Global Fossil Fuel New Energy Generation Market Overview:
As per MRFR analysis, the Fossil Fuel New Energy Generation Market Size was estimated at 1,386.57 (USD Billion) in 2022. The Fossil Fuel New Energy Generation Market Industry is expected to grow from 1,471.15(USD Billion) in 2023 to 2,507.3 (USD Billion) by 2032. The Fossil Fuel New Energy Generation Market CAGR (growth rate) is expected to be around 6.1% during the forecast period (2024 - 2032).
Key Fossil Fuel New Energy Generation Market Trends Highlighted
The Fossil Fuel New Energy Generation Market exhibits significant growth potential, driven by increasing energy demand, government initiatives promoting decarbonization and advancements in technology. The market is also influenced by the need for reliable and cost-effective energy sources, leading to increased adoption of fossil fuels in combination with renewable energy technologies. Key market drivers include rising population growth, urbanization, and industrialization, which contribute to the increasing demand for electricity and transportation fuels. Opportunities for growth lie in the exploration of clean coal technologies, carbon capture and storage, and the integration of fossil fuels with renewable energy sources. Recent trends in the market include the adoption of innovative technologies such as combined cycle gas turbines (CCGT) and fluidized bed combustion (FBC) systems, as well as the emphasis on reducing carbon emissions through advanced technologies and carbon pricing mechanisms.
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
Fossil Fuel New Energy Generation Market Drivers
Increasing Demand for Energy
The growth of the population and the rise of energy demand are the leading drivers of the Fossil Fuel New Energy Generation Market Industry. The population is continuously growing, and so is the demand for electricity, heating and transportation fuels. At present, fossil fuels remain the leading source of energy around the globe, and there are no signs that they will not continue to be a major source of energy in the near future. The increasing demand for energy is leading to the increasing pressure on energy supplies, and it affects the pricing of fossil fuels.The latter is expected to additionally fuel the development of fossil fuel new energy generation projects since they allow producing energy in a more cost-effective way than traditional fossil fuel power plants. Another major factor that drives the development of the market is concern about greenhouse gas emissions that pollute the environment. Fossil fuel new energy generation projects help to remove traditional fossil fuel power plants and, thus, can help to decrease greenhouse gas emissions.In addition, they do not produce nearly as many pollutants as traditional power plants that burn gas, diesel, and coal. Moreover, fossil fuel new energy generation projects can help to create new jobs and boost economic growth.
Government Policies
Another major driver of the Fossil Fuel New Energy Generation Market Industry is government policies. Most governments around the world are setting new policies and making new laws that favor the use of renewable sources of energy. This is being done because of the concerns about warming, as greenhouse gas emissions are being reduced. Moreover, many governments are giving financial incentives to businesses and individuals in their countries, who invest in renewable sources of energy sources.Furthermore, these countries have set targets for the amount of green gas emissions that should be released every year, thereby making it difficult for the traditional to continue its activities; those found releasing more green gas emissions are also being closed by the concerned authorities. It is expected that government policies will continue to drive the fossil fuel new energy generation market for the next years.
Technological Advancements
Summary Technological advancements are also one of the driving factors of the Fossil Fuel New Energy Generation Market Industry. The costs of renewable energy technologies are decreasing in the past years and they are becoming more affordable alternatives for firms and individuals. On the other hand, efficiencies of renewable energy technologies are higher than the previous versions and this is an advantage driving their popularity and usage.Technological advancements will also help the growth of the fossil fuel new energy generation market in the upcoming years.
Fossil Fuel New Energy Generation Market Segment Insights:
Fossil Fuel New Energy Generation Market Power Output Capacity Insights
The Up to 500 MW segment is projected to grow at the highest rate. Among the segments of the Fossil Fuel New Energy Generation Market, the 500 MW segment is projected to grow at the highest rate. The demand for small-scale power generation projects is constantly growing in remote areas and developing countries. However, the 500 MW – 1,000 MW segment is also projected to grow at an increased rate because of the growth of the midsize power plants sector. The increase in demand for power plant products in emerging economies.The 1,000 MW – 1,500 MW and 1,500 MW – 2,000 MW segments are con projected to grow at a lower rate than any of the other segments. The Over 2,000 MW segment is currently in its mature phase and is not expected to grow at an increased rate in the long term. Up to 500 MW segment is anticipated to have the largest market share of the Fossil Fuel New Energy Generation Market revenue by 2024. The leading countries in the Fossil Fuel New Energy Generation Market would be affected more by the Up to 500 MW segment than by the other larger-scale segments.The 500 MW – 1,000 MW segment would have the second-largest market share in 2024. The Fossil Fuel New Energy Generation Market is growing for several reasons. They include increased electricity consumption, growth of energy costs at a scale and the use of alternative sources such as environment-friendly solar or wind energy. The demand and, consequently, the competition in the market are expected to keep increasing. Such trends as emissions and the need to limit the obstacles to green and clean energy generation continue boosting the market.The recent developments in countries all over the world are also contributing to the growth of the market. The future of the Fossil Fuel New Energy Generation Market is lighted with a continuously increasing demand for electricity and an increase in energy costs, as well as government policies and initiatives in the area.
