Thermal Power Plant Market

Thermal Power Plant Market Opportunities - 2030

The global thermal power plant market was valued at $1,345.0 billion in 2020, and is projected to reach $1,820.7 billion by 2030, growing at a CAGR of 3.2% from 2021 to 2030. Thermal power plants are also called thermal power generation plant or thermal power station. A thermal power plant/station is used to convert heat energy to electric power/energy for household and commercial applications. In the process of electric power generation, steam-operated turbines convert heat into mechanical power and then finally electric power. In thermal power plants, the heat energy obtained from combustion of solid fuel (mostly coal) is used to convert water into steam, which is at high pressure and temperature. This steam is used to rotate the turbine blade and turbine shaft is connected to the generator. The generator converts the kinetic energy of the turbine impeller into electric energy.

In the prevailing COVID-19 situation, the growth of the thermal power plant market is expected to decline as lockdowns imposed by governments of various countries has caused temporary and even permanent closures of thermal power plant across the globe due to decline in demand for power.

The demand for thermal power plant market is primarily driven by rise in demand for electricity. Increase in population creates demand for the residential sector. Rapid industrialization and urbanization along with the need for the energy in heavy industries is again expected to propel the thermal power plant market growth. Thus, surge in demand for electricity is projected to propel the market growth. In addition, the power consumption has been growing at a significant rate across the developing countries such as China and India driven by industrialization, population growth, and surge in urbanization. In China, in 2018, the power generated from coal accounted to 4,732 TWh, up from the previous year’s 4,445.0 TWh. Coal power generation holds 66.0% share in China’s overall energy mix. In China and India, which have accounted for 85.0% of new coal power capacity since 2005, the number of permits for new coal plants dropped to record lows, but new plants are still in the pipeline. India's power sector is undergoing a wide-scale transformation, owing to the country facing steep electricity demand growth rates. Several parts of India witness high power cuts due to the rise in demand for electricity and the supply gap. The government has implemented policies to increase electricity generation to address the issue of electricity reliability.

India has the second-largest population, because of which there is a constant increase in the energy demand that requires an increase in number of industrial operations and continually growing demand for power supply in the residential regions of the country are expected to drive the demand for thermal power plant. Increase in power needs across the globe are expected to drive the growth of the thermal power plant market during the forecast period.

However, advent of environment-friendly technologies, strict regulations regarding greenhouse gas emissions, and health issues associated with the coal-fired power generation are expected to hamper the growth of the thermal power plant market during the forecast period. Furthermore, advancement in combustion technologies is expected to provide growth opportunities for the market during the forecast period.

The thermal power plant market size is segmented on the basis of fuel type and region. By fuel type, it is analyzed across coal, gas, nuclear, and others. Region-wise, it is studied across North America, Europe, Asia-Pacific, and LAMEA.

Global Thermal Power Plant Market, By Region

Asia-Pacific accounted for a major thermal power plant market share in 2020. Upcoming power generation projects and growing industrialization in the region are the major factors driving the growth of the market in the region. The availability of coal at low prices, primarily found in the coal-rich Asia-Pacific region is expected to continue to be a vital driving factor for the market. In addition, the rise in consumption of electricity on account of increase in energy needs in day-to-day life, especially from developing markets, is expected to have a positive impression on the market growth.

Global Thermal Power Plant Market, By Fuel Type

The coal segment accounted for a major share in the thermal power plant market in 2020 as coal is a key source for power generation due to its abundant availability and low cost compared to other power generation processes. Rapid urbanization and industrialization in emerging nations such as Asia-Pacific and Central and South America, has caused a growth in electricity demand over the years for residential and commercial applications. This is likely to surge the demand for coal from thermal power plants during the forecast period.

COVID-19 analysis:

The sudden outbreak of the novel coronavirus has put the world to halt. The coal industry is among the worst affected industries, lockdowns imposed by governments of various countries has caused temporary and even permanent closures of power plant across the globe due to decline in demand for power. The European Union (EU) imports of coal for thermal power plants plunged by almost two-thirds in recent months to reach lows not seen in 30 years.

Key benefits for stakeholders

• The global thermal power plant market analysis covers in-depth information of major industry participants.
• Porter’s five forces analysis help analyze potential of buyers & suppliers and the competitive scenario of the industry for strategy building.
• Major countries have been mapped according to their individual revenue contribution to the regional market.
• The report provides in-depth analysis of the global thermal power plant market forecast for the period 2021–2030.
• The report outlines the current global thermal power plant market trends and future scenario of the global market from 2020 to 2030 to understand the prevailing opportunities and potential investment pockets. 
• Key drivers, restraints, & opportunities and their detailed impact analysis are explained in the global thermal power plant market study. 

 Thermal Power Plant Market Report Highlights