Power Grid Market Size Cap Projected to Surpass US$399.4 Billion By 2030, at 5.4%% CAGR Growth | Persistence Market Research

New York, Jan. 25, 2024 (GLOBE NEWSWIRE) -- Market Size & Overview:

The global power grid market is anticipated to witness a steady growth, with a projected Compound Annual Growth Rate (CAGR) of 5.4%. The market is expected to increase from its 2023 value of US$276.4 billion to reach US$399.4 billion by the end of 2030.

The global power grid market encompasses an integrated system of electrical infrastructure responsible for the generation, transmission, and distribution of electricity worldwide.

This interconnected network facilitates the smooth transmission of power from various sources, including both conventional and renewable energy, to meet the growing demands of industries, businesses, and households. Components of the power grid include power plants, substations, transformers, and transmission lines, working together to ensure a reliable and efficient supply of electricity across diverse regions.

Several factors contribute to the expansion of the global power grid market. A significant driver is the rising demand for electricity due to urbanization, population growth, and industrial development. Additionally, the increasing adoption of renewable energy sources like wind and solar power is pushing the development of more advanced grid infrastructure capable of accommodating these intermittent energy sources.

Market growth is further fueled by technological advancements, the digitization of power grids, and the essential need for improved grid reliability and resilience. Government initiatives promoting the deployment of smart grids and the integration of innovative technologies play a crucial role in shaping the trajectory of the global power grid market.

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Market Scope: 

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Market Growth Drivers:

Rising Electricity Demand: The increasing demand for electricity, fueled by urbanization, population growth, and industrial development, serves as a primary driver. The power grid expansion is essential to meet the growing needs of various sectors, including residential, commercial, and industrial.

Integration of Renewable Energy: The surge in renewable energy sources, such as wind and solar power, necessitates advancements in grid infrastructure. The global power grid is adapting to accommodate the intermittent nature of renewable energy, promoting sustainable and eco-friendly power generation.

Technological Advancements: Ongoing technological advancements contribute significantly to the growth of the power grid market. Innovations in grid management, automation, and control systems enhance efficiency and reliability, making the power grid more resilient to disruptions.

Digitization of Power Grids: The transition toward digital technologies and smart grids is a crucial growth driver. Digitalization enables real-time monitoring, control, and optimization of power systems, improving overall operational efficiency and facilitating the integration of renewable energy sources.

Grid Reliability and Resilience: With increasing concerns about power grid reliability and resilience, there is a growing emphasis on upgrading and reinforcing existing infrastructure. Governments and utility companies are investing in technologies and solutions to ensure a dependable and robust power supply.

Market Restraints:

High Initial Costs: The upfront capital investment required for the development and modernization of power grids can be substantial. High initial costs may pose a challenge, particularly for regions or countries with limited financial resources, hindering the pace of grid infrastructure development.

Regulatory Challenges: Complex and evolving regulatory environments can impede the progress of power grid projects. Adherence to diverse and sometimes inconsistent regulations may create hurdles for market players, leading to delays and uncertainties in project implementation.

Infrastructure Bottlenecks: Outdated or inadequate existing infrastructure can be a significant restraint. Upgrading or expanding power grids may be constrained by existing physical limitations, necessitating extensive modifications and investments to overcome bottlenecks.

Cybersecurity Risks: The increasing digitization of power grids introduces cybersecurity risks. As grids become more interconnected and reliant on digital technologies, they become potential targets for cyberattacks. Addressing and mitigating cybersecurity concerns is a crucial challenge for the power grid industry.

Environmental and Land Use Concerns: The expansion of power grid infrastructure, especially high-voltage transmission lines, may face resistance from local communities due to concerns about environmental impact and land use. Public opposition can lead to project delays or modifications, affecting the overall progress of grid development.

Lack of Standardization: The absence of standardized technologies and protocols across different regions can complicate the integration of diverse components within the global power grid. Lack of standardization may result in interoperability issues and hinder the seamless functioning of interconnected systems.

Opportunities:

Renewable Energy Integration: The increasing focus on renewable energy sources, such as wind and solar, presents a significant opportunity for the power grid market. Developing infrastructure that efficiently integrates and manages the intermittent nature of renewable energy can enhance the sustainability of power systems.

Energy Storage Solutions: The growing need for energy storage solutions provides opportunities for innovation and investment. Advancements in battery technologies and other storage systems contribute to grid stability by storing excess energy during peak generation and releasing it during periods of high demand.

Smart Grid Technologies: The adoption of smart grid technologies, including advanced sensors, communication networks, and automation, offers opportunities for grid optimization. Smart grids enable real-time monitoring, control, and data analytics, leading to improved efficiency, reliability, and demand-side management.

Grid Modernization Initiatives: The need for modernizing aging power infrastructure creates opportunities for companies involved in grid upgrades and renovations. Governments and utilities investing in grid modernization projects open avenues for technology providers and service companies.

Electrification of Transportation: The increasing shift toward electric vehicles (EVs) creates an opportunity for the power grid market. Expanding charging infrastructure and managing the increased electricity demand from widespread EV adoption can drive investment in grid expansion and upgrades.

