| Study Period | 2020 - 2030 |
| Base Year For Estimation | 2024 |
| Forecast Data Period | 2025 - 2030 |
| CAGR | 4.89 % |
| Fastest Growing Market | North America |
| Largest Market | Asia Pacific |
| Market Concentration | Low |
Major Players
*Disclaimer: Major Players sorted in no particular order |
Power Market Analysis
The Power Market is expected to register a CAGR of 4.89% during the forecast period.
The global power sector is experiencing a significant transformation in its power generation mix and power infrastructure development. As of 2021, coal-fired power generation dominated the global electricity generation mix at 36%, followed by natural gas at 23%, while renewable sources contributed 13% to the total generation. The power sector's landscape continues to evolve with the integration of diverse energy sources, particularly with nuclear power contributing approximately 9.8% to the world's electricity production. This diversification reflects the power industry's response to environmental concerns and the need for reliable baseload power generation.
The power transmission and power distribution (T&D) infrastructure is undergoing substantial modernization to accommodate changing generation patterns. In 2022, global power sector investments in power transmission reached USD 98 billion, while power distribution investments amounted to USD 187 billion. Grid operators are increasingly focusing on implementing smart grid technologies and digital solutions to enhance system reliability and efficiency. These investments are crucial for managing the integration of intermittent renewable energy sources and meeting growing electricity demand across regions.
The nuclear power sector is witnessing significant developments, with 440 nuclear power reactors operational globally as of 2023. The industry is evolving with the development of small modular reactors (SMRs) and advanced reactor designs, aimed at providing flexible and scalable power generation options. The hydropower sector is also expanding, with projections indicating a requirement of over 850 GW of newly installed hydropower capacity by 2050 to support global climate targets and provide grid stability.
The power sector is experiencing a technological revolution with the integration of digital solutions and advanced power grid management systems. Utilities are increasingly adopting technologies such as big data analytics, Internet of Things (IoT), cloud computing, and artificial intelligence to optimize operations and improve power systems reliability. This digital transformation is enabling better demand forecasting, asset management, and grid stability, while also facilitating the integration of distributed energy resources and supporting the development of smart grid solutions for smart cities and electrified transportation systems.
Power Market Trends
Increasing Adoption of Renewable Energy
Renewable energy sources are gaining unprecedented importance as clean energy sources globally, driven by rapid technological improvements, decreasing costs, and increasing competitiveness of battery storage. The International Energy Agency anticipates that global renewable energy electricity capacity will increase by more than 60% by 2026 from 2020 levels, reaching over 4,800 GW—equivalent to the current total global power capacity of fossil fuels and nuclear combined. This dramatic shift is supported by significant cost reductions in key technologies, with solar energy PV installation costs dropping by more than 80% in 2021 compared to 2010, while wind energy installation costs decreased by approximately 35% during the same period. The increasing investments in solar energy PV and wind energy projects have been providing considerable momentum to the growth of the renewable energy sector, with solar energy PV expected to contribute more than half of the renewable capacity expansion through 2026.
Governments worldwide are implementing ambitious policies and targets to accelerate renewable energy adoption. For instance, in 2022, Germany announced plans to achieve 100 GW of solar energy and 65% renewables in gross electricity consumption by 2030. Similarly, China has set massive clean energy targets, with plans to build 450 GW of solar energy and wind energy power plants in the Gobi desert regions. The United States Department of Energy has outlined goals for the country to derive 40% of its electricity from solar energy by 2035, requiring the installation of 30 GW of solar energy capacity annually between 2021-2025 and 60 GW annually between 2025-2030. These governmental pushes are complemented by technological advancements in energy storage solutions and grid integration capabilities, making renewable energy increasingly reliable and cost-effective for both utility-scale and distributed generation applications.
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Segment Analysis: By Power Generation - Source
Thermal Segment in Global Power Market
The thermal power segment continues to maintain its dominant position in the global power generation market, accounting for approximately 47% of the total installed capacity in 2024. This substantial market share is primarily driven by the widespread availability of fossil fuels and the established infrastructure for thermal power generation across major economies. The segment's prominence is particularly evident in developing regions where coal and natural gas-fired power generation plants remain fundamental to meeting growing electricity demands. Countries like China, India, and several Southeast Asian nations continue to rely heavily on thermal power generation due to its reliability, cost-effectiveness, and ability to provide baseload power. However, the segment is witnessing a gradual transformation with increasing adoption of cleaner technologies like combined cycle gas turbines and advanced ultra-supercritical coal plants to reduce environmental impact.
