Rising Electricity Demand Drives Thermal Power Plant Market Growth to $1,820.7 Billion by 2030

Rising electricity demand, industrialization, and new power projects drive growth in the global thermal power plant market, especially in developing regions.

WILMINGTON, DE, UNITED STATES, July 15, 2025 /EINPresswire.com/ -- According to a new report published by Allied Market Research, titled, “Global Thermal Power Plant Market: Opportunity Analysis and Industry Forecast, 2021–2030,” The global thermal power plant market was valued at $1,345.0 billion in 2020, and is projected to reach $1,820.7 billion by 2030, growing at a CAGR of 3.2% from 2021 to 2030.

The thermal power plant market involves facilities that generate electricity by converting heat energy, typically from fossil fuels such as coal, natural gas, and oil. These plants are a major source of base-load power worldwide, ensuring consistent and stable electricity supply. Despite the rising adoption of renewable energy, thermal power remains vital in many developing nations due to its cost-effectiveness, infrastructure availability, and capacity to meet large-scale energy demands.

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Market Dynamics
1. Demand for Reliable Electricity Supply
Global demand for consistent and large-scale electricity generation is one of the key drivers of the thermal power plant market. These plants provide stable base-load power to industries, households, and commercial establishments, especially in regions with unreliable renewable sources.

2. Infrastructure Development in Emerging Economies
Countries in Asia-Pacific, Africa, and Latin America are witnessing rapid industrialization and urbanization, which is leading to increased investments in thermal power infrastructure. Government support and funding for energy development projects further strengthen market growth.

3. Environmental Regulations and Emission Concerns
A major restraint for the thermal power sector is growing environmental concerns. Stringent carbon emission regulations and climate agreements are pressuring countries to reduce their reliance on coal and gas-based plants. This has led to a shift toward cleaner technologies or plant modernization.

4. Transition to Cleaner Thermal Technologies
To align with emission norms, market players are focusing on combined cycle gas turbines (CCGT), carbon capture systems, and supercritical & ultra-supercritical technologies. These advancements improve plant efficiency and lower environmental impact, creating new opportunities in the thermal power space.

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5. Competition from Renewable Energy
The growing adoption of solar, wind, and hydroelectric power is creating a competitive environment for thermal power generation. However, the intermittent nature of renewables ensures continued reliance on thermal plants as backup or supplementary energy sources, maintaining a balanced energy mix.

Segment Overview
The thermal power plant market analysis is segmented by fuel type, technology, and end-user. By fuel type, the market includes coal, natural gas, oil, and others. Coal-fired plants currently dominate due to their large installed base. By technology, segments include subcritical, supercritical, and ultra-supercritical. End users range from residential and commercial sectors to industrial and utility-scale applications.

Asia-Pacific dominates the thermal power plant market, driven by large-scale energy consumption in China, India, and Southeast Asia. These countries rely heavily on coal-based power due to domestic availability and cost benefits. Significant government investments in infrastructure and energy access also contribute to market expansion in the region.

North America and Europe, on the other hand, are experiencing a gradual decline in new thermal power plant construction due to strict environmental regulations and increased focus on renewables. However, retrofitting and modernization of aging plants continue to create market opportunities, especially in gas-fired and hybrid energy systems.

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Competitive Analysis
The thermal power plant market is highly competitive, with major players focusing on upgrading plant efficiency, adopting low-emission technologies, and expanding their global footprint. Key companies include American Electric Power Company, China Huaneng Group Co. Ltd., Dominion Energy Solutions Inc., Duke Energy Corporation, Eskom Holdings SOC Ltd., Jindal India Thermal Power Limited, NTPC Limited, RWE Aktiengesellschaft, and Tenaga Nasional Berhad. These players are actively investing in R&D and collaborations with governments for sustainable thermal power solutions.

Smaller regional players and EPC contractors are also playing a vital role, particularly in emerging economies where local partnerships are essential. Competitive pricing, long-term service contracts, and turnkey project capabilities are among the strategies used to maintain and grow market share.

Key findings of the study
• The global thermal power plant market remains crucial for base-load electricity generation, especially in developing economies.
• Asia-Pacific leads the market due to high coal dependency and growing energy demand.
• Supercritical and ultra-supercritical technologies are increasingly adopted to meet efficiency and emission norms.
• Regulatory pressure and climate goals are prompting a shift toward gas-based and hybrid thermal solutions.
• Infrastructure upgrades and retrofits offer growth potential in mature markets like North America and Europe.

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David Correa
Allied Market Research
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