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Executive Summary: Thermal Power Industry Outlook [2026]

  • Industry Growth Overview: The thermal power industry encompasses approximately 4600 companies, including 640+ startups.
  • Manpower & Employment Growth: The sector’s workforce exceeds 2.1 million professionals worldwide. Employment levels remain broadly stable, with 95+ new employees added in the last year.
  • Patents & Grants: Companies in the sector hold around 63 800 patents, filed by approximately 28 500 applicants. This innovation base is supported by 490+ grants.
  • Global Footprint: Leading country hubs include the USA, India, the UK, Canada, and Germany. Key city hubs such as London, Bangalore, New York City, Calgary, and Hyderabad anchor innovation, operations, and policy activity.
  • Investment Landscape: The average investment value stands at USD 213.2 million per round. More than 1000 investors have participated in the sector, supporting 1100+ funding rounds.
  • Top Investors: Leading investors have deployed more than USD 18.54 billion. Key contributors include the Asian Development Bank, UBS, and Capital Group.
  • Startup Ecosystem: Five representative innovators include Efficiency Signal (plant efficiency analytics), Critical Energy Systems (modular heat-to-power generation), ExtraJool (industrial waste heat to electricity), Celsio (AI-optimized process heat), and Blue Capsule Technology (high-temperature industrial heat and power).

 

 

Methodology: How we created this Thermal Power Industry Report

This report is based on proprietary data from our AI-powered StartUs Insights Discovery Platform, which tracks 9 million global companies, 25K+ technologies and trends, as well as 150M patents, news articles, and market reports.

This data includes detailed firmographic insights into approximately 9 million startups, scaleups, and tech companies. Leveraging this exhaustive database, we provide actionable insights for startup scouting, trend discovery, and technology landscaping.

For this report, we focused on the evolution of thermal power over the past 5 years, utilizing our platform’s trend intelligence feature. Key data points analyzed include:

  • Total Companies working in the sector
  • News Coverage and Annual Growth
  • Market Maturity and Patents
  • Global Search Volume & Growth
  • Funding Activity and Top Countries
  • Subtrends within thermal power

Our data is refreshed regularly, enabling trend comparisons for deeper insights into their relative impact and importance.

Additionally, we reviewed trusted external resources to supplement our findings with broader market data and predictions, ensuring a reliable and comprehensive overview of the thermal power market.

What Data is used to create this Thermal Power Market Report?

Based on data provided by the StartUs Insights Discovery Platform, we observe that the thermal power market stands out in the following categories relative to the 20K+ technologies and trends we track.

These categories provide a comprehensive overview of the market’s key metrics and inform the future direction of the market.

  • News Coverage & Publications: The thermal power industry recorded more than 4365 publications in the last year.
  • Funding Rounds: Approximately 1100 funding rounds are recorded in the database.
  • Manpower & Employment: The global thermal power workforce exceeds 2.1 million professionals, with over 95 new employees added in the last year.
  • Patents: Companies operating in the thermal power industry hold around 63 800 patents.
  • Grants: The sector has secured more than 490 grants.
  • Global Search Growth: Global search interest in thermal power increased by 137.18% over the last five years.

Explore the Data-driven Thermal Power Market Report for 2026

The thermal power industry represents approximately 4600 companies recorded in the database. This includes 640+ startups that are developing technologies across areas such as generation efficiency, emissions control, digital optimization, and hybrid power systems.

Despite its scale and continued relevance to grid stability, the industry recorded a 0.74% contraction in the last year. This reflects regulatory pressure, fuel price volatility, and gradual capacity shifts toward lower-carbon energy sources rather than a rapid structural decline.

Innovation activity remains substantial. Companies operating in the thermal power sector hold around 63 800 patents, supported by 490+ grants. This highlights the industry’s ongoing transition toward cleaner, more efficient, and digitally optimized thermal assets.

From a workforce perspective, thermal power includes approximately 2.1 million professionals worldwide. Employment levels remain broadly stable, with 95+ new employees added in the last year.

