Power Grid Market

Power Grid Market Outlook

In 2024, the global power grid market size is projected to be USD 300 billion. The power grid system market is predicted to surpass USD 471 billion by 2034 and is expected to advance at a CAGR of 4.6% between 2024 and 2034.

The primary drivers anticipated to escalate the electric grid market are the expanding energy requirements of the industrial and residential sectors, the shift toward renewable energy sources, and the adoption of new technologies.

Decentralized power generation, wherein smaller-scale power generation facilities are situated closer to end customers, is an increasingly popular concept. The goal of boosting energy efficiency and reducing transmission and distribution losses, along with the development of renewable energy technologies, is propelling the power grid market trend.

Attributes	Details
Market Value for 2024	USD 300 billion
Market Value for 2034	USD 471 billion
Market CAGR from 2024 to 2034	4.6%

Determinants Triggering Development in the Power Grid Market

• The electric grid system market is expanding due to the growing emphasis on using renewable energy. To mitigate the erratic nature of renewable energy generation, utilities and governments are investing in grid upgrades.
• The power grid system market is influenced by the expansion of decentralized power generation, which includes small-scale solar, wind, and energy storage technologies. Advanced grid management technologies are necessary for the integration of DERs.
• Government laws and policies significantly foster the electric grid market. The expansion of the power grid market is fueled by policies, rules, and incentives that promote infrastructure investment, sustainable energy adoption, and grid upgrading.
• The world's population is growing, which spurs energy demand. To accommodate the changing needs of densely populated areas, there is a need for developing and upgrading power grids.

Attributes	Details
Market Value for 2019	USD 224 billion
Market Value for 2023	USD 283.8 billion
Market CAGR from 2019 to 2023	6.1%

Constraints Limiting the Power Grid Market Growth

• Complying with strict government regulations and compliance requirements presents many difficulties, hindering the growth of the power grid market. Regulation changes necessitate expensive infrastructure and operational modifications.
• Cybersecurity risks are a key concern due to the increasing digitization and interconnection of power grid equipment. Businesses need to invest in robust cybersecurity solutions to protect against cyberattacks, data breaches, and system interruptions.
• The electric grid is evolving rapidly due to technological breakthroughs such as distributed generation and smart grid solutions. To stay ahead of the competition and meet expectations, embracing technical advancements and investing in research and development are crucial. This constrains the market growth.
• Aging infrastructure and a lack of investment in power grid upgrades have hindered the capacity and efficiency of power transmission and distribution systems, resulting in issues with capacity, reliability, and maintenance expenses.

Category-wise Outlook

The segmented market analysis of the power grid is included in the following subsection. Based on comprehensive studies, the cables sector leads the component category, and the conventional power segment commands the power source category.

Cables Segment Steer Power Grid Market Growth

Attributes	Details
Top Component	Cables
CAGR % 2019 to 2023	5.8%
CAGR % 2024 to End of Forecast (2034)	4.4%

• As the cornerstone of power distribution networks, cables represent a long-term investment that aligns with the sustainability aspirations of modern enterprises.
• The increasing demand for reliable and secure power transmission requires the adoption of cables, contributing to the continuous growth in power grid sales.
• With advancements in cable technology, electric grid manufacturers are expected to benefit from increased transmission capacity, energy savings, and improved grid performance.
• The cables segment is scalable and flexible, accommodating enterprises' changing needs while ensuring a stable power grid infrastructure.

Conventional Power Segment’s Role in Power Grid Sales Supremacy

Attributes	Details
Top Power Source	Conventional Power
CAGR % 2019 to 2023	5.5%
CAGR % 2024 to End of Forecast (2034)	4.1%

• The adaptability of conventional power sources enables swift adjustments to demand swings, maintaining resource efficiency.
• Conventional power provides a steady and reliable supply of electricity, which is critical for satisfying consumer demand for the power grid.
• Regulatory frameworks and market structures frequently encourage the deployment and expansion of conventional power generation, resulting in a stable economic climate.

Country-wise Analysis

The power grid market is elaborated in the tables, which focus on the leading economies of South Korea, China, the United States, the United Kingdom, and Japan, along with their respective CAGRs. A comprehensive evaluation demonstrates that the United Kingdom has enormous opportunities.

Renewable Energy Revolution in South Korea Advances toward Sustainable Power Grid

Country	South Korea
HCAGR (2019 to 2023)	11.7%
CAGR (2024 to 2034)	6.4%

• Extensive government investment in smart grid technology fosters a strong and effective energy distribution network, benefiting South Korea's power grid market.
• Adopting renewable energy resources, such as wind and solar power, promotes the sustainability and resilience of South Korea's electrical system while creating opportunities for power grid solutions.
• The electric grid market in South Korea, which places a high priority on energy security, features cutting-edge grid monitoring and control systems that ensure dependability and reduce downtime.

Thriving Power Grid Market and Renewable Energy Ambitions in China

Country	China
HCAGR (2019 to 2023)	8.2%
CAGR (2024 to 2034)	6.1%

• The ultra-high-voltage transmission infrastructure, which enables long-distance power transmission with low losses, serves as the catalyst behind the huge investments in China's electric grid market.
• By integrating big data analytics and artificial intelligence, China's power grid can now perform predictive maintenance, reducing operating costs and downtime.
• In China, the demand for power grid solutions is bolstered by rapid urbanization, presenting potential for companies that provide demand-side management and grid optimization technology.

