Natural Gas Fired Electricity Generation Market
Report ID: SQMIG55E2070
Report ID: SQMIG55E2070
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Report ID:
SQMIG55E2070 |
Region:
Global |
Published Date: March, 2025
Pages:
193
|Tables:
59
|Figures:
68
Global Natural Gas Fired Electricity Generation Market size was valued at USD 49.63 Billion in 2024 and is poised to grow from USD 52.41 Billion in 2025 to USD 81.05 Billion by 2033, growing at a CAGR of 5.6% during the forecast period (2026–2033).
Surging demand for energy around the world, emphasis on transitioning towards clean energy, advancements in natural gas infrastructure, low costs natural gas fired electricity generation, and advancements in natural gas fired electricity generation technologies are slated to drive market development going forward.
Rising demand for energy from a rapidly expanding global population is slated to primarily boost the adoption of natural gas fired electricity generation in the future. Increasing preference for cleaner energy generation to support sustainability goals and reduce carbon emissions from the energy industry. Natural gas-fired power plants often have lower operational costs compared to coal-fired plants, which is also expected to create new opportunities for companies operating in this industry.
High emphasis on improving energy security amidst rapid industrialization and urbanization around the world is slated to favor the demand for natural gas fired electricity generation over the coming years. Flexibility to adjust outputs as per demand and reliable operations are also estimated to bolster the global natural gas fired electricity generation market growth in the long run.
Advancements in turbine and combined cycle technologies are also estimated to play a crucial role in enhancing the efficiency and output of natural gas fired electricity generation operations. Growing efforts to reduce carbon emissions from the energy industry are expected to play a crucial role in natural gas fired electricity generation demand on a global level through 2032. On the contrary, volatility in natural gas prices, competition from renewable energy, infrastructure constraints, environmental concerns regarding emissions, and depletion of natural gas reserves are anticipated to impede the demand for natural gas fired electricity generation across the study period and beyond.
Key Market Attributes
In June 2024, the German government announced its plans to launch new tender for gas-fired power station. The government intends to add 10GW of new gas-fired power generation capacity to its existing grid. However, the new facilities that will be built through this new tender are expected to transition to clean hydrogen as part of Germany’s efforts to reduce the use of fossil fuels in energy generation to promote sustainability. IQONY, a renowned name in renewable energy business showed significant interest in this new tender to construct new hydrogen-ready gas-fired plants at several locations in the country.
In June 2024, Karnataka Power Corporation Limited (KPCL) announced the plans of commissioning a new gas-based Combined Cycle Power Plant (CCPP) in the second week of July 2024. The new 370 mega watt (MW) is capable of generating 236.82 MW through a gas turbine generator and 133.25 MW through a steam turbine generator. The plant located near Yelahanka in Bengaluru is first of its kind in Karnataka, India and is part of the country’s efforts to transition towards cleaner energy generation.
In July 2024, JERA, a leading power generation company based in Japan announced its plans to start 2.34 gigawatt (GW) gas-fired power station to meet high demand during peak summer season and avoid the issue of energy shortages. The new plant is located at Goi in Chiba, near Tokyo. The plant uses General Electric's gas turbines and Toshiba's steam turbines to provide an impressive power generation efficiency of 64% as Japan tries to balance power demand due to the retirement of many old facilities.
Market snapshot - 2026-2033
Global Market Size
USD 47.0 billion
Largest Segment
Combined Cycle
Fastest Growth
Open Cycle
Growth Rate
5.6% CAGR
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Global Natural Gas Fired Electricity Generation Market is segmented by Power, Technology, Fuel Source, End-Use and region. Based on Power, the market is segmented into Less than 100 MW, 100-500 MW, 500-1000 MW and Above 1000 MW. Based on Technology, the market is segmented into Combined Cycle, Open Cycle and Cogeneration. Based on Fuel Source, the market is segmented into Sweet Natural Gas, Sour Natural Gas and LNG. Based on End-Use, the market is segmented into Residential, Commercial and Industrial. Based on region, the market is segmented into North America, Europe, Asia Pacific, Latin America and Middle East & Africa.
