Thermal Power Generation in China - Market Research Report (2014-2029)
Beijing, China
Last Updated: May 2024
4411Revenue
$340.1bn
Past 5-Year Growth
Profit
$X.Xbn
Employees
490k
Businesses
1,197
Wages
$XX.Xbn
Thermal Power Generation in China industry analysis
Over the five years to 2024, industry revenue has fluctuated but performed solidly, rising at an annualized 6.4%. Strong growth of renewable energy – like wind power and solar power – has afflicted thermal power generation. In 2021, revenue from the Thermal Power Generation industry in China increased by 14.4% due to the rising thermal power output and the increasing on-grid price of coal-fired electricity. In 2024, industry revenue is estimated at $340.1 billion, up 5.8% from 2023. The industry suffered losses in 2021 and 2022, due to the sharp rise of coal prices. Profit margins have recovered to 1.5% of industry revenue in 2024.
Thermal power generation accounted for 65.9% of the country's total electricity generation in 2023, down from 79.2% in 2010 and 73.7% in 2015. The drop-off in thermal power generation is due to higher levels of output from the Hydroelectric Power industry (IBISWorld industry report 4412) and the Wind Power industry (IBISWorld industry report 4419a) as well as the tighter energy-saving and emission-reduction regulations. The industry is expected to generate 6.6 trillion kilowatt-hours in 2024.
Over the next five years, the Chinese Government will continue to limit the proportion of thermal power generation, as it is considered highly polluting. The 14th five-year plan for the development of renewable energy industry in China was released in 2021, and will also have an impact on the industry's development over the next five years. The Government is aiming for 33.0% of the nation's total electricity generation volume to come from renewable sources by 2025, up from 28.8% in 2020. As a result, industry revenue growth will be lower than previous years, rising at an annualized 3.8% over the next five years, to $409.2 billion in 2029.
Trends and Insights
- Stable economic growth drives electricity demand. Total electricity consumption in China has continually increased thanks to stable economic growth in the past five years.
- Coal-fired power is the largest segment but is being progressively cut back. The share of coal-fired power has reduced due to the enhanced environmental protection requirements.
- Regions with rich coal resources reap the rewards. A region with significant coal output can guarantee the fuel supply for thermal power plants.
- Major companies that own coal mines stand out. Companies with self-owned mines can guarantee their coal supply (for fuel) and as a result can reduce costs.
Industry Overview
Market size and recent performance (2014-2029)
Industry revenue has grown at a CAGR of 6.4 % over the past five years, to reach an estimated $340.1bn in 2024.
Trends and Insights
Thermal power is still the largest power generation source
- As of 2023, installed capacity of thermal power in China totaled 1.4 billion kilowatts, accounting for 47.6% of total installed power generation capacity. Thermal power is still the largest power generation source in the country, although it's share in total installed capacity has decreased from 73.4% in 2010, to 65.7% in 2015, and further in 2020 to 56.6%.
- Additional trends and insights available with purchase
Source: IBISWorld
Industry outlook (2024-2029)
Market size is projected to grow over the next five years.
Trends and Insights
Thermal power's share of total power generation will decline
- The Government will continue to encourage renewable energy development and restrict the construction of new large-scale thermal power projects. By 2025 – the end of the 14th five-year plan period – renewable energy as a share of total electricity generation will increase to 33.0%, up from 28.8% in 2020. Rapid development of renewable energy will squeeze the market share of thermal power generation.
Biggest companies in the Thermal Power Generation in China
| Company | Market Share (%)
2024 | Revenue ($m)
2024 |
|---|---|---|
China Energy Investment Corporation | 51,015.0 | |
China Huaneng Group Co., Ltd. | 36,050.6 | |
China Huadian Corporation | 31,289.2 |
To view the market share and analysis for all 10 top companies in this industry, view purchase options.
Products & Services Segmentation
Source: IBISWorld
Industry revenue is measured across several distinct product and services lines, including Coal-fired electricity, Oil-fired electricity and Natural gas-fired electricity . Coal-fired electricity is the largest segment of the Thermal Power Generation in China.
Trends and Insights
Coal-fired electricity dominates thermal power generation
- Coal-fired electricity refers to electricity produced using coal as fuel.
