What Is The Definition Of The Global Retail Electricity Market?
Retail electricity refers to the sale of electricity directly to end-users or consumers, typically households, businesses, and other entities. It involves the distribution and sale of electricity through local utility companies or retail electricity providers (REPs). Retail electricity encompasses billing, customer service, and other aspects related to supplying electricity to consumers, distinct from wholesale electricity transactions that occur between electricity generators and wholesale market participants.
Retail Electricity Global Market Report 2024 provides data on the global retail electricity market such as market size, growth forecasts, segments and geographies, competitive landscape including leading competitors’ revenues, profiles and market shares. The retail electricity market report identifies opportunities and strategies based on market trends and leading competitors’ approaches.
How Is The Global Retail Electricity Market Size Expected To Expand, And At What Annual Growth Rate?
The retail electricity market has seen rapid growth in recent years. It will grow from $46.08 billion in 2023 to $53.2 billion in 2024 at a CAGR of 15.4%. The growth is attributed to deregulation of electricity markets, advancements in energy technology, rising energy demand, government subsidies and incentives, fluctuating fossil fuel prices, and environmental regulations. The market is expected to grow to $94.87 billion by 2028, with a CAGR of 15.6%. This growth is due to the increasing adoption of renewable energy, decentralization and distributed generation, the rise of electric vehicles (EVs), advancements in smart grid technology, and energy storage solutions. Key trends in the forecast period include smart metering and monitoring, time-of-use (TOU) pricing, energy efficiency products, flexible billing options, EV charging solutions, and energy storage technologies.
What Are The Key Drivers Fueling Growth In The Retail Electricity Market?
The growing demand for electric vehicles (EVs) is expected to support the retail electricity market. EVs, powered by rechargeable batteries, are gaining popularity due to environmental awareness, supportive government policies, and technological advancements. Retail electricity is essential for charging EVs, whether at home or public stations, facilitating the transition to sustainable transport. According to the Edison Electric Institute, the number of EVs in the U.S. is projected to grow from 2.4 million in 2021 to 26.4 million by 2030, necessitating significant infrastructure investment. This surge in EV adoption is driving the retail electricity market.
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What Are The Principal Market Segments In The Global Retail Electricity Industry?
The retail electricity market covered in this report is segmented –
1) By Customer Type: Regulated Customers, Deregulated Customers
2) By Energy Sources: Conventional Energy, Renewable Energy
3) By Application: Energy Efficiency Solutions, Demand Response Programs, Smart Home Technologies
4) By End User: Residential, Commercial, Industrial
Which Emerging Market Trends Are Altering The Retail Electricity Market?
In the retail electricity market, major companies are focusing on personalized energy monitoring assistants, such as connected energy solutions, to improve customer engagement and optimize energy consumption. Connected energy solutions use advanced analytics and real-time data to enhance energy efficiency and grid reliability. For instance, Iberdrola, a Spain-based electric utility company, introduced a smart assistant in May 2023 to help households maximize electricity savings. This AI-driven solution optimizes home energy use, reduces smart device consumption by 10–30%, and integrates with solar panels and electric vehicle chargers. It also provides real-time monitoring of energy usage, offering personalized savings recommendations and improving customer engagement.
What Is The Leading Region In The Retail Electricity Market?
North America was the largest region in the retail electricity market in 2023. 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.