Analysis by Technology
The combined cycle segment is forecasted to hold the largest global natural gas fired electricity generation market share. Combined cycle technology refers to the use of gas and a steam turbine to produce up to 50% more energy as compared to a traditional simple-cycle plant. Waste heat from gas turbines is utilized to produce more energy in a combined cycle. Higher energy generation efficiency and reduced emissions are key benefits of combined cycle technology that help this segment hold sway over others. Low use of water and fuel in power plants operating on combine cycle technologies also makes them more eco-friendly thereby further cementing the dominance of this technology.
On the other hand, the demand for open cycle technologies is slated to rise at a steady pace in the future. Quick start-up and simple use are helping boost the popularity of open cycle power plants around the world. Easy installation and operation of open cycle power generation plants are helping them emerge as a popular choice for backup power that can be made available quickly in times of peak demand. However, high initial costs, low efficiency, and high amounts of exhaust gas emissions are expected to limit the adoption of open cycle natural gas fired electricity generation in the long run.
Analysis by Application
The power & utility segment is estimated to bring in the most revenue for the global natural gas fired electricity generation industry going forward. Surging demand for cleaner energy around the world and rising investments in natural gas infrastructure development are helping this segment bring in the most revenue. Launch of multiple new sustainability initiatives and goals by different countries to reduce emissions are resulting in the commissioning of new natural gas fired electricity generation plants. Rising investments in the construction of large-capacity power projects to meet the surging demand for energy are also creating new opportunities for market players focusing on this segment.
Meanwhile, the demand for natural gas fired electricity generation in industrial applications is slated to rise at a notable CAGR over the coming years. Rapid industrialization and growing need for clean energy in industries are slated to create a new business scope for natural gas fired electricity generation providers. Cement, steel, and chemicals industry verticals are expected to emerge as prime adopters of natural gas fired electricity generation plants in the future. Imposition of stringent regulations to promote sustainability and launch of new corporate social responsibility (CSR) initiatives by multiple industries are also expected to favor revenue generation across the global natural gas fired electricity generation market forecast.
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The Asia Pacific region is anticipated to bring in the most revenue for natural gas fired electricity generation companies in the long run. Surging demand for energy, rising emphasis on transitioning towards cleaner energy generation, and efforts to reduce reliance on fossil fuels such as coal are helping this region hold sway over others.
China is expected to be the most lucrative country for natural gas fired electricity generation providers in the Asa Pacific. Decommissioning of old coal-powered energy plants, rising investments in the development of new clean energy plants, and high availability of natural gas are contributing to the dominance of China. Rapidly increasing industrialization and urbanization are also driving up the demand for natural gas fired electricity generation in India and Japan going forward.
Demand for natural gas fired electricity generation in Europe is estimated to rise at a robust pace over the coming years. Growing emphasis on sustainability, presence of developed natural gas infrastructure, and supportive government initiatives are offering new opportunities for natural gas fired electricity generation providers.
Launch of new tenders and government initiatives for commissioning of new gas-fired power plants in Germany is making it the most rewarding country in Europe. Abundance of natural gas resources in European countries such as the United Kingdom and France and their commitment towards a greener future and sustainability are also slated to offer new business scope for natural gas fired electricity generation companies in this region.
North America is predicted to emerge as a highly opportune market for natural gas fired electricity generation providers. Launch of favorable regulations to promote use of clean energy, advancements in natural gas technologies, and high accessibility to natural gas resources are helping this region open up new avenues of business for market players.
Use of advanced natural gas extraction technologies, high investments in the development of gas-fired power plants, and conversion of coal-fired plants to gas-fired plants are helping the United States emerge as the dominant country in the North American region.
Latin America is also expected to witness a significant increase in demand for natural gas fired electricity generation over the coming years. Increasing reliance on natural gas for power generation, availability of multiple natural gas resources, and low costs of natural gas fired electricity generation are helping create new opportunities in this region. Mexico and Brazil are forecasted to emerge as the top countries for natural gas fired electricity generation providers looking to make a mark in the Latin American region through 2032 and beyond.