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
Fossil Fuel New Energy Generation Market Fuel Type Insights
The Fuel Type segment of the Fossil Fuel New Energy Generation Market is anticipated to exhibit substantial growth in the coming years. In 2023, the segment accounted for a considerable share of the overall market revenue, and this trend is projected to continue throughout the forecast period. Coal dominates the segment, owing to its affordability and wide availability. Natural gas is also gaining traction, primarily due to its lower emissions compared to coal. Oil, biomass, and petroleum coke are other key fuel types used in fossil fuel-based new energy generation.The increasing demand for energy, coupled with government initiatives to promote sustainable energy sources, is expected to drive the growth of the Fossil Fuel New Energy Generation Market. The segment is anticipated to witness significant investments in research and development, leading to advancements in fuel efficiency and emission reduction technologies. Overall, the Fuel Type segment presents lucrative opportunities for market players in the coming years.
Fossil Fuel New Energy Generation Market Turbine Technology Insights
The Fossil Fuel New Energy Generation Market is segmented by Turbine Technology into Steam Turbine, Gas Turbine, and Combined Cycle. In 2023, the Steam Turbine segment held the largest market share, accounting for nearly 45% of the market revenue. The Gas Turbine segment is expected to witness the highest CAGR of 7.2% during the forecast period. The Combined Cycle segment is also expected to experience significant growth, with a projected CAGR of 6.5% during the same period. The growth of the Turbine Technology market is driven by the increasing demand for electricity from emerging economies and the growing adoption of renewable energy sources.Steam Turbines are well-suited for large-scale power generation, while Gas Turbines are preferred for smaller-scale applications and Combined Cycle systems offer high efficiency and flexibility. The key players in the Turbine Technology market include Siemens, General Electric, Mitsubishi Hitachi Power Systems, and Doosan Heavy Industries Construction. These companies are investing heavily in research and development to improve the efficiency and reliability of their products.
Fossil Fuel New Energy Generation Market Application Insights
The Fossil Fuel New Energy Generation Market is segmented by Application into Baseload Power Generation, Intermediate Power Generation, Peaking Power Generation, and Cogeneration. Among these segments, Baseload Power Generation is expected to hold the largest market share in 2023, accounting for about 65% of the total market revenue. This segment is driven by the increasing demand for reliable and continuous power supply. Intermediate Power Generation is projected to witness significant growth during the forecast period due to the growing need for flexible power generation to meet fluctuating demand.Peaking Power Generation is expected to hold a moderate share of the market, primarily driven by its use during peak demand periods. Cogeneration, which involves the simultaneous production of electricity and heat, is gaining traction due to its efficiency and environmental benefits and is anticipated to contribute to the overall market growth.
Fossil Fuel New Energy Generation Market Regional Insights
The regional segmentation of the Fossil Fuel New Energy Generation Market offers valuable insights into the market's geographical distribution and performance. North America held the largest market share in 2023, valued at 592.36 billion USD. Europe is projected to follow closely with a market valuation of 478.96 billion USD in 2024, and Asia-Pacific is expected to experience significant growth to reach 873.92 billion USD by 2032. South America and MEA are also anticipated to contribute to the market's expansion in the coming years. These regional insights are crucial for businesses operating in or planning to enter the Fossil Fuel New Energy Generation Market, as they provide a clear understanding of market potential, competition, and growth opportunities in specific geographic regions.
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
Fossil Fuel New Energy Generation Market Key Players And Competitive Insights:
Major players in the Fossil Fuel New Energy Generation Market are continuously indulging in strategic partnerships, mergers, and acquisitions to strengthen their market presence and expand their reach. These companies are also investing heavily in research and development activities to develop innovative and cost-effective technologies for their existing and new customers. The Fossil Fuel New Energy Generation Market is highly competitive and fragmented, with numerous companies operating in the market. Some of the leading Fossil Fuel New Energy Generation Market players include BP, Chevron, Shell, ExxonMobil, Gazprom, and Saudi Aramco.Among the leading players in the Fossil Fuel New Energy Generation Market, BP is a energy company engaged in the exploration, production, refining, marketing, and distribution of energy products and services. The company has a strong presence in the Fossil Fuel New Energy Generation Market with a diversified portfolio of assets and technologies. BP has been investing in research and development of new and innovative technologies to enhance efficiency and reduce the environmental impact of its operations. The company's commitment to sustainability has enabled it to maintain a leading position in the Fossil Fuel New Energy Generation Market.A competitor in the Fossil Fuel New Energy Generation Market, Chevron is a multinational energy corporation engaged in the exploration, production, refining, marketing, and transportation of crude oil and natural gas. The company has a strong presence in the Fossil Fuel New Energy Generation Market with a diversified portfolio of assets and technologies. Chevron has been investing heavily in research and development of new and innovative technologies to enhance efficiency and reduce the environmental impact of its operations. The company's commitment to innovation and sustainability has enabled it to maintain a competitive position in the Fossil Fuel New Energy Generation Market.
