Power Generation Market Size to Worth USD 6,240 Million by 2034

The global power generation market size surpassed USD 2,351 million in 2024 and is predicted to reach around USD 6,240 million by 2034, registering a CAGR of 10.25% from 2025 to 2034. The market is driven by higher electricity demand from the industries as their number increases. The shift from fossil fuels to renewable energy sources and the progression in technology are causing the market to thrive. The nuclear power plants need a lot of spending both before and after their construction, creating a limitation on the market growth. The market in the APAC region is dominating. The European market can be seen growing speedily.

Highlights of the Power Generation Market

• By application, the solar segment is dominating.
• By application, the solar segment is considered to be the fastest-growing one. 
• By application, the wind segment is growing notably.
• By application, the hydroelectric segment can be seen growing substantially.
• By application, the thermal segment is growing swiftly.
• By region, Asia Pacific held the dominant revenue share of the power generation market. 
• By region, North America is expected to grow with the highest CAGR. 

Industry Valuation and Growth Rate Projection

The power generation market talks about Power generation, also called electricity generation, which is the process of producing usable electricity from primary sources of energy, such as heat (thermal), wind, solar, and chemical energy, into electrical energy. Also, fossil fuels, nuclear energy, and renewable energy sources can be the basis of generating electricity. An all-encompassing range of technologies, from steam boilers to wind turbines and solar panels, can be used for electricity conversion. The generation of power is more often than not achieved through the use of power plants. The countries in Asia, specifically India, are making use of renewable energy sources to increase their electricity generation in the near future.

The installation of renewables in India has been on the path of progress for more than 10 years now. The capacity of extending this energy from 15 GW in 2014 to over 160 GW in 2024 has proven the same. The country has set its sights on installing 500 GW by 2030 to lessen carbon emissions.

Power Generation Market: Stats and Figures

• According to the estimates of the International Energy Agency, the data centers will let the electricity demand grow by more than 20% in developed countries by the year 2030.
• The international task force of wind turbines is expected to turn out over 400 billion data points each year.
• In 2024, the world’s largest renewable energy source remained hydropower, with 4,578 terawatt-hours as considered for generation.
• As stated by the International Hydropower Association (IHA), the global competence additions comprised 8.4 GW of pumped storage hydropower (PSH).

How Has AI Benefited the Power Generation Market?

The power generation market has benefited immensely from AI. Grid operators can make use of AI algorithms to analyze weather data and accurately predict renewable energy generation. This enables improved management of supply and demand. The placement and operation of wind turbines and solar panels can be developed by utilizing machine learning models, which in turn yield maximum energy output. AI-driven smart grids can spot and respond to variations in renewable energy production to help maintain a stable and reliable power supply. In addition, AI allows predictive maintenance of renewable energy infrastructure and helps in the identification of future hindrances before they bring about downtime or inefficiencies.

Market Dynamics

What are the Power Generation Market Drivers?

The power generation market is driven by factors like industrial electrification, the transition towards renewable energy, and technological advances. Electrification of industries involves shifting from fossil fuel-based systems to electric-powered matching parts, mostly those powered by renewable sources. This causes an increasing demand for electricity and encourages the incorporation of renewable energy sources, thus helping the power generation industry. The investors are increasingly financing power generation infrastructure while propelling the market.

There is a rise in technological innovations, which is leading to market growth. Thanks to batteries and other energy storage equipment, sources like solar and wind can be stored. The smart grids enhance the efficiency and reliability of power systems and help in combining dispersed energy resources. They make use of sensors, advanced metering infrastructure (AMI), and communication networks to keep a check on power generation in real-time. 

What are the Power Generation Market Restraints?

The power generation market faces its share of challenges, such as the discontinuity and unpredictability of the weather conditions, which cause renewable energy sources like solar and wind power to ebb and flow. This has an effect on the energy output, and therefore, maintaining a stable and reliable power supply becomes difficult. Integrating renewable energy sources into the power grid presents several significant challenges, primarily due to the inherent variability and intermittency of these sources, which can impact grid stability and reliability. Advanced forecasting tools are not necessarily available easily, causing the grid operators to not predict and manage fluctuations in power supply consistently.

