Retail Electricity Market Report 2026

The retail electricity market size has grown rapidly in recent years. It will grow from $61.07 billion in 2025 to $70.42 billion in 2026 at a compound annual growth rate (CAGR) of 15.3%. The growth in the historic period can be attributed to deregulation of electricity markets, rising energy consumption, growth of urbanization, traditional grid infrastructure expansion, limited renewable integration.

The retail electricity market size is expected to see rapid growth in the next few years. It will grow to $124.03 billion in 2030 at a compound annual growth rate (CAGR) of 15.2%. The growth in the forecast period can be attributed to increasing adoption of smart grids, growth in renewable energy penetration, electric vehicle adoption, rising demand for energy efficiency solutions, expansion of distributed generation. Major trends in the forecast period include smart metering & advanced meter infrastructure, dynamic pricing & time-of-use tariffs, customer-centric billing & engagement platforms, distributed energy resource integration, demand-side management programs.

A rise in demand for electric vehicles (EVs) is anticipated to boost the growth of the retail electricity sector in the coming years. An electric vehicle is a type of automobile powered by one or more electric motors and relies on energy stored in rechargeable batteries. The increasing demand for electric vehicles (EVs) is fueled by growing environmental awareness, government incentives promoting cleaner transportation alternatives, and advancements in EV technology that enable longer driving ranges and faster charging. Retail electricity plays a crucial role in meeting the charging requirements of electric vehicles (EVs), whether through home charging points or public charging stations, facilitating the shift toward sustainable transportation. For example, in April 2024, the International Energy Agency (IEA), a France-based energy-analysis organization, reported that nearly 14 million new electric cars were registered globally in 2023. Electric car sales in 2023 were 3.5 million higher than in 2022, marking a 35% year-on-year increase, and electric vehicles accounted for about 18% of all cars sold in 2023, up from 14% in 2022, bringing the total number of electric cars on the world’s roads to approximately 40 million. Hence, the growing demand for electric vehicles (EVs) will drive the expansion of the retail electricity sector.

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 2025. 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, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East and Africa. The countries covered in the retail electricity market report are Australia; Brazil; China; France; Germany; India; Indonesia; Japan; Taiwan; Russia; South Korea; UK; USA; Canada; Italy; Spain.

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.

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