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3. Power Grid Market Size & Share - Future Growth Expectations

The global power grid market size is projected to reach USD 367.4 billion by 2028 from an estimated USD 282.1 billion in 2023, at a CAGR of 5.4% during the forecast period. The major factors driving the growth of this market include the electrification of industrial processes and fleets, and investments in upgrading and expanding transmission and distribution infrastructure.

The power grid market has been growing noticeably, driven by a number of important factors.

• Increasing Electricity Demand
• Integration of Renewable Energy Sources
• Initiatives for Grid Modernization
• Adoption of Electric Vehicles (EVs)
• Energy Storage Deployment
• Grid Resilience and Climate Adaptation
• Electrification initiatives in emerging economies

To know about the assumptions considered for the study download the pdf brochure

Increasing Electricity Demand:

• Global demand for energy is on the rise due to factors such as urbanization, industry, population growth, and technological improvements. In order to provide a dependable and effective supply of electricity to households, companies, and industries, this increase calls for the extension and upgrading of power systems.

Integration of Renewable Energy Sources:

• The power system is changing as a result of the shift to greener, more sustainable energy sources including hydroelectric, solar, and wind power. Energy storage devices, smart grid technology, and grid infrastructure upgrades are needed to handle the intermittent and variable nature of renewable energy production.

Initiatives for Grid Modernization:

• Global grid modernization activities are being propelled by concerns about grid reliability, aging infrastructure, and the need for increased grid resilience. To boost grid efficiency, cut downtime, and improve asset management, governments and utilities are investing in cutting-edge technology, automation systems, digitalization, and grid monitoring solutions.

Adoption of Electric Vehicles (EVs):

• As EVs become more common, power networks are under more stress. In order to efficiently manage EV charging demands, utilities are extending their infrastructure for charging and putting smart charging solutions into place. To encourage the widespread deployment of EVs and reduce grid congestion, distribution network investments and grid modifications are necessary.

Energy Storage Deployment:

• In order to maintain grid stability, balance load, and reduce peak shaving, energy storage technologies including batteries, pumped hydro, and thermal storage are essential. Energy storage devices are being integrated into power networks to provide flexibility, control fluctuation in renewable energy supply, and maintain grid resilience during times of high demand and blackouts.

Grid Resilience and Climate Adaptation:

• The significance of grid resilience and climate adaptation is highlighted by the rising frequency and intensity of extreme weather events, natural disasters, and cybersecurity threats. It is imperative to allocate resources towards resilience, redundancy, and grid hardening in order to mitigate disruptions, safeguard vital infrastructure, and guarantee uninterrupted electricity supply.

Electrification initiatives in emerging economies:

• As a result of the fast urbanization and electrification of emerging economies, there is a growing need for new power grid infrastructure and electrification projects. Developments in transmission and distribution networks, plans for electrifying rural areas, and off-grid alternatives are opening doors for equipment suppliers, service providers, and power grid developers.

The power grid market is anticipated to keep expanding as the globe moves toward a more decentralized, robust, and sustainable energy system. In the upcoming years, market expansion and innovation will be driven by investments in grid infrastructure, electrification programs, grid modernization, and the incorporation of renewable energy.

Power Grid Market Share - Global Industry Landscape

The power grid market is characterized by the presence of several key players competing for market share. Some of the leading companies in the power grid industry include:

• Hitachi Energy (Switzerland)
• General Electric (US)
• Schneider Electric (France)
• Siemens (Germany)
• Mitsubishi Electric (Japan)

These companies compete in the worldwide power grid market with other specialized vendors and service providers by providing a range of goods and services to meet the changing demands of industrial clients, utilities, and grid operators. Various factors, including product innovation, dependability, scalability, customer relationships, and regional presence, can influence market share within the power grid business.

Hitachi Energy (Switzerland)

• Hitachi Energy is a multinational technology that offers long-distance commercial HVDC technology, microgrid and energy storage solutions, and other power systems and related services. Hitachi ABB Power Grids changed its name to Hitachi Energy in October 2021. Hitachi holds an 80.1% stake in the Hitachi ABB Power Grids joint venture, while ABB holds the remaining 19.9% stake, as announced last year. ABB also holds a pre-defined option to exit the retained shareholding three years after closing—or by 2023. The company offers various products and systems, such as cable accessories, communication networks, cooling systems, energy storage solutions, generator circuit breakers, high-voltage switchgear and breakers, HVDC systems, SCADA systems, and control systems, substation automation, transformers, among others. Hitachi Energy provides HVDC cables for offshore interconnecting grids, offshore wind connections, and power from shore applications. The company also manufactures subsea transformers that help reduce the high voltage levels used by pumps, motors, and compressors.

General Electric (US)

• General Electric (GE) is a technology and financial services company involved in developing and manufacturing products used in generating, distributing, controlling, and utilizing electricity. The company operates through five business segments: Aviation, Healthcare, Power, Renewable Energy, and Corporate. It offers power grid systems under its Renewable Energy and Power segments, which together accounted for a 38.2% share of the company’s total revenue in 2022. The Renewable Energy segment offers products, services, and technologies for onshore and offshore wind, blade manufacturing, grid equipment, hydro solutions, storage solutions, hybrid renewables, and digital services. The Renewable Energy segment is further segmented into three categories: Onshore Wind; Grid Solutions Equipment and Services; and Hydro, Offshore Wind, and Hybrid Solutions. The Grid Solutions Equipment and Services segment offers a comprehensive portfolio of grid equipment, hardware, protection and control, automation, and digital services.

Schneider Electric (France)

• Schneider Electric specializes in energy management and automation solutions, offering a diverse portfolio of products and services for the power grid industry. The company provides switchgear, distribution automation systems, grid management software, and digital solutions for grid modernization and optimization.

Siemens (Germany)

• Siemens is a German conglomerate offering electrification, automation, and digitalization solutions. The company operates through six business segments: Digital Industries, Siemens Healthineers, Smart Infrastructure, Mobility, Portfolio Companies, and Siemens Financial Services. The company offers power grid solutions through its Smart Infrastructure business segment, which accounted for a share of 24.1% of its total revenue in 2022. The Smart Infrastructure segment offers products and systems for intelligent grid control, low- and medium-voltage electrification and control, building automation, fire safety and security, and building energy efficiency. Siemens has a presence in Europe, North America, the Middle East, South America, Africa, and Asia Pacific. The company operates in more than 100 countries globally and has a strong network of regional offices, warehouses, research and development facilities, and sales offices. The company has 16 corporate technology facilities that optimize its business processes for research and development, production, and quality assurance globally.

Mitsubishi Electric (Japan)

• Mitsubishi Electric is a Japanese multinational company that offers a range of products and services for the power grid industry. The company provides transmission and distribution equipment, including transformers, switchgear, and automation systems, as well as software solutions for grid optimization and management.

Related Reports:

Power Grid Market by Component (Cables, Variable speed drives, Transformers, Switchgear), Power source (Oil, Natural gas, Coal, Renewables), Application (Generation, Transmission, Distribution) and Region - Global Forecast to 2028