INDUSTRY REPORT
“ An increasing regulatory focus on decarbonisation and environmental sustainability is reshaping the power generation landscape.”
Image: Andreas Gucklhorn, Unsplash.
INDUSTRY REPORT
POWER, PRICE AND POLICY
We outline market trends, forecasts and drivers in global power generation markets. The impacts of energy price volatility continue to be felt today with manufacturers once again facing rising costs amid the current energy crisis.
The power generation market refers to the global revenue generated from the production of electricity through various energy sources including fossil fuels, nuclear energy and renewable sources such as solar, wind and hydropower. They are supported by advanced generation technologies, grid infrastructure and energy management systems.
According to analyst, Grand View Research, the global powergeneration market size was valued at US $ 2,386.6 billion in 2025 and is projected to grow from US $ 2,574.5 billion( or US $ 2.5745 trillion) in 2026 to US $ 4,451.3 billion( or US $ 4.4513 trillion) by 2033, at a CAGR of 8.1 % from 2026 to 2033.
The fossil fuel segment held the largest market share of 58.6 % in 2025, said the analyst, while the Asia Pacific region took the largest share of 49.9 % of the global market in 2025. The solar segment is projected to register the fastest CAGR of 17 % during the forecast period, supported by the accelerating global transition towards clean and renewable energy sources. The market is experiencing steady growth as governments and utilities increasingly prioritise energy security, grid reliability and sustainable electricity supply to meet rising global demand.
The International Energy Agency( IEA) has reported that the market for key energy technologies – solar PV; wind; batteries; electric vehicles; heat pumps; electrolysers – surpassed US $ 1.1 trillion in 2025, after sustaining average annual growth of around 20 % over the past decade. This expansion occurred despite continued price declines for many technologies. During the period 2023-2025 alone, solar PV module prices fell by around 50 % and battery pack prices by around 30 %, it confirmed.
Electricity in focus
“ Global electricity demand is forecast to increase at a brisk average annual rate of 3.6 % over the 2026-2030 forecast period, supported by
20 | ismr. net | ISMR September 2026