Energy Market - Forecast (2024-2030)

The Global Energy market size is forecast to reach USD XXX billion by 2029, after growing at a CAGR of 14.6% during the forecast period 2024-2029. The global energy market refers to the network involving the production, distribution, and consumption of energy resources and services on a worldwide scale. It encompasses various energy sources, including fossil fuels (such as oil, natural gas, and coal), renewable energy (such as solar, wind, hydro, biomass, and geothermal), nuclear energy, and emerging technologies. Economic development and industrialization drive energy demand, particularly in emerging economies experiencing rapid growth and urbanization. Growing awareness of environmental issues, including air pollution, climate change, and resource depletion, drives the transition to cleaner and more sustainable energy sources and practices.

The report “Global Energy Market– Forecast (2024-2029)”, by IndustryARC, covers an in-depth analysis of the following segments of Global Energy.

By Type: Thermal or Heat Energy, Mechanical Energy, Chemical or Fuel Energy, Electrical Energy, Others

By Energy Source: Renewable Energy (Wind, Solar, Hydropower, Geothermal), Nuclear Energy, Fossil Energy (Oil, Coal, Natural Gas) 

By End User: Transportation, Residential, Industrial, Agriculture, Commercial, and Others

By Geography:  North America, South America, Europe, APAC, RoW

• There is a global shift towards renewable energy sources such as solar, wind, and hydropower, driven by climate change concerns, technological advancements, and cost competitiveness.

• Digital technologies are transforming the energy sector, enabling the deployment of smart grids, advanced metering infrastructure, and demand response systems. These innovations enhance grid efficiency, reliability, and resilience while enabling greater integration of renewable energy resources and empowering consumers to manage their energy consumption.

• According to the statistics, India had the biggest year-on-year growth in renewable energy additions in 2022, at 9.83%. The installed solar energy capacity has increased by 30 times in the preceding nine years, reaching 75.57 GW as of February 2024.

Thermal Energy occupies a major share of the global energy market in 2023. This typically includes energy generated from sources like coal, natural gas, oil, and biomass. One of the primary drivers of thermal energy in the global market is the abundance of fossil fuel resources. Coal, natural gas, and oil are found in numerous regions worldwide, providing a reliable and readily available source of energy. The infrastructure for extracting, refining, and distributing thermal energy sources is well-developed and extensive.

In 2021, The Ministry for the Ecological Transition will provide financial support for 42 innovative renewable energy projects that produce thermal energy. In particular, EUR 13 million would be allocated as assistance for investments in thermal energy production plants using renewable energy sources. The measure is co-financed by the European Union through the European Regional Development Fund (ERDF). The project's overall investment is EUR 66.5 million, with a total power generation capacity of 176 MW. 

According to the US Energy Information Administration, In 2022, the United States consumed around 32.31 trillion cubic feet (Tcf) of natural gas, which is equivalent to 33.41 quadrillion British thermal units. This represented around 33% of total primary energy use in the United States.  Compared to other fossil fuels like coal and oil, natural gas emits lower levels of greenhouse gases and pollutants when burned for energy generation. This relative cleanliness contributes to its widespread use, especially in power generation, where it helps reduce emissions of pollutants

Fossil Energy occupy a major share of the global energy market in 2023. Fossil fuels, including coal, oil, and natural gas, have been abundant and easily accessible energy sources for many decades. This accessibility has driven their widespread use across various sectors, including transportation, electricity generation, and industrial processes. According to the International Energy Agency(IEA), In 2019, coal remained the dominating fuel for power generation, accounting for 37% of worldwide energy output, 10 percentage points ahead of renewables.

Many countries have relied on domestic fossil fuel resources to enhance energy security and reduce dependence on imports. This strategic consideration has led to policies and investments supporting the development and utilization of domestic fossil energy sources. For instance, According to the Ministry of Coal, overall coal production in India in 2022-23 was 893.19 MT, representing a 14.77% increase. In India, Coal is the most important and plentiful fossil fuel. It accounts for 55% of the country's energy requirements. The country's industrial legacy is based on indigenous coal. Fossil fuels have historically been relatively inexpensive compared to alternative energy sources, making them economically attractive for consumers and businesses. This cost-effectiveness has further solidified their position as key drivers in the energy market.

In 2023, the Industrial segment held the majority of the global energy market. Industrial activities often involve energy-intensive processes such as manufacturing, refining, mining, and chemical production. These processes require significant amounts of energy to operate machinery, heat materials, and power equipment. Industrial energy consumption varies depending on factors such as the size of the industrial base, the level of industrialization, and energy efficiency measures. Industrial production is a cornerstone of the global economy, with manufacturing facilities located around the world. The expansion of industrial activities in emerging economies, such as China, India, and Southeast Asia, has led to a substantial increase in energy consumption by the industrial sector.

According to the U.S. Energy Information Administration,  In 2022, the industrial sector consumed around 32% of total natural gas in the United States, with natural gas accounting for approximately 41% of the industrial sector's end-use energy consumption. Natural gas is used by industry for a variety of reasons, including as a feedstock (raw material) for product manufacturing and energy generation.

