Fossil Fuel Electricity Market Report 2025

This Fossil Fuel Electricity market report provides a comprehensive analysis of the market’s characteristics, size, and growth, including segmentation, regional and country-level breakdowns, competitive landscape, market shares, trends, and strategies. It also tracks historical and forecasted market growth across various geographies.

The fossil fuel electricity market size has grown strongly in recent years. It will grow from $1.09 trillion in 2024 to $1.15 trillion in 2025 at a compound annual growth rate (CAGR) of 5.4%. The growth in the historic period can be attributed to energy demand, economic growth, infrastructure development, policy and regulation.

The fossil fuel electricity market size is expected to see steady growth in the next few years. It will grow to $1.39 trillion in 2029 at a compound annual growth rate (CAGR) of 4.7%. The growth in the forecast period can be attributed to environmental concerns, renewable energy integration, energy efficiency, energy storage. Major trends in the forecast period include technological advancements, adoption of cleaner technologies, resilience and grid modernization.

The increasing demand for electricity is expected to be a major driver of the fossil fuel electricity market during the forecast period. This is primarily due to growing economies and a rising population, particularly in developing countries like China, India, Brazil, and several African nations. For example, in January 2024, the International Energy Agency (IEA), a France-based autonomous intergovernmental organization, reported a 2.2% global electricity demand growth in 2023. In the United States, electricity demand rose by 2.6% in 2022.

The growing adoption of electric vehicles is expected to drive the expansion of the fossil fuel electricity market. Electric vehicles are powered by one or more electric motors and are fueled by an onboard battery pack. Fossil fuel electricity offers significant environmental advantages, including reducing greenhouse gas emissions and improving air quality, and plays a vital role in achieving a sustainable transportation future. For instance, according to Sustainable Bus, an Italy-based media company focused on clean buses and sustainability, the number of electric bus registrations in Europe increased by 53% in 2023 compared to 2022. As a result, the rising adoption of electric vehicles is contributing to the growth of 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 in the fossil fuel electricity market are working on developing new technologies to reduce the weight, manufacturing costs, and component requirements of hydrogen fuel cells. These technological advancements are improving the efficiency of hydrogen fuel cells. For example, in September 2024, Mahindra Group, an India-based automobile manufacturer, introduced the Mahindra Veero Light Commercial Vehicle (LCV) lineup with both diesel and CNG variants. The Veero is equipped with a 1.5-liter, three-cylinder mDI diesel engine that produces 59.7 kW and 210 Nm of torque, or an efficient Turbo mCNG engine generating 67.2 kW with the same torque output. The diesel variant offers a fuel efficiency of 18.4 km/l, while the CNG version delivers 19.2 km/kg.

In November 2023, Capital Power, a Canada-based electricity generation company, acquired La Paloma and Harquahala for $1.1 billion. This acquisition will enhance Capital Power's capacity and operational reach, making it the fifth-largest operator of flexible gas-fired generation in North America. It supports their strategy to strengthen their position in key Canadian and U.S. markets. La Paloma and Harquahala are natural gas-fired generation facilities located in the United States.

Fossil fuel electricity is produced by burning coal, natural gas, or oil in power plants to generate heat, which creates steam to drive turbines and produce power. This method has been the primary energy source due to its reliability, well-established infrastructure, and capacity to meet high energy demands. It delivers consistent electricity for residential, industrial, and commercial use but is also a significant contributor to greenhouse gas emissions.

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.

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 2024. 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, Canada, Italy, Spain.

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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