The other restraints to market growth include spending on nuclear power plants. The nuclear power plants, which play a crucial role in power generation, require a lot of investment when it comes to safety systems and fuel processing. The construction of these power plants may take a lot of years. This can lead to an increase in the expenditure while the construction is going on. For the supervision and security of the plants, due to the adherence to strict safety regulations, high costs are required, creating a hurdle to market growth.

What are the Power Generation Market Opportunities?

The power generation market is going to prosper in the coming years due to numerous reasons, including a rising amount of electricity consumption by industries, and a larger population in developing countries can lead to higher demand for electricity. Also, the data centers keep growing, and experiments are going on to utilize waste heat to reduce energy consumption for cooling. The number of data centers can be seen increasing, which will result in the need for more electricity in the coming years.

What Does an Industry Leader Have to Say About the Power Generation Market?

• Mike Gallagher, Head of Defense at Palantir Technologies:

Talking about building brilliant energy systems for the future, Gallagher said, “The future of energy security and sovereignty will be shaped by our ability to deploy advanced technologies at scale. This partnership marks the first time Palantir’s software will be used to

help power the next generation of nuclear energy infrastructure. By integrating our operating system with The Nuclear Company’s ambitious vision, we are laying the foundation for a new era of resilient, intelligent, and secure energy systems in the United States and beyond.”

Segmental Insights

The solar segment is dominating the power generation market. The solar panel costs have declined. Both industries and domestic users of solar energy benefit from this. The governments on a global scale are being supportive in encouraging the use of solar energy through various policies like subsidies, tax rebates, incentives, and objectives for renewable energy capacity. The private firms from both within and outside the country are increasingly investing in solar power infrastructure enlargement. The solar segment is also the fastest-growing in the power generation market. The technology is moving forward, and constant innovation in solar technology, like perovskite solar cells and bifacial modules, can be seen developing. This enriches the performance and reliability of solar power systems, proving the same. All the more awareness of climate change and the necessity for renewable energy sources calls for more solar power systems. The thrusting demand for energy in households is also responsible for the segmental growth.

The wind segment is showing a noteworthy growth in the power generation market. There is a rise in the requirement for sustainable energy sources, which keeps rising day by day. In such times, the acceptance of wind power is growing. The wind turbine technology is getting updated, making them more efficient. This is resulting in wind power becoming more spirited. In comparison with other energy sources, the cost of wind power is much more reliable.

Geographical Insights 

The global power generation market is experiencing significant growth, with APAC maintaining its position as the dominant region while Europe emerges as the fastest-growing market. The North American region is growing at a substantial pace.

Asia Pacific

Asia Pacific is dominating the power generation market due to massive electrification and infrastructure development. Asia Pacific has experienced one of the largest expansions of the middle class, with China and India leading the charge. The region has also seen substantial industrial growth in the past decade, leading to a surge in demand for power generation and consumption. Countries such as China, Vietnam, and India are also investing heavily in the renewable power generation sector. China has set the year 2060 as its target to achieve net-zero emissions. In India, rural electrification in particular has seen a massive uptake, through programs such as the Deen Dayal Upadhyaya Gram Jyoti Yojana (DDUGJY) and the SAUBHAGYA scheme.

According to the announcements made by the country, India is working on the broadening of solar energy infrastructure at the household level. The construction of 3 of the world’s largest solar parks has begun, with the support of government schemes, at Bhadla, Pavagada, and Kurnool. India’s ambition is to work on a global level by introducing international initiatives like the International Solar Alliance (ISA) and the Biofuel Alliance and become a major player in energy negotiations. 

India’s recent announcements, including the expansion of solar energy infrastructure at the household level through government schemes, indicate that a focus will remain on RE in the coming years. Three of the world’s largest solar parks are being built at Bhadla, Pavagada, and Kurnool. India also aims to be a major producer and exporter of Green Hydrogen and its derivatives (ammonia). The Indian government has allocated $2 billion in incentives for this early-stage technology. At the same time, through its push for international initiatives like the International Solar Alliance (ISA) and the Biofuel Alliance, the country aims to be a major player in energy diplomacy. 