Renewables Segment in Global Power Market
The renewable power segment is demonstrating remarkable growth momentum in the global power market, projected to expand at approximately 10% CAGR during 2024-2029. This exceptional growth is being fueled by declining technology costs, particularly in solar PV and wind energy sectors, alongside strong policy support and environmental regulations worldwide. Major economies are accelerating their renewable power deployments, with significant investments flowing into utility-scale solar farms, offshore wind projects, and distributed generation systems. The segment's growth is further supported by technological advancements in energy storage solutions, improved grid integration capabilities, and increasing corporate commitments to renewable power procurement. Additionally, the rising focus on energy security and independence, particularly in the context of global geopolitical developments, is driving nations to accelerate their transition toward renewable power sources.
Remaining Segments in Power Generation Source Market
The hydropower and nuclear power segments play crucial complementary roles in the global power market. Hydropower, with its ability to provide both baseload and peak load power, continues to be a vital component of many countries' energy mix, particularly in regions with abundant water resources. The segment offers advantages of low operational costs and long operational lifespans, while also supporting grid stability. Meanwhile, the nuclear power segment, despite facing challenges related to public perception and high initial capital costs, remains significant in providing consistent, carbon-free baseload power. Several countries are exploring advanced nuclear technologies, including small modular reactors, as part of their long-term energy security and decarbonization strategies.
Segment Analysis: Power Transmission and Distribution (T&D)
Transmission Infrastructure Segment in Power T&D Market
The transmission infrastructure segment represents a significant portion of the global power transmission and power distribution market, driven by massive investments in grid expansion and modernization projects worldwide. Major developments include high-voltage transmission lines, substations, and interconnection projects to support growing renewable power integration. Countries like China, India, and the United States are making substantial investments in transmission infrastructure to enhance grid reliability and enable long-distance power transmission. The segment's prominence is evidenced by projects like China's west-to-east power transmission program and the United States' USD 2.5 billion Transmission Facilitation Program (TFP) launched in 2023 to upgrade the country's power grid capacity.
Smart Grid Solutions Segment in Power T&D Market
The smart grid solutions segment is experiencing rapid growth in the power transmission and power distribution market, driven by increasing digitalization and grid modernization initiatives across regions. This segment encompasses advanced metering infrastructure, grid automation, digital substations, and smart grid control technologies. Utilities worldwide are investing heavily in smart grid technologies to improve operational efficiency, enable better integration of renewable power sources, and enhance grid reliability. For instance, Dubai Electricity and Water Authority (DEWA) launched the next phase of its smart grid strategy in 2023, covering comprehensive developments through 2035, while European countries are investing over USD 133.7 billion in smart grid infrastructure through 2027.
Remaining Segments in Power Transmission and Distribution (T&D)
The power T&D market also includes critical segments such as distribution network infrastructure, HVDC systems, and grid storage solutions. The distribution network segment focuses on last-mile connectivity and power delivery to end-users, while HVDC systems are gaining importance for long-distance power transmission and renewable power integration. Grid storage solutions are becoming increasingly vital for maintaining grid stability and managing intermittent renewable power sources. These segments are supported by ongoing technological advancements, regulatory initiatives, and the growing need for reliable and efficient power equipment delivery systems across developed and developing markets.
Power Market Geography Segment Analysis
Power Market in North America
The North American power market continues to demonstrate robust development, holding approximately 19% of the global power industry capacity in 2024. The region's market is primarily driven by substantial investments in renewable energy infrastructure, particularly in the United States and Canada. The United States leads the region's transformation with ambitious clean energy targets and significant deployments in solar and wind energy projects. The market is characterized by a strong focus on grid modernization initiatives, energy storage integration, and the development of smart grid technologies. Canada's hydroelectric dominance and growing renewable portfolio further strengthen the region's position. The regulatory environment remains supportive of the clean energy transition, with policies encouraging private sector participation and technological innovation. Mexico's energy sector reforms and increasing focus on renewable energy development complete the region's dynamic market landscape. The integration of advanced technologies and digital solutions continues to enhance grid reliability and operational efficiency across the region.
