Power Grid Market By Component (Power Generation, Transmission Lines, Distribution Networks, Consumer Use), By Energy Source (Solar, Wind, Natural Gas, Coal, Others): Global Opportunity Analysis and Industry Forecast, 2023-2032
The global power grid market is anticipated to reach $413.9 billion by 2032, growing from $241.6 billion in 2022 at a CAGR of 5.6% from 2023 to 2032. The power grid is a network of power lines and associated infrastructure, serving as the crucial component of the modern electrical system. The power grid facilitates the transmission and distribution of electricity from power plants to residences and businesses, spanning vast geographic areas. Comprising the essential components required for electricity generation, transmission, and distribution, the power grid plays a vital role in ensuring a seamless and continuous supply of electrical power.
The growing inclination towards clean energy transition with rising demand for sustainable energy sources is a major factor driving the growth of the power grid market. This surge is notably driven by global efforts to reduce dependence on fossil fuels, subsequently mitigating greenhouse gas emissions. The advent of renewable energy harnessed through the power grid has not only paved the way for sustainable energy but has also spurred investments in the renewable energy sector. Consequently, a decrease in reliance on imported fossil fuels has been witnessed, contributing to the overall growth of the power grid market.
However, the power grid market faces challenges, primarily due to the aging infrastructure and limited storage capacity. The majority of power grids globally exhibit signs of aging, leading to increased maintenance costs and susceptibility to power failures. In addition, the centralized structure of many power grids can lead to inefficiencies, as electricity often needs to travel long distances from power plants to end-users. Also, different regions or countries may have power grids with varying technical standards, hindering seamless energy exchanges and collaborations. The lack of public awareness regarding energy conservation, smart grid technologies, and the benefits of transitioning to a more sustainable and resilient power grid is anticipated to restrain the power grid market size in the upcoming years.
The electrification of the transportation sector, along with the surging adoption of electric vehicles (EVs) worldwide, presents a significant opportunity for the power grid market. The rise in demand for efficient power grid solutions is driven by the growing network of electric vehicle charging infrastructures. Thus, the growing adoption of EVs is poised to contribute substantially to global electricity consumption, with estimates projecting a significant share of vehicle sales being electric in the upcoming years. For instance, the upward trajectory of electric vehicle sales, accounting for 18% of global vehicle sales in 2023, is indicative of the immense opportunity for the power grid market as it navigates the evolving landscape of the energy and transportation sectors.
The COVID-19 pandemic had significant impacts on the power grid market growth as global supply chains were disrupted. The demand for electricity was reduced owing to the closure of manufacturing units, industrial and commercial sectors. In addition, the fluctuations in energy demand posed challenges to grid stability. Grid operators had to manage rapid changes in supply and demand, requiring increased flexibility in grid management strategies. All these factors led to the negative impact on the power grid industry share during the pandemic.
The key players profiled in this report include Siemens AG, ABB Ltd, General Electric Company, Schneider Electric SE, State Grid Corporation of China, Eaton Corporation, Mitsubishi Electric Corporation, Toshiba Corporation, National Grid plc, and NextEra Energy, Inc. The market players are continuously striving to achieve a dominant position in this competitive market using strategies such as collaborations and acquisitions.
Key Benefits For StakeholdersThis report provides a quantitative analysis of the market segments, current trends, estimations, and dynamics of the power grid market analysis from 2022 to 2032 to identify the prevailing power grid market opportunities.
The market research is offered along with information related to key drivers, restraints, and opportunities.
Porter's five forces analysis highlights the potency of buyers and suppliers to enable stakeholders make profit-oriented business decisions and strengthen their supplier-buyer network.
In-depth analysis of the power grid market segmentation assists to determine the prevailing market opportunities.
Major countries in each region are mapped according to their revenue contribution to the global market.
Market player positioning facilitates benchmarking and provides a clear understanding of the present position of the market players.
The report includes the analysis of the regional as well as global power grid market trends, key players, market segments, application areas, and market growth strategies.
Key Market SegmentsBy ComponentPower Generation
Transmission Lines
Distribution Networks
Consumer Use
By Energy SourceSolar
Wind
Natural Gas
Coal
Others
By RegionNorth America
U.S.
Canada
Mexico
Europe
Germany
UK
France
Italy
Spain
Rest of Europe
Asia-Pacific
China
Japan
India
South Korea
Australia
Rest of Asia-Pacific
LAMEA
Brazil
United Arab Emirates
Saudi Arabia
South Africa
Rest of LAMEA
Key Market Players
Siemens AG
ABB Ltd.
General Electric Company
Schneider Electric SE
State Grid Corporation of China
Eaton Corporation
Mitsubishi Electric Corporation
Toshiba Corporation
National Grid plc
NextEra Energy, Inc.
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