Product Code: 70503
The global power market is expected to grow at a CAGR of over 3% during the forecast period of 2020 - 2025. Factors such as the growing electricity generation along with energy consumption demand, with changing power generation industry dynamics, are expected to drive the demand for power market. Moreover, the investments in the power sector, including increased government spending on renewable energy is further expected to bolster the market. However, the phasing out of coal-based power plants, which account for a major share in power generation around the globe and volatile crude oil prices leading to delay in several upstream projects are expected to hinder the growth of the power market.
- Thermal sources such coal, oil and natural gas etc. are expected to be the largest segment during the forecast period, owing to the increase in electricity demand. The growth is expected to take place mainly in the natural gas-based thermal power plants, while nuclear and coal thermal plants are expected to have stagnant net growth.
- With the increasing closures of fossil-fueled generation, an influx of wind, solar, small-hydro, and other renewables-based power generation, rising electric vehicle and heat pump demand, and increasing export requirements via interconnectors have resulted in increased requirements for installation of transmission and distributions (T&D) lines, creating several opportunities for the major companies.
- Asia-Pacific is expected to the largest market during the forecast period, owing to high urbanization growth rate and growing electricity demand, mainly from China and India.
Key Market Trends
Thermal Source for Power Generation to be the Largest Market
- Power generation uses a variety of sources ranging from fossil fuels like coal and oil, to renewable sources like wind and solar. The energy mix for electricity generation is dominated by fossil fuels like coal, oil and natural gas, with the three constituting almost over 65% of the global energy mix.
- The power generation mix is heavily skewed toward coal with major contribution, because of cheaper domestic fuel availability. Its share in the mix has increased over the years due to constraints in adding other conventional generation sources-hydro, nuclear and gas.
- Coal thermal power plants are the most widely used thermal power plant and are expected to have the largest share in the electricity power (global) supply, in 2025, in the world. More efficient technologies like Ultra Supercritical Coal Technology, which also reduces the amount of Pollution (per KW), are likely to replace the aged power plants.
- As electricity demand increases per capita around the globe, planned thermal power plants like Phulari Coal Powered Plant in Bangladesh and Patratu Super-Thermal Power Plant (Coal) in India are expected to increase growth in the thermal power plant sector. Also, to support exploration of coal and lignite for power generation, India plans to spend USD 72 million in 2019 and hence promulgate the power market in India.
- China is constructing the highest number of thermal power plants in the world. Ultra-supercritical coal plants like Fuyang Power Station and Huadian Laizhou Power Station are being built to match the electricity demand.
- Therefore, based on the above-mentioned factors, thermal source for power generation is expected to be the largest segment on power market during the forecast period.
Asia-Pacific to Dominate the Market
- Asia-Pacific is the regional hotspot for the power market, owing to governmental support, numerous incentives, and national targets. In 2018, the primary consumption reached 5,985 million tonnes of oil equivalent, representing an increase of 4% over the previous year's level.
- Many countries in Asia-Pacific have inadequate transmission and distribution (T&D) network and hence, electricity is not available in some of the remote and rural areas. To bring electricity to these areas, the countries in the region are investing heavily in building a transmission line network.
- According to IEA, in 2018, China was the largest market for power sector investment, supported by increased demand for power in the industrial and commercial sectors. Also, the power transmission and distribution grid of China has been experiencing major upgradations and modifications for making it capable to transmit higher electricity and cope with the future demand.
- The energy investment in India has grown most rapidly in the past four years, up by more than 10%. In 2019, renewable spending continued to exceed that for fossil fuel-based power, supported by tendering of solar PV and wind projects.
- As of April 2020, it is evident that up to 150 GW of wind and solar power projects across the Asia-Pacific could be delayed or cancelled over the next five years (2020-2024), if the coronavirus-led recession extends beyond 2020.
- Also, in April 2020, nuclear power plants of 7,000 MW capacity are currently under various phases of construction in India.
- Therefore, based on the factors like expansions and upgradations, especially in Asia-Pacific region, along with increased power demand is expected to have a positive impact on the power market.
The power market is fragmented. Some of the major players includes State Grid Corporation of China, Iberdrola, S.A., Tokyo Electric Power Company Holding Inc, NTPC Ltd, and Electricite de France S.A.
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Table of Contents
- 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 2025
- 4.3 Electricity Generation and Forecast ,in TWh, Global, till 2025
- 4.4 Renewables Energy Mix, Global, 2018
- 4.5 Primary Energy Consumption, in MTOE, 2010-2018
- 4.6 Recent Trends and Developments
- 4.7 Government Policies and Regulations
- 4.8 Market Dynamics
- 4.8.1 Drivers
- 4.8.2 Restraints
- 4.9 Supply Chain Analysis
- 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
- 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)
- 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
- 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.
7 MARKET OPPORTUNITIES AND FUTURE TRENDS