Power grid systems play an important role in the transmission and distribution of electricity from energy sources to consumers effectively. Some key features of power grid systems are that they provide reliable electricity, ensure energy security, supports adoption of renewable energy, and enables two-way power flow with distributed energy resources.
The Global Power Grid System Market is estimated to be valued at US$ 11.67 Bn in 2024 and is expected to exhibit a CAGR of 11.4% over the forecast period 2024 to 2031.
Key Takeaways
Key players operating in the Power Grid System market are ABB Ltd., Eaton Corporation, General Electric Company, Havells India Ltd., Hitachi Energy, Hyundai Electric & Energy Systems Co., Ltd., LS Electric, Mitsubishi Electric Corporation, National Grid plc, Nexans, Prysmian Group, Powell Industries, Schneider Electric SE, Siemens AG, and Toshiba Energy Systems & Solutions Corporation. Key players are focusing on advanced technologies and innovations to modernize existing grid infrastructure and developing smarter grid solutions.
The growing demand for reliable and secure electricity coupled with increasing integration of renewable energy sources is driving the growth of the Power Grid System Market Size. Government initiatives towards upgrading aging power infrastructure and investments in smart grid technologies will further propel the demand.
Global expansion of power transmission networks especially in developing nations of Asia Pacific and Middle East & Africa will create new opportunities for power grid system manufacturers. Countries are undertaking large scale projects for inter-state and inter-country power trading which requires modernization of existing grid and setting up new transmission lines.
Market Key Trends
Digitization of grid operations through Internet of Things (IoT) based monitoring devices and data analytics is one of the key trends in the power grid system market. IoT enables two-way communication between utilities and grid assets to remotely monitor the grid performance, detect faults, enable predictive maintenance and efficient functioning. Advanced technologies such as automation, smart meters, energy storage, and blockchain are being increasingly adopted to develop self-healing, flexible, and resilient grid infrastructure. Investments in upgrading transmission and distribution networks to strengthen energy infrastructure security are also growing globally.
Porter’s Analysis
Threat of new entrants: The large upfront investments and economies of scale enjoyed by existing players make the threat of new entrants moderate in the power grid system market. Bargaining power of buyers: Individual buyers have low bargaining power against large power grid system manufacturers due to the lack of feasible alternatives and the importance of power grid infrastructure. Bargaining power of suppliers: Components and raw materials suppliers have moderate bargaining power due to the consolidated nature of the supply base for power grid systems. Threat of new substitutes: There are no viable substitutes for power transmission, distribution, and control systems currently, making the threat low. Competitive rivalry: Competition in the power grid system market is high due to the presence of numerous global brands continually investing in R&D and product innovation.
The Asia Pacific region accounted for the largest share of the Power Grid System Market Size And Trends in 2022 owing to the rapid population growth, urbanization, and industrialization driving the demand for reliable and efficient power grids. China represents the largest market in the region as well as globally in terms of power grid investments and installations due to its huge electricity demand and government focus on modernizing its power infrastructure.
The Middle East and Africa region is projected to grow the fastest through 2031. The growth will be supported by various projects and initiatives undertaken by governments across the Middle East and African countries to expand and reinforce their aging power grids in order to meet the increasing power demand from growing economies as well as improve electrification levels across rural areas.
*Note:
1.Source: Coherent Market Insights, Public sources, Desk research
2.We have leveraged AI tools to mine information and compile it
About Author - Ravina Pandya
Ravina Pandya,a content writer, has a strong foothold in the market research industry. She specializes in writing well-researched articles from different industries, including food and beverages, information and technology, healthcare, chemicals and materials, etc. With an MBA in E-commerce, she has expertise in SEO-optimized content that resonates with industry professionals. LinkedIn Profile