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The power market size in India is forecast to increase by USD 465.95 billion, at a CAGR of 9.19% between 2023 and 2028. India's power market is evolving with a dual focus on reducing carbon footprints and achieving net-zero emissions. There's a significant push towards electrifying transportation, aiming to reduce reliance on fossil fuels. Simultaneously, the country's economic growth and industrialization are driving increased energy demand. This transformation is crucial in aligning with global sustainability goals while meeting burgeoning industrial needs in a rapidly growing economy.
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The annual power consumption in India continues to grow rapidly, driven by the country's robust macroeconomics and expanding industrialization. This surge necessitates constant expansion and optimization of capacity and generation across diverse power generation sectors. Regulatory frameworks play a crucial role in maintaining supply security and overseeing asset transactions in the electricity demand landscape. Major power plants are pivotal in meeting the nation's energy needs, supported by extensive generation infrastructure and robust transmission and distribution infrastructure. Infrastructural activities are key in enhancing efficiency and reliability throughout the power generation by sectors and distribution network. The regulatory structure ensures compliance and fosters a conducive environment for sustainable growth.
Mitigating carbon footprints and striving for net zero emissions are the key factors driving the growth of the market. The power market in India is growing due to a fundamental shift toward low-carbon and sustainable energy sources, which is reflected in the accelerating adoption of renewable energy resources. To mitigate carbon footprints in mining and strive for net zero carbon emissions, coal and lignite companies are actively promoting renewable energy initiatives. These companies are diversifying their energy portfolio by investing in both rooftop and ground-mounted solar projects.
Moreover, the Notable among NLCIL's projects is the installation of a Solar Power Plant in Port Blair and South Andaman, integrated with an 8 megawatt-hour (MWhr) Battery Energy Storage System (BESS). This project aims to smooth solar power export to the grid, meeting a substantial portion of the region's peak power demand and reducing reliance on diesel generators, thereby decreasing carbon emissions, which will further boost the growth of the power market in India during the forecast period.
The rise in investments in scaling up renewable energy infrastructure is the primary trend in the market growth. A prominent trend in the Indian power market is the escalating investments aimed at scaling up renewable energy infrastructure. This surge in investment is driven by several factors. First, the declining costs of renewable energy technologies, particularly solar and wind power, have made them increasingly competitive with conventional sources. This has attracted significant interest from investors seeking to capitalize on the growing market opportunities in renewables. Some of the investments are as follows:
This initiative underscores India's unwavering dedication to scaling up its renewable energy infrastructure and fostering a sustainable future, which will further boost the growth of the power market in India during the forecast period.
Concerns about poor financial health of DISCOMS in the power sector is a major challenge to the growth of the market. The development and expansion of a country depend on a healthy and strong power sector. Additionally, it serves as a significant metric for assessing the standard of living of the populace. India's power industry faces numerous difficulties. A few issues are unsustainable debt, inadequate debt servicing, inadequate electricity supply and service, and unacceptably high aggregate technical and commercial [AT and C] losses. Despite the implementation of numerous policies and reforms aimed at tackling these issues, the problems continue to exist. The power sector's value chain starts with power generation by companies known as GENCOs, followed by transmission through lines connecting generation plants to distribution substations. The final step involves power distribution by DISCOMs to end-consumers, predominantly owned by state governments. Although privately owned DISCOMs exist, they serve only 10% of the population in India.
Moreover, power distribution is widely acknowledged as the most critical and vulnerable link due to its poor financial and operational health. Recent data from the Power Finance Corporation Ltd. indicates a significant increase in DISCOMs' aggregate losses from USD 3,835.71 million in 2019 - 20 to USD 6,385.687 million in 2020- 21. Additionally, their gross debt rose from USD 62,611 million in 2018-19 to USD 74,422 million as of March 31, 2021, with a negative net worth of USD 5,608.32 million. These struggling DISCOMs impact the entire value chain and the power sector's state. Their financial constraints often lead to delayed payments to generators and transmission companies, affecting their efficiency. Moreover, DISCOMs' losses hinder investments aimed at improving power supply quality and challenge the country's renewable energy expansion goals. Consumers also suffer from inadequate power quality due to DISCOMs' financial woes. Therefore, such factors will hinder the growth of the power market in India during the forecast period.
The market forecasting report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their market growth analysis strategies.
Customer Landscape
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
Adani Group: The company offers power solutions such as thermal power generation through Adani Power, and contributing to sustainable energy with renewables through Adani Green Energy.
The market research and growth report also includes detailed analyses of the competitive landscape of the market and information about key companies, including:
Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
The thermal segment is estimated to witness significant growth during the forecast period. Thermal power technology refers to the generation of electricity through the combustion of fossil fuels such as coal, natural gas, or oil. These fuels are burned in boilers to produce high-pressure steam, which drives turbines connected to generators, converting thermal energy into electrical power. Thermal power plants, which often operate as baseload facilities, play a crucial role in meeting India's growing energy demands due to their reliability and cost-effectiveness.
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The thermal segment accounted for USD 346.43 billion in 2018 and showed a gradual increase during the forecast period. One of the main factors influencing thermal power technology's use in the power market in India is abundant coal reserves, which make it a readily available and reasonably priced fuel source for electricity generation. Additionally, the rapid industrialization and urbanization in India have led to increased energy consumption, driving the need for reliable power generation infrastructure. Moreover, the intermittent nature of renewable energy sources like solar and wind power necessitates the presence of dispatchable power sources like thermal plants to maintain grid stability.
The market research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in "USD Billion " for the period 2024-2028, as well as historical data from 2018 - 2022 for the following segments.
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The power market research report on India highlights a dynamic landscape shaped by robust government policies and evolving regulatory structures. The country's electricity import and export scenario reflects its position in regional energy markets, influenced by foreign investment and debt offerings that drive power projects across thermal sources and renewable power projects. Installed base and installed renewable energy capacity are crucial metrics in assessing the sector's growth, bolstered by financial incentives like subsidies, concessional financing, and viability gap funding. The Ministry of Energy India plays a pivotal role in steering initiatives such as the National Solar Mission and National Wind Energy Mission, aiming to expand coal-fired generation capacity while promoting sustainable alternatives. The transport sector is increasingly integrated into the power market regulatory structure, with various deal types shaping infrastructure development and operational strategies. As India charts its course towards energy security and sustainability, strategic partnerships and regulatory foresight will be pivotal in harnessing the full future potential of its power sector. The regulatory scenario in India's power sector is pivotal for unlocking deals in the country's power sector, particularly in expanding thermal sources to meet growing energy demands.
Market Scope |
|
Report Coverage |
Details |
Page number |
136 |
Base year |
2023 |
Historic period |
2018 - 2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 9.19% |
Market growth 2024-2028 |
USD 465.95 billion |
Market structure |
Fragmented |
YoY growth 2023-2024(%) |
7.89 |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
Adani Group, Borosil Renewables Ltd., Gujarat Fluorochemicals Ltd., India Power Corp Ltd., Jindal Steel and Power Ltd., JSW Group, KP Group, NHPC Ltd., North Eastern Electric Power Corporation Ltd, NTPC Ltd., Power Grid Corporation of India Ltd., Reliance Industries Ltd., RP Sanjiv Goenka Group, SJVN Ltd, Sterling and Wilson Pvt. Ltd, Suzlon Energy Ltd., Tata Power Co. Ltd., and Websol Energy System Ltd. |
Market dynamics |
Parent market analysis, Market forecasting growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, Market condition analysis for the forecast period |
Customization purview |
If our market report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Technology
7 Market Segmentation by End-user
8 Market Segmentation by Source
9 Customer Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
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