Power Market in Asia-Pacific
The Asia-Pacific power market has exhibited remarkable growth, achieving approximately 7% annual growth from 2019 to 2024. This region represents the largest and most dynamic electricity market globally, led by major economies like China and India. The market's expansion is driven by rapid urbanization, industrial growth, and increasing electricity access initiatives across developing nations. China's ambitious renewable energy targets and massive infrastructure investments continue to shape the regional market landscape. India's power sector transformation, focused on renewable energy integration and grid modernization, contributes significantly to regional growth. Japan and South Korea's technological advancements in smart grid solutions and energy efficiency measures further enhance the market's sophistication. The region's commitment to energy security and sustainability is reflected in the increasing adoption of clean energy technologies and grid modernization initiatives. Southeast Asian nations are actively expanding their power infrastructure to meet growing demand and improve electricity access.
Power Market in Europe
The European power market is projected to grow at approximately 2% annually from 2024 to 2029, reflecting the region's mature market status and strategic transition towards sustainable energy systems. The market is characterized by its advanced infrastructure and strong commitment to renewable energy integration. The European Union's comprehensive policy framework continues to drive the region's energy transition, with particular emphasis on achieving carbon neutrality. Germany, France, and the United Kingdom lead the region's power industry transformation through innovative technologies and market reforms. The region's focus on cross-border interconnections and market integration enhances energy security and efficiency. Investments in offshore wind, solar energy, and energy storage solutions demonstrate the region's commitment to renewable energy expansion. The development of hydrogen infrastructure and smart grid technologies positions Europe at the forefront of energy innovation. The market benefits from strong regulatory support and public-private partnerships in advancing clean energy initiatives.
Power Market in South America
The South American electricity market demonstrates significant potential for growth, characterized by its rich renewable energy resources and evolving regulatory frameworks. Brazil leads the regional market with its extensive hydroelectric capacity and growing investments in wind and solar energy. The region's power sector is undergoing substantial transformation through market liberalization and increased private sector participation. Countries like Chile and Colombia are actively diversifying their energy mix with renewable energy projects and grid modernization initiatives. The market benefits from strong international investment interest and technological partnerships in renewable energy development. Regional integration efforts through cross-border interconnections enhance market efficiency and energy security. The focus on distributed generation and smart grid technologies is reshaping the power distribution landscape. Environmental considerations and energy access initiatives continue to drive market development across the region.
Power Market in Middle East & Africa
The Middle East and African electricity market presents diverse opportunities driven by rapid industrialization and increasing electricity demand. The Gulf Cooperation Council (GCC) countries lead the region's transformation through ambitious renewable energy projects and grid modernization initiatives. Saudi Arabia and the United Arab Emirates are at the forefront of solar energy development and smart grid implementation. Africa's electricity industry is experiencing significant growth through renewable energy adoption and rural electrification programs. The region's abundant solar resources and growing wind energy potential attract substantial international investment. Market development is supported by strong government commitments to energy diversification and sustainability goals. The integration of innovative technologies and digital solutions enhances grid reliability and operational efficiency. Private sector participation and international partnerships continue to accelerate market development across the region.
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Power Industry Overview
Top Companies in Power Market
The global power industry features prominent players like State Grid Corporation of China, Engie SA, Electricite de France SA, Iberdrola SA, China Yangtze Power, NTPC Ltd, Tokyo Electric Power Company, Enel SpA, Korea Electric Power Corporation, and Chubu Electric Power Co. These power industry companies are driving innovation through significant investments in renewable energy technologies, particularly offshore wind and solar power developments. Strategic collaborations and joint ventures have become increasingly common, especially in emerging markets and for large-scale renewable projects. Companies are demonstrating operational agility by diversifying their energy portfolios, investing in smart grid technologies, and implementing digital transformation initiatives. Geographic expansion remains a key focus, with companies establishing a presence in high-growth markets while strengthening their positions in established regions through both organic growth and strategic acquisitions.