- More insights available in the full report
Widen you competitive advantage with related industries
Competitors
- Hydroelectric Power in China
- Alternative Energy in China
- Power Grid Construction in China
Complementors
- There are no industries to display.
International industries
- Coal & Natural Gas Power in the US
- Thermal Power in Canada
- Fossil Fuel Electricity Generation in Australia
- Fossil Fuel Electricity Generation in New Zealand
- Electricity Production in the UK
Table of Contents
About this industry
Industry definition
The Thermal Power Generation industry in China operates thermal power generation facilities that convert fossil fuels – like coal, oil and natural gas – into electrical energy. The establishments in this industry then provide electricity to transmission systems or to electric power distribution systems.
What's included in this industry?
Coal-fired electricityOil-fired electricityNatural gas-fired electricityCompanies
China Energy Investment CorporationChina Huaneng Group Co., Ltd.China Huadian CorporationPurchase this report to view all 10 major companies in this industry.
Related Terms
THERMAL POWERHYDROELECTRIC POWERELECTRICITY TRANSMISSIONELECTRICITY DISTRIBUTIONPerformance
Get an indication of the industry's health through historical, current and forward-looking trends in the performance indicators that make or break businesses.
Analyst insights
Stable economic growth drives electricity demand. Total electricity consumption in China has continually increased thanks to stable economic growth in the past five years.
In this chapter (4)
- Current Performance
- Outlook
- Volatility
- Life Cycle
Key metrics
- Annual Revenue, Recent Growth, Forecast, Revenue Volatility
- Number of Employees, Recent Growth, Forecast, Employees per Business, Revenue per Employee
- Number of Businesses, Recent Growth, Forecast, Employees per Business, Revenue per Business
- Total Profit, Profit Margin, Profit per Business
Charts
- Revenue, including historical (2014-2023) and forecast (2024-2029)
- Employees, including historical (2014-2023) and forecast (2024-2029)
- Businesses, including historical (2014-2023) and forecast (2024-2029)
- Profit, including historical (2014-2024)
- Industry Volatility vs. Revenue Growth
- Industry Life Cycle
Detailed analysis
- Trends in supply, demand and current events that are driving current industry performance
- Expected trends, economic factors and ongoing events that drive the industry's outlook
- Key success factors for businesses to overcome volatility
- How contribution to GDP, industry saturation, innovation, consolidation, and technology and systems influence the industry's life cycle phase.
Products and Markets
Learn about an industry's products and services, markets and trends in international trade.
Analyst insight
Coal-fired power is the largest segment but is being progressively cut back. The share of coal-fired power has reduced due to the enhanced environmental protection requiremen...
In this chapter
- Products & Services
- Major Markets
Key metrics
- Largest market segment and value in 2024
- Product innovation level
Charts
- Products & services segmentation in 2024
- Major market segmentation in 2024
Detailed analysis
- Trends impacting the recent performance of the industry's various segments
- Innovations in the industry's product or service offering, specialization or delivery method
- Key factors that successful businesses consider in their offerings
- Buying segments and key trends influencing demand for industry products and services
Geographic Breakdown
Discover where business activity is most concentrated in an industry and the factors driving these trends to find opportunities and conduct regional benchmarking.
Analyst insights
Regions with rich coal resources reap the rewards. A region with significant coal output can guarantee the fuel supply for thermal power plants.
In this chapter (1)
- Business Locations
Charts
- Share of revenue, establishment, wages and employment in each region
- Share of population compared to establishments in each region in 2024
Tables
- Number and share of establishments in each region in 2024
- Number and share of revenue each region accounts for in 2024
- Number and share of wages each region accounts for in 2024
- Number and share of employees in each region in 2024
Detailed analysis
- Geographic spread of the industry across Asia Pacific, and trends associated with changes in the business landscape
- Key success factors for businesses to use location to their advantage
Competitive Forces
Get data and insights on what's driving competition in an industry and the challenges industry operators and new entrants may face, with analysis built around Porter's Five Forces framework.
Analyst insights
Major companies that own coal mines stand out. Companies with self-owned mines can guarantee their coal supply (for fuel) and as a result can reduce costs.
