Power Grid Market Size & Share Analysis - Trends, Drivers, Competitive Landscape, and Forecasts (2024 - 2030)

Power Grid Market Trends & Drivers

Technological Innovations to Drive Significant Growth Opportunities

• The power grid is a dynamic system. There have been multiple changes and evolutions in it over time in order to cater to the rising demand for electricity, enable novel technologies, as well as making diverse sources of electricity more dependable.
• Additionally, voltage changes on an hourly basis are observed with varied sources of electricity being manipulated to meet the requirements at the minimum price. The advancements in conventional power grid systems have led to the development of smart grids, which provide additional reliability and a more-constant electrical power supply.
• This system is versatile and, hence, can be installed without difficulty. Moreover, it requires minimal area in comparison to conventional grids. The approach of smart grid designs is focused on grid observability, the form controllability of assets, improved security and performance of the power system, minimal maintenance, and effective planning. Additionally, this technology can be utilized at the micro-grid level to connect all other micro-grids, to create a huge network of smart T&D systems.
• There is plenty of potential in this technology, and therefore, it could be an answer to the challenge of the reliability of power transmission as well as distribution in emerging economies that do not have an adequate T&D infrastructure.
• In addition, the high demand for electricity has led to the excessive emission of CO2. For instance, in the U.S., in 2021, transportation sector accounted for the highest CO2 emissions, of 28% of the total, whereas electricity generation stands at the second position, accounting for 25% of the greenhouse gas emissions.
• Smart grids help in addressing the issue by distributing the electrical power in an effective manner, which, in turn, reduces the emission of greenhouse gases, such as sulfur oxides (SOx) and nitrogen oxides (NOx), apart from CO2, from the burning of fossil fuels to produce excess energy. Furthermore, it will aid consumers in projecting their consumption of energy and, ultimately, enable its efficient usage.
• There are a number of research activities going on for a further advancement of the traditional power grid systems, in order to make them more sustainable as well as dependable, to meet modern-day needs. These research activities will have a positive influence on the power grid market growth by leading to technological advancements in the associated components.
• Essentially, the constant increase in electricity demand has led to the rising requirement for a reliable transmission as well as distribution network. A continuous energy supply can only be maintained via systems that have the capacity to bear abrupt voltage surges as well as drops.
• In developed countries, numerous advancements have been brought about in substations to ensure a continuous supply of electricity with minimal losses. This is done by changing the old parts with more-advanced components that can help in overcoming overcurrent conditions.
• Furthermore, the growing number of electricity generation plants and increasing demand for renewable energy are resulting in a growing expenditure on the transmission and distribution framework. Due to this reason, T&D systems now possess the capacity to bear a long-distance flow of power, as well as reducing energy loss due to the strong currents. A number of nations, such as India, the U.K., China, and the U.S., are heavily spending for advancing their substations and forming a dependable supply network.

Segmentation Analysis

Cables Category Leads Component Segment

The cables category leads the market, with 40% share, in 2023. This is attributed to the fact that cables play an important role in the transmission of electricity from power plants to consumers. The generated electricity is transferred to a number of places with the help of high-voltage cables. Moreover, the installation of transmission lines varies as per the requirement. For instance, for long-distance transmission, overhead lines are used, majorly to reduce the power losses due to resistance. Similarly, underground power lines are used to distribute power across highly populated areas, underwater, or in any place where overhead power lines cannot be used.

Moreover, the subsea cable type is also growing forthcoming years. Subsea cables play a crucial role in facilitating modern-day activities. Additionally, nations are signing agreements and collaborating to connect their power grids via subsea cables. For instance, in September 2023, in order to boost economic growth as well as improve the reliability of the power supply, Saudi Arabia and India partnered to connect their power grids. This partnership is another step in the growing energy partnership between the two countries. Moreover, India is exploring the likelihood of connecting its power grid with Singapore’s, on the east coast, via subsea cables.

Further, sub-transmission can be used both overhead or underwater. In addition, cables ensure that electricity moves efficiently and smoothly, thereby helping in maintaining the stability and dependability of the power grid. Moreover, they minimize the risk of power outages, avert voltage fluctuations, and can be utilized to balance the load on several parts of the power grid.

Switchgear is expected to display the fastest growth during the forecast period, because it offers enhanced safety by protecting the electrical equipment from short circuits and overloading. This ultimately helps in significantly minimizing the risk of accidents, hazards for personnel, as well as damage to equipment.

In addition, its efficiency helps operations run smoothly, thereby reducing the downtime and increasing the productivity of businesses. Electrical switchgear can also be customized to meet the specific demand for electricity distribution and control. Such modifications aid in greater adaptability and flexibility for a variety of applications.

Coal Category Accounts for Significant Market Share in Power Source Segment

On the basis of power source, the coal category holds a share of 20%, in 2023. This is because coal is presently the biggest source of electricity generation across the world. A number of countries still rely on it for power generation, including Australia, China, India, Indonesia, South Africa, and Russia.

The heavy dependence on this material is due to the number of advantages offered by it, the biggest among which are affordability over other sources, such as oil and nuclear power; a stable of supply, and energy security.

Disturbances in the supply of energy can cause disruptions to the health of the economy. The stability of the coal supply is due to the fact that it can be easily transported via trucks, trains, ships, and barges, thereby eliminating the requirement for pipelines and other additional pieces of infrastructure. In addition, coal offers a unique perk over other power sources as it can be stored on site, resulting in weeks or even months’ worth supplies at the power station. This important feature contributes to grid dependability, resilience, and minimized fuel supply bottlenecks.

In addition, the prices of coal are significantly more stable in comparison to that of other fuels. And, since electricity cost is majorly determined by fuel costs, the low or stable prices of coal can be utilized for the production of affordable electricity. This, in turn, leads to a higher disposable income for the end user, thereby acting as a stimulus for a nation’s economy.

The natural gas category is expected to witness a high growth rate during the forecast period. This is because the emissions caused by the combustion of natural gas are much lower in comparison to those from other energy sources, which makes it a comparatively environment-friendly fossil fuel. Moreover, natural gas emits less carbon dioxide per unit of energy its combustion produces.

The report analyzes the following segments and categories;

Based on Component

• Cables
  • Subsea
  • Land
• Switchgear
• Transformers
• Variable-Speed Drives

Based on Power Source

• Oil
• Natural Gas
• Hydro Electric
• Renewables
• Coal

Based on Application

• Generation
• Transmission
• Distribution

Geographical Analysis

As per our regional analysis, Asia-Pacific will showcase the highest growth rate, of 6.0%, during the projection timeframe. This is because of the rising number of government initiatives for the adoption of renewable power sources and the increasing industrialization as well as urbanization rates in the region, which are leading to a high demand for electricity. Additionally, a number of countries in the region are significant IT hubs, which further increases the demand for electricity at data centers and telecom exchanges.

Regions and Countries Covered in this report

• North America
  • U.S.
  • Canada
• Europe
  • Germany
  • U.K.
  • France
  • Italy
  • Spain
• Asia-Pacific
  • Japan
  • China
  • India
  • South Korea
  • Australia
• Latin America
  • Brazil
  • Mexico
• Middle East and Africa
  • Saudi Arabia
  • South Africa
  • U.A.E.

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