Power Grid Market Analysis APAC, North America, Europe, Middle East and Africa, South America - US, China, Japan, India, Germany - Size and Forecast 2024-2028

Power Grid Market Forecast 2024-2028

The power grid market size is forecast to increase by USD 93.89 billion, at a CAGR of 5.94% between 2023 and 2028. The report includes historic market data from 2018-2022. The market is witnessing a growing demand for the high adoption of smart technologies, the development of microgrids for localized energy generation, and the rising deployment of energy storage systems. 

Market Overview :

• The cables segment is fastest-growing segment during the forecast year
• The cables segment was the largest segment and was valued at USD 90.30 billion in 2018
• The Regional Analysis consists of APAC, North America, Europe, Middle East and Africa, and South America
• APAC is is most dominating region during the forecast period
• The market growth and forecasting report also includes an in-depth analysis of the rising adoption of renewable energy sources, the high adoption of smart technologies, and the high initial costs associated with modernization projects. 

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Market Trends 

High adoption of smart grid technologies is the primary trend in the market. The adoption of smart grid technologies is driven by the need for improved efficiency, reliability, and sustainability. Smart grids leverage advanced digital communication and control systems to optimize the generation, transmission, and distribution of electricity. One key aspect is advanced metering infrastructure (AMI), which enables two-way communication between utility companies and consumers. AMI allows for real-time monitoring of energy consumption, facilitating demand response programs and enabling consumers to better manage their electricity usage.

Distribution automation technologies within smart grids enhance grid reliability by quickly identifying and isolating faults, minimizing downtime, and improving outage restoration times. Furthermore, the integration of renewable energy sources and distributed energy resources (DERs) is facilitated through smart grid technologies, allowing for seamless management of variable generation and grid balancing. Thus, the adoption of smart grid technologies is driven by the increasing complexity of the energy industry and the need for more efficient, flexible, and resilient grid infrastructure, which will further propel the growth of the market during the forecast period.

Market Largest-Growing Segments 

Cables Segment Analysis

High-voltage cables are a key component in transmitting electricity over long distances, typically from power generation facilities to substations or between different regions. These cables are designed to withstand high voltages and carry large amounts of power without significant losses. Prominent players in the segment include Prysmian Group, Nexans, General Cable Technologies Corporation (Prysmian Group), Sumitomo Electric Industries, Ltd., NKT A/S, Southwire Company, LLC, LS Cable and System Ltd., Furukawa Electric Co., Ltd., TPC Wire and Cable Corp., and KEI Industries Limited. 

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Furthermore, advancements in cable technologies, such as high-temperature superconducting (HTS) cables and extra-high voltage (EHV) cables, are increasingly being deployed to improve transmission efficiency, reduce losses, and enhance grid reliability. Additionally, the adoption of smart grid solutions is driving the demand for specialized cables that are capable of supporting advanced monitoring, control, and communication functions within the grid infrastructure. Consequently, from the above-mentioned factors, the increase in demand for cables in smart grids can drive the growth of the market during the forecast period.

Market Regional Analysis

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APAC is estimated to contribute 35% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period. The Asia-Pacific (APAC) region plays a pivotal role in the market due to rapid urbanization, industrialization, and population growth. Significant demand for electric power in APAC stems from industrial and urban expansion, yet power infrastructure remains underdeveloped in many countries, leading to supply-demand gaps and instances of power theft. Investments in smart grid projects, particularly in India, China, and Japan, fueled by governmental initiatives, aim to bridge these gaps and enhance efficiency. However, challenges such as financial incentives and interoperability issues hinder the widespread adoption of smart grid systems in the region.

Market Dynamics and Customer Landscape

The market is witnessing a paradigm shift towards renewable energy sources and decentralized power generation, driven by imperatives for energy efficiency and curbing transmission and distribution losses. The integration of Distributed Energy Resources (DERs) is reshaping the landscape, necessitating compliance with evolving government laws and policies and substantial infrastructure investment. As the transition towards sustainable energy adoption gains momentum, challenges such as cybersecurity risks and aging infrastructure loom large.

However, technological advancements and smart grid solutions are mitigating these concerns, empowering the transformation of power transmission line and tower markets amidst evolving regulatory frameworks. Industries, commercial fleets, and smart cities are driving electricity demand and necessitating upgrades in transmission and distribution infrastructure. Our researchers analyzed the market research and growth data with 2023  as the base year, along with the key market growth analysis, trends, and challenges. A holistic analysis of drivers, trends, and challenges will help companies refine their marketing strategies to gain a competitive advantage. 