In this chapter (4)
- Concentration
- Barriers to Entry
- Substitutes
- Buyer & Supplier Analysis
Key metrics
- Industry concentration level
- Industry competition level and trend
- Barriers to entry level and trend
- Substitutes level and trend
- Buyer power level and trend
- Supplier power level and trend
Charts
- Market share concentration among the top 4 suppliers from 2019-2024
- Supply chain including upstream supplying industries and downstream buying industries, flow chart
Detailed analysis
- Factors impacting the industry’s level of concentration, such as business distribution, new entrants, or merger and acquisition activity.
- Key success factors for businesses to manage the competitive environment of the industry.
- Challenges that potential industry entrants face such as legal, start-up costs, differentiation, labor/capital intensity and capital expenses.
- Key success factors for potential entrants to overcome barriers to entry.
- Competitive threats from potential substitutes for the industry’s own products and services.
- Key success factors for how successful businesses can compete with substitutes.
- Advantages that buyers have to keep favorable purchasing conditions.
- Advantages that suppliers have to maintain favorable selling conditions.
- Key success factors for how businesses can navigate buyer and supplier power.
Companies
Learn about the performance of the top companies in the industry.
Analyst insights
Stated-owned companies dominate the energy market. State-owned capital dominates the industry to guarantee the stable power supply and power safety.
In this chapter
- Market Share Concentration
- Companies
- Company Spotlights
Charts
- Industry market share by company in 2020 through 2024
- Major companies in the industry, including market share, revenue, profit and profit margin in 2024
- Overview of China Energy Investment Corporation's performance by revenue, market share and profit margin from 2018 through 2024
- Overview of China Huaneng Group Co., Ltd.'s performance by revenue, market share and profit margin from 2018 through 2024
- Overview of China Huadian Corporation's performance by revenue, market share and profit margin from 2018 through 2024
- Overview of revenue, market share and profit margin trend for 7 additional companies
Detailed analysis
- Description and key data for China Energy Investment Corporation, and factors influencing its performance in the industry
- Description and key data for China Huaneng Group Co., Ltd., and factors influencing its performance in the industry
- Description and key data for China Huadian Corporation, and factors influencing its performance in the industry
- Description, key data and performance trends for 7 additional companies
External Environment
Understand the demographic, economic and regulatory factors that shape how businesses in an industry perform.
Analyst insights
Favorable policies on renewable energy limit industry growth. The Government encourages the development of renewable energy and limits the share of thermal power in total pow...
In this chapter
- External Drivers
- Regulation & Policy
- Assistance
Key metrics
- Regulation & policy level and trend
- Assistance level and trend
Charts
- Regulation & Policy historical data and forecast (2014-2029)
- Assistance historical data and forecast (2014-2029)
Detailed analysis
- Demographic and macroeconomic factors influencing the industry, including Regulation & Policy and Assistance
- Major types of regulations, regulatory bodies, industry standards or specific regulations impacting requirements for industry operators
- Key governmental and non-governmental groups or policies that may provide some relief for industry operators.
Financial Benchmarks
View average costs for industry operators and compare financial data against an industry's financial benchmarks over time.
Analyst insights
Fluctuating coal prices have squeezed profits. Industry suffered losses in 2021 and 2022 due to the steep rise in coal prices.
In this chapter
- Cost Structure
- Financial Ratios
- Key Ratios
Key metrics
- Profit margin, and how it compares to the sector-wide margin
- Average wages, and how it compares to the sector-wide average wage
- Largest cost component as a percentage of revenue
- Industry average ratios for days' receivables, industry coverage and debt-to-net-worth ratio
Charts
- Average industry operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2024
- Average sector operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2024
- Investment vs. share of economy
Data tables
- Cash Flow & Debt Service Ratios (2014-2029)
- Revenue per Employee (2014-2029)
- Revenue per Enterprise (2014-2029)
- Employees per Establishment (2014-2029)
- Employees per Enterprise (2014-2029)
- Average Wage (2014-2029)
- Wages/Revenue (2014-2029)
- Establishments per Enterprise (2014-2029)
- IVA/Revenue (2014-2029)
- Imports/Demand (2014-2029)
- Exports/Revenue (2014-2029)
Detailed analysis
- Trends in the cost component for industry operators and their impact on industry costs and profitability
Key Statistics
Industry Data
Data Tables
Including values and annual change:
- Revenue (2014-2029)
- IVA (2014-2029)
- Establishments (2014-2029)
- Enterprises (2014-2029)
- Employment (2014-2029)
- Exports (2014-2029)
- Imports (2014-2029)
- Wages (2014-2029)
Methodology
How are IBISWorld reports created?
