Thermal Power Plant Market Size, Share, and Trends 2024 to 2034

The global thermal power plant market size was estimated at USD 1,430.46 billion in 2022 and is expected to hit US$ 1,988.68 billion by 2032, growing at a CAGR of 3.4% from 2023 to 2032.

Thermal Power Plant Market Key Takeaways

• By fuel type, the global thermal power plant market was dominated by the coal segment in 2023. 
• In 2023, The Asia Pacific dominated the global thermal power plant market. 
• By capacity, the global thermal power plant market was dominated by the more than 800 MW segment in 2023.
• North America captured the second position in the global thermal power plant market in 2023.
• Natural gas is projected to be the most opportunistic segment from 2024 to 2034.
• According to the United Nations, the global population is expected to rise by 2 billion i.e. from 7.7 billion to 9.7 billion by 2050.

Thermal Power Plant Market Growth Factors

The global thermal power plant market is primarily driven by the rising energy consumption and demand from the household and the commercial sector across the globe. The surging investments in the industrialization and urbanization of rural areas have significantly surged the demand for efficient and uninterrupted power supply across the globe. The rising number of industrial and household units is expected to boost the demand for efficient power supply, which will drive the growth of the global thermal power plant market in the forthcoming years. The rapidly rising population across the globe is expected to boost energy consumption during the forecast period. 

According to the United Nations, the global population is expected to rise by 2 billion i.e. from 7.7 billion to 9.7 billion by 2050. An increment of 2 billion in 30 years (2020 to 2050) is expected, which will significantly boost the demand for energy, and hence the global thermal power plant market is expected to witness considerable growth in the foreseeable future. The rapid expansion of industries in developing and underdeveloped economies is offering a huge growth prospect to the market players. Furthermore, the rising number of real estate housing projects is fueling energy consumption. The rising government initiatives to electrify rural areas are significantly driving the growth of the thermal power plants market across the globe. 

The COVID-19 pandemic negatively impacted the global thermal power plant market as the majority of commercial spaces and industries were completely or partially shut down. This reduced the demand for energy significantly. However, the household consumption of power spiked as people were forced to stay at their homes due to the implementation of the lockdown rules. 

The rising penetration of various digital devices, growing adoption of electric vehicles, and rapidly growing consumer electronics industry are significantly contributing to the growth of the global thermal power plant market. However, the growing preferences for renewable energy sources and rising efforts to reduce the dependency on conventional fuels to produce electricity are expected to increase the demand for alternative systems and it may hamper the growth of the thermal power plant market. 

Market Scope

 Fuel Type Insights

Based on the fuel type, the global thermal power plant market was dominated by the coal segment in 2023. Coal is the most abundantly found fuel source in the globe and the majority of the electricity produced is through the use of coal. The major factor that has significantly fostered the growth of the coal segment is its abundant availability and low cost as compared to any other fuel type. Coal is expected to remain the most significant segment in the production of electricity from thermal power plants across the globe throughout the forecast period. 

Natural gas is expected to be the most opportunistic segment during the forecast period. Natural gas combined cycle power plants are more efficient than other gas-fired power plants. It costs comparatively low than the gas turbine plant. Gas is a major source of electricity after coal and is expected to retain its position throughout the forecast period.

Capacity Insights

Based on the capacity, the global thermal power plant market was dominated by the more than 800 MW segment in 2023. This growth is attributed to the higher demand for over 800 MW of power across various industries. Rapid industrialization and significantly rising demands for power across the globe have led to the growth of this segment in the past decade. The rising investments in the industrialization of underdeveloped economies are expected to further fuel the growth of this segment in the foreseeable future and drive the growth of the overall thermal power plant market.

Regional Insights

Asia Pacific dominated the global thermal power plant market in 2023. The Asia Pacific is the home to the world’s leading coal companies like The Coal India Limited. Coal India is one of the leading suppliers of coal across the globe. The abundant availability of coal in the Asia Pacific region has led to the availability of cheap coal. Furthermore, the rapid industrialization and urbanization in the nations like China, India, South Korea, and Indonesia have significantly contributed to the rising demand for thermal power across the region. China and India are the manufacturing hub of the globe and the presence of several huge industries in the region has significantly fostered the consumption of thermal electricity. The rising government investments in urbanization and industrialization are expected to boost the growth of the market significantly during the forecast period. The rising government investments in the establishment of thermal power plants such as the Phulkari Coal Powered Plant in Bangladesh, Patratu Super-Thermal Power Plant (Coal) in India, Fuyang Power Station, and HuadianLaizhou Power Station in China is a major factor that is expected to fuel the growth of the Asia Pacific thermal power plant market during the forecast period.

North America occupied the second position in the global thermal power plant market in 2022, followed by the Europe thermal power plant market. Natural gas is the major fuel type that drives electricity generation from thermal power plants. The abundant availability of gas from the nations like Russia and the US has significantly contributed to the growth of the thermal power plant market. There is a high demand for natural gas in the US and Europe for generating electricity from thermal power plants. The presence of a well-established and strong infrastructure for thermal power plants is a major driver of the thermal power plant market. The rising investment in the US to expand the thermal power capacity and rising consumption of electricity is expected to fuel the growth of the North American thermal power plant market in the upcoming years.

Thermal Power Plant Market Companies

• EDF
• American Electric Power Company, Inc.
• Siemens AG
• General Electric Company
• Chubu Electric Power Co. Inc.
• National Thermal Power Corporation Limited
• ENGIE
• Tata Power
• Duke Energy Corporation
• SSE

Key Market Developments

The market is moderately fragmented with the presence of several domestic and global market players. These market players are constantly engaged in various developmental activities like partnerships, mergers, acquisitions, and new product launches to gain a competitive edge over others and gain market share. The rising investments by these market players in research and development is expected to open up new opportunities in the foreseeable future.

Segments Covered in the Report

By Fuel Type

• Coal
• Natural Gas
• Nuclear
• Others

By Capacity

• 400 MW
• 400-800 MW
• More than 800 MW

By Turbine Type

• Simple Cycle
• Combined Cycle 

By Geography

• North America
• Europe
• Asia-Pacific
• Latin America
• Middle East & Africa (MEA)