Rising Use of the Fossil Fuel Energy in the Industrial Sector to Propel the Growth of the Global Fossil Fuel Energy Market by 2031

Fossil fuel energy has been the backbone of global industrial development for centuries. It has been the primary source of energy for powering electricity generation, transportation, and various other sectors of the economy. Its abundant supply and high energy density have fueled the progress of human civilization. Fossil fuels, namely coal, oil, and natural gas, have played a pivotal role in powering the world’s economies. The use of fossil fuels has several advantages. They are relatively inexpensive and readily available, making them accessible to both developed and developing nations. Additionally, fossil fuels possess a high energy density, meaning they can generate significant amounts of power per unit of volume. This characteristic makes them efficient for various applications such as electricity production in power plants or fueling vehicles.

Forecast Analysis of the Global Fossil Fuel Energy Market

According to the report published by Research Dive, the global fossil fuel energy market is anticipated to garner a revenue of $10,646.50 billion and rise at a CAGR of 5.3% throughout the forecast period from 2022 to 2031.

The growing use of fossil fuel energy in the industrial sectors such as manufacturing, transportation, and electric generation is expected to fortify the growth of the fossil fuel energy market during the estimated period. Moreover, the increasing adoption of cutting-edge technologies in the fossil fuel energy industry to improve the efficiency of the extraction process and reduce the associated costs is expected to create huge growth opportunities for the market over the forecast period. However, the use of fossil fuel energy causes various environmental problems which may restrict the growth of the market during the analysis period.

The major players of the fossil fuel energy market include American Electric Power Limited, Iberdrola, SA, Stanwell Corporation Limited, Huaneng Power International, Inc, Energy Australia Holdings Limited, Engie SA, Origin Energy Limited, State Power Investment Corporation Limited, AGL Energy Limited, and many more.

Key Developments of the Fossil Fuel Energy Market

• The key companies operating in the industry are adopting various growth strategies & business tactics such as partnerships, collaborations, mergers & acquisitions, and launches to maintain a robust position in the overall market, which is subsequently helping the global fossil fuel energy market to grow exponentially. For instance:
• In August 2021, Origin Energy, a leading electricity provider and gas supplier announced its collaboration with Mitsui O.S.K. Lines Ltd. (MOL), a Japanese transport company. With this collaboration, the companies aimed to develop the supply chain and promote the export of green ammonia by emphasizing the use of green and renewable fuels.
   
• In November 2021, Engie SA, a French multinational utility company, and Crédit Agricole Assurances, a leading insurance provider announced its acquisition of Alberta Investment Management Corporation, an Albertan Crown corporation and institutional investor established to manage several public funds. This acquisition would help Engie to expand its presence in the fast-growing Spanish renewables market and achieve its target of 50 GW of renewable capacity by 2025.
   
• In March 2023, AGL Energy Limited, a leading Australia-based energy company announced the launch of its new website, namely, the “Electrify Now” website that would provide personalized recommendations to residential customers by demonstrating the financial and carbon savings of electrifying their homes.

Most Profitable Region

The Asia-Pacific region of the fossil fuel energy market has held the largest share of the market in 2021. This is mainly due to the strong dependency of many countries on fossil fuels to power their industries and transportation. Moreover, the existence of the largest producers of coal and other fossil fuels across the region is expected to boost the regional growth of the market over the estimated period.

Covid-19 Impact on the Fossil Fuel Energy Market

The rise of the Covid-19 pandemic has caused severe economic slowdowns across various businesses. It has also badly affected the growth of the fossil fuel energy market. This is mainly due to the lockdowns and travel restrictions that have reduced the demand for energy, including fossil fuels. This further decreased the consumption of coal and natural gas and reduced oil prices. In addition, the disruption in supply chains has hampered the production and transportation of oil and gas across many countries owing to the government-imposed stringent regulations. All these factors have declined the fossil fuel energy market’s growth throughout the crisis.