Description
Global Power Grid Market: Key Takeaways
- Asia Pacific dominated the global power grid market, in 2023, by region.
- Middle East and Africa is expected to grow at the highest CAGR in global power grid market, during the forecast period.
- By component, the cables segment dominated in 2023 and is expected to grow at the highest CAGR in global power grid market, during the forecast period.
- By power source, the renewable segment dominated the global power grid market, in 2023.
- By power source, the coal segment is expected to grow at the highest CAGR in global power grid market, during the forecast period.
- By application, the distribution segment dominated the global power grid market, in 2023.
- By application, the generator segment is expected to grow at the highest CAGR in global power grid market, during the forecast period.
Global Power Grid Market: Overview
The global power grid market refers to the economic sector focused on the generation, transmission, distribution, and management of electricity. This market encompasses a wide range of technologies, infrastructure, and services related to the power grid, including energy generation (from conventional to renewable sources), transmission lines, substation equipment, and distribution networks. With the help of emerging technologies and shifting regulatory frameworks, the power grid industry is developing to satisfy the needs of a more contemporary, sustainable, and clean energy system.
Global Power Grid Market: Dynamics
Drivers
- Growing need for dependable electricity
There is a greater need for dependable power as a result of urbanization, industrialization, and population growth. In order to satisfy the rising electricity demand and avoid blackouts or other disruptions, many nations are modernizing and enlarging their power systems. To accommodate this need, developing economies—especially those in Asia and Africa—are rapidly growing their grid infrastructure.
- Increase in the direction of integrating renewable energy
Power grid investment has increased as a result of the global push for cleaner energy sources like wind and solar. Because renewable energy is inherently sporadic, its integration into the grid necessitates improvements and technological developments in order to efficiently handle energy storage and load balancing. As they move toward renewable energy, many nations are giving grid renovation first priority.
Restraint
- Inadequate Facilities in Developing Areas
Inadequate infrastructure frequently impedes the expansion of power grids in emerging economies, especially in rural or isolated locations. Widespread electrification can be challenging to accomplish if grid development is slowed down by limited access to resources, skilled personnel, and building facilities. Furthermore, these areas do not have the technological resources needed to install smart grid technologies, which are crucial for updating electrical networks.
Global Power Grid Market: Opportunity
- Smart grid technologies and grid modernization
The market is changing as a result of the deployment of smart grid technology, which makes use of automation, monitoring, and digital communications. By facilitating remote monitoring, real-time data collecting, and improved control over energy distribution, smart grids increase grid efficiency and dependability. Government programs encourage the use of smart grids to increase energy efficiency and support distributed energy resources like rooftop solar panels, especially in North America and Europe.
- Developments in digital technologies
Grid management is changing as a result of technologies like blockchain, machine learning, and artificial intelligence (AI). These technologies improve grid dependability, minimize downtime, optimize load distribution, and aid in predictive maintenance. In order to increase operational effectiveness and better control the grid, numerous utilities are implementing these cutting-edge digital solutions.
Global Power Grid Market: Segment Covered in the Report
- By Component
Cables
Variable Speed Drives
Transformers
Switchgear
Others
- By Power Source
Oil
Natural gas
Coal
Hydro Electric
Renewable
Others
- By Application
Generator
Transmission
Distribution
Global Power Grid Market: Segment Insights
By Component
The cables segment dominated in 2023 and is expected to grow at the highest CAGR in global power grid market, during the forecast period. The increasing demand for energy, especially in emerging economies across Asia-Pacific, Africa, and Latin America, has led to substantial investments in new transmission and distribution lines. Since cables transport electricity from power plants to final consumers, they are crucial to these transmission and distribution networks. Strong power infrastructure is also required in these areas due to growing urbanization and industrialization, which greatly increases the demand for cables. Expanding power infrastructure, the integration of renewable energy, grid modernization, cable technology developments, electrification trends, and encouraging government investments are the main drivers of the cables segment’s dominance and rapid growth. Cables will continue to be an essential part of the changing power grid sector as long as these trends persist.
By Power Source
The renewable segment dominated the global power grid market, in 2023, by power source. As global energy systems become more sustainable, renewables are predicted to remain the dominant section of the global power grid market in 2023 due to the combined effects of governmental backing, technical advancements, consumer demand, and infrastructure modernization. In keeping with climate pledges like the Paris Agreement, numerous governments and international organizations are promoting aggressive policies to cut carbon emissions. Due to this change, a lot of money has been invested in renewable energy sources including wind, solar, and hydropower, which now make up a sizable portion of the world’s power grids. For example, nations in North America and Europe have established clear goals for integrating renewable energy, which is fueling the market domination of renewables in the electricity grid.