Key Drivers of the Market

Rising adoption of renewable energy sources is the key factor driving the market. The rising adoption of renewable energy sources is primarily fueled by increasing concerns about climate change, coupled with advancements in renewable energy technologies and declining costs of renewables. Solar, wind, hydroelectric, and other forms of renewable energy are becoming increasingly competitive with traditional fossil fuels, prompting governments, businesses, and consumers to embrace cleaner alternatives. One of the key impacts of renewable energy is the need for substantial grid modernization and expansion of grid management to accommodate the integration of renewable energy sources. 

Furthermore, the rising adoption of renewable energy sources is driving innovation in grid management and control systems. Besides, renewable energy sources also present significant opportunities for market growth and investment.  Additionally, businesses are recognizing the economic benefits of renewable energy investments, including reduced operating costs, enhanced energy security, and improved corporate sustainability profiles. Thus, a rise in the adoption of renewable energy sources will boost the growth of the market during the forecast period.

Significance Challenges of Market

High initial costs associated with modernization projects are a major challenge that affects market expansion. The high initial costs are compounded by regulatory barriers and bureaucratic processes, adding complexity and expense to implementation efforts. Compliance with regulatory requirements, including cybersecurity protocols and interoperability standards, necessitates additional investments in specialized equipment and staff training, further inflating project costs. 

Additionally, incentive programs offered by regulatory agencies, such as subsidies and grants for smart grid deployment, may require utilities to meet specific criteria, adding administrative burdens and delaying project timelines. These regulatory hurdles, coupled with the uncertainty surrounding return on investment and long payback periods, pose significant financial challenges for utilities and stakeholders, inhibiting investment in grid modernization, particularly for smaller entities with limited budgets. Thus, such factors will impede market expansion during the forecast period.

Market Customer Landscape

The market research report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.

Customer Landscape

Major Market Companies

Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.

• ABB Ltd.: The company offers power grid such as power and automation products, systems and service solutions across the power value chain of generation, transmission and distribution enabling a stronger, smarter and greener grid.

The research report also includes detailed analyses of the competitive landscape of the market and information about 20 market companies, including:

• Eaton Corp. Plc
• Fuji Electric Co. Ltd.
• General Electric Co.
• Havells India Ltd.
• Hubbell Inc.
• LS ELECTRIC Co. Ltd.
• Mitsubishi Electric Corp.
• National Grid plc
• Nexans SA
• Nextera Energy Inc.
• Powell Industries Inc.
• Prysmian Spa
• Schneider Electric SE
• Secheron SA
• Siemens Energy AG
• Southwire Co. LLC
• Tata Power Co. Ltd.
• Toshiba Corp.
• VIKRAM SOLAR LTD.

Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.

Segment Overview

The market report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2018 to 2028. 

• Component Outlook
  • Cables
  • Switchgear
  • Transformers
  • Variable speed drives
  • Others

• Application Outlook
  • Distribution
  • Generation
  • Transmission

• Region Outlook
  • North America
    • The U.S.
    • Canada
  • Europe
    • U.K.
    • Germany
    • France
    • Rest of Europe
  • APAC
    • China
    • India
  • South America
    • Chile
    • Brazil
    • Argentina
  • Middle East & Africa
    • Saudi Arabia
    • South Africa
    • Rest of the Middle East & Africa

Market Analyst Overview:

The global power grid market is witnessing rapid evolution with new technologies and grid upgrades to accommodate small-scale solar and wind energy integration alongside energy storage technologies. Advanced grid management technologies are crucial for ensuring the reliability and efficiency of power grids amidst government regulations and compliance requirements. However, challenges such as cyberattacks, data breaches, and system interruptions necessitate continuous research and development in power transmission and distribution systems. The market dynamics are influenced by factors like energy demand, power generation plants, and the adoption of HVDC transmission systems and digitalization technologies.

Additionally, the power grid system market is witnessing significant growth driven by advancements in power management system technologies and the diversification of power source categories such as renewables. Key players in the cables sector and conventional power segment are adapting to meet evolving electricity supply demands. Market structures are evolving to accommodate new manufacturers and cater to various industrial processes and vehicle electrification needs.

Moreover, the power grid market dynamics are shaped by factors like T&D systems, monitoring devices, and the integration of digital technologies like smart thermostats and smart lighting. As the industry moves towards connected appliances and smart meters, innovations in IoT, big data, and artificial intelligence play pivotal roles in optimizing grid efficiency while addressing challenges such as pollution growth and social inequality.

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What are the Key Data Covered in this Market Research Report?

• CAGR of the market during the forecast period
• Detailed information on factors that will drive the growth of the market between 2024 and 2028
• Precise estimation of the market  size and its contribution to the market in focus on the parent market
• Accurate predictions about upcoming trends and changes in consumer behaviour
• Growth of the market across APAC, North America, Europe, Middle East and Africa, and South America
• A thorough analysis of the market’s competitive landscape and detailed information about companies
• Comprehensive analysis of factors that will challenge the growth of market companies

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