Power Grid Market Size was valued at USD 284.2 Billion in 2022. The power grid market industry is projected to grow from USD 300.6 Billion in 2023 to USD 472.05 Billion by 2032, exhibiting a compound annual growth rate (CAGR) of 5.80% during the forecast period (2023 - 2032). The increasing integration of renewable energy sources, such as solar and wind, into the power grid promotes sustainability and reduces reliance on fossil fuels. are the key market drivers enhancing the market growth.
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
Market CAGR for microgrids play a pivotal role in reshaping the energy grid panorama, contributing to multiplied resilience and reliability. According to a report with the aid of the International Energy Agency (IEA), microgrids are gaining momentum ly, with an annual growth rate of over 20%. These small-scale, localized strength structures empower groups and organizations to generate, save, and distribute energy independently or along with the main grid. The ability of microgrids to perform autonomously all through grid outages or emergencies enhances usual grid resilience, making sure uninterrupted power supply to important centers. Key gamers in the electricity quarter, together with Siemens and Schneider Electric, are actively investing in microgrid technologies, underscoring their importance in the future of energy distribution.
Additionally, the integration of renewable energy resources is a driving pressure at the back of the transformation of power grids . According to the International Renewable Energy Agency (IRENA), renewable strength ability is about to expand by using 50% over the following five years. Wind and solar energy, specifically, are witnessing significant increase, constituting a bigger proportion of the power mix. As renewables come to be mainstream, grid operators are pressured to adapt to the intermittent nature of these assets. Advanced grid management equipment, like call for reaction systems and strength storage answers, are becoming critical for balancing supply and call for. Organizations like the World Bank and the Clean Energy Ministerial are actively assisting initiatives for renewable energy integration, acknowledging its pivotal function in achieving sustainable electricity goals.
Smart grid technologies are at the leading edge of improving grid performance and performance. The marketplace for clever grid answers is increasing unexpectedly, with a projected compound annual boom charge (CAGR) of over 9%. These technology leverage virtual verbal exchange and automation to optimize the era, distribution, and intake of strength. Utilities and energy businesses, which include General Electric and ABB, are investing closely in clever grid infrastructure. The implementation of clever meters, sensors, and facts analytics allows actual-time tracking and complements grid resilience. Government projects, consisting of the Smart Grid Investment Grant (SGIG) program in the United States, similarly help the deployment of smart grid technology to create a extra responsive, dependable, and sustainable energy grid. Thus, driving the power grid market revenue.
The power grid market segmentation, based on Component includes Cables, Varaible Speed Drives, Transformers, Switchgear, Others. The Varaible Speed Drives segment dominated the market in 2022. Implementation of energy storage systems, like batteries, helps manage intermittent renewable energy supply, improves grid stability, and provides backup during peak demand.
The power grid market segmentation, based on Power Source includes Oil, Natural Gas, Coal, Hydro Electric, Renewables and Other. The Renewables Based category generated the most income. The rise of distributed energy resources, such as rooftop solar panels and small-scale wind turbines, changes the power generation landscape and necessitates grid adaptability.
The power grid market segmentation, based on Application includes Generation, Transmission, and Distribution. Distribution is dominating the market 2022. Integration of digital technologies and the Internet of Things (IoT) facilitates real-time monitoring, data analytics, and predictive maintenance, optimizing grid operations.
Figure 1: Power grid Market, by Application, 2022 & 2032 (USD Billion)
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
By region, the study provides the market insights into North America, Europe, Asia-Pacific and Rest of the World. The rise of distributed energy resources, such as rooftop solar panels and small-scale wind turbines, changes the power generation landscape and necessitates grid adaptability. Further, the major countries studied in the market report are The US, Canada, German, France, the UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.
Figure 2: Power Grid Market Share By Region 2022 (Usd Billion)
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
Europe power grid market accounts for the second-largest market share due to the ongoing investments in upgrading aging infrastructure, improving transmission capabilities, and deploying state-of-the-art technologies support grid modernization efforts. Further, the German power grid market held the largest market share, and the UK power grid market was the fastest growing market in the European region
The Asia-Pacific power grid Market is expected to grow at the fastest CAGR from 2023 to 2032. Community-driven energy projects, such as microgrids and local energy cooperatives, empower communities to actively participate in energy production and consumption, influencing grid dynamics. Moreover, China’s power grid market held the largest market share, and the Indian power grid market was the fastest growing market in the Asia-Pacific region.
Leading market players are investing heavily in research and development in order to expand their Power Source lines, which will help the power grid market, grow even more. The power grid market is a fast-paced and competitive industry that includes everything from service with trade power grids, with important market developments and the landscape of rivalry greatly relies on the kind and scope of events, and also the region in which they occur. To expand and survive in a more competitive and rising market climate, power grid industry must offer business meetings, conventions, and various other kinds of incidents constitute a part of the power grid market.
