The global power grid market size is expected to reach USD 409.6 billion by 2030, exhibiting a CAGR of 5.6% during 2024–2030. This is attributed to the rising number of government initiatives and those taken by the top players in the industry to improve the supply of electricity at lower costs. Additionally, a number of countries in the Asia-Pacific region are huge producers of electricity, which, in turn, significantly boosts the demand for the components that together make up the power grid.
The rising number of government initiatives and schemes to provide electricity in rural areas, as well as for the utilization of renewable sources, is significantly boosting the demand for grid systems.
For instance, the Indian government is strongly focusing on the electrification of houses in rural areas, having initiated numerous programs in this regard. For instance, its SAUBHAGYA scheme aims to supply electricity to all the households in rural regions, as well as low-income households in the urban regions of the nation. Under this scheme, Chhattisgarh, Assam, Rajasthan, Karnataka, Manipur, Jharkhand, and Uttar Pradesh had reported complete residential electrification by March 2021. Since the launch of the scheme, 28.17 million homes have been reportedly electrified. Although, there are still many that remain to be electrified, on which the government is constantly working, hoping to accomplish the task as soon as possible.
Additionally, China is the biggest producer of electricity in the world. Moreover, the People’s Republic is home to a large number of manufacturing plants, which fuels the demand for power grids. Additionally, it consumes approximately six times as much coal as the U.S. and is involved in the construction of a large number of power plants to meet the growing energy demand. As part of these efforts, in 2021, it started constructing coal-based thermal power plants with a combined capacity of 33 Gigawatts.
Therefore, the country is projected to dominate the power grid market because of the high expenditure on setting up a large number of thermal power plants, as well as the high consumption of electricity.
Furthermore, many companies are taking strategic initiatives, such as product launches, acquisitions, and collaborations, to gain a competitive edge in the market. For instance, in November 2022, GE Renewable Energy introduced digital HYpact switchgear, which has multiple applications, such as mobile substations and onshore wind substations. This switchgear helps in reducing operational costs, as well as lowering the impact of power generation and distribution on the environment.
Additionally, in July 2020, Hitachi Ltd. acquired ABB Ltd.’s power grid business and formed a new company, namely Hitachi ABB Power Grids Ltd. ABB’s power grid business offers SCADA, microgrid controls, ADMS, and other solutions for T&D firms.
The generation category holds a share of 35%, in 2023. The power grid takes electricity from power plants and supplies it to houses, commercial buildings, and industrial sites. It is a vast network of electricity generation, transmission, and distribution units that receive the electricity, increase or decrease its voltage, and then send it through. The network includes both nationalized as well as private (which could even be independent houses, industrial sites, and commercial buildings with small-scale renewable energy installations) energy generators and suppliers.
Some of the most-heavy-duty grid equipment is found at power plants, including high-voltage switchgear, transformers, relays, control panels, and massive cables with multiple layers of insulation. Hence, as the electricity demand continues to soar more conventional and renewable power plants are being set up, which will continue driving the demand for all these grid components.
The power grid also consists of the infrastructure to distribute power; therefore, the distribution category accounts for a significant share as well. This is because the distribution of electricity is an important aspect of the power grid system, as it is responsible for the supply of electricity from the substation to consumers, such as industries, houses, and businesses.
Our regional analysis suggests North America will witness a significant growth rate till 2030. This is because of the rapid technological advancements in the region’s power sector and its growing industrial infrastructure, which are creating a lucrative growth opportunity for the existing top market players. Additionally, the U.S. is increasingly focusing on the adoption of renewable energy sources, which continues to push up the demand for power grid components that can withstand the unreliable supply of clean sources of energy. In addition, Canada has a robust IT industry, which, in turn, creates a high demand for power.
The key players in the market are ABB Ltd., General Electric Company, Siemens AG, Prysmian S.p.A., Eaton Corporation plc, Schneider Electric SE, Toshiba International Corporation, Powell Industries Inc., Hitachi Ltd., and Mitsubishi Electric Corporation.