Power Grid Market – Trends Forecast Till 2030

Market Snapshot

Market Overview

The global Power Grid market size was estimated at USD 279.6 billion in 2023 and is projected to reach USD 410 billion in 2030 at a CAGR of 5.6% during the forecast period 2023-2030.

The power grid constitutes a network of interconnected power producers and consumers that are subject to management by one or more control centers and united by transmission and distribution lines. The reference of "power grid" by most individuals is often directed to the electricity transmission system. The power grid framework encompasses transmission lines and halls, power stations, as well as power distribution channels, all of which are overseen and regulated by power grid operators and service providers. This guarantees that energy reservoirs are utilized in the most sophisticated manner possible, amplifies the potential of the potent force, and augments the efficiency and accountability of power system operations.

The need for stable and reliable transmission and distribution networks has arisen due to the increasing demand for energy. A system capable of handling sudden power shorts and drops is necessary to ensure uninterrupted power supply. In developed countries, substations are being modernized to minimize losses and maintain a continuous power supply. This is achieved through the replacement of old components with modern and more efficient ones. These upgrades are designed to be smart and more protective against overcurrent situations. The investments in transmission and distribution (T&D) infrastructure are driven by the growing demand for renewable energy sources and the increasing number of power generation plants. This makes the T&D system capable of handling long-distance power flow and minimizing energy losses caused by strong currents.

Due to disruptions in the supply of equipment and components from Southeast Asian countries and China caused by the COVID-19 pandemic, manufacturers of global power grids have halted their production processes. As a result of the pandemic lockdown, there is an anticipated demand for intelligent systems to manage grid operations and reduce the need for human intervention. However, companies involved in the power grid industry have yet to resume their work due to a shortage of available workforce, which may have a negative impact on the growth of the power grid market.

Delvens Industry Expert's Standpoint

The pandemic had a considerable impact on businesses globally, with nations like India and China bearing the brunt of the virus's outbreak. The dearth of fossil fuels as an energy source and the rapidly expanding global warming phenomenon are the primary drivers of the development of the power grid market. In addition, the increasing government allocation and private investment market players for power grid systems are other factors propelling the growth of the power grid market. The growing selection of technologically advanced systems in organizations, along with the Internet of Things (IoT), is assisting in reducing power losses and providing more efficient grid systems. This factor is also expected to contribute to the growth of the power grid market to a certain extent. However, the major hindrance to market growth is the substantial initial investment. The development of offshore power grid systems is anticipated to open up opportunities for significant market players to supply electricity to various customers, where the production costs of electricity are comparatively higher. These factors have led to the expansion of the market and increased demand for Power Grid solutions.

Market Portfolio

Key Findings

• The component segment is further fragmented into cables, variable speed drives, transformers, switchgear, and others. The cables segment is expected to account for a larger market size during the forecast period. The maintenance of stability and reliability of the grid is facilitated by the deployment of cables, which serve to ensure the smooth and efficient flow of power. The utilization of cables is instrumental in the balancing of load across various sections of the grid, minimizing voltage fluctuations, and mitigating the possibility of power outages.

• The Application segment is further bifurcated into generation, transmission, and distribution. The distribution segment is the largest market during the forecast period. The distribution of power is a fundamental facet of the power grid infrastructure, given its crucial role in transmitting electrical energy from the transmission network to residential, commercial, and industrial establishments.

• The Power Source segment is further bifurcated Oil, Natural Gas, Coal, Hydro Electric, Renewables and Others. Renewable Power to account for a larger market size during the forecast period. One of the primary drivers of development is the increasing demand for clean and renewable energy sources, driven by concerns over climate change and environmental sustainability. Governments worldwide are also promoting the growth of the Renewable Power segment in the market through policies such as renewable energy targets, feed-in tariffs, tax credits, and other incentives.
   
• The market is also divided into various regions such as North America, Europe, Asia-Pacific, South America, and Middle East and Africa. Asia Pacific is estimated to account for the largest market share during the forecast period. In Asia Pacific, increasing electricity demand is one of the primary drivers of growth in the Asia Pacific power grid market.

Regional Analysis

Asia Pacific to Dominate the Market

• Asia Pacific is estimated to account for the largest market share during the forecast period. In Asia Pacific, increasing electricity demand is one of the primary drivers of growth in the Asia Pacific power grid market.
   
• Moreover, the population in the Asia Pacific region is growing, so the electricity demand is increasing.

Competitive Landscape

• ABB
• Eaton
• Fuji Electric
• General Electric
• Havells
• Hitachi Energy
• Hubbell
• Hyundai Electric & Energy Systems Co., Ltd.
• LS Electric
• Mitsubishi Electric
• Nexans
• NKT
• Powell Industries
• Prysmian Group
• Schneider Electric
• Secheron
• Siemens
• Southwire Company
• Sumitomo Electric
• Toshiba Energy System & Solutions Corporation

Recent Developments

• In November 2022, GE Renewable Energy launched HYpact switchgear. It can be used in several applications such as mobile (truck-mounted) substations and onshore wind substations. It makes the electrical network more predictable also reduces the customer’s operational costs, as well as their impact on the environment.
   
• In October 2022, Siemens and Eplan have formed a strategic alliance to expand their collaboration in software solutions for the industrial and infrastructure markets. Siemens' Electrical Products business unit will join the Eplan Partner Network as a strategic partner as part of this agreement. The goal is to better coordinate the products of both companies in order to provide optimised solutions for switchgear manufacturers and electrical planners.

Reasons to Acquire

• Increase your understanding of the market for identifying the most suitable strategies and decisions based on sales or revenue fluctuations in terms of volume and value, distribution chain analysis, market trends, and factors.
   
• Gain authentic and granular data access for the Power Grid Market to understand the trends and the factors involved in changing market situations.
   
• Qualitative and quantitative data utilization to discover arrays of future growth from the market trends of leaders to market visionaries and then recognize the significant areas to compete in the future.
   
• In-depth analysis of the changing trends of the market by visualizing the historic and forecast year growth patterns.

Report Scope