Fossil Fuel Electricity Global Market Report 2024

The fossil fuel electricity market size has grown strongly in recent years. It will grow from $1056.4 billion in 2023 to $1118.4 billion in 2024 at a compound annual growth rate (CAGR) of 5.9%. The growth observed during the historical period can be attributed to several key factors, including increased energy demand, economic expansion, infrastructure development, and the influence of policy and regulations.

The fossil fuel electricity market size is expected to see strong growth in the next few years. It will grow to $1378.67 billion in 2028 at a compound annual growth rate (CAGR) of 5.4%. Anticipated growth in the forecast period can be primarily ascribed to environmental considerations, the integration of renewable energy sources, enhanced energy efficiency, and advancements in energy storage. Notable trends that are expected to shape this period include technological innovations, the adoption of cleaner technologies, a focus on resilience, and the modernization of grid systems.

The projected surge in electricity demand, driven by burgeoning economies and expanding populations, particularly in emerging nations like China, India, Brazil, and select African countries, is expected to significantly influence the fossil fuel electricity market in the upcoming period. According to the International Energy Agency's 2019 report, global electricity demand is anticipated to grow at a rate of 2.1% annually until 2040, outpacing primary energy demand's growth rate. This upsurge will elevate electricity's share in final power consumption from 19% in 2018 to an estimated 24% by 2040, with substantial contributions from China and India. Notably, India's energy consumption surged by 13.38% to 110.94 billion units in October 2020, primarily propelled by increased industrial and commercial activities. The burgeoning global household appliances market, expected to reach $396 billion by 2022, will further amplify the demand for electricity, consequently influencing the growth of the fossil fuel electricity market.

The primary fuel sources in the domain of fossil fuel electricity are coal, oil, and natural gas. Coal is a combustible sedimentary rock, typically black or brownish-black in color, found in the form of coal seams. It is classified as a fossil fuel since it originates from plant matter that once thrived. The sectors served by fossil fuel electricity encompass residential, commercial, and industrial segments.

The fossil fuel electricity market research report is one of a series of new reports that provides fossil fuel electricity market statistics, including fossil fuel electricity industry global market size, regional shares, competitors with a fossil fuel electricity market share, detailed fossil fuel electricity market segments, market trends and opportunities, and any further data you may need to thrive in the fossil fuel electricity industry. This fossil fuel electricity market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

The prospective escalation in the utilization of electric vehicles is poised to be a driving force behind the anticipated growth in the fossil fuel electricity market in the future. Electric vehicles, powered by one or multiple electric motors drawing energy from an onboard battery pack, offer substantial environmental advantages by curbing greenhouse gas emissions and enhancing air quality. These vehicles play a pivotal role in steering towards a sustainable transportation future. Notably, the International Energy Agency reported a significant surge in electric vehicle sales in September 2022, doubling to 6.6 million in 2021 from over 3 million in 2020. This uptick in electric vehicle adoption is consequently fueling the expansion of the fuel-cell electric vehicle market.

Governments worldwide are actively implementing regulatory measures aimed at reducing fossil fuel electricity consumption due to mounting environmental apprehensions. Fossil fuel-based power plants are substantial sources of hazardous pollutants such as mercury, sulfur dioxide, and carbon emissions. With power generation contributing around 40% of carbon emissions from the energy sector and 25% of global greenhouse gas emissions, regulatory bodies are enforcing stringent guidelines on thermal power generation to mitigate their adverse impact on the environment. These regulations are anticipated to escalate the procurement costs of cheaper fossil fuel-based power, thereby serving as a constraint on the fossil fuel electricity market.

Governments worldwide are increasingly advocating for the implementation of carbon capture and storage (CCS) technology in various industries, particularly in power generation. CCS is effective in capturing up to 90% of the carbon dioxide emissions stemming from fossil fuel combustion, preventing their release into the atmosphere. This process involves isolating carbon dioxide from the gases produced during power generation and transporting it to secure storage locations. The ADM Illinois Industrial Carbon Capture & Storage (ICCS) Project exemplifies this, isolating carbon dioxide from an ethanol manufacturing facility and securely storing an estimated 1.1 million tonnes of carbon dioxide annually in nearby deep saline formations.

Companies within the fossil fuel electricity market are actively innovating to develop new technologies aimed at reducing the weight, manufacturing expenses, and component requirements of hydrogen fuel cells. Technological advancements are significantly enhancing the efficiency of hydrogen fuel cells. For instance, in July 2021, Hyzon Motors Inc., a US-based manufacturer specializing in commercial vehicles powered by hydrogen fuel cells emitting zero emissions, introduced a novel commercial vehicle. This innovative technology integrates a metal structure with lightweight composite materials, thereby reducing the weight and manufacturing costs of vehicles running on Hyzon's hydrogen fuel system.

In August 2021, ArcLight Capital Partners, LLC, a US-based company primarily focusing on investments in energy infrastructure, completed the acquisition of Public Service Enterprise Group's (PSEG) fossil-fuel plant portfolio, totaling 6,750 MW, for $1.92 billion. This strategic acquisition signifies ArcLight Capital Partners LLC's expansion into a cleaner energy infrastructure, aligning with their objective of contributing to a low-carbon economy. Public Service Enterprise Group (PSEG), a US-based electric services company specializing in fossil-fuel electricity, was the seller in this transaction.

Major companies operating in the fossil fuel electricity market include Iberdrola S.A., Huaneng Power International Inc., Engie SA, Enel SpA, State Power Investment Corporation Limited, AGL Energy Limited, Origin Energy Limited, EnergyAustralia Holdings Limited, Stanwell Corporation Limited, American Electric Power Company Inc., Duke Energy Corporation, Southern Company, China Energy, China Power, NTPC Limited, SSE PLC, Tokyo Electric Power Company Holdings Inc., ENEOS Holdings Inc., Reliance Industries Limited, Energy Transfer LP, Enterprise Products Partners L.P., Indian Oil Corporation Limited, EOG Resources Inc., Suncor Energy Inc., PJSC Tatneft, Electricité de France SA, Ecopetrol SA, Repsol S.A., Idemitsu Kosan Co. Ltd.

Asia-Pacific was the largest region in the fossil fuel electricity market in 2023. Western Europe was the second-largest region in the fossil fuel electricity market. The regions covered in the fossil fuel electricity market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa

The countries covered in the fossil fuel electricity market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Italy, Spain, Canada

The fossil fuel electricity market includes revenues earned by entities by gas turbines, Diesel engines, and Spark-ignition internal combustion engines. The market value includes the value of related goods sold by the service provider or included within the service offering. Only goods and services traded between entities or sold to end consumers are included.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.


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