IBISWorld has been a leading provider of trusted industry research for over 50 years to the most successful companies worldwide. With offices in Australia, the United States, the United Kingdom, Germany and China, we are proud to have local teams of analysts that conduct research, data analysis and forecasting to produce data-driven industry reports.
Our analysts start with official, verified and publicly available sources of data to build the most accurate picture of each industry. Analysts then leverage their expertise and knowledge of the local markets to synthesize trends into digestible content for IBISWorld readers. Finally, each report is reviewed by one of IBISWorld’s editors, who provide quality assurance to ensure accuracy and readability.
IBISWorld relies on human-verified data and human-written analysis to compile each standard industry report. We do not use generative AI tools to write insights, although members can choose to leverage AI-based tools within the platform to generate additional analysis formats.
What data sources do IBISWorld analysts use?
Each industry report incorporates data and research from government databases, industry-specific sources, industry contacts, and our own proprietary database of statistics and analysis to provide balanced, independent and accurate insights.
Key data sources in China include:
- National Bureau of Statistics China
- General Administration of Customs
- People’s Bank of China
Analysts also use industry specific sources to complement catch-all sources, although their perspective may focus on a particular organization or representative body, rather than a clear overview of all industry operations. However, when balanced against other perspectives, industry-specific sources provide insights into industry trends.
These sources include:
- Industry and trade associations
- Industry federations or regulators
- Major industry players annual or quarterly filings
Finally, IBISWorld’s global data scientists maintain a proprietary database of macroeconomic and demand drivers, which our analysts use to help inform industry data and trends. They also maintain a database of statistics and analysis on thousands of industries, which has been built over our more than 50-year history and offers comprehensive insights into long-term trends.
How does IBISWorld forecast its data?
IBISWorld’s analysts and data scientists use the sources above to create forecasts for our proprietary datasets and industry statistics. Depending on the dataset, they may use regression analysis, multivariate analysis, time-series analysis or exponential smoothing techniques to project future data for the industry or driver. Additionally, analysts will leverage their local knowledge of industry operating and regulatory conditions to impart their best judgment on the forecast model.
IBISWorld prides itself on being a trusted, independent source of data, with over 50 years of experience building and maintaining rich datasets and forecasting tools. We are proud to be the keystone source of industry information for thousands of companies across the world.
Learn more about our methodology and data sourcing on the Help Center.
Frequently Asked Questions
Unlock comprehensive answers and precise data upon purchase. View purchase options.
What is the market size of the Thermal Power Generation industry in China in 2024?
The market size of the Thermal Power Generation industry in China is $340.1bn in 2024.
How many businesses are there in the Thermal Power Generation in China industry in 2024?
There are 1,197 businesses in the Thermal Power Generation industry in China, which has declined at a CAGR of 3.0 % between 2019 and 2024.
Has the Thermal Power Generation industry in China grown or declined over the past 5 years?
The market size of the Thermal Power Generation industry in China has been growing at a CAGR of 6.4 % between 2019 and 2024.
What is the forecast growth of the Thermal Power Generation industry in China over the next 5 years?
Over the next five years, the Thermal Power Generation industry in China is expected to grow.
What are the biggest companies in the Thermal Power Generation market in China?
The biggest companies operating in the Thermal Power Generation market in China are China Energy Investment Corporation, China Huaneng Group Co., Ltd. and China Huadian Corporation
What does the Thermal Power Generation in China include?
Coal-fired electricity and Oil-fired electricity are part of the Thermal Power Generation industry.
Which companies have the highest market share in the Thermal Power Generation in China?
The company holding the most market share in China is China Energy Investment Corporation.
How competitive is the Thermal Power Generation industry in China?
The level of competition is low and increasing in the Thermal Power Generation industry in China.
