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India Power Market Size (2024 - 2029)

The Indian power sector is poised for significant growth in its market size over the forecast period, driven by supportive government policies and increasing electricity demand fueled by infrastructural development and population growth. Despite challenges such as the need for substantial investment in power infrastructure and limited private sector participation, the market is bolstered by the country's abundant solar energy potential, particularly in regions like Rajasthan, Gujarat, and Andhra Pradesh. This, along with foreign investments and large-scale power projects, presents substantial opportunities for expansion in the Indian power market.

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Market Size of India Power Industry

India Power Market Summary
Study Period 2020 - 2029
Base Year For Estimation 2023
Market Volume (2024) 492.86 gigawatt
Market Volume (2029) 752.90 gigawatt
CAGR (2024 - 2029) 8.80 %
Market Concentration Medium

Major Players

India Power Market Major Players

*Disclaimer: Major Players sorted in no particular order

India Power Market Analysis

The India Power Market size in terms of installed base is expected to grow from 492.86 gigawatt in 2024 to 752.90 gigawatt by 2029, at a CAGR of 8.80% during the forecast period (2024-2029).

  • Over the medium period, factors such as supportive government policies, rising electricity demand due to infrastructural activities, and rising population are expected to drive the market during the forecasted period.
  • On the other hand, huge investment is required to set up and modernize power generation, transmission & distribution networks, and weak private sector investments are expected to hinder the growth of the Indian power market.
  • Nevertheless, India has abundant availability of solar irradiance and receives solar energy throughout the year. This has created enormous opportunities to exploit solar energy from the sunniest sites in the country, especially Rajasthan, Gujarat, and Andhra Pradesh. The factor above, clubbed with foreign investment and extensive power projects, provides an opportunity to grow the power market in India.

India Power Industry Segmentation

Power generation is generated through various primary sources such as coal, hydro, solar, thermal, etc. In utilities, it's a step before its delivery to its end users. Then the process is followed by Transmission and distribution. Under this, the power generated is distributed via high-voltage lines (transmission lines) and low-voltage lines (distribution lines) as per the requirement of the end user.

The Indian power market is segmented by power generation, power transmission, and distribution (T&D). By power generation, the market is segmented into thermal, hydroelectric, renewables, and others. Only qualitative analysis is provided for power transmission and distribution (T&D). For each segment, the market sizing and forecasts are based on installed capacity, except for power transmission, and distribution (T&D), for which only qualitative analysis will be provided.

Generation
Thermal
Hydro
Renewable
Others
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India Power Market Size Summary

The Indian power sector is poised for significant expansion, driven by supportive government policies and increasing electricity demand due to infrastructural development and population growth. The market is expected to experience substantial growth in its installed capacity over the forecast period. However, the sector faces challenges such as the need for massive investments to modernize power generation, transmission, and distribution networks, along with limited private sector investment. Despite these challenges, India's abundant solar energy potential, particularly in states like Rajasthan, Gujarat, and Andhra Pradesh, presents substantial opportunities for growth. The government's focus on foreign investment and large-scale power projects further bolsters the prospects for the Indian power market.

Thermal power generation, particularly coal-based, remains a dominant force in India's power sector due to the country's significant coal reserves and established infrastructure. The government's plans to increase coal-fired generation capacity by a substantial margin underscore the continued reliance on thermal power to meet growing electricity demand. Additionally, thermal power plants offer cost-competitive advantages and reliable electricity supply, making them suitable for base load demand. Meanwhile, the government's ambitious renewable energy targets, supported by policies and financial incentives, aim to enhance the share of renewables in the energy mix, driving a transition towards a more sustainable power market. Key players in the semi-consolidated market include NTPC Ltd, NLC India Ltd, SJVN Ltd, JSW Group, and Power Grid Corporation India Ltd, all contributing to the sector's growth and transformation.

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India Power Market Size - Table of Contents

  1. 1. MARKET OVERVIEW

    1. 1.1 Introduction

    2. 1.2 India Installed Power Generating Capacity Forecast, till 2028

    3. 1.3 Share of Installed Power Generation Capacity (%), by State, India, 2022

    4. 1.4 Electricity Generation and Consumption Forecast, in Terawatt Hours, India, till 2028

    5. 1.5 Recent Trends and Developments

    6. 1.6 Government Policies and Regulations

    7. 1.7 Market Dynamics

      1. 1.7.1 Drivers

        1. 1.7.1.1 Increasing Energy Demand

        2. 1.7.1.2 Government Support for Power Sector

      2. 1.7.2 Restraints

        1. 1.7.2.1 Financial Viability

    8. 1.8 Supply Chain Analysis

    9. 1.9 PESTLE Analysis

  2. 2. MARKET SEGMENTATION

    1. 2.1 Generation

      1. 2.1.1 Thermal

      2. 2.1.2 Hydro

      3. 2.1.3 Renewable

      4. 2.1.4 Others

    2. 2.2 Transmission and Distribution

India Power Market Size FAQs

The India Power Market size is expected to reach 492.86 gigawatt in 2024 and grow at a CAGR of 8.80% to reach 752.90 gigawatt by 2029.

In 2024, the India Power Market size is expected to reach 492.86 gigawatt.

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