What Has Been the Progress and Growth of the Retail Electricity Market in Recent Years?
The retail electricity market has seen considerable growth due to a variety of factors.
• The retail electricity market has grown rapidly in recent years. It will increase from $53.2 billion in 2024 to $61.57 billion in 2025, at a compound annual growth rate (CAGR) of 15.7%.
The market's growth has been attributed to electricity market deregulation, advancements in energy technologies, rising energy demand, government incentives, fluctuating fossil fuel prices, and environmental regulations.
What Is The Expected Growth In The Retail Electricity Market Size Evolve over the Forecast Period?
The retail electricity market is expected to maintain its strong growth trajectory in upcoming years.
• The retail electricity market is expected to grow to $109.45 billion by 2029 at a CAGR of 15.5%.
This growth is attributed to the adoption of renewable energy, decentralization of energy production, the rise of electric vehicles, advancements in smart grid technology, and energy storage solutions. Key trends include smart metering, time-of-use pricing, energy efficiency products, flexible billing, EV charging solutions, and energy storage systems.
What Main Forces Are Fueling Expansion In The Retail Electricity Market?
The growth of the retail electricity market is forecasted to be spurred by an increase in demand for electric vehicles (EVs). Such vehicles, powered by one or more electric motors, utilize energy stored in rechargeable batteries. The rising demand for EVs is fueled by growing environmental consciousness, government policies encouraging greener transportation options, and EV technology improvements that offer extended range and quicker charging. Retail electricity fulfills the charging requirements of EVs, either via residential charging points or public charging stations, facilitating the move towards eco-friendly transportation. For instance, a report by the International Energy Agency, an autonomous intergovernmental organization based in France, stated in April 2023 that about 60% of worldwide electric car sales are attributed to China, housing over half of the global EVs. Remarkably, China has already exceeded its 2025 goal for new energy vehicle sales. Furthermore, Europe, the second-largest EV market, saw a sales increment of over 15% in 2022, with more than one out of every five cars sold being electric. Concurrently, in the United States, the third-largest market, sales of electric cars surged by 55% in 2022, capturing an 8% market share. In the first quarter of 2023, over 2.3 million electric cars were sold, marking a 25% increase from the same timeframe in the previous year. Sales for 2023 are predicted to hit 14 million, indicating a 35% year-on-year rise, with a significant surge in buying anticipated in the second half of the year. Hence, an escalation in EV demand is set to stimulate the expansion of the retail electricity market.
What Are The Primary Segments In The Global Retail Electricity Market?
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
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How Are Emerging Trends Reshaping The Dynamics Of The Retail Electricity Market?
In the retail electricity market, key businesses are now concentrating on personalized energy monitoring helpers, such as connected energy solutions, to increase consumer involvement and regulate energy utilization. Such solutions not only enhance the retail consumption of power but also boost grid dependability and customer participation through real-time data and superior analytics. For illustration, Iberdrola, an electric utility firm based in Spain that deals in the retail distribution of electricity, introduced a sophisticated intelligent assistant in May 2023 crafted to capitalize on savings from household electricity. Leveraging AI, this assistant helps moderate home energy expenditure, trim down smart device energy usage by 10–30%, and synchronizes with solar panels and electric vehicle recharging. This solution, conceived with Deloitte, a professional services network enterprise situated in the UK, and executed on Amazon Web Services, encompasses real-time supervision of power use, personalized economies suggestions, and flawless unification with smart domestic appliances. By delivering actionable interpretation of energy utilization patterns, this method escalates energy effectiveness and boosts consumer participation.
Who Are the Key Players In The Retail Electricity Market?
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
What Is The Most Dominant Region In The Retail Electricity Market?
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.
