Investments In Natural Gas-Based Power Generation Capacities Are Driving The Fossil Fuel Electric Power Generation Market’s Growth
The investments in natural gas-based power generation capacities across developing countries increased globally, which in turn resulted in an increased demand of the global fossil fuel electric power generation market. This increase in demand is mainly due to increased access to coal and comparatively stable coal prices over the years. The global fossil fuel electric power generation market is expected to grow from $830.4 billion in 2019 to nearly $1.03 trillion by 2023, at an annual growth rate of about 5.69%. Additionally, the growing demand for electricity is expected to drive the market. The global demand for electricity is projected to grow from 25,000 TWh in 2017 to 38,700 TWh by 2050, an increase of 57%. China and India will account for a major portion of this growth. This increase in demand for electricity is mainly due to growing economies and rising population, especially in developing countries such as China, India, Brazil, and some African countries.
The fossil fuel electric power generation market consists of sales of fossil fuel power by entities that convert fossil fuels into electrical energy and operate electric power generation facilities. The fossil fuel electric power generation industry includes establishments that produce electricity through the use of fossil fuels such as coal, oil, and natural gas as energy sources. The fossil fuel electric power generation market is a segment of the power generation market. At about 70.8%, it was the largest segment of the power generation market. The power generation market is segmented by type of energy source into hydroelectric power generation, fossil fuel electric power generation, nuclear electric power generation, solar electric power generation, wind electric power generation, geothermal electric power generation, biomass electric power generation, and other electric power generation. With an annual growth rate of nearly 9.5%, the solar electric power generation market is expected to be the fastest-growing segment.
Asia Pacific is the largest contributor of the global fossil fuel electric power generation market, contributing nearly $538.8 billion, which accounts for 80.9% of the global fossil fuel electric power generation market. The availability of large coal deposits in some of the largest mines in countries such as Australia, India, and China are a major reason for the large contribution by the Asia Pacific fossil fuel electric power generation market.
Environmental regulations by governments globally result in restraining the market due to rising environmental concerns. Fossil fuel power plants are major sources of toxic pollutants such as mercury, sulphur dioxide, and carbon emissions. Governments globally are increasingly supporting the adoption of carbon capture and storage (CCS) technology across industries, including power generation. CCS withholds up to 90% of the carbon dioxide emissions produced by burning fossil fuels from entering the atmosphere. These regulations are expected to increase the costs of procuring cheaper fossil fuel-based power, acting as a restraint on the market.