Power Grid Market by Component (Cables, Variable Speed Drives, Transformers, Switchgear), Power Source (Oil, Natural Gas, Coal, Renewables), Application (Generation, Transmission, Distribution) and region (North America, Europe, Asia-Pacific, Middle East and Africa and South America).
The global Power Grid market size was estimated at USD 279.6 billion in 2023 and is projected to reach USD 410 billion in 2030 at a CAGR of 5.6% during the forecast period 2023-2030.
The power grid constitutes a network of interconnected power producers and consumers that are subject to management by one or more control centers and united by transmission and distribution lines. The reference of "power grid" by most individuals is often directed to the electricity transmission system. The power grid framework encompasses transmission lines and halls, power stations, as well as power distribution channels, all of which are overseen and regulated by power grid operators and service providers. This guarantees that energy reservoirs are utilized in the most sophisticated manner possible, amplifies the potential of the potent force, and augments the efficiency and accountability of power system operations.
The need for stable and reliable transmission and distribution networks has arisen due to the increasing demand for energy. A system capable of handling sudden power shorts and drops is necessary to ensure uninterrupted power supply. In developed countries, substations are being modernized to minimize losses and maintain a continuous power supply. This is achieved through the replacement of old components with modern and more efficient ones. These upgrades are designed to be smart and more protective against overcurrent situations. The investments in transmission and distribution (T&D) infrastructure are driven by the growing demand for renewable energy sources and the increasing number of power generation plants. This makes the T&D system capable of handling long-distance power flow and minimizing energy losses caused by strong currents.
Due to disruptions in the supply of equipment and components from Southeast Asian countries and China caused by the COVID-19 pandemic, manufacturers of global power grids have halted their production processes. As a result of the pandemic lockdown, there is an anticipated demand for intelligent systems to manage grid operations and reduce the need for human intervention. However, companies involved in the power grid industry have yet to resume their work due to a shortage of available workforce, which may have a negative impact on the growth of the power grid market.
The pandemic had a considerable impact on businesses globally, with nations like India and China bearing the brunt of the virus's outbreak. The dearth of fossil fuels as an energy source and the rapidly expanding global warming phenomenon are the primary drivers of the development of the power grid market. In addition, the increasing government allocation and private investment market players for power grid systems are other factors propelling the growth of the power grid market. The growing selection of technologically advanced systems in organizations, along with the Internet of Things (IoT), is assisting in reducing power losses and providing more efficient grid systems. This factor is also expected to contribute to the growth of the power grid market to a certain extent. However, the major hindrance to market growth is the substantial initial investment. The development of offshore power grid systems is anticipated to open up opportunities for significant market players to supply electricity to various customers, where the production costs of electricity are comparatively higher. These factors have led to the expansion of the market and increased demand for Power Grid solutions.
Asia Pacific to Dominate the Market