Market Structure Shows Regional Power Dynamics
The power market structure exhibits a complex competitive landscape characterized by both global conglomerates and regional specialists. While state-owned enterprises dominate in regions like China and India, private multinational corporations hold significant electricity market share in Europe and the Americas. The market demonstrates moderate consolidation at the global level, though regional markets often show higher concentration due to regulatory frameworks and historical development patterns. Merger and acquisition activities are particularly active in the renewable energy segment, where established utilities are acquiring innovative technology providers and regional players to strengthen their clean energy portfolios.
The industry is witnessing increased collaboration between traditional energy power companies and technology companies, particularly in areas of grid modernization and digital transformation. Cross-border partnerships have become increasingly common, especially in offshore wind development and large-scale renewable projects. The market also sees significant vertical integration attempts, with companies expanding across the value chain from generation to distribution, while simultaneously pursuing horizontal integration through geographic expansion and technology diversification.
Innovation and Sustainability Drive Future Success
For incumbent players to maintain and expand their market share, investment in renewable energy technologies and digital transformation has become crucial. Companies are focusing on modernizing their existing infrastructure while simultaneously developing new capabilities in areas such as smart grids, energy storage, and distributed generation. The ability to integrate various energy sources and maintain grid stability while transitioning to renewable energy has become a critical success factor. Market leaders are also emphasizing customer-centric approaches, developing new service offerings, and improving operational efficiency through technological innovation.
New entrants and challenger companies can gain ground by focusing on niche markets and innovative technologies, particularly in the renewable energy sector and digital solutions. The increasing emphasis on environmental regulations and sustainability goals creates opportunities for companies with strong environmental credentials and innovative clean energy solutions. Success in the market increasingly depends on the ability to navigate complex regulatory environments, manage stakeholder relationships effectively, and maintain operational flexibility. The risk of substitution remains relatively low due to the essential nature of electricity, but companies must stay ahead of technological changes and evolving consumer preferences to maintain their competitive position. This requires robust power industry analysis and power competitive intelligence to adapt to the dynamic electricity industry landscape.
Power Market Leaders
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State Grid Corporation of China
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Iberdrola, S.A.
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Tokyo Electric Power Company Holding Inc
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NTPC Ltd
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Electricite de France S.A.
- *Disclaimer: Major Players sorted in no particular order
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Power Market News
- In April 2023, ArcelorMittal announced that the company's Brazilian entity, ArcelorMittal Brazil, formed a joint venture with the Brazilian renewable energy company Casa dos Ventos to develop the 554 MW Babilonia wind power project. The project will be developed for USD 800 million in the central region of Bahia, northeast Brazil. ArcelorMittal will hold a 55% share in the joint venture, and Casa dos Ventos will have the remaining share.
- In April 2023, the Indian government sanctioned the construction of ten nuclear reactors in five Indian states. The center has granted administrative and financial approval for a fleet of ten indigenous 700 MW pressurized heavy water reactors. The ten reactors will be built in the states of Karnataka, Haryana, Madhya Pradesh, and Rajasthan.
- July 2022: Dubai Electricity and Water Authority (DEWA) announced that the company aims to develop 4GW renewable energy projects with the Independent Power Producer (IPP). The total investment required in the projects would be more than AED 40 billion. DEWA is developing a solar project IPP model, The Mohammed bin Rashid Al Maktoum Solar Park. The project will have a production capacity of 5,000 MW by 2030.