Key Companies in the Fossil Fuel New Energy Generation Market Include:
- Shenhua Group
- Exxon Mobil
- BP
- Chevron
- China Huaneng Group
- Royal Dutch Shell
- Gazprom
- State Grid Corporation of China
- China National Petroleum Corporation
- China National Offshore Oil Corporation
- TotalEnergies
- ConocoPhillips
- Saudi Aramco
- Marathon Petroleum
- China Datang Corporation
Fossil Fuel New Energy Generation Market Industry Developments
In 2023, the fossil fuel new energy generation market was valued at USD 1471.15 billion and is projected to reach USD 2507.3 billion by 2032, exhibiting a CAGR of 6.1%. The market growth is attributed to increasing energy demand, government initiatives to promote fossil fuel usage, and technological advancements. The Middle East and Africa region is expected to witness significant growth due to abundant fossil fuel reserves and increasing investments in energy infrastructure. Asia-Pacific is projected to remain the largest market, driven by rapid industrialization and urbanization in China and India. Key industry participants include ExxonMobil, BP, Chevron, Shell, and TotalEnergies. Recent developments include the commissioning of the 600 MW Rampion Offshore Wind Farm in the UK and the announcement of a USD 10 billion investment by Saudi Aramco in renewable energy projects. These developments indicate the growing importance of fossil fuels in meeting energy needs while also highlighting the transition towards cleaner and more sustainable energy sources.
Fossil Fuel New Energy Generation Market Segmentation Insights
- Fossil Fuel New Energy Generation Market Power Output Capacity Outlook
- Up to 500 MW
- 500 MW - 1,000 MW
- 1,000 MW - 1,500 MW
- 1,500 MW - 2,000 MW
- Over 2,000 MW
- Fossil Fuel New Energy Generation Market Fuel Type Outlook
- Coal
- Natural Gas
- Oil
- Biomass
- Petroleum Coke
- Fossil Fuel New Energy Generation Market Turbine Technology Outlook
- Steam Turbine
- Gas Turbine
- Combined Cycle
- Fossil Fuel New Energy Generation Market Application Outlook
- Baseload Power Generation
- Intermediate Power Generation
- Peaking Power Generation
- Cogeneration
- Fossil Fuel New Energy Generation Market Regional Outlook
- North America
- Europe
- South America
- Asia Pacific
- Middle East and Africa
| Report Attribute/Metric |
Details |
| Market Size 2022 |
1386.57(USD Billion) |
| Market Size 2023 |
1471.15(USD Billion) |
| Market Size 2032 |
2507.3(USD Billion) |
| Compound Annual Growth Rate (CAGR) |
6.1% (2024 - 2032) |
| Report Coverage |
Revenue Forecast, Competitive Landscape, Growth Factors, and Trends |
| Base Year |
2023 |
| Market Forecast Period |
2024 - 2032 |
| Historical Data |
2019 - 2023 |
| Market Forecast Units |
USD Billion |
| Key Companies Profiled |
Shenhua Group, Exxon Mobil, BP, Chevron, China Huaneng Group, Royal Dutch Shell, Gazprom, State Grid Corporation of China, China National Petroleum Corporation, China National Offshore Oil Corporation, TotalEnergies, ConocoPhillips, Saudi Aramco, Marathon Petroleum, China Datang Corporation |
| Segments Covered |
Power Output Capacity, Fuel Type, Turbine Technology, Application, Regional |
| Key Market Opportunities |
Digitalization Carbon capture technologies Hydrogen blending in gas turbines Gasfired power plants Floating LNG |
| Key Market Dynamics |
Increased demand for reliable energy sources Technological advancements in extraction and exploration Government incentives and regulations Fluctuating fuel prices and Environmental concerns |
| Countries Covered |
North America, Europe, APAC, South America, MEA |
Frequently Asked Questions (FAQ) :
The Fossil Fuel New Energy Generation Market is expected to reach a valuation of 2507.3 billion USD by 2032.
The market is anticipated to grow at a CAGR of 6.1% from 2024 to 2032.
North American region is expected to account for the largest market share by 2032, followed by North America and Europe.
Fossil fuel-based new energy generation technologies are primarily used for electricity generation, industrial processes, and transportation.
Some of the key competitors in the market include Exxon Mobil, Chevron, BP, Shell, and TotalEnergies.
The growing demand for energy, increasing investments in renewable energy sources, and government initiatives to reduce carbon emissions are driving the growth of the market.
The market faces challenges such as environmental concerns, the rising cost of fossil fuels, and the development of alternative energy sources.
Key trends include the integration of renewable energy sources, the adoption of carbon capture and storage technologies, and the increasing use of natural gas for power generation.
Technological advancements are expected to improve the efficiency and reduce the environmental impact of fossil fuel-based new energy generation technologies.
Growth opportunities include investing in renewable energy sources, developing carbon capture and storage technologies, and expanding into emerging markets.
