Molly Ayala
Electricity is an essential part of modern life and is used for a variety of purposes, including lighting, heating, cooling, refrigeration, and operating appliances, computers, electronics, machinery, and public transportation systems. The total worldwide electricity production in 2022 was nearly 29,000 terawatt-hours (TWh), with China being the largest consumer and producer, representing 31% of world consumption in 2023. The United States is the second-largest consumer, with electricity consumption expected to continue growing rapidly, and India is the third-largest consumer. Global electricity consumption is increasing, and the average amount of electricity consumed per person is also on the rise, driven by growing electricity consumption in developing countries.
| Characteristics | Values |
|---|---|
| Total final electricity consumption in 2022 | 24,398 terawatt-hour (TWh) |
| Sector with the highest electricity consumption in 2022 | Industry (42.2%) |
| Second-highest sector | Residential (26.8%) |
| Third-highest sector | Commercial and public services (21.1%) |
| Primary sources of energy consumption worldwide in 2022 | Oil (less than 40%), Electricity (more than 20%), Coal (less than 9%), Natural Gas (less than 15%), Biofuels and Waste (less than 10%) |
| Country with the highest electricity consumption in 2023 | China (31% of the world) |
| Country with the second-highest electricity consumption | United States (along with China and India accounting for more than half of the global share) |
| Country with the third-highest electricity consumption | India (along with China and the US accounting for more than half of the global share) |
| Country with the fourth-highest electricity consumption | Japan (nearly twice the consumption of the remaining industrialized countries) |
| Country with the fifth-highest electricity consumption | Russia (nearly twice the consumption of the remaining industrialized countries) |
| Region with limited access to electricity grids | Africa |
| Region with the highest growth in electricity consumption in 2023 | BRICS (Brazil, Russia, India, China, South Africa) |
| Country with the highest growth in electricity consumption in 2023 | China (6.9%) |
| Country with the second-highest growth in electricity consumption in 2023 | India (6.7%) |
| Country with the third-highest growth in electricity consumption in 2023 | Brazil (3.2%) |
| Country with a slight increase in electricity consumption in 2023 | Russia (1.4%) |
| Country with the highest electricity consumption in 2022 | United States (4.07 trillion kWh) |
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What You'll Learn
Electricity consumption by sector
In 2022, the industrial sector consumed about 42.2% of electricity, making it the largest consumer of electricity. However, this sector has seen a long-term decline in consumption since 1974. The residential sector was the second-largest consumer of electricity, accounting for nearly 26.8% of consumption. This sector includes electricity used for powering homes, with the largest electricity consumers being the water heater, washer and dryer, lighting, and refrigerator. The commercial and public services sectors consumed about 21.1% of electricity, witnessing a growth in consumption in recent decades. The transport sector, including the electric vehicle market, consumed nearly 1.8% of electricity, while the remaining sectors, such as agriculture and fishing, consumed nearly 8.1%.
The United States is the second-largest consumer of electricity after China, with an annual consumption of about 4.128 trillion kWh. The United States' electricity consumption is expected to continue growing, with the EIA projecting a record-breaking consumption in 2025 and 2026. India is the third-largest consumer, with an annual consumption of about 1.463 trillion kWh, and Russia is the fourth-largest, consuming 1.025 trillion kWh.
While the industrial sector has been the largest consumer of electricity, its share of consumption has been declining. In contrast, the residential, commercial, and public services sectors have seen an increase in consumption. This shift in consumption patterns can be attributed to various factors, including the growing demand for appliances, lighting, and air conditioning, as well as shifts towards more energy-intensive industries and changes in industrial processes.
The EIA projects that total power consumption will continue to rise, reaching 4,179 billion kWh in 2025 and 4,239 billion kWh in 2026. This increase is driven by factors such as the demand from data centers, the rise in electricity use in homes and businesses, and the growth in the electric vehicle market. The commercial sector is expected to reach a new high in 2025, with residential consumption also projected to climb, surpassing its previous peak in 2022.
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Energy sources
Fossil Fuels:
Fossil fuels, including coal, oil, and natural gas, have traditionally been the dominant sources of electricity generation. In 2022, coal and natural gas accounted for less than 9% and less than 15% of global energy consumption, respectively. However, the use of fossil fuels is gradually being reduced in favour of more renewable and sustainable energy sources.
Renewable Energy:
Renewable energy sources are increasingly important in the global energy mix. These include:
- Solar Power: Solar electricity is generated through the conversion of sunlight into electricity, often using photovoltaic panels or solar thermal technologies.
- Wind Power: Wind electricity is produced by harnessing the power of wind through wind turbines, converting kinetic energy into electrical energy.
- Hydro Power: Hydroelectric power plants use the energy of flowing or falling water to generate electricity and are an important source of renewable energy.
- Geothermal Energy: Geothermal power plants utilise heat from the Earth's interior to generate electricity, providing a consistent and stable source of energy.
- Biofuels and Waste: Biofuels are derived from organic matter and can be used for electricity generation. Waste-to-energy technologies also contribute to this category.
Nuclear Energy:
Nuclear power plants use the heat generated from nuclear fission to produce steam, which then drives turbines to generate electricity. Nuclear energy is a significant source of electricity in many countries, providing a large proportion of baseload power.
Other Sources:
In addition to the sources mentioned above, there are other diverse energy sources that contribute to electricity generation, including heat-based systems and emerging technologies. For example, data centres powering artificial intelligence and cryptocurrency operations are becoming significant electricity consumers.