The United Kingdom's Journey toward a Sustainable Energy Future

Country	United Kingdom
HCAGR (2019 to 2023)	9.0%
CAGR (2024 to 2034)	5.5%

• The need for intelligent charging infrastructure and vehicle-to-grid (V2G) solutions is increasing in the United Kingdom due to the integration of electric vehicles into the grid environment.
• Local energy producers and decentralized power grid solutions in the United Kingdom can benefit from initiatives supporting community energy projects and peer-to-peer energy trading programs.
• Grid-scale energy storage and demand response technologies are receiving heavy investment as the United Kingdom's power grid market embraces the shift to a low-carbon energy system.

Transformative Landscape of the United States Power Grid Market

Country	United States
HCAGR (2019 to 2023)	6.8%
CAGR (2024 to 2034)	5.0%

• Investments in grid cybersecurity systems in the United States are influenced by stringent regulatory criteria aimed at protecting the integrity and reliability of the electric grid.
• Grid modernization programs in the United States aim to improve grid flexibility and reliability through the adoption of advanced sensors and power grid automation technologies.
• The growing emphasis on grid resilience in the face of natural catastrophes and cyber threats creates potential for power grid manufacturers in the United States that offer grid-hardening solutions and disaster recovery services.

Japan’s Journey toward a Low-carbon Energy Future

Country	Japan
HCAGR (2019 to 2023)	3.6%
CAGR (2024 to 2034)	3.7%

• Japan's goal of achieving carbon neutrality encourages investment in grid-connected renewables and energy storage, necessitating grid upgrading and integration solutions.
• The adoption of modern power grid automation technologies improves Japan's power grid reliability and efficiency, enabling faster problem diagnosis and restoration.
• Japan's power grid market prioritizes resilience to natural catastrophes, resulting in investments in grid hardening and disaster recovery technologies to ensure continuous power delivery.

Competitive Analysis

A few prominent power grid manufacturers drive innovation and shape the sector's direction. Renowned for their advanced technology and dependability, ABB, Siemens, and Schneider Electric lead the way. These power grid providers utilize their vast experience and global reach to offer innovative power grid management solutions.

Newcomers to the electric grid market, such as General Electric and Mitsubishi Electric, are making waves with their innovative technology and disrupting long-standing norms. Their quick thinking and inventiveness contribute to the market's intense competition.

Localized expertise and customized solutions are helping regional power grid suppliers like Toshiba and Hyundai Electric & Energy Systems carve out niches in the industry. Their presence fosters a more diverse and healthier competitive environment.

Specialized power grid manufacturers, like Hitachi ABB Power Grids, offer tailored goods and services to address the industry's evolving demands. They focus on specialty markets such as digitalization and grid automation.

Power grid developments and advancements are occurring rapidly, driving sustainability, dependability, and efficiency in the global energy infrastructure as these industry heavyweights compete for market share and technological prowess.

Recent Developments

Company	Details
GE Renewable Energy	HYpact switchgear was introduced by GE Renewable Energy in November 2022. It applies to several situations, including onshore wind substations and mobile substations. It also reduces operational costs and environmental impact for consumers while increasing the predictability of the electrical network.
Siemens	Siemens and Eplan established a strategic alliance in October 2022 to enhance their cooperation in software solutions for the infrastructure and industrial sectors. As a result of this arrangement, Siemens' Electrical Products business unit joined the Eplan Partner Network as a strategic partner. Improved product coordination between the two businesses is likely to enable switchgear makers and electrical planners to access optimal solutions.
Petrobras	In January 2022, Petrobras informed TechnipFMC about a subsea EPCI project for the greenfield extension of its Bzios 6 field. The agreement covered pipe end connections, stiff jumpers, flexible and rigid pipes, umbilicals, anchoring devices, and umbilical terminal components.
Nexans	Nexans was granted a concession under the framework contract by South Fork Winds, a joint venture between rested and Eversource, to manufacture around 110 kilometers of high-voltage offshore cables in January 2022.
Prysmian Corporation	According to Prysmian Corporation, a cutting-edge submarine coax cable plant is scheduled to open in February 2022 at the Brayton Point location in Massachusetts, United States. The company is going to be able to help consumers in the United States because of the new manufacturing.

Top Power Grid Manufacturers

• ABB
• General Electric
• Schneider Electric
• Mitsubishi Electric
• Siemens
• Hitachi Energy
• Eaton
• Havells
• Hubbell
• Fuji Electric
• Sumitomo Electric

Key Coverage in Power Grid Market Report

• Power Grid Market Revenue and Trends
• Power Grid System Market Size, Current Insights, and Demographic Trends
• Adjacent Study on the Power Grid Market, Power Management System Market, and Power Transmission Line and Tower Market
• Demand for Power Grid in South Korea
• Opportunity Analysis of Power Grid in China
• Strategic Blueprints for Power Grid Manufacturers

Key Segments

By Component:

• Cables
• Variables Speed drives
• Transformers
• Switchgear
• Others

By Power Source:

• Conventional Power
• Renewable Power
• Nuclear Power
• Hybrid Power

By Application:

• Generation
• Transmission
• Distribution

By Region:

• North America
• Latin America
• Asia Pacific
• Europe
• Middle East and Asia

Frequently Asked Questions

What is the Current Power Grid Market Valuation?

The market is estimated to secure a valuation of USD 300 billion in 2024.

How Big Can the Power Grid Market Be by 2034?

The market is projected to reach USD 471 billion by 2034.

What is the Growth Potential of the Power Grid Market?

Through 2034, the market is forecasted to expand at a 4.6% CAGR.

What Was the Historical Outlook of The Power Grid Market?

From 2019 to 2023, the market recorded a 6.1% CAGR.

Which Component Segment will Dominate in the Power Grid Market?

The cables sector is anticipated to develop at a CAGR of 4.4% from 2024 to 2034.

Which Power Source Segment will Lead the Power Grid Market?

The conventional power sector is likely to accelerate at a CAGR of 4.1% through 2034.