The North American region in the global energy market is anticipated to hold a major share during the forecast period (2024-2029). North America is endowed with abundant energy resources, including fossil fuels such as oil, natural gas, and coal, as well as renewable energy sources like wind, solar, and hydroelectric power. The United States, Canada, and Mexico collectively possess vast reserves of these energy resources, making the region a significant player in the global energy landscape. Approximately 79% of the US energy comes from fossil fuels, 8.0% from nuclear, and 13.1% from renewable sources. Renewables surpassed coal as the primary source of energy in the United States in 2019, and this trend is expected to continue through 2022. Wind and solar are the most rapidly developing renewable sources.

According to U.S. Energy Information Administration, Crude oil production in the United States, averaged 12.9 million barrels per day (b/d) in 2023, above the previous U.S. and world record of 12.3 million b/d established in 2019. In December 2023, average monthly crude oil output in the United States reached a monthly record high of more than 13.3 million barrels per day. North America is a leading producer of oil and natural gas, particularly due to the shale revolution in the United States. This increased production has positioned North America as a key supplier of energy on the global market.

As the global population increases, so does the demand for energy. More people mean more homes, more transportation needs, more industries, and more consumption overall. This drives up the demand for various forms of energy, including electricity, fossil fuels, and renewable energy sources.

Urbanization refers to the increasing concentration of people in urban areas. As more people move from rural areas to cities, the demand for energy tends to rise significantly. Cities are hubs of economic activity, industry, and infrastructure, all of which require energy to function. Urbanization also leads to increased demand for transportation services, such as public transportation and personal vehicles, further driving energy consumption. For Instance,  Urbanisation has accelerated across China in recent years, with the rate reaching 64.72%, according to the National Bureau of Statistics. By the end of 2022, there were 914 million living in urban areas, a 12.05 million increase from the previous year.

Many governments worldwide have set renewable energy targets and implemented incentives to encourage the adoption of clean energy sources such as wind, solar, and hydroelectric power. These policies drive investment in renewable energy projects and technologies, reshaping the energy market by diversifying energy sources and reducing dependence on fossil fuels. For Instance, As part of the Union's 2021-22 Budget, the Indian government announced an extra capital administration of Rs. 10 billion for the Solar Energy Corporation of India and Rs. 15 billion for the Indian Renewable Energy Development Agency (IREDA). The Rs 10 billion financial infusion would allow SECI to tender for 15,000 MW of additional solar energy-producing capacity per year.

Government subsidies and support programs can influence the development and deployment of various energy technologies. Subsidies for renewable energy, research and development grants, and incentives for energy conservation initiatives impact market dynamics by making certain energy options more financially attractive. In March 2021, the DOE announced new plans to reduce the cost of solar energy by 60% over the next ten years, from $46.5 per megawatt-hour (MWh) to $20/MWh.

Governments often invest in research and development initiatives to support the advancement of energy technologies. Funding for research institutions, public-private partnerships, and technology demonstration projects can drive innovation and accelerate the adoption of new energy solutions. For Example, the University of Maryland has been granted %1.5 million by the National Science Foundation, and scientists have initiated new multidisciplinary research that could contribute to substantial improvements in the control, modeling, design, sensing, and reliability of power electronic interfaces for solar energy conversion systems.

The reliable functioning of critical energy infrastructure is vital for maintaining stability in the global energy market and ensuring economic prosperity worldwide. However, this infrastructure is increasingly vulnerable to disruptions caused by a combination of geopolitical tensions, natural disasters, major accidents, and emerging technological threats. Geopolitical instability in key energy-producing regions can lead to supply disruptions and price volatility, impacting global energy markets. For instance, Europe's energy energy has faced an unparalleled crisis. Supply of Russian gas—critical for heating, industrial operations, and power—has been reduced by more than 80% in 2022.

Natural disasters, such as hurricanes, earthquakes, and wildfires, pose risks to energy infrastructure, disrupting production, transportation, and distribution networks.  Major accidents, including oil spills and pipeline ruptures, further compound these challenges, threatening both energy supply and environmental sustainability. Additionally, advances in information technology and connectivity have introduced new risks, such as cyber threats targeting critical energy infrastructure.

In 2023, the Major players in the global energy market are Shell plc, Saudi Aramco, Chevron, BP p.l.c., Total Energies, China National Petroleum Corporation, Gazprom, Reliance Industries Limited, Adani Green Energy Limited, Tata, and Others.

On December 12, 2023, To help accelerate its growth in the energy industry, Total Energies acquired three start-ups that have benefitted from its Total Energies On acceleration program, which is situated at STATION F in Paris.

Aramco, one of the world's top integrated energy and chemicals businesses, signed formal agreements to purchase a strategic minority position in Mid Ocean Energy for $500 million. Mid Ocean Energy is a liquefied natural gas company founded and managed by EIG, a major institutional investor in global energy and infrastructure on September 28, 2023.

On February 20, 2023, Shell acquired Nature Energy, Europe's largest producer of renewable natural gas (RNG), as well as its portfolio of operating facilities, feedstock supply, and infrastructure.