Last Updated: 09 Jul 2025
Source: Statifacts
The US power generation market size accounted for USD 558.32 million in 2024 and is predicted to touch around USD 1471.88 million by 2034, growing at a CAGR of 10.17% from 2025 to 2034.
| Industry Worth | Details |
| Market Size in 2025 | USD 611.54 Million |
| Market Size by 2034 | USD 1471.88 Million |
| Market Growth Rate from 2025 to 2034 | CAGR of 10.17% |
The U.S. power generation market deals with the manufacturing of electrical power from various energy sources such as wind, sunlight, water, fossil fuels, and other sources at power plants. Power plants use steam boilers, solar panels, wind turbines, and other technologies to convert these sources into electricity. The power generated at plants is transmitted via high-voltage power lines to substations, where it is stepped down to reduced voltages and thus distributed to homes and businesses via local power lines.
Regulatory initiatives and norms to permit non-renewable energy consumption are anticipated to lead to the growing need for alternative sources. There have been numerous developments in power generation technologies. One such example is the implementation of machine learning capabilities of AI with microgrid controllers, and such developments will drive the requirement for power generation in the projected period.
With the aid of AI, they can process, store, and manage information more time- and expense-efficiently. Incorporating innovative technology can help the energy industry become more competitive in an unsteady economic environment and adopt better operational methods than those presently available. AI is driving remarkable progress in thermal energy manufacturing, benefiting technologies such as geothermal as well as concentrated solar power. By improving resource allocation and forecasting energy need fluctuations, precise machine-enabled control over thermal energy production improves reliability and cost-effectiveness.
Increasing electricity demand
A vast global population and the rising concentration of individuals in urban areas create a higher requirement for electricity for commercial, industrial, and residential purposes. With growing incomes, more people can provide appliances and technologies that consume electricity, thus increasing the need, especially for electronics and cooling. Government initiatives to uplift energy efficiency and renewable energy can also impact the need for electricity and the kind of power generation technologies accepted.
Energy security and sustainability
Increasing knowledge about the environmental effects of fossil fuels and the advantages of renewable energy is boosting consumer demand for cleaner energy alternatives. Incentives, mandates, as well as carbon pricing mechanisms are escalating investments in renewable energy as well as energy efficiency. Batteries and further storage solutions are becoming vital for incorporating intermittent renewable energy sources into the grid and guaranteeing a reliable power supply.
Regulatory and policy Uncertainties
Investors, both international and domestic, need stable and predictable regulatory frameworks to evaluate risk and make informed decisions. Uncertainties related to tariffs, environmental regulations, grid access, and policy shifts make a risk premium, making projects less attractive and potency contributing to higher financing expenses. Regulatory uncertainties can impact the whole lifecycle of a power generation project, from initial planning and financing to function and decommissioning. This can contribute to delays, expenses overruns, and even project cancellations.
Environmental concerns
Increasing knowledge of climate change has contributed to raised public pressure on firms and governments to reduce emissions from power generation. Power plants, mainly those using fossil fuels, along with the release of numerous pollutants such as sulfur dioxide, nitrogen oxides, particulate matter, and heavy metals. Environmental regulations restrict the amount and kinds of pollutants that power plants can release, impacting their operations and necessitating costly upgrades.
Technological advancements
AI-derived predictive analytics can improve power plant operations, expect maintenance needs, and enhance overall efficiency. For instance, AI algorithms can improve wind turbine performance by handling blade pitch and yaw, contributing to increased energy output and expense reduction. Developments in electrolysis as well as fuel cell technology permit the manufacturing of green hydrogen, a clean energy carrier that can be utilized in power generation and a few applications. Energy storage technologies, such as pumped hydro storage and developed batteries, can offer backup power during outages and also support grid stability during peak requirements.
"The hard work and dedication of our team members across our company made 2024 an outstanding year for Southern Company," said Christopher C. Womack, chairman, president, and CEO. "We delivered the exceptional value that our customers depend on, and, looking ahead, we believe our commitment to sustainably meeting the growing energy needs of our local economies will support our continued success for years to come."