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Drivers
Surge in Demand for Energy
High Flexibility and Reliability
Restraints
Natural Gas Price Volatility
Competition from Renewable Energy Generation
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Natural gas fired electricity generation companies should focus on entering developing countries to enhance their business scope. Investing in Europe and Asia Pacific regions is expected to offer the best returns for market players in the long run. Integrating natural gas fired electricity generation with renewable energy is a prominent opportunity as per this global natural gas fired electricity generation market analysis.
Top Player’s Company Profiles
Recent Developments
SkyQuest’s ABIRAW (Advanced Business Intelligence, Research & Analysis Wing) is our Business Information Services team that Collects, Collates, Correlates, and Analyses the Data collected by means of Primary Exploratory Research backed by robust Secondary Desk research.
As per SkyQuest analysis, growing demand for energy and emphasis on transitioning towards clean energy are anticipated to boost the adoption of natural gas fired electricity generation through 2032. On the contrary, competition from renewable energy sources and volatility in natural gas pricing are estimated to hurt the demand for natural gas fired electricity generation on a global level. The Asia Pacific region is slated to hold sway over global natural gas fired electricity generation demand outlook owing to availability of supportive government initiatives and high demand for energy due to industrialization in countries such as China and India. Integration with renewable energy and development of small-scale power generation plants can help create new business scope for market players across the forecast period.
| Report Metric | Details |
|---|---|
| Market size value in 2024 | USD 49.63 Billion |
| Market size value in 2033 | USD 81.05 Billion |
| Growth Rate | 5.6% |
| Base year | 2024 |
| Forecast period | 2026-2033 |
| Forecast Unit (Value) | USD Billion |
| Segments covered |
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| Regions covered | North America (US, Canada), Europe (Germany, France, United Kingdom, Italy, Spain, Rest of Europe), Asia Pacific (China, India, Japan, Rest of Asia-Pacific), Latin America (Brazil, Rest of Latin America), Middle East & Africa (South Africa, GCC Countries, Rest of MEA) |
| Companies covered |
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| Customization scope | Free report customization with purchase. Customization includes:-
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Table Of Content
Executive Summary
Market overview
Parent Market Analysis
Market overview
Market size
KEY MARKET INSIGHTS
COVID IMPACT
MARKET DYNAMICS & OUTLOOK
Market Size by Region
KEY COMPANY PROFILES
Methodology
For the Natural Gas Fired Electricity Generation Market, our research methodology involved a mixture of primary and secondary data sources. Key steps involved in the research process are listed below:
1. Information Procurement: This stage involved the procurement of Market data or related information via primary and secondary sources. The various secondary sources used included various company websites, annual reports, trade databases, and paid databases such as Hoover's, Bloomberg Business, Factiva, and Avention. Our team did 45 primary interactions Globally which included several stakeholders such as manufacturers, customers, key opinion leaders, etc. Overall, information procurement was one of the most extensive stages in our research process.
2. Information Analysis: This step involved triangulation of data through bottom-up and top-down approaches to estimate and validate the total size and future estimate of the Natural Gas Fired Electricity Generation Market.
3. Report Formulation: The final step entailed the placement of data points in appropriate Market spaces in an attempt to deduce viable conclusions.
4. Validation & Publishing: Validation is the most important step in the process. Validation & re-validation via an intricately designed process helped us finalize data points to be used for final calculations. The final Market estimates and forecasts were then aligned and sent to our panel of industry experts for validation of data. Once the validation was done the report was sent to our Quality Assurance team to ensure adherence to style guides, consistency & design.
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Customization Options
With the given market data, our dedicated team of analysts can offer you the following customization options are available for the Natural Gas Fired Electricity Generation Market:
Product Analysis: Product matrix, which offers a detailed comparison of the product portfolio of companies.
Regional Analysis: Further analysis of the Natural Gas Fired Electricity Generation Market for additional countries.
Competitive Analysis: Detailed analysis and profiling of additional Market players & comparative analysis of competitive products.
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Innovation Mapping: Identify racial solutions and innovation, connected to deep ecosystems of innovators, start-ups, academics, and strategic partners.
Category Intelligence: Customized intelligence that is relevant to their supply Markets will enable them to make smarter sourcing decisions and improve their category management.
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