Geographically, industry activity is concentrated in mature energy markets with large installed capacity and strong regulatory frameworks. The leading country hubs include the USA, India, the UK, Canada, and Germany. At the city level, innovation, operations, and policy activity cluster around London, Bangalore, New York City, Calgary, and Hyderabad.

A Snapshot of the Global Thermal Power Market

The thermal power industry recorded a -0.74% annual growth rate. This modest contraction aligns with capacity rationalization, fuel price volatility, and accelerated policy support for low-carbon alternatives.

At the same time, the presence of 640+ startups indicates ongoing entrepreneurial activity focused on efficiency upgrades, emissions control, digital plant optimization, and hybrid thermal configurations.

 

 

The thermal power plant market is expected to increase from USD 1.56 trillion in 2025 to USD 2.13 trillion by 2034, at a compound annual growth rate (CAGR) of 3.43% from 2025 to 2034

Patent data underscores an accelerating innovation pipeline. Companies operating in the thermal power sector hold approximately 63 800 patents, filed by around 28 500 applicants.

Notably, the yearly patent growth rate of 4.44% signals that R&D activity is intensifying even as overall market growth softens. Innovation is being directed toward performance improvement, operational flexibility, and emissions reduction rather than capacity growth.

Geographically, patent issuance is heavily concentrated in Asia. China leads the sector with approximately 39 200 patents. Japan follows with around 5100 patents.

Explore the Funding Landscape of the Thermal Power Market

Investment activity in the thermal power industry reflects a capital-intensive and infrastructure-driven market, characterized by large deal sizes and selective capital deployment.

The average investment value of USD 213.2 million per round is higher than in most industrial sectors. This highlights the investors’ focus on asset-heavy projects, including plant modernization, emissions control retrofits, efficiency upgrades, and grid-stability-oriented thermal assets rather than early-stage experimentation.

According to our data, more than 1000 investors have participated in the sector. They have supported over 1100 funding rounds across 320+ companies.

This concentration indicates that capital is deployed into a relatively limited number of operators and technology providers.

Who is Investing in the Thermal Power Market?

The combined value invested by top investors exceeds USD 18.54 billion, showing concentrated capital deployment across major thermal power innovators.

Top Thermal Power Innovations & Trends

Discover the emerging trends in the thermal power market along with their firmographic details:

Waste Incineration

Waste incineration represents a segment within the thermal power ecosystem, particularly in urban waste-to-energy systems and municipal infrastructure. Our database identifies 2700 companies operating in this space, employing approximately 373 100 professionals globally. Workforce growth remains positive, with 65+ new employees added in the last year.

However, the annual growth rate of -1% reflects structural pressure from tightening emissions regulations, public opposition, and competition from recycling and circular waste models. As a result, innovation in this segment is increasingly focused on emissions control, efficiency improvements, and integration with district heating.

Energy Recovery

Energy recovery emphasizes the capture and reuse of residual heat and energy from industrial and power-generation processes. The segment includes 2500 companies with a combined workforce of approximately 235 200 employees. Employment growth remains steady, with 50+ new employees added in the last year.

The annual growth rate of 0.1% indicates near-flat expansion. While not a high-growth area, energy recovery remains strategically important as operators seek to optimize fuel use, reduce emissions intensity, and extend asset lifecycles within existing thermal infrastructure.

Geothermal Heating

Geothermal heating occupies a smaller but strategically adjacent niche within the broader thermal power landscape, particularly in district heating and industrial heat applications. Our database tracks 1200 companies active in this segment, employing around 43 900 professionals worldwide. Workforce expansion has been modest, with 15+ new employees added in the last year.

The annual growth rate of -0.7% suggests constrained momentum, largely due to high upfront capital requirements, site-specific feasibility, and long development timelines. Despite these challenges, geothermal heating remains relevant in regions with favorable geology and strong decarbonization mandates.