It's worth noting that the specific energy sources utilised vary across different countries and regions, influenced by factors such as resource availability, economic development, and environmental priorities.
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Regional consumption
In 2023, electricity consumption grew by 2.6%, with particularly strong growth in the BRICS countries. In addition to China, India and Brazil posted significant increases in electricity consumption, while Russia's consumption grew slightly. Meanwhile, electricity consumption declined in many developed countries, including those in the OECD (-1.4%), Europe (-3%), the United States (-1%), Japan (-1.9%), and South Korea (-1.3%).
The differences in regional consumption are often influenced by population size and income levels. Countries with larger populations tend to consume more energy overall, while income growth is associated with increased energy consumption as access to electricity expands. However, in some richer countries that are focusing on improving energy efficiency, energy consumption may decrease. For example, the industrial sector's share of consumption has been in long-term decline in OECD countries, with the residential, commercial, and public services sectors seeing increases instead.
It is worth noting that data on energy consumption may not be fully accurate, especially for the world's poorest countries. These countries often rely heavily on traditional biomass, such as crop residues and wood, which can be challenging to quantify accurately. As a result, the true differences in energy consumption between the richest and poorest countries may be even greater than what the available data suggests.
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Consumption trends
Electricity is an essential part of modern life and supports various sectors, including industry, residential, commercial, transportation, and others. The global electricity consumption trend has been on an upward trajectory, with the total consumption in 2022 reaching 24,398 terawatt-hours (TWh), a significant increase from 8,132 TWh in 1981. China, the United States, and India are the top three consumers, accounting for more than half of the global share. Notably, China's electricity consumption reached one-third of the global total in 2023, showcasing its dominance in this area.
When examining consumption trends, it's worth noting that electricity consumption is influenced by various factors, including population size, economic growth, and energy efficiency improvements. In countries with larger populations, such as China, the United States, and India, electricity consumption tends to be higher. Additionally, economic growth plays a crucial role, as seen in the BRICS countries (Brazil, Russia, India, China, and South Africa), where strong economic growth led to a surge in electricity consumption in 2023.
However, the relationship between economic growth and electricity consumption is not always linear. Some countries, particularly richer ones, have experienced a decline in energy consumption due to their focus on improving energy efficiency. This trend is evident in countries like the United States, where, despite its strong economy, electricity consumption decreased by 1% due to milder temperatures and a slowdown in the manufacturing industry.
The industrial sector has traditionally been the largest consumer of electricity. However, its share of consumption has been in long-term decline, with the residential, commercial, and public services sectors catching up. This shift is more pronounced in OECD countries, where the industry's share of consumption has decreased, resulting in a roughly equal distribution across the residential, commercial, and public services sectors as of 2019.
Looking ahead, the EIA projects that total power consumption will continue to rise, with records expected to be broken in 2025 and 2026. This increase is attributed to various factors, including the growing demand from data centers, artificial intelligence, and cryptocurrency operations, and increased residential and commercial electricity sales. Additionally, the expansion of electricity grids in regions with previously limited access, such as China, India, and Africa, will contribute to the overall increase in global electricity consumption.
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The impact of economic growth
Electricity is essential for modern life, economic growth, and improved living standards. According to the International Energy Agency (IEA), access to electricity involves its availability, safe cooking facilities, and a minimum level of consumption. This minimum threshold is set higher for urban households.
Global energy consumption has increased nearly every year for at least half a century, with most of the increase driven by growth in low- and middle-income economies. In 2024, global energy consumption increased by 2.2%, faster than the historical trend from 2010 to 2019. This growth was particularly rapid in China, India, Indonesia, Vietnam, Russia, and Brazil.
The availability and affordability of electricity are strongly related to income. Poor energy access is tied to low income, and access to electricity increases as incomes increase. This is evident in the comparison between India and Southeast Asia with Africa. Three decades ago, a person in Africa consumed more electricity on average than someone living in India or Southeast Asia. However, strong increases in electricity demand and supply in India and Southeast Asia, alongside economic development, have transformed these regions. In 2023, Africa's per capita electricity consumption was half that of India and 70% lower than that of Southeast Asia.
Electricity consumption is also linked to economic growth. For example, China's electricity demand growth is expected to slow as its economy becomes less reliant on heavy industry. Similarly, India's electricity demand is supported by strong economic activity. As countries develop and incomes rise, energy consumption tends to increase. This relationship between energy consumption and economic growth is evident in the expansion of electrification, which leads to reduced consumption of end-use fossil fuels and increased electricity consumption.
While electricity access is crucial for economic growth, it is important to note that rural residential electrification may not significantly impact household incomes among the extreme poor. However, reliable and low-cost energy for firms is linked to productivity and expansion, as energy is a fundamental input for economic activity.
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Frequently asked questions
The global electricity consumption in 2022 was 24,398 terawatt-hours (TWh), which was nearly three times the consumption in 1981.
Iceland, Norway, Qatar, Canada, and the United States have the highest per capita electricity consumption.
The per capita electricity consumption of a country depends on factors such as the existence of power-intensive industries, household sizes, living situations, appliance and efficiency standards, and access to alternative heating fuels.
The EIA projects total power consumption to hit 4,179 billion kilowatt-hours (kWh) in 2025 and 4,239 billion kWh in 2026, surpassing the previous record of 4,082 billion kWh in 2024.
China, the United States, and India accounted for more than half of the global share of electricity consumption in 2019.
