Electric Power Transmission And Distribution Equipment Market Size, Share & Trends Analysis Report By Product (Transformer, Switchgear, Insulators & Fittings, Cables & Lines), By Application, By Region, And Segment Forecasts, 2022 - 2030

Report Overview

The global electric power transmission and distribution equipment market was valued at USD 202.6 billion in 2021 and is expected to expand at a compound annual growth rate (CAGR) of 5.7% from 2022 to 2030. The advancement in electric power transmission and distribution equipment to fulfill the rising demand for electricity from the residential, commercial, and industrial sectors is propelling the global market growth. In addition, the introduction of various on-shore and off-shore projects by the government to generate electricity to cater to rising energy demand will result in the deployment of efficient switchgear, transformers, and meters for smooth power transmission and distribution.

The government of countries such as Germany, the UK, the Netherlands, China, and more is focused on developing offshore wind power generation systems, which are expected to generate demand for advanced T&D equipment. Their inclination toward adopting clean energy to cater to the rising electricity demand from the industrial and residential sectors is to impact the global market growth positively. For instance, in May 2022, the launch of Interconnection Innovation e-Xchange (i2X) by the Biden Administration, through the U.S. Department of Energy (DOE), brought together the grid utilities, operators, tribal and state government, energy justice organizations, and other stakeholders to solve America’s power grid challenges and drive more clean energy to the power industry which is expected to drive the growth of the market.

The growing adoption of electric vehicles (EV) is creating demand for electric power transmission and distribution equipment to establish efficient electric vehicle infrastructure. Countries such as China, Germany, France, the U.S., South Korea, and Japan are the leading adopters of EVs. Governments of emerging economies such as Thailand and Indonesia are aiming for the deployment of EVs, and this further is creating a positive impact on the global energy systems, which are responsible for market growth.

Renewable energy sources such as wind, biomass, solar, geothermal energy, and hydroelectric power are the major sources of green energy. These renewable energy sources provide environmental benefits, minimize the dependency on fossil fuels, and reduce electricity costs. According to the study published by the U.S. Energy Information Administration (EIS), in May 2022, solar and wind energy are expected to be the largest renewable energy source for US electricity generation. The US EIS forecasts an increase of 10 Billion-Mega Watthours (MWh) in solar energy generation between June and August 2022 compared to the previous year's period. Further, wind energy generation is also expected to increase by 8 billion MWh during the same period. The study predicts an increase of 31 percent in solar energy since June 2021, estimated to generate 65 GW of utility-scale solar energy in the US electric power sector. This growing demand for green energy in the global energy sector is driving the need for efficient electric power transmission and distribution equipment supporting the market growth.

The COVID-19 pandemic caused the power sector to slow as more and more countries implemented nationwide lockdowns to prevent further disease outbreaks. Due to economic contractions, there has been a slowdown in demand for power from various countries and end-use industries. For instance, in 2020, due to the lockdown, India's electricity demand dropped by 20-25%, affecting distribution utilities' revenues. The country's distribution companies face a revenue deficit of USD 1.7 billion per month

The lack of skilled technical labor to cope with digitalization to drive decarburization in the power, petrochemical, and renewable sectors is expected to hinder the market growth. A shortage of labor with the relevant knowledge and expertise, along with the poor recruitment process in the organization, is highly impacting the energy sector and the demand for market growth over the forecast period. Henceforth, the shortage of skilled labor owing to multiple reasons across the energy sector is anticipated to hamper the growth of the electric power transmission and distribution equipment market globally. 

Product Insights

The cable and lines segment dominated the market and accounted for more than 26.2% of the global revenue share in 2021. The market growth is expected to be driven by the smart upgrading of distribution systems, power transmission, and the development of smart grids. Due to smart grid technology, increasing demand for interconnections has resulted in increased investments in submarines and underground cables.

The transformer segment is expected to expand at a CAGR of 5.2% from 2022 to 2030. Demand for power transformers has risen as infrastructure spending and favorable norms associated with growing and refurbishing existing grid networks have increased. In addition, rapid urbanization and industrial expansion in developing economies will increase power transformer demand. Power transmission and distribution projects have steadily increased transformer capacity in many countries. For example, in 2020, there were 1,14,807 Mega Volt Amp (MVA) of transformer capacity deployed in Mexico's distribution network.

Sales Channel Insights

The indirect channel dominated the market and accounted for more than 54.4% of the global revenue share in 2021. The indirect channel segment is divided into four subsegments: commercial distribution, catalog distribution, retail box stores, and e-commerce. The commercial distribution subsegment holds the largest market share owing to the rise in the adoption of value-added services, distributor-managed inventory, and credit financing. The increase in e-commerce sales grew by more than 200% in 2021, which is expected to drive market growth.

The direct channel is expected to expand at the fastest CAGR of 6.2% from 2022 to 2030.Increasing consumer demand for checking and validating a product before purchasing mainly drives the growth of the global market. For instance, in 2020, according to the World Federation of Direct Selling Associations (WFDSA), over 125.4 billion direct sellers are expected to be involved in the direct selling industry.

Regional Insights 

Asia Pacific region dominated the market and accounted for more than 52.0% of the global revenue share in 2021, which can be attributed to increasing construction activities, urbanization, electricity demand, and industrialization in the region. The growth of the market is expected to be fueled by investments from countries such as India, China, Vietnam, and the Philippines in grid expansion projects. 

Europe emerged as the second-largest regional market in 2021 and is likely to expand further at a steady growth rate of 5.1% during the forecast period. Rising electricity consumption and increasing demand for advanced power transmission and distribution equipment in automotive and electronics are expected to drive the region's growth. 

Key Companies & Market Share Insights 

The market is consolidated and most of the players are focused on mergers and acquisitions, product launches, and partnerships. Some of the prominent players in the global electric power transmission and distribution equipment market include:

• ABB

• Siemens

• GE

• Schneider Electric

• Eaton 

Electric Power Transmission And Distribution Equipment Market Report Scope

Global Electric Power Transmission And Distribution Equipment Market Segmentation

This report forecasts revenue growth at the global, regional, and country levels and analyzes the latest industry trends from 2018 to 2030 in each sub-segment. For this study, Grand View Research has segmented the global electric power transmission & distribution equipment market report based on product, sales channel, and region:

• Products Outlook (Revenue, USD Billion, 2018 - 2030)

  • Transformer

    • Power Transformer

    • Distribution Transformer

  • Switchgear

    • Circuit Breaker

    • Fuse

    • Distribution Control Panel

    • Others

  • Insulators & Fittings

  • Cables & Lines

  • Others

• Sales Channel Outlook (Revenue, USD Billion, 2018 - 2030)

  • Indirect Channel

    • Commercial Distribution

    • Catalog Distribution

    • Retail Box Stores

    • Ecommerce

  • Direct Channel

• Regional Outlook (Revenue, USD Billion, 2018 - 2030)

  • North America

    • U.S.

    • Canada

  • Europe

    • U.K.

    • Germany

    • France

    • Italy

    • Spain

    • Rest of Europe

  • Asia Pacific

    • China

    • India

    • Japan

    • South Korea

    • ASEAN

    • Rest of Asia Pacific

  • Latin America

    • Brazil

    • Mexico

    • Rest of Latin America

  • Middle East & Africa