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Iran Power Market Size (2024 - 2029)

The Iran Power Market is anticipated to experience growth in its production capacity over the forecast period, driven by increasing power demand from sectors such as manufacturing, construction, and banking, particularly due to cryptocurrency mining. The expansion of renewable energy sources and the need to renovate the aging power infrastructure are also significant factors contributing to the market's growth. However, the unstable political environment poses challenges to this growth trajectory.

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Market Size of Iran Power Industry

Iran Power Market Summary
Study Period 2020-2029
Base Year For Estimation 2023
Market Volume (2024) 96.96 gigawatt
Market Volume (2029) 116.25 gigawatt
CAGR (2024 - 2029) 3.70 %
Market Concentration Low

Major Players

Iran Power Market Major Players

*Disclaimer: Major Players sorted in no particular order

Iran Power Market Analysis

The Iran Power Market size in terms of production capacity is expected to grow from 96.96 gigawatt in 2024 to 116.25 gigawatt by 2029, at a CAGR of 3.70% during the forecast period (2024-2029).

  • Over the long term, factors such as high power demand, particularly from the growing manufacturing and construction industry, growth of renewables, and the requirement to renovate the power infrastructure in the country, which is currently in a crumbling situation, are the major driving factors during the forecast period.
  • On the other note, the unstable political scenario of the country is expected to hinder market growth in the near future.
  • Nevertheless, the country has huge power demand from the banking and financial sectors, largely due to cryptocurrency mining, which requires a considerable amount of electricity. The digital network required for bitcoin mining, which is widely followed in the country, is creating a tremendous opportunity for the electricity sector.

Iran Power Industry Segmentation

Power is generated through various primary sources such as coal, hydro, solar, thermal, etc. In utilities, it is a step before its delivery to its end users. 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 end user's requirement.

The Irani power market is segmented by generation source, transmission and distribution, and end-user. By generation source, the market is segmented into natural gas, oil, renewables, nuclear, and other generation sources. By end-user, the market is segmented into residential, commercial, and industrial. The report offers market size and forecasts in installed capacity for all the above segments. 

Generation Source
Natural Gas
Oil
Renewables
Nuclear
Other Generation Sources
End User
Residential
Commercial
Industrial
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Iran Power Market Size Summary

The Iran power market is poised for significant expansion, driven by increasing power demand from sectors such as manufacturing, construction, and the burgeoning cryptocurrency mining industry. The country's power infrastructure, which is in need of renovation, presents both challenges and opportunities for growth. Iran's vast natural gas reserves play a crucial role in its energy landscape, with thermal power plants accounting for the majority of electricity generation. The private sector dominates the thermal power market, contributing significantly to the country's power output. Recent developments, such as the expansion of the Mahtab Kavir plant, are expected to bolster gas-based power generation, supporting the electricity supply in several provinces.

Renewable energy is gaining traction in Iran, with the government setting ambitious targets to increase its share in the energy mix. The country's renewable energy potential is largely untapped, with solar energy projects being a focal point of development. Initiatives like the construction of a new solar array in Qazvin are part of a broader strategy to enhance renewable energy capacity and achieve net-zero emissions by 2050. The fragmented market features key players such as MAPNA Group and KPV Solar Iran, who are instrumental in driving the transition towards renewable sources. These efforts are expected to lead to robust growth in the renewable energy sector, aligning with the government's vision for a more sustainable energy future.

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Iran Power Market Size - Table of Contents

  1. 1. MARKET OVERVIEW

    1. 1.1 Introduction

    2. 1.2 Installed Power Generation Capacity and Forecast, till 2028

    3. 1.3 Recent Trends and Developments

    4. 1.4 Government Policies and Regulations

    5. 1.5 Market Dynamics

      1. 1.5.1 Drivers

        1. 1.5.1.1 Growing Power Demand

        2. 1.5.1.2 Growth of Renewables

      2. 1.5.2 Restraints

        1. 1.5.2.1 Unstable Political Scenario of the Country

    6. 1.6 Supply Chain Analysis

    7. 1.7 PESTLE Analysis

  2. 2. MARKET SEGMENTATION

    1. 2.1 Generation Source

      1. 2.1.1 Natural Gas

      2. 2.1.2 Oil

      3. 2.1.3 Renewables

      4. 2.1.4 Nuclear

      5. 2.1.5 Other Generation Sources

    2. 2.2 Transmission and Distribution

    3. 2.3 End User

      1. 2.3.1 Residential

      2. 2.3.2 Commercial

      3. 2.3.3 Industrial

Iran Power Market Size FAQs

The Iran Power Market size is expected to reach 96.96 gigawatt in 2024 and grow at a CAGR of 3.70% to reach 116.25 gigawatt by 2029.

In 2024, the Iran Power Market size is expected to reach 96.96 gigawatt.

Iran Power Market Report Snapshots

Iran Power Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)