Industrial sector is anticipated to dominate the segment owing to evolving industrial infrastructure in developed as well as developing countries. In 2022, the industrial sector consumed 37% of total power generated from renewable and non-renewable sources.

Geographical Analysis

Based on regional analysis, the global power generation market is classified into North America, Europe, Asia Pacific, MEA, and Latin America.

North America is anticipated to hold the second-largest share in the global market due to a combination of several key factors. The region has a robust and mature energy infrastructure, which was established over decades of industrialization and economic growth. Additionally, North America benefits from a diverse and abundant energy resource base such as significant reserves of fossil fuels like coal, natural gas, and oil, which have historically been the primary sources of power generation in the region. The emergence of shale gas revolutionized the natural gas industry, making it a cost-effective and relatively cleaner option for power generation.

Asia-Pacific dominated the global market in 2022 and is estimated to retain its position over 2023 – 2030. It is also the fastest-growing region in the global power generation market due to a confluence of various compelling factors, such as the region's rapid economic growth and urbanization. This has led to a surge in energy demand as countries in Asia-Pacific continue to industrialize and modernize, the need for electricity to power industries, infrastructure, and urban centers has increased substantially.

Moreover, the region is home to a large and burgeoning population, which further drives electricity consumption. Rising incomes and improving living standards in many Asian countries have led to an increase in energy-intensive activities, such as air conditioning, electronic devices, and transportation. As reported by IEA, China, India, and Southeast Asia are collectively expected to account for more than 70% of the growth in global electricity demand by 2025.

Competitive Landscape

The global power generation industry study report will provide valuable insight with an emphasis on the fragmented nature of the global market. Prominent players are focusing on several key business strategies such as partnerships, mergers & acquisitions, product innovations, and joint ventures to expand their product portfolio and increase their respective market shares across different regions. Strategic initiatives related to expansion and investments encompass various activities such as investing in research and development, establishing new manufacturing facilities, and optimizing the supply chain. The major players in the power generation market are

  • General Electric (GE)
  • Siemens AG
  • Mitsubishi Hitachi Power Systems (MHPS)
  • China National Nuclear Corporation (CNNC)
  • NextEra Energy
  • Enel S.p.A
  • Duke Energy
  • Tata Power
  • Orsted
  • ON SE

Key Developments

  • October 2021 – NextEra Energy Partners, LP signed an agreement to acquire 50% of its subsidiary NextEra Energy Resources LLC. This deal was aimed at expanding its portfolio and services to 3 new states in the country. It also added significant capacity of renewables for NextEra Energy Partners LP.

The global Power Generation Market is segmented as:

By Source

  • Non-Renewable
  • Renewable

By End-Use Sector

  • Industrial
  • Commercial
  • Residential

By Region

  • North America
    • U.S.
    • Canada
    • Mexico
  • Europe
    • France
    • UK
    • Spain
    • Germany
    • Italy
    • Russia
    • Rest of Europe
  • Asia Pacific
    • China
    • Japan
    • India
    • South Korea
    • Rest of Asia Pacific
  • Middle East & Africa
    • GCC
    • North Africa
    • South Africa
    • Rest of Middle East & Africa
  • Latin America
    • Brazil
    • Argentina
    • Rest of Latin America
  • Check Icon Additional Company Profiles
  • Check Icon Additional Countries
  • Check Icon Cross Segment Analysis
  • Check Icon Regional Market Dynamics
  • Check Icon Country-Level Trend Analysis
  • Check Icon Competitive Landscape Customization
  • Check Icon Extended Forecast Years
  • Check Icon Historical Data Up to 5 Years
Frequently Asked Questions (FAQ's)
The global power generation market is projected to reach USD 2.48 trillion by 2030, growing at a CAGR of 5.05% from 2023 to 2030.
The global power generation market was valued at USD 1.67 trillion in 2022.
Several factors drive the global power generation market. The rising global population and urbanization contribute to increased electricity consumption while growing industrial activities and infrastructural projects have further increased the consumption and demand for generation of power
Top manufacturers of power generation market are General Electric, Siemens AG, Mitsubishi Hitachi Power Systems (MHPS), China National Nuclear Corporation (CNNC), NextEra Energy, Enel S.p.A, Duke Energy, E.ON SE, Tata Power, Orsted, and others.
Asia-Pacific is the fastest growing region in the forecasted period (2023-2030).
By source, non-renewables will hold the maximum share in the power generation market.
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