Thermal Power Plant Market Poised to Grow on Account of Rising Electricity Demand in Emerging Economies
Thermal Power Plant Market |
The thermal power plant market involves the generation of electricity through combustion of fossil fuels such as coal, natural gas, fuel oil etc. Thermal power plants are one of the most common and economical means of producing electricity on a large scale. They provide reliable base load electricity and help meet peak power needs.
The global thermal power plant
market is estimated to be valued at US$
1,532.34 Bn in 2024 and is expected to exhibit a CAGR of 3.5% over the forecast period 2024 to 2031.
Key Takeaways
Key players operating in the thermal power plant market are 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. The growing demand for
electricity from industrialization and urbanization in emerging economies of
Asia Pacific and Africa provide lucrative opportunities for growth of thermal
power plants market. Major players are expanding their presence in these
regions to tap the growing demand.
Market drivers
The key driver for the growth of Thermal
Power Plant Market Demand is the rising electricity demand in emerging
economies like India, China, Indonesia etc. driven by rapid industrialization,
infrastructure development and urbanization. Thermal power currently accounts
for over 60% of the global electricity generation owing to its advantages of
being highly reliable and economical. The abundant availability of coal
reserves in countries like India and China has also contributed to the
increasing adoption of coal based thermal power plants to meet the rising power
needs.
PEST
Analysis:
Political: The thermal power plant
market is dependent on government policies and regulations regarding carbon
emissions. Governments are implementing stringent emission norms to curb
pollution and shift towards renewable energy sources, which impacts operations
and investment decisions in this industry.
Economic: The performance of the thermal power plant market is significantly
influenced by the economic conditions and electricity demand from industrial
and commercial sectors. Uncertain economic conditions or slowdown impacts new
capacity additions and expansion plans in this capital intensive industry.
Social: Growing environmental concerns around global warming and local air
pollution have increased social pressure to reduce dependency on fossil fuels.
Thermal plants need to increasingly adopt carbon capture technologies and use
cleaner fuels to manage reputation and acceptability in local communities.
Technological: The industry is witnessing technological upgrades to improve
operating efficiencies and reduce emission levels. Supercritical and
ultra-supercritical technologies allow thermal plants to improve efficiency.
Use of big data and digitalization helps optimize plant load and operations.
In terms of value, Asia Pacific region accounts for the largest share of the
global thermal power plant market currently. China, India, Japan, South Korea
have a significant installed thermal power generation capacity to meet the
heavy electricity demand from their large industrial sectors and growing
populations.
The thermal power plant market is expected to witness faster growth in the
Middle East & Africa region during the forecast period. Rapid urbanization
and economic growth in Gulf countries, Egypt, Nigeria are driving rise in
electricity demand which is primarily met through new coal and gas fired power
plants to take advantage of abundant resources in the region.
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