Thermal Power Plant Market Size, Share & Industry Analysis By Fuel Type (Coal, Gas, Nuclear, Others), By Capacity (Up-to 400 MW, 400-800 MW, More than 800 MW) And Regional Forecast, 2024-2032

Thermal power plants use the heat energy from solid fuel burning to transform water into steam at high pressure and temperature. The steam moves the turbine blade, which drives the generator. That kinetic energy is converted into electrical power by the generator.

The market is primarily driven by rising electricity consumption across the globe as the population growing continuously. The thermal power plant market is also expanding due to rapid industrialization, urbanization, and heavy industry energy requirements.

However, the introduction of environmentally friendly technologies, stringent restrictions regarding greenhouse gas emissions, and health risks connected with coal-fired power generation are projected to restrain the expansion of the thermal power plant market.

• As per the stated report of IEA, to stay on track for net-zero emissions by 2050, the Net Zero Scenario calls for all subcritical coal-fired power facilities to be phased out by 2030. This will necessitate the shutdown of 870 GW of existing subcritical coal capacity worldwide or around 11% of total power capacity.

Asia Pacific accounted for a significant portion of the global thermal power plant market. The primary drivers driving the market's growth in the region are upcoming thermal power generation projects and expanding industrialization. The market is projected to be fueled by the low cost of coal, which is abundant in the coal-rich Asia Pacific region.

• According to IEA, In 2020, China's power generated from coal accounted for 4,732 TWh, up from the previous year's 4,445.0 TWh. Coal power generation holds a 66.0% share in China's overall energy mix. 

IMPACT OF COVID-19 ON THE THERMAL POWER PLANT MARKET

The expansion of the thermal power plant market is projected to slow in the current COVID-19 environment. Government-imposed lockdowns have resulted in temporary and even permanent closures of thermal power plants worldwide due to a drop in demand for electricity. However, the easing restrictions, growing energy demand, increasing consumer conscience towards green energy are anticipated to help regain the market.

KEY INSIGHTS

The report will cover the following key insights:

• Recent Advancements in Thermal Power Plant


• Key Industry Trends


• Regulatory Landscape for Thermal Power Plant


• Key Industry Developments (Mergers, Acquisitions, and Partnerships)


• Impact of COVID-19 on the Market

ANALYSIS BY FUEL TYPE

According to fuel type, the thermal power plant market can be subdivided into coal, gas, nuclear, and others. Coal is a crucial source of power generation due to its abundant availability and low cost compared to other power generation methods. The thermal power plant had a significant share in 2020 for electricity generation. Coal thermal power plants are likely to continue to be the most extensively utilized thermal power plants, with the highest percentage of the world's electricity power (global) supply. Natural gas-fired thermal power plants are likely to increase, while nuclear and coal-fired power plants are expected to remain stagnant.

ANALYSIS BY CAPACITY

According to capacity, the thermal power plant market can be subdivided up to 400 MW, 400-800 MW, more than 800 MW, etc. More than 800 MW segments dominate the market globally due to the increase in power consumption and increased energy needs in industrial sectors. Other segments such as up to 400 MW and 400-800 MW are in demand in utility sectors for the power generation and supply to the residential, corporate, and transportation sectors globally.

REGIONAL ANALYSIS

North America region held the second-largest share in the thermal power plant market. The region is projected to be driven by increased investments in natural gas-based thermal power plants. Natural gas generates a lot of electricity in the region, and it's likely to dominate the thermal power market in the following years. Due to increased investment in the industry and the region's most excellent installed capacity of thermal power energy, the United States is predicted to be the largest market for the region's thermal power market.

Europe will also be expected to contribute significantly during the forecast period. With the decommissioning of coal facilities in various countries across the region, the market is projected to be driven by natural gas-based power generation. The industry is projected to be moved further by forthcoming nuclear projects in Russia and France's enormous reliance on nuclear energy. Although coal and nuclear power are projected to decline, natural gas will provide enough prospects shortly with planned developments. In the upcoming years, Russia is expected to grow at a significant pace due to the highest electricity consumption, expanding natural gas output, and planned projects.

KEY PLAYERS COVERED

The report will include key players such as China Huaneng Group Co. Ltd., American Electric Power Company, Eskom Holdings SOC Ltd., Duke Energy Corporation, Dominion Energy Solutions Inc., NTPC Limited, RWE Aktiengesellschaft, Jindal India Thermal Power Limited, and Tenaga Nasional Berhad.

SEGMENTATION

KEY INDUSTRY DEVELOPMENTS

• In October 2021, American Electric Power agreed to sell its Kentucky businesses, including Kentucky Power and AEP Kentucky Transco, to Liberty, parent company Algonquin Power & Utilities Corp's regulated utility subsidiary, for a US$ 2.846 billion enterprise value.


• In January 2021, Huaneng announced to add more than 80GW of clean energy power capacity, bringing clean energy to more than half of the company's total installed generation capacity by 2020.