The global thermal power plant market plays a vital role in meeting the ever-increasing demand for electricity. Thermal power plants predominantly use coal, natural gas and fuel oil as their primary fuel sources to produce steam that powers steam turbines for electricity generation. These conventional power plants are reliable base load power suppliers and account for around 75% of the global electricity generation. 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. These major players are focusing on capacity expansion and upgrading aging infrastructure to meet the growing electricity demand worldwide.

The global demand for electricity has been steadily increasing over the years primarily driven by population growth, rapid urbanization and industrial development. According to the International Energy Agency, the global electricity demand is expected to rise by close to 60% between 2018 to 2040. This burgeoning electricity demand worldwide is anticipated to drive the growth of thermal power plant market during the forecast period.

Several developing economies across Asia Pacific, Latin America, Middle East and Africa are extensively investing in setting up new coal, natural gas and oil-fired thermal power plants to bridge the demand-supply gap. Countries such as China, India, Indonesia, Vietnam, Saudi Arabia, UAE, South Africa etc. have unveiled ambitious capacity expansion plans for thermal power generation which is expected to boost the global market in coming years.

Market Key Trends

One of the major trends gaining traction in the thermal power plant market is the increasing adoption of ultra-supercritical thermal power technology. Ultra-supercritical units offer up to 10% increase in efficiency compared to conventional subcritical plants. They operate at Ultra-high steam parameters of pressure above 24.1MPa and temperature of 593 degree Celsius or higher. Countries worldwide are replacing aging subcritical units with more efficient supercritical and ultra-supercritical plants to reduce coal consumption and carbon emissions per unit of electricity generated. Rising concerns over greenhouse gas emissions are also driving the global shift towards less polluting natural gas-fired combined cycle power plants from coal. Other notable trends include increasing focus on digitization and automation of power plants for performance monitoring and remote operations.

Porter's Analysis

Threat of new entrants: High capital requirements for setting up a thermal power plant acts as a deterrent. Bargaining power of buyers: Large utilities can negotiate better prices due to bulk buying. Bargaining power of suppliers: Fuel suppliers have some bargaining power due to lack of alternate sources of fuel in many locations. Threat of new substitutes: Renewable sources of energy such as wind and solar power are emerging as alternatives. Competitive rivalry: Intense competition due to large number of players.

Geographical regions where market is concentrated: Asia Pacific region accounts for the largest share in terms of value owing to high electricity demand from developing economies such as India and China. These countries are heavily reliant on thermal power generation to meet increasing power needs of industrial and residential sector.

Fastest growing region: Africa region is expected to witness highest growth during the forecast period on account of rising population, industrialization and economic development. Many countries in Africa are investing heavily in expanding power generation capacity through construction of new coal, gas and diesel based thermal power plants with aim to provide access to electricity to more people. 

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