According to Future Market Insights (FMI), the global power grid market size is poised for significant growth, reaching US$ 300 Billion in 2024. Sales of power grids are expected to witness a robust CAGR of 4.6% from 2024 to 2034. By 2034, the demand for power grids is anticipated to reach a valuation of US$ 471 Billion.
Driven by advancements in renewable energy technology, the goal of reducing transmission and distribution losses, and increasing energy efficiency, the power grid market is witnessing a trend toward decentralized power generation.
Due to urbanization and industrialization, many industries, including manufacturing, healthcare, and data centers, are experiencing increased demand for a consistent and effective power supply. The power grid market is expanding due to the increased need for reliable infrastructure.
High transmission losses and reliance on specific energy sources like coal, natural gas, and others are expected to inhibit the growth of the power grid system market. Due to this dependence, the power grid is susceptible to changes in energy policy, fuel supply disruptions, and pricing variations.
Regional Outlook:
Government initiatives and growing environmental concerns are promoting the Asia Pacific region's shift toward renewable energy sources. The demand for power grids in Asia Pacific is stimulated by the region's rapid industrialization and urbanization, especially in developing economies like China and India.
To assist in the energy transition, Europe's top priority is investing in power grid modernization projects, such as installing advanced grid management systems and extending interconnectors. The electric grid market landscape in North America is evolving due to the shift to renewable energy sources and the expansion of distributed energy sources, which mandate grid modernization and agility.
Key Takeaways:
- The South Korean power grid market is anticipated to boom with a CAGR of 6.4% between 2024 and 2034.
- China’s power grid system market is expected to surge with a CAGR of 6.1% through 2034.
- The United Kingdom's power grid market is predicted to thrive with a CAGR of 5.5% from 2024 to 2034.
- Sales of power grids in the United States are projected to evolve with a CAGR of 5.0% through 2034.
- Japan’s power grid market is likely to exhibit a CAGR of 3.7% through 2034.
- The cables segment in the component category in the power grid industry is anticipated to develop with a CAGR of 4.4% through 2034.
- In the power source category, the conventional power segment in the power grid market is envisioned to exhibit a CAGR of 4.1% from 2024 to 2034.
Competitive Landscape:
The power grid market is characterized by fierce competition between major players, fueled by the shift to renewable energy sources and the rise in global energy consumption. Well-established power grid manufacturers compete for market share through joint ventures, technology breakthroughs, and international expansion. Traditional players face challenges from emerging power grid vendors frequently using novel solutions.
Government programs and regulatory frameworks are crucial in determining how the power grid system market is shaped. The emphasis on sustainability, dependability, and grid modernization fuels competitiveness as power grid providers compete to provide all-inclusive solutions. The electric grid market dynamism reflects the changing energy landscape and the necessity of effectively meeting the growing electricity demand.
Latest Developments:
- GE Renewable Energy introduced HYpact switchgear in November 2022. It has various uses, including onshore wind substations and mobile (truck-mounted) substations. Lowering operational expenses and the customer's environmental impact improves the electrical grid's predictability.
- Hitachi Energy and Schneider Electric announced a non-exclusive partnership in June 2022 to accelerate the energy transition and provide better value to customers. Hitachi benefits from Schneider Electric's medium-voltage portfolio, and Schneider Electric is likely to utilize Hitachi's high-voltage portfolio.
These insights are based on a report on the Power Grid Market by Nikhil Kaitwade, Associate Vice President, Future Market Insights
