U.S. Electricity Demand by Source (2024-2050)

U.S. Electricity Demand by Source (2024-2050)

Electricity demand is projected to soar in the coming decades—but by how much and which sectors are driving the surge?

This visualization, created in partnership with Tema ETFs, provides visual context to the projected increase in electricity demand out to 2050. The U.S. Energy Information Administration (EIA) has broken the data down by four main sources. 

What Is Electricity?

Electricity is the flow of energy that powers our world. It runs everything from household appliances to industrial machinery and digital systems. Electricity comes from many sources, including fossil fuels, nuclear power, and renewables. A vast grid then delivers it to homes, businesses, and industries.

In the U.S., EIA data shows electricity demand is expected to rise sharply, climbing from 3,938 terawatt-hours (TWh) in 2024 to 5,780 TWh in 2050. This is a near 50% increase as electrification accelerates.

Demand Sources

Four main sources drive electricity demand in the U.S.: residential, commercial, industrial, and transportation. But which ones are fueling the sharpest increases?

All four are projected to grow significantly over the next 25 years. Commercial demand is expected to see the largest jump, rising from 1,397 TWh in 2024 to 2,254 TWh in 2050. This is a 61.3% increase (1.9% annualized). Much of this growth stems from soaring demand at commercial electric vehicle (EV) charging stations.

The industrial sector comes next, with demand climbing from 1,026 TWh to 1,468 TWh. This is a 43.0% increase (1.4% annualized). This reflects both the electrification of industrial processes and surging demand from data centers.

Meanwhile, residential demand is projected to rise 36.0% (1.2% annualized). Transportation demand is set to grow 32.5% (1.1% annualized) as the shift toward EVs accelerates.

Invest in the Surge

As electricity demand surges across every sector, the energy transition presents a compelling opportunity for investors. Companies enabling electrification—whether through power generation and storage, grid infrastructure, or new technologies—could benefit from this long-term structural growth.

The Tema Electrification ETF (VOLT) invests in the companies powering the future —from energy generation to grid modernization and power management technologies. Electrify your portfolio.

Learn more about VOLT.

Source: U.S. Energy Information Administration (EIA) (as of December 31, 2024)

Carefully consider the Fund’s investment objectives, risk factors, charges and expenses before investing. This and additional information can be found in the Fund’s prospectus or summary prospectus, which may be obtained by visiting www.temaetfs.com. Read the prospectus carefully before investing

Investing involves risk including possible loss of principal. There is no guarantee the adviser’s investment strategy will be successful.

Distributor: Foreside Fund Services, LLC.

Keep track of your essentials with the Apple AirTag 4 Pack, the ultimate tracking solution for your belongings. With over 5,972 ratings and a stellar 4.7-star average, this product has quickly become a customer favorite. Over 10,000 units were purchased in the past month, solidifying its status as a highly rated Amazon Choice product.

For just $79.98, you can enjoy peace of mind knowing your items are always within reach. Order now for only $79.98 at Amazon!

Help Power Techcratic’s Future – Scan To Support

If Techcratic’s content and insights have helped you, consider giving back by supporting the platform with crypto. Every contribution makes a difference, whether it’s for high-quality content, server maintenance, or future updates. Techcratic is constantly evolving, and your support helps drive that progress.

As a solo operator who wears all the hats, creating content, managing the tech, and running the site, your support allows me to stay focused on delivering valuable resources. Your support keeps everything running smoothly and enables me to continue creating the content you love. I’m deeply grateful for your support, it truly means the world to me! Thank you!