Market Segmentation

What Component Will Be Targeted the Most for Installations?

The transformer segment is expected to dominate the global power grid market, holding the highest market share. Transformers play a critical role in the secure and efficient transmission and distribution of electricity, managing voltage levels and ensuring grid stability. This segment is poised to capture a significant portion of the market, given the increasing demand for electricity and the integration of renewable energy sources. On the other hand, the variable speed drive market is anticipated to experience rapid growth. The demand for variable-speed drives is driven by the emphasis on energy efficiency and the integration of advanced technologies in industrial processes. These devices contribute to sustainability by regulating electric motor speed based on desired output, aligning with global efforts to promote energy-efficient practices.

Which Power Source to be Focused on the Most Regarding Sales?

Natural gas is expected to dominate the global power generation industry, holding the largest market share. Recognized for its environmental friendliness among fossil fuels, natural gas offers a balanced combination of efficiency and ecological considerations. With widespread use in electricity production and the ability to meet both baseload and peaking power demands, natural gas plays a crucial role in power generation portfolios. Concurrently, the renewables sector, encompassing solar, wind, and hydropower, is poised for rapid growth. The increasing focus on low-carbon energy sources and sustainability is driving the exponential expansion of renewable energy capacities. This growth is further supported by technological advancements, cost reductions, and favorable government policies, making the renewables sector a central focus for future developments in the power generation industry.

Top Regional Markets

Why is North America Emerging as a Dominating Region?

North America is poised to lead the global electricity infrastructure industry with its well-established, sophisticated system incorporating conventional and renewable energy. The region's dominance is driven by significant investments in smart technologies, grid modernization, and a commitment to transitioning to greener energy. Factors such as high per capita energy consumption, robust economic growth, and industrial development contribute to the demand for an advanced and reliable power infrastructure. The United States, with its diverse energy portfolio and emphasis on renewables, plays a crucial role in shaping North America's leadership in the global market.

What Opportunities Lie in South Asia & Pacific for Manufacturers?

South Asia and the Pacific are experiencing rapid growth in the global power infrastructure industry due to swift urbanization, population growth, and increasing energy demands. Governments in the region are investing significantly in power infrastructure, including rural electrification. The adoption of renewable energy sources, driven by countries like New Zealand, Australia, and India, is further accelerated by supportive government policies. The rise of electric vehicles and the need for sophisticated power utilities contribute to the demand for advanced power infrastructure solutions in the area.

Key Recent Developments

Renewable Energy Integration: The power grid market has been experiencing a significant shift towards integrating renewable energy sources, such as solar and wind, into the grid. Governments and utilities worldwide are investing in smart grid technologies to efficiently manage the variability of renewable energy generation.

Smart Grid Technologies: The deployment of smart grid technologies has been on the rise. These technologies include advanced metering infrastructure, grid automation, and energy management systems. Smart grids improve the efficiency, reliability, and resilience of power systems.

Grid Modernization Programs: Many countries have been implementing grid modernization programs to upgrade aging infrastructure and enhance the overall performance of their power grids. This includes the deployment of digital technologies, sensors, and communication networks.

Energy Storage Solutions: The power grid market has seen increased interest and investment in energy storage solutions. Batteries and other storage technologies play a crucial role in balancing supply and demand, managing grid stability, and integrating intermittent renewable energy sources.

Electric Vehicle (EV) Integration: The growing adoption of electric vehicles is impacting power grids. Utilities are exploring ways to accommodate the increased demand for electricity from EV charging stations and considering smart charging solutions to manage the load on the grid.

Some of the market players:

• ABB (Asea Brown Boveri): Swiss multinational, specializes in technology, robotics, and power grids.
• Siemens Energy: Division of Siemens AG, focuses on energy-related products and services, including turbines and generators.
• General Electric (GE): Global conglomerate with diverse operations; prominent in power sector, manufacturing turbines and generators.
• Prysmian Group: Italian company, world leader in cable and system manufacturing for power transmission and telecommunications.
• Nexans: French company specializing in cable and optical fiber solutions for energy transmission and telecommunications.
• Schneider Electric: Multinational providing energy and automation solutions, including electrical distribution and industrial control.
• Mitsubishi Electric: Japanese multinational electronics and electrical equipment manufacturer; produces power systems and electronics.
• Eaton: Irish multinational power Management Company; offers electrical products and automation solutions.
• Hitachi Energy: Global technology and infrastructure solutions provider, focuses on energy transmission, distribution, and grid management.
• Powell Industries: Houston-based company; designs, manufactures, and services custom-engineered equipment for electrical energy management.
• Hubbell: American company; designs, manufactures, and sells electrical and electronic products for various applications.
• Toshiba Energy Systems: Division of Toshiba Corporation; specializes in power generation, transmission, and distribution systems.

Power Grid Market Research Segmentation

By Component:

Cable

Variable Speed Drive

Transformers

Switchgears

By Power Source:

Oil

Natural Gas

Coal

Hydro Electric

Renewables

By Application:

Generation

Transmission

Distribution

By Region:

North America

Europe

East Asia

South Asia & Oceania

Latin America

Middle East & Africa

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