The global thermal power plant market involves the generation of electricity through the combustion of fossil fuels such as coal, natural gas, and oil. Thermal power plants convert the heat energy from combustion into mechanical energy using steam turbines which further drives electricity generation. The thermal power plants industry has witnessed significant growth over the past few decades due to the increasing demand for electricity worldwide and abundance of fossil fuel resources. However, the environmental impacts of greenhouse gas emissions from these plants have led players to focus on renewable integration and clean coal technologies.
The Global Thermal Power Plant Market Share is estimated to be valued at US$ 1,532.34 Billion in 2024 and is expected to exhibit a CAGR of 3.5% over the forecast period 2024 to 2031.
Key players operating in the thermal power plant market include EDF, American Electric Power Company, Inc., Siemens AG, General Electric Company, Chubu Electric Power Co. Inc., National Thermal Power Corporation Limited, ENGIE, Duke Energy Corporation, SSE, NTPC Limited, Adani Power Limited., Tata Group., Reliance Power Limited., Maharashtra State Power Generation Co. Ltd., Nuclear Power Corporation of India (NPCIL), India Power Corporation Ltd., Jindal Steel & Power Limited., and NS Energy Group.
Key players
EDF, as a global operator in low-carbon energy, has been taking initiatives towards renewable integration into its power generation operations. Similarly, American Electric Power strives to balance power generation through fossil fuels, nuclear, wind, solar, and hydro sources to decarbonize its portfolio.
Growing demand
The growing power requirement from industrialization and urbanization globally has been a key driver for the expansion of thermal power generation capacities. However, climate change concerns are prompting a gradual shift towards renewable and cleaner sources.
Global expansion
China dominates the global thermal power generation capacity, accounting for over 50% of the total. Countries such as India are also witnessing a steady increase in capacity additions to meet rising electricity demand from economic development.
Market key trends
Integrating renewable energy sources such as solar and wind within conventional thermal plants is a major trend to reduce emissions. Technologies like carbon capture and storage are also gaining significance to enable cleaner coal-fired power production. Sustainable biomass co-firing with coal presents opportunities for carbon neutral thermal power generation.
Porter’s Analysis
Threat of new entrants: The high initial capital investments required and strict environmental regulations set barriers for new companies entering this market.
Bargaining power of buyers: As power plants supply bulk power to utilities and industries, individual buyers have weak bargaining power and prices are largely regulated.
Bargaining power of suppliers: Fuel suppliers like coal, natural gas, oil etc have some bargaining power over power plants as switching costs are high for plants to shift fuel sources.
Threat of new substitutes: Alternate sources of energy like solar, wind, hydro pose some threat but also exist alongside thermal plants which cater to base load demand.
Competitive rivalry: Competition is strong amongst major players with their large capacities & focus on efficiency & cleaner technologies to gain contracts amid carbon emission regulations.
Geographical Regions
Asia holds the largest share in the thermal power plant market currently, mainly driven by China, India and other developing Asian countries where coal fired plants still dominate to meet rising energy demand. The region is expected to continue leading over the forecast period due to ongoing capacity additions across various countries.
Africa region is poised to be the fastest growing market for thermal power plants between 2024-2031 as many African nations look to coal and natural gas based power as a relatively cheap solution to solve power deficits and support industrialization. Large contracts are being awarded for new plants particularly in countries like South Africa, Egypt, Nigeria, Morocco etc.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it