Global Transmission And Distribution Equipment Market Size & Share Analysis - Growth Trends & Forecasts (2025 - 2030)

The Global Transmission And Distribution Equipment Market size is estimated at USD 378.77 billion in 2025, and is expected to reach USD 525.52 billion by 2030, at a CAGR of 6.77% during the forecast period (2025-2030).

Key Highlights

• Over the medium term, the growing penetration of renewable energy sources, rapidly industrializing and urbanizing, and the aging power grid are expected to drive the transmission and distribution equipment market. These factors collectively boost the demand for advanced T&D equipment, ensuring a reliable and efficient power supply.
• On the other hand, supply chain constraints pose a significant restraint in the market.
• Nevertheless, most governments are investing in grid modernization and electrification projects to upgrade aging infrastructure, reduce carbon emissions, and improve energy efficiency. These initiatives create significant opportunities for T&D market players to expand their offerings and drive innovation. This investment is crucial for ensuring a sustainable and reliable power supply.
• Asia-Pacific is expected to dominate the market during the forecast period. Owing to significant investments in Transmission and Distribution projects in countries like China, Japan, Japan and others.

Global Transmission And Distribution Equipment Market Trends

Transformer Segment is Expected to Dominate the Market

• Power transformers are electrical instruments that transmit power from one circuit to another without changing the frequency. They operate by the basic principle of electromagnetic induction and transmit electricity between generators and primary distribution circuits.
• Power and distribution transformers are essential for expanding transmission and distribution networks in rapidly industrializing and urbanizing nations. Power transformers step up voltage for long-distance transmission, reducing energy loss. Distribution transformers step down voltage for safe use in homes and businesses. Enhancing transformer infrastructure ensures a reliable and resilient power supply, crucial for economic growth and improved quality of life.
• As an illustration, in July 2024, KONČAR Inc. and Siemens Energy signed a Joint Venture Agreement to form KONČAR – Transformer Tanks (KTK), focusing on manufacturing transformer tanks. This strategic alliance aims to boost manufacturing capacities, streamline sales, and increase the global supply of transformer tanks. The joint venture, with KONČAR holding a 60 percent stake and Siemens Energy 40 percent, will establish a manufacturing facility in Sesvetski Kraljevec, Croatia.
• Additionally, modern transformers incorporate advanced technologies for enhanced performance, reliability, and sustainability. For example, ABB Electrification Service and Danish start-up Oktogrid have unveiled an innovative solution for power transformers. This collaboration introduces the ABB Ability Asset Manager for Transformers (TRAFCOM), a technology geared towards modernizing archaic electrical grids and preparing them for the green energy shift.
• In recent years, several countries have prioritized smart grid solutions to support their expanding renewable power generation and modernize aging transmission lines. With the increase in renewable generation, strategically placing power transformers at generation sites has become crucial.
• For instance, in 2024, the United States electric power sector set a record by adding 37 GW of solar power capacity, nearly doubling the additions from 2023, as the U.S. Energy Information Administration (EIA) reported. The agency projects that utilities and independent power producers will contribute 26 GW of solar capacity in 2025, followed by 22 GW in 2026. Additionally, while wind capacity additions in 2024 stood at 7 GW, they are expected to witness a slight uptick to around 8 GW in 2025 and 9 GW in 2026.
• According to BloombergNEF, from 2018 to 2023, investment in the global transmission and distribution equipment market has shown a significant increase, rising from USD 312.5 billion to USD 619.1 billion. This represents a growth rate of 98.11 percent. The consistent increase in investment highlights the growing focus on renewable energy worldwide. This trend is also reflected in the transformers market, which has seen substantial growth due to the rising demand for power and distribution transformers to support the expanding renewable energy infrastructure and modernize aging grids.
• Owing to the above points, the transformer segment is expected to dominate the transmission and distribution market during the forecast period.

Asia-Pacific Region is Expected to Dominate the Market

• The transmission and distribution equipment market in the Asia-Pacific region is poised for significant growth, driven by rapid urbanization, industrialization, and increasing energy demand. This market is expected to dominate globally due to substantial investments in infrastructure development and modernization of electrical grids. The region's focus on integrating renewable energy sources and enhancing grid reliability further propels market expansion.
• For instance, major international companies such as Toshiba Group have invested in India's power transmission and distribution business, in line with the demand for T&D equipment. In a major move the company announced in July 2024 that the manufacturing capacity of power and distribution transformers will be increased 1.5 times by March 2027, with India being chosen as a hub for the company's T&D equipment manufacturing operations and export base. Such investments boost growth in the power transmission and distribution equipment market in India.
• Further, in September 2024, China wrapped up its 750 kV Ultra-High Voltage (UHV) power transmission project in the Xinjiang Uyghur Autonomous Region, located in north-western China. With a budget of CNY4.6 billion (USD 650 Million), the 880 km project stretches from Bazhou County to Ruoqiang County, situated in the Bayingolin Mongol Autonomous Prefecture.
• Moreover, the region's focus on integrating renewable energy sources and enhancing grid reliability further propels market expansion. For example, India has set an ambitious target of achieving 500 GW of non-fossil fuel capacity by 2030. This goal significantly boosts the Transmission and Distribution (T&D) Equipment market, as efficient T&D infrastructure is essential to integrate solar, wind, and hydroelectric power into the grid.
• Additionally, In January 2024, the Government of Bangkok inked a memorandum of understanding (MoU) with the Metropolitan Electricity Authority (MEA) to propel renewable energy projects and smart city initiatives in Thailand. This collaboration is a key component of Bangkok's broader Climate Change Master Plan, spanning from 2021 to 2030. Renewable energy sources like wind and solar are often located in remote areas, requiring extensive transmission infrastructure to connect them to the grid. This leads to a higher demand for T&D equipment, such as transformers, switchgear, and substations.
• Furthermore, in March 2024, China started the construction of a USD 3.9-billion electricity transmission and storage project aimed at enhancing the resilience of its grid, which has come to rely heavily on wind and solar generation capacity. The project involves building a transmission line of over 1,000 km, or 664 miles, across three provinces and its connection to a pumped hydro storage site. The transmission line will carry electricity produced from wind and solar installations backed up by coal.
• According to the BP Statistical Review of World Energy 2024, in the Asia-Pacific region, solar installed capacity surged from 632,180 MW in 2022 to 873,586 MW in 2023, while wind capacity increased from 437,956 MW to 520,912 MW. This growth highlights the region's strong focus on renewable energy. To handle this increase, improved transmission and distribution systems, like smart grids and HVDC technologies, are essential for keeping the energy supply stable and reliable.
• Owing to the above points, Asia-Pacific region is expected to dominate the transmission and distribution equipment market during the forecaste period.

Global Transmission And Distribution Equipment Industry Overview

The global transmission and distribution equipment market is framgmented. Some. of the major players in the market (in no particular order) include, Schneider Electric SE, Eaton Corporation PLC, ABB Ltd, Siemens Energy AG, and Hitachi Ltd among others.

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