5 Top Examples from 640+ Innovative Thermal Power Startups

The five innovative thermal power startups showcased below are picked based on data, including the trend they operate within and their relevance, founding year, funding status, and more. Book a demo to find promising startups, emerging trends, or industry data specific to your company’s needs and objectives.

Efficiency Signal – Thermal Plant Efficiency Monitoring

US-based startup Efficiency Signal builds eSentinel, a condenser efficiency monitoring and decision-support system for thermal power generation plants. The startup evaluates steam surface condensers by mapping their design and operating attributes to define relevant performance data for continuous monitoring.

It then collects operational data through field inspections, installed sensors, remote monitoring devices, and existing plant systems. Using automated computer models, the system analyzes this data to detect efficiency drift and emerging anomalies.

Further, it presents actionable outputs that highlight deviations from optimal performance and support comparison with historical trends.

Critical Energy Systems – Modular Power Generation Systems

US-based startup Critical Energy Systems develops modular power generation systems that convert heat into electricity at the grid scale.

 

 

The systems use a closed-loop thermodynamic process where heat vaporizes a specialized working fluid. This expands through custom-designed turbomachinery to drive a generator.

The vapor is then condensed and recirculated in a closed loop to produce electricity without emissions or consumables.

These systems integrate into standardized shipping-container modules that deploy rapidly on site and operate continuously across varying temperature ranges and heat sources.

ExtraJool – Waste Heat to Electricity

French startup ExtraJool makes a modular heat-to-power system that converts industrial waste heat into electricity using an Ericsson-cycle engine.

The technology captures unused thermal energy through a heat exchanger and transfers it to an Ericsson open-cycle system. It integrates a liquid piston to reduce friction and improve conversion efficiency.

This process transforms heat into mechanical power, stabilizes the generated electricity, and reinjects it into on-site electrical networks or the grid in a closed, emission-free operation.

Celsio – AI-optimized Process Heat

German startup Celsio develops an AI-based optimization system that supplies electricity for industrial process heat. The startup integrates its algorithm into partially or fully electrified heating infrastructures.

The system continuously balances heat demand with technical constraints such as load gradients and grid connection capacity. It also optimizes available flexibility from components, including electric boilers, heat pumps, combined heat and power (CHP) units, and thermal or electrical storage.

The startup operates across long-term power purchase agreements, futures, day-ahead, intraday, and balancing power markets to dynamically shift heat generation in response to volatile electricity prices and grid needs.

This cross-market optimization leverages periods of low or negative renewable electricity prices while monetizing flexibility through balancing power, without compromising process stability or reliability.

Blue Capsule Technology – Decarbonizing Modular Nuclear Reactor

French startup Blue Capsule Technology builds a small modular high-temperature reactor that supplies industrial heat, steam, and electricity for deep decarbonization. The reactor combines high-temperature reactor architecture with sodium cooling and fuel to deliver stable thermal output above 800 °C while operating at atmospheric pressure.

Its core design embeds fuel microspheres in a graphite matrix and places them in a naturally circulating sodium pool. This enables inherent safety, prevents core melt scenarios, and supports sustained high-temperature operation.

The reactor is installed underground in a compact footprint and uses ambient air cooling, eliminating water requirements and enabling deployment in arid or water-stressed regions. By co-producing process heat, steam, and electricity, the reactor integrates into existing industrial sites and supply chains for sectors such as chemicals, cement, steel, hydrogen, and fuels.

Gain Comprehensive Insights into Thermal Power Trends, Startups, and Technologies

Thermal power activity covers generation technologies, efficiency systems, emissions control, and heat-to-power solutions. Modernization efforts and capital allocation show a shift from traditional baseload models toward cleaner, more flexible, and integrated thermal systems.

As thermal assets evolve to support energy security and decarbonization, organizations optimizing thermal power technologies will play a critical role in balancing reliability, efficiency, and environmental impact.

Get in touch to explore 640+ startups and scaleups, as well as all market trends impacting thermal power companies worldwide.