Global Power Infrastructure Market 2023-2030

Global Power Infrastructure Market 2023-2030

Global power infrastructure market is anticipated to grow at a considerable CAGR of 8.04% during the forecast period. The demand for power infrastructure is increasing due to several reasons. Population growth, urbanization, and industrialization have all led to an increase in the demand for electricity. The growing global population requires more energy, and as more people move to cities, the demand for electricity increases. The rapid growth of industries such as manufacturing, construction, and technology has also led to an increase in the demand for electricity. Additionally, the transition to renewable energy sources has increased the need for new power infrastructure, such as wind turbines and solar panels, as well as energy storage systems and power distribution infrastructure. Aging power infrastructure in many countries is also in need of upgrades and replacements to ensure a reliable and efficient power supply.

Segmental Outlook 

The global power infrastructure market is segmented by type and application. Based on type, the market is sub-segmented into transformers, switchgear, and substations. Based on application, the market is sub-segmented into industrial power, commercial power, and residential power. Based on type, transformers, switchgear, and substations are all essential components of the power infrastructure system, and all are widely used across the globe.

The Industrial Sub-Segment Holds a Prominent Share in the Global Power Infrastructure Market

Based on application, the market is sub-segmented into industrial power, commercial power, and residential power. Among these, the industrial sector is expected to hold a significant share of the market. The industrial sector typically requires the most power compared to the commercial and residential sectors. The industrial sector includes manufacturing, construction, mining, and other industrial processes that require large amounts of energy for machinery, equipment, and production processes. These industries often operate 24/7 and require a consistent and reliable power supply to maintain their operations, which means they consume a significant amount of energy. Additionally, the International Energy Agency's (IEA) report on global electricity consumption in 2020 stated that the industrial sector accounted for 28% of global electricity consumption. This translates to approximately 23,420 TWh of electricity consumed by the industrial sector globally in 2020.

Regional Outlook

The global power infrastructure market is segmented based on geography, including North America (the US and Canada), Europe (Italy, Spain, Germany, France, and others), Asia-Pacific (India, China, Japan, South Korea, and others), and the rest of the world (the Middle East and Africa and Latin America). The market can be analyzed for a particular region or country level as per the requirement. Among the regions, the Asia-Pacific region is expected to generate the highest market share. However, the European market is also expected to grow significantly in the forecast period owing to the increasing number of power infrastructures in the region. For instance, in 2019, the Horns Rev 3 offshore wind farm was launched in Denmark. It has a capacity of 407 MW and can supply electricity to around 425,000 households. Additionally, the Floating Solar Project in the Alto Rabagão Dam, Portugal, was launched in 2021. The solar power plant has a capacity of 220 MW and is the largest floating solar power plant in Europe.

The Asia-Pacific Region is Expected to Dominate the Global Power Infrastructure Market

The power infrastructure is growing in the Asia-Pacific region owing to several reasons. The region is experiencing rapid economic growth, which has led to an increase in demand for electricity. Additionally, the growing population is contributing to the increasing demand for electricity. According to the Worldometer data for 2023, Asia and the Pacific combined has more than 4.78 billion population. Another factor that is supporting the region’s market growth is increasing industrial activities. For instance, the National Bureau of Statistics of China reported that industrial production in China grew by 8.3% year-on-year in August 2021.

Besides, the region has significant potential for renewable energy generation, particularly from sources such as solar, wind, and hydropower. As governments and private investors seek to transition away from fossil fuels and reduce greenhouse gas emissions, there is a growing focus on developing renewable energy infrastructure in the region. Many governments in the Asia-Pacific region have implemented policies and incentives to encourage the development of new power infrastructure, particularly in renewable energy. For instance, some countries in the region, such as China and India, have implemented renewable portfolio standards (RPS) policies that require utilities to generate a certain percentage of their electricity from renewable sources. RPS policies can help create a market for renewable energy by increasing demand and driving investment in new infrastructure.

Market Players Outlook

The major companies serving the global power infrastructure market include Hitachi ABB Power Grids, Johnson Electric Coil Company, MCI Transformer Corp., Mitsubishi Electric, Muskaan Power Infrastructure Ltd., Prism Power Group, and others. These companies are considerably contributing to the market’s growth through the adoption of various strategies, including mergers and acquisitions, partnerships, collaborations, investments, and new power infrastructure platform launches to stay competitive in the market. For instance, in March 2023, the Ugandan government said that it plans to generate at least 1000 megawatts (MW) of nuclear power by 2031 as part of its efforts to diversify its electricity sources and speed its energy transition, which is a critical component of its climate change response. Uganda possesses uranium resources, which President Yoweri Museveni has stated are eager to be exploited for possible nuclear energy development. The east African country has inked an agreement with China in which the China National Nuclear Corporation (CNNC) would assist Uganda in developing capabilities for the sustainable use of atomic energy.

The Report Covers-

Market value data analysis for 2023 and forecast to 2030.

Annualized market revenues ($ million) for each market segment.

Country-wise analysis of major geographical regions.

Key companies operating in the global power infrastructure market. Based on the availability of data, information related to new product launches and relevant news is also available in the report.

Analysis of business strategies by identifying the key market segments positioned for strong growth in the future.

Analysis of market entry and market expansion strategies.

Competitive strategies by identifying ‘who stands where’ in the market.