“IAEA data shows the global fleet of nuclear reactors continues to be a large and indispensable source of low-carbon electricity,” said IAEA Director General Rafael Mariano Grossi. “But it’s also clear that we will need to extend the lives of existing reactors, replace retiring facilities with new ones, and add a lot of new capacity so that global climate change and energy security goals can be reached.”
“The new IEA report shows that under current policies and market conditions, global renewable capacity is already on course to increase by two-and-a-half times by 2030. It’s not enough yet to reach the COP28 goal of tripling renewables, but we’re moving closer – and governments have the tools needed to close the gap,” said IEA Executive Director Fatih Birol. “Onshore wind and solar PV are cheaper today than new fossil fuel plants almost everywhere and cheaper than existing fossil fuel plants in most countries. There are still some big hurdles to overcome, including the difficult global macroeconomic environment. For me, the most important challenge for the international community is rapidly scaling up financing and deployment of renewables in most emerging and developing economies, many of which are being left behind in the new energy economy. Success in meeting the tripling goal will hinge on this.”
“AI is one of the biggest stories in the energy world today – but until now, policymakers and markets lacked the tools to fully understand the wide-ranging impacts,” said IEA Executive Director Fatih Birol. “Global electricity demand from data centres is set to more than double over the next five years, consuming as much electricity by 2030 as the whole of Japan does today. The effects will be particularly strong in some countries. For example, in the United States, data centres are on course to account for almost half of the growth in electricity demand; in Japan, more than half; and in Malaysia, as much as one-fifth.”
“Scaling services like Search and Gmail to billions of users has taught us a lot about managing compute infrastructure. As we enter the AI platform shift, we continue to invest deeply in infrastructure for our own products and services, and for our Cloud customers. We are fortunate to have a longstanding partnership with NVIDIA, and look forward to bringing the breakthrough capabilities of the Blackwell GPU to our Cloud customers and teams across Google, including Google DeepMind, to accelerate future discoveries.”
The solar segment dominated and fastest growing in the U.S. power generation market in 2024. Solar's expansion rate is overtaking that of other renewable energy sources, like wind, with solar undergoing an expansion rate three times that of wind with regard to electricity output. Falling expenses of solar modules, boosted by overcapacity in the supply chain and raised competition, have made solar more affordable and accessible. Solar energy is used in numerous applications, including commercial, residential, industrial, as well as utility-scale projects.
The wind segment shows a notable growth in the U.S. power generation market during the forecast period. Increasing concerns about pollution and climate change are propelling governments and customers towards cleaner energy sources. The expense of wind energy has been reduced, making it a more attractive alternative compared to fossil fuels. Supportive policies, tax breaks, and subsidies for wind energy projects are uplifting investments.
The power generation market is greatly competitive, with a mix of well-known players and emerging companies in the traditional and renewable energy sectors. Key trends involve the shift towards sustainable energy solutions as well as technological advancements, and strategic collaborations. The market is also impacted by regional dynamics, with changes in energy sources and infrastructure advancement.
NextEra Energy tackles competition from various large utility firms and renewable energy developers. In the renewable energy space, firms such as Boralex and Acciona Energy are also remarkable rivals. NextEra's competitive strengths involve its strong financial position, large scale, and target renewable energy development.
Duke Energy tackles competition from different large, vertically integrated electric utilities, as well as companies targeted at renewable energy. Duke Energy's competitive strategy includes a focus on technological advancements, clean energy transition, and strategic acquisitions to handle its market position.
Southern Company operates in a competitive landscape handled by large investor-owned utilities and tackles competition from renewable energy manufacturers and alternative energy sources. The firm's competitive position is governed by infrastructure needs, regulatory environments, and the evolving energy market.
| Segments | Shares (%) |
| Solar | 38% |
| Wind | 32% |
| Hydroelectric | 18% |
| Thermal | 12% |
Published by Shubham Desale
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