The coal segment is expected to grow at the highest CAGR in global power grid market, during the forecast period. Even if coal is expected to increase significantly in some areas, this expansion is in contradiction to the global trend toward renewable energy. Nonetheless, coal will probably continue to be crucial during the projection period in areas where infrastructure and economic limitations make the adoption of renewable energy difficult. While many nations are making the transition to renewable energy, others are having difficulty because of the high prices of renewable infrastructure, a lack of funding, and technological limitations. In the short to medium term, coal is a more practical option for energy security and stability because it is still an affordable option for countries with limited resources. In some areas, this postponed shift supports coal’s continued use in the energy mix.
By Application
The distribution segment dominated the global power grid market, in 2023, by application. The rising urban power demands, distributed energy integration, grid modernization, smart grid innovations, and pro-distribution government regulations are the main factors driving the distribution segment’s dominance in the power grid market. These elements highlight how crucial distribution infrastructure is to providing end customers with dependable and effective electricity.
The generator segment is expected to grow at the highest CAGR in global power grid market, during the forecast period. The generator segment’s crucial role in boosting energy resilience, facilitating the integration of renewable energy sources, and satisfying power demands in remote and emerging regions is reflected in the power grid market’s projected expansion. Reliance on backup generators is growing as a result of rising power consumption and increasingly frequent extreme weather occurrences that might compromise system stability. In areas where grid instability and frequent power outages are common, this requirement is especially great. Backup generators are being purchased by both household and commercial sectors to guarantee a steady supply of electricity, particularly in vital industries like manufacturing, data centers, and healthcare.
By Region
Asia Pacific dominated the global power grid market, in 2023, by region. China, India, and Indonesia are examples of emerging economies in Asia Pacific that have seen substantial industrial and urban growth, which has raised the demand for robust and wide power distribution systems. In order to sustain industry and densely populated cities, economic development in these areas has required large investments in energy infrastructure.In order to responsibly fulfill their expanding energy needs, Asia Pacific nations have been increasing their use of renewable energy sources like hydropower, wind, and solar. Leading the way in the adoption of renewable energy have been China, India, and Japan in particular. As a result, significant improvements to grid infrastructure have been made to handle intermittent renewable energy sources. To properly incorporate these sources into the electricity supply, this entails making investments in smart grids and storage technologies.
Middle East and Africa is expected to grow at the highest CAGR in global power grid market, during the forecast period. In the MEA countries, rapid urbanization, industrialization, and population growth have resulted in a dramatic rise in the demand for electricity, necessitating large expenditures in power infrastructure. To satisfy rising power demands and lessen energy shortages, nations including South Africa, the United Arab Emirates, and Saudi Arabia are making significant investments in updating and enlarging their grid networks. Due to the significant increase in commercial and industrial activity, the need is particularly noticeable in metropolitan areas. To diversify their energy portfolios and lessen their reliance on fossil fuels, MEA nations are making significant investments in renewable energy sources like hydroelectric, wind, and solar power. To meet sustainable energy targets, Saudi Arabia, the United Arab Emirates, Egypt, and South Africa have started large-scale renewable energy projects.
Global Power Grid Market: Key Market Players
- ABB
- General Electric
- Schneider Electric
- Mitsubishi Electric
- Siemens
- Hitachi Energy
- Eaton
- Havells
- Hubbell
- Fuji Electric
- Sumitomo Electric
Global Power Grid Market: Recent Developments
- In October 2024, Power Grid has officially opened its 220/66 kV Chandigarh Process Bus-based Digital GIS Sub-station as a “Pink Substation,” marking a landmark step towards gender equality and women’s agency. This development is significant because it pioneered the Pink Substation project and is the first greenfield substation in Power Grid’s Northern Region-II to implement process bus technology.
- In June 2024, ‘Massive’ attack on Ukraine’s electrical grid by Russia
According to Ukrenergo, two workers were hurt and taken to the hospital in Zaporizhzhia, the location of the largest nuclear power plant in Europe. According to Ukraine’s military, Russia launched 13 attack drones and 16 cruise missiles from the air, sea, and land, targeting energy facilities across many regions.