The power grid system market comprises power generation, transmission, and distribution equipment that deliver electricity from producers to consumers. Power grids allow uninterrupted power availability by balancing electricity demand and supply in real-time. They also facilitate renewable energy integration into the conventional grid and exchange of power across geographic regions. Key components of power grid systems include transformers, switches, breakers, protection & control devices, cables & wires, and communication networks. Rapid industrialization and urbanization are driving electricity demand worldwide, while the need to decarbonize energy systems and reduce dependency on fossil fuels is propelling renewable energy adoption. This rising share of renewable energy in the energy mix necessitates modernization of aging power grids to support bidirectional power flows and enable distributed energy resources connection.
The Global power grid system market is estimated to be valued at US$ 11.67 Bn in 2024 and is expected to exhibit a CAGR of 11% over the forecast period 2024 To 2031.
Key Takeaways
Key players operating in the power grid system are ABB Ltd., Eaton Corporation, General Electric Company, Havells India Ltd., Hitachi Energy, Hyundai Electric ; Energy Systems Co., Ltd., LS Electric, Mitsubishi Electric Corporation, National Grid plc, Nexans, Prysmian Group, Powell Industries, Schneider Electric SE, Siemens AG, and Toshiba Energy Systems ; Solutions Corporation. Rapid industrialization and economic growth in developing nations are majorly fueling electricity demand.
Furthermore, rising sales of electric vehicles and proliferation of smart homes are augmenting Power Grid System Market Research from the commercial and residential sector. Technological advancements such as use of smart grid technologies, cloud computing, big data analytics, and renewable energy management systems are supporting modernization of aging power infrastructure.
Market trends
Increasing investments in transmission and distribution infrastructure upgrade: Power grid operators worldwide are investing heavily in transmission and distribution infrastructure modernization initiatives to strengthen the grid and accommodate higher renewable energy capacity. This includes projects involving installation of intelligent electronic devices, communication networks, and upgradation of overhead lines to underground cables.
Rising electrification of transport and household usage: Power Grid System Market Demand preference for electric vehicles and rising adoption of smart appliances are increasing consumption of electricity in the transport and household sectors. This is necessitating capacity enhancement and upgrade of distribution networks to manage the expanding load from decentralised energy resources.
Market Opportunities
Adoption of smart grid technologies: Integration of advanced monitoring, communication, and control capabilities can enable better demand response management, fault detection, and power flow control. This presents an opportunity for power grid OEMs and technology providers.
Distributed energy resources management: Widening availability and falling costs of rooftop solar panels and energy storage systems are driving participation of consumers in distributed energy generation. This requires development of control systems and market mechanisms for distributed energy resources aggregation and grid services.
Impact of COVID-19 on Power Grid System Market Growth
The COVID-19 pandemic severely impacted the power grid system market globally. The lockdowns and supply chain disruptions led to delays in ongoing power grid projects and new installations. The demand from the industrial sector reduced significantly due to halt in manufacturing activities. This adversely affected the market growth in 2020. However, the spending on grid infrastructure development increased post-pandemic to boost the economic recovery. The governments announced stimulus packages focusing on renewable energy integration and modernization of transmission and distribution networks. This provided opportunities for grid equipment manufacturers and solution providers. The deployments of smart grid technologies also accelerated to enable effective monitoring and management of power supply. Overall, the market is expected to rebound strongly in 2021 and beyond, supported by investments promoting sustainable and resilient power infrastructure.
Geographical Regions with Highest Power Grid System Market Value
North America dominates the Power Grid System Market Regional Analysis in terms of value. The region accounted for over 30% share of the global market revenue in 2024 owing to substantial grid investments and early adoption of smart grid technologies. The US is a major contributor wherein projects involve turbine upgrades, transmission lines construction as well as distribution automation. Asia Pacific follows North America and holds more than 25% share. China leads the regional market due to massive power capacity additions and focus on grid interconnections nationally. Investments in transmission and distribution networks across India, Japan and Southeast Asian countries are also supporting the regional growth.
Fastest Growing Region in the Power Grid System Market
The Middle East and Africa region is projected to exhibit the fastest growth in the power grid system market during the forecast period. This is attributed to increasing electrification projects and development of cross-border interconnectors linking power pools in African countries. Governments are undertaking measures to expand and modernize the electricity access by 2030. GCC nations including Saudi Arabia, UAE and Kuwait are heavily investing in smart grid infrastructures to meet the rising power demand and integrate renewable energy. The economic and population growth across the region is further driving the need for reliable and sustainable power supply. As a result, the demand for associated grid components such as transmission lines, transformers and monitoring systems is surging at a rapid pace in the MEA region.
Get more insights on Power Grid System Market
Explore More Related Article On- Renewable Energy Technologies Market
Discover the Report for More Insights, Tailored to Your Language.
French German Italian Russian Japanese Chinese Korean Portuguese
Vaagisha brings over three years of expertise as a content editor in the market research domain. Originally a creative writer, she discovered her passion for editing, combining her flair for writing with a meticulous eye for detail. Her ability to craft and refine compelling content makes her an invaluable asset in delivering polished and engaging write-ups.(LinkedIn: https://www.linkedin.com/in/vaagisha-singh-8080b91)