Each of these markets has its own set of characteristics and competitors in the power grid industry to benefit clients and increase the market sector. In recent years, the power grid industry has offered some of the most significant Applications. Major players in the power grid market, including ABB(Switzerland), Siemens(Germany), General Electric(US), Prysmian Group (Italy), Nexans(France), Schneider Electric(France), Mitsubishi Electric(Japan), Eaton(Ireland), Hitachi Energy(Switzerland), Powell Industries(US), Havells(India), LS Elctric(South Korea), Hubbell(India), Toshiba Energy Systems & Solutions Corporation(Japan), Fuji Electric(Japan), Sumitomo Electric(Japan), NKT(Denmark), Hyundai Electric & Energy Systems Co, Ltd(South Korea), Secheron(Switzerland), and Southwire Company(US), and others, are attempting to increase market demand by investing in research and development operations.
ABB, or Asea Brown Boveri, is a technology leader in electrification, robotics, automation, and industrial solutions. Founded in 1988 through the merger of ASEA AB of Sweden and BBC Brown Boveri of Switzerland, ABB has a rich history dating back to the late 19th century. Headquartered in Zurich, Switzerland, ABB operates in more than 100 countries, with a diverse portfolio that spans across utilities, industry, transportation, and infrastructure. The company is renowned for its pioneering technologies, including breakthroughs in power grids, electric motors, and industrial automation. ABB's commitment to sustainability is evident in its efforts to provide eco-efficient solutions, driving innovation towards a more sustainable future. With a focus on digitalization and the Industrial Internet of Things (IIoT), ABB continues to be a driving force in shaping the Fourth Industrial Revolution.
Siemens, a German multinational conglomerate, is a powerhouse in the fields of electrification, automation, and digitalization. Founded in 1847 by Werner von Siemens and Johann Georg Halske, Siemens has evolved into a giant with a presence in nearly every corner of the world. Headquartered in Munich, Germany, Siemens operates in various sectors, including energy, healthcare, infrastructure, and industry. Siemens is recognized for its innovative solutions, ranging from power generation and transmission to medical imaging and smart city technologies. The company is at the forefront of driving the transition towards sustainable energy, offering a comprehensive suite of products and services that contribute to the effort to combat climate change. Siemens' commitment to technology-driven progress and societal impact positions it as a key player in shaping the future of industries and infrastructure worldwide.
In November 2022:GE Renewable Energy launched HYpact switchgear. It can be used in several applications such as mobile (truck-mounted) substations and onshore wind substations. It makes the electrical network more predictable also reduces the customer’s operational costs, as well as their impact on the environment.
In October 2022:Siemens and Eplan have formed a strategic alliance to expand their collaboration in software solutions for the industrial and infrastructure markets. Siemens' Electrical Products business unit will join the Eplan Partner Network as a strategic partner as part of this agreement. The goal is to better coordinate the products of both companies in order to provide optimised solutions for switchgear manufacturers and electrical planners.
In February 2022:ABB entered into an agreement with OneSubsea to support its subsea multiphase compression system for Shell’s Ormen Lange field. ABB supplied variable-speed drives and subsea transformers to power subsea compressors.
| Report Attribute/Metric | Details |
| Market Size 2022 | USD 284.2 Billion |
| Market Size 2023 | USD 300.6 Billion |
| Market Size 2032 | USD 472.05 Billion |
| Compound Annual Growth Rate (CAGR) | 5.80% (2023-2032) |
| Base Year | 2022 |
| Market Forecast Period | 2023-2032 |
| Historical Data | 2018- 2022 |
| Market Forecast Units | Value (USD Billion) |
| Report Convered | Revenue Forecast, Market Competitive Landscape, Growth Factors, and Trends |
| Segments Covered | Component, Power Source, Application, and Region |
| Geographies Covered | North America, Europe, Asia Pacific, and the Rest of the World |
| Countries Covered | The US, Canada, German, France, UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil |
| Key Companies Profiled | ABB(Switzerland), Siemens(Germany), General Electric(US), Prysmian Group (Italy), Nexans(France), Schneider Electric(France), Mitsubishi Electric(Japan), Eaton(Ireland), Hitachi Energy(Switzerland), Powell Industries(US), Havells(India), LS Elctric(South Korea), Hubbell(India), Toshiba Energy Systems & Solutions Corporation(Japan), Fuji Electric(Japan), Sumitomo Electric(Japan), NKT(Denmark), Hyundai Electric & Energy Systems Co, Ltd(South Korea), Secheron(Switzerland), and Southwire Company(US). |
| Key Market Opportunities | · Grid modernization projects can create new jobs in areas such as engineering, construction, and data analysis. |
| Key Market Dynamics | · Increasing demand for electricity |
Frequently Asked Questions (FAQ) :
The power grid market size was valued at USD 284.2 Billion in 2022.
The market is projected to grow at a CAGR of 5.80% during the forecast period, 2023-2032.
North America had the largest share in the market
The key players in the market are ABB(Switzerland), Siemens(Germany), General Electric(US), Prysmian Group (Italy), Nexans(France), Schneider Electric(France), Mitsubishi Electric(Japan), Eaton(Ireland), Hitachi Energy(Switzerland), Powell Industries(US), Havells(India), LS Elctric(South Korea), Hubbell(India), Toshiba Energy Systems & Solutions Corporation(Japan), Fuji Electric(Japan), Sumitomo Electric(Japan), NKT(Denmark), Hyundai Electric & Energy Systems Co, Ltd(South Korea), Secheron(Switzerland), and Southwire Company(US).
The Varaible Speed Drives category dominated the market in 2022.
The renewables had the largest share in the market.
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