Power Market Report - Table of Contents
1. INTRODUCTION
- 1.1 Scope of the Study
- 1.2 Market Definition
- 1.3 Study Assumptions
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET OVERVIEW
- 4.1 Introduction
- 4.2 Installed Power Generation Capacity and Forecast in GW, till 2028
- 4.3 Electricity Generation and Forecast ,in TWh, Global, till 2028
- 4.4 Renewables Energy Mix, Global, 2022
- 4.5 Primary Energy Consumption, in MTOE, 2011-2022
- 4.6 Recent Trends and Developments
- 4.7 Government Policies and Regulations
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4.8 Market Dynamics
- 4.8.1 Drivers
- 4.8.1.1 Growing Electricity Generation along with Energy Consumption Demand
- 4.8.1.1.1 Increasing adoption of Renewable Energy
- 4.8.2 Restraints
- 4.8.2.1 Phasing out of Coal-Based Power Plants
- 4.9 Supply Chain Analysis
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4.10 Porter's Five Forces Analysis
- 4.10.1 Bargaining Power of Suppliers
- 4.10.2 Bargaining Power of Consumers
- 4.10.3 Threat of New Entrants
- 4.10.4 Threat of Substitutes Products and Services
- 4.10.5 Intensity of Competitive Rivalry
5. MARKET SEGMENTATION
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5.1 Power Generation - Source
- 5.1.1 Thermal
- 5.1.2 Hydroelectric
- 5.1.3 Nuclear
- 5.1.4 Renewables
- 5.2 Power Transmission and Distribution (T&D)
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5.3 Geography
- 5.3.1 North America
- 5.3.2 Asia-Pacific
- 5.3.3 Europe
- 5.3.4 South America
- 5.3.5 Middle-East and Africa
6. COMPETITIVE LANDSCAPE
- 6.1 Mergers and Acquisitions, Joint Ventures, Collaborations, and Agreements
- 6.2 Strategies Adopted by Leading Players
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6.3 Company Profiles
- 6.3.1 State Grid Corporation of China
- 6.3.2 Engie SA
- 6.3.3 Electricite de France S.A.
- 6.3.4 Iberdrola, S.A.
- 6.3.5 National Thermal Power Corporation Limited
- 6.3.6 NTPC Ltd
- 6.3.7 Tokyo Electric Power Company Holding Inc
- 6.3.8 Enel S.p.A.
- 6.3.9 Korea Electric Power Corporation (KEPCO)
- 6.3.10 Chubu Electric Power Co., Inc.
- *List Not Exhaustive
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
- 7.1 Increasing Export Requirements via Interconnectors have Resulted in Increased Requirements for Installation of Transmission and Distributions (T&D) Lines
**Subject to Availability
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Power Industry Segmentation
Generally, electricity generation is the process of generating electric power from primary energy sources. For utilities in the electricity industry, electricity generation is the process of delivering (transmission, distribution, etc.) electricity to end users or storing it.
Power Market is segmented by power generation, power Transmission and Distribution (T&D), and geography. By power generation, the market is segmented into thermal, hydroelectric, nuclear, and renewables. The report also covers the market size and forecasts for the power market across major regions. The market size and forecasts for each segment have been done regarding installed capacity (GW).
| Power Generation - Source | Thermal |
| Hydroelectric | |
| Nuclear | |
| Renewables | |
| Geography | North America |
| Asia-Pacific | |
| Europe | |
| South America | |
| Middle-East and Africa |
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Power Market Research FAQs
What is the current Power Market size?
The Power Market is projected to register a CAGR of 4.89% during the forecast period (2025-2030)
Who are the key players in Power Market?
State Grid Corporation of China, Iberdrola, S.A., Tokyo Electric Power Company Holding Inc, NTPC Ltd and Electricite de France S.A. are the major companies operating in the Power Market.
Which is the fastest growing region in Power Market?
North America is estimated to grow at the highest CAGR over the forecast period (2025-2030).
Which region has the biggest share in Power Market?
In 2025, the Asia Pacific accounts for the largest market share in Power Market.
What years does this Power Market cover?
The report covers the Power Market historical market size for years: 2020, 2021, 2022, 2023 and 2024. The report also forecasts the Power Market size for years: 2025, 2026, 2027, 2028, 2029 and 2030.
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Power Market Research
Mordor Intelligence provides comprehensive power industry analysis and consulting services, focusing on the dynamic electricity market and power generation industry. Our extensive research covers the entire power industry spectrum, including sectors such as solar power, wind power, nuclear power, and hydropower. The report offers detailed insights into power grid infrastructure, power transmission systems, and power distribution networks. It is available in an easy-to-read report PDF format for download. Our analysis also includes smart grid technologies, power storage solutions, and emerging trends in the renewable power industry.
Stakeholders in the power utility industry benefit from our thorough examination of power trading dynamics and developments in the electric power market. The report provides crucial insights into power infrastructure developments, power equipment innovations, and the integration of power systems. Our analysis covers both wholesale power and retail power markets. It also examines distributed power solutions and industrial power applications. The research includes detailed electricity pricing analysis and electricity demand analysis. This is supported by comprehensive coverage of electricity industry regulations and power market data, enabling informed decision-making for industry participants.
