Retail Electricity Market Report 2025

This Retail 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 retail electricity market size has grown rapidly in recent years. It will grow from $53.2 billion in 2024 to $61.57 billion in 2025 at a compound annual growth rate (CAGR) of 15.7%. The growth in the historic period can be attributed to deregulation of electricity markets, advancements in energy technology, rising energy demand, government subsidies and incentives, fluctuating fossil fuel prices, and environmental regulations and policies.

The retail electricity market size is expected to see rapid growth in the next few years. It will grow to $109.45 billion in 2029 at a compound annual growth rate (CAGR) of 15.5%. The growth in the forecast period can be attributed to increasing adoption of renewable energy, decentralization and distributed generation, the growth of electric vehicles (EVs), advancements in smart grid technology, and energy storage solutions. Major trends in the forecast period include smart metering and monitoring, time-of-use (TOU) pricing, energy efficiency products, flexible billing and payment options, electric vehicle (EV) charging solutions, and energy storage solutions.

The rising demand for electric vehicles (EVs) is anticipated to drive growth in the retail electricity market. Electric vehicles are powered by one or more electric motors and rely on energy stored in rechargeable batteries. This surge in EV demand is fueled by heightened environmental awareness, supportive government policies promoting cleaner transportation, and technological advancements in EVs, resulting in longer ranges and quicker charging times. Retail electricity is crucial to fulfilling EV charging requirements, whether through home charging stations or public charging points, and supports the shift toward sustainable transportation. For instance, in April 2023, a report from the International Energy Agency, a France-based autonomous intergovernmental organization, highlighted that China accounts for about 60% of global electric car sales, with more than half of the world’s EVs on its roads, already surpassing its 2025 target for new energy vehicle sales. In Europe, the second-largest EV market, sales grew by over 15% in 2022, with over one in five cars sold being electric. In the U.S., the third-largest market, EV sales rose by 55% in 2022, reaching an 8% market share. During Q1 2023, over 2.3 million electric cars were sold, marking a 25% increase from the same period the previous year. Sales are expected to reach 14 million by the end of 2023, representing a 35% year-on-year increase, with significant growth anticipated in the latter half of the year. Thus, the growing demand for EVs is poised to stimulate expansion in the retail electricity market.

Key players in the retail electricity market are developing personalized energy monitoring tools, such as connected energy solutions, to improve consumer engagement and optimize energy use. These solutions enhance retail energy management, support grid reliability, and offer real-time data and advanced analytics to users. For instance, in May 2023, Iberdrola, a Spanish electric utility company, introduced an advanced smart assistant aimed at maximizing household electricity savings. This AI-powered tool reduces smart device consumption by 10-30%, integrates with solar panels and EV chargers, and is deployed via Amazon Web Services with development support from Deloitte, a UK-based professional services firm. It provides real-time energy monitoring, personalized savings advice, and seamless integration with smart home devices, thereby boosting energy efficiency and customer engagement through actionable insights.

In March 2024, Vistra Corp., a US-based company specializing in retail electricity and power generation, acquired Energy Harbor Corp. for an undisclosed sum. This acquisition is intended to expand Vistra's zero-carbon generation capacity, grow its retail customer base, and enhance its competitive position in the US energy market. Energy Harbor Corp. is a US-based energy provider offering retail electricity services.

Major companies operating in the retail electricity market are Electricité de France SA (EDF), Enel SpA, E.ON SE, Engie SA, EnBW Energie Baden-Württemberg AG, Iberdrola S.A., Tokyo Electric Power Company Holdings Inc, RWE AG, NRG Energy Inc, Southern Company, Duke Energy Corporation, National Grid plc, Constellation Energy Resources LLC, Pacific Gas and Electric Company (PG&E), American Electric Power Company Inc, DTE Energy Company, Exelon Corporation, Xcel Energy Inc, Dominion Energy Inc, Entergy Corporation, CLP Holdings Limited, AES Corporation, Origin Energy Limited, Ameren Corporation, PPL Corporation, Emera Incorporated, Hydro One Inc, OGE Energy Corporation, Enersource Corporation.

North America was the largest region in the retail electricity market in 2024. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the retail electricity market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the retail electricity market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

Retail electricity involves the direct sale of electricity to end-users, such as households, businesses, and other entities. This process includes the distribution and sale of electricity through local utility companies or retail electricity providers (REPs). Retail electricity covers aspects such as billing, customer service, and other functions related to supplying electricity to consumers, and is distinct from wholesale electricity transactions, which occur between generators and wholesale market participants.

The primary customer types for retail electricity are regulated customers and deregulated customers. Regulated customers receive electricity from utilities operating under government or regulatory body guidelines. Energy sources for retail electricity include both conventional and renewable energy, used in applications such as energy efficiency solutions, demand response programs, and smart home technologies. End users include residential, commercial, and industrial sectors.

The retail electricity market research report is one of a series of new reports that provides retail electricity market statistics, including retail electricity industry global market size, regional shares, competitors with an retail electricity market share, detailed retail electricity market segments, market trends and opportunities, and any further data you may need to thrive in the retail electricity industry. This retail 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 retail electricity includes revenues earned by entities by providing services such as fixed-rate plans, variable-rate plans, time-of-use plans, green energy plans, prepaid plans, demand response programs, electric vehicle (EV) charging plans. 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.

This product will be delivered within 3-5 business days.