North America

The market in North America is making considerable progress. Both Canada and the United States are slowly transitioning toward renewable resources from fossil fuels. Funding initiatives such as the U.S. Inflation Reduction Act (IRA) are providing billions of dollars worth of tax credits and subsidies for modernizing existing energy grids and strengthening their commitment to green power. The growth of electric vehicle users and the growing charging infrastructure, along with increasing electrification of manufacturing and heating, is leading to significant expansion of the power generation market.

• On June 24, 2025, during a heat wave, the U.S. Department of Energy declared an emergency order that enabled Duke Energy to go beyond emission limits in its power plant permits in the Carolinas. The order expired at 10 p.m. on June 25th, which helped reduce the risk of blackouts caused by high temperatures across the Southeast region, the department stated.

Europe

The European market is growing at a brisk rate due to a rapid shift in climate policies, a significant emphasis on clean energy, and geopolitical conflicts in the region having an effect on the sector. Many countries in Europe have shifted away from using Russian gas by ramping up domestic production, with special focus on both nuclear power and renewables. Europe is leading the climate change fight with the EU Green Deal and Fit for 55 projects looking to reduce greenhouse gas emissions by 55% by 2030, eventually achieving net zero by 2050.

The European Union has set a goal to accomplish a minimum of 700 gigawatts of solar generation capacity by 2030 to achieve its 2050 climate neutrality target. Because of this, in 2024, renewable energy bested fossil fuels in the EU’s electricity generation mix.

Which Recent Developments Took Place in the Power Generation Market?

• In June 2025, Palantir Technologies Inc. publicized a strategic product collaboration with The Nuclear Company to develop and employ NOS, which is the first AI-driven software system built entirely for nuclear construction.
• In June 2025, NTPC and Sustainable Energy for All (SEforALL) authorized an agreement with each other, and SEforALL will be supporting the enhancement of NTPC’s comprehensive energy transition roadmap to align with India’s energy security, development priorities, and net-zero commitments.

What Does the Competitive Landscape Look Like?

The power generation market is highly competitive, with leading energy and power companies such as E.ON, Enel S.p.A., Iberdrola, State Grid Corporation of China, Électricité de France SA (EDF), Engie, NextEra Energy, Tokyo Electric Power Company (TEPCO), Korea Electric Power Corporation (KEPCO), China Huadian Corporation, General Electric (GE), and Siemens Energy holding the highest market share. Emerging energy and power firms also play a crucial role by fostering a dynamic and evolving competitive landscape.

The market is dominated by several power generation companies renowned for their significant contributions to cancer research and treatment. Based on recent data, the top three leading companies are:

• Company Name: E.ON SE
• Year of Incorporation: 2000
• Headquarters: Essen, Germany

The firm E.ON SE deals with energy distribution, infrastructure solutions, and energy sales. It facilitates energy infrastructure solutions, involving district heating, cooling, and power generation for urban and industrial functions. The sectors in which the company provides services include residential, commercial, and industrial customers. The company operates mainly in the European region by being a notable part of the region's energy transformation.

The yearly revenue of E.ON SE was accounted to be $80,119,000 in 2024.

• Company Name: Enel S.p.A.
• Year of Incorporation: 1962
• Headquarters: Rome, Italy

Enel SpA produces, transfers, and allocates electricity. It sells and trades electric energy and natural gas, green certificates, and CO2 emission rights. The company's power generation includes the use of hydro, wind, nuclear, geothermal, solar, thermoelectric, and other renewable sources. Enel distributes energy in structured and free markets and to customers. The firm operates in these countries: Europe, North America, Latin America, Africa, Asia, and Oceania.

The yearly revenue of Enel S.p.A. stood at $70,649,000 in 2024.

• Company Name: Iberdrola SA
• Year of Incorporation: 1992
• Headquarters: Bilbao, Spain

Iberdrola SA generates electricity using conventional and renewable energy sources. Its work is to construct, operate, and manage power generation plants, transmission, and distribution facilities. The company puts energy on the market for residential, commercial, industrial, institutional, and other customers. It makes investments in smart grids, large-scale energy storage, and digital transformation. It works in Europe, North America, South America, and other areas.

The yearly revenue of Iberdrola SA was positioned at $44,739,000 in 2024.