Electrical Grid Market Size, Share & Trends Analysis Report By Source (Natural Gas, Coal, Hydro), By Application (Transmission, Distribution), By Region, And Segment Forecasts, 2024 - 2030

Electrical Grid Market Size & Trends

The global electrical grid market size was estimated at USD 268.27 billion in 2023 and is estimated to grow at a CAGR of 5.6% from 2024 to 2030. Increasing demand for electricity globally, supported by rapid urbanization, and industrialization is expected to drive the market over the coming years. 

With the rising population and expansion of economies, the need for reliable and efficient electricity supply is expected to grow, pushing investments and developments in electrical grid infrastructure to ensure stability and meet the growing consumption demands. For instance, as reported by the Observer Research Foundation, India’s population is likely to grow from 1.4 billion in 2023 to 2 billion by 2050.

Drivers, Opportunities & Restraints

The growing adoption of renewable energy sources is likely to remain a contributing factor to market growth. With a global shift towards sustainable and clean energy, there is a growing requirement to integrate solar, wind, and hydro energy into the existing grid. This integration requires advancements in grid technology and infrastructure to manage the variable and decentralized nature of renewable energy sources, thus driving market growth.

A significant restraint in the electrical grid market is the high cost of upgrading and maintaining grid infrastructure. Upgrade of aging electrical grids to handle contemporary demands and the integration of renewable energy sources requires substantial investment. This financial challenge can slow down upgrades and expansions, particularly in regions with limited economic resources.

However, the rise of smart grid technologies presents a substantial opportunity in the electrical grid market. Smart grids use digital communications technology to monitor and manage the transport of electricity from all generation sources to meet the varying electricity demands of end-users efficiently. This technology enables better prediction of electricity demand, real-time monitoring of grid status, and enhanced fault detection, paving the way for more efficient grid management and operations.

Source Insights & Trends

“Renewables held the largest revenue share of over 30.0% in 2023.”

The renewables segment growth is expected to benefit from global initiatives to reduce carbon emissions and the increasing cost-competitiveness of renewable energy technologies. This segment, which includes solar, wind, hydroelectric, and biomass sources, is integral to the transition towards a more sustainable and resilient energy system. Investments in renewable energy infrastructure, advancements in storage solutions, and favorable government policies are facilitating the integration of renewables into the electrical grid.

Coal segment is likely to observe a gradual decline in its share within the electrical grid market. Coal infrastructure is still used in several countries, also the coal industry faces increasing challenges from environmental regulations, competitive renewable energy prices, and growing concerns over health impacts linked to air pollution. The shift away from indicates a broader transition in the energy sector, focusing on reducing carbon footprints and mitigating climate change impacts.

Application Insights

“Generation held over 39% revenue share of the overall electrical grid market.”

Generation, including power generation, transmission, and distribution companies, utilize electrical grids to enhance the efficiency and reliability of their operations. The capability of electrical grids to operate under high voltage conditions and their high performance in switching and controlling electrical loads make them necessary. The ongoing investments in grid modernization and the increasing emphasis on renewable energy integration are anticipated to push the growth of the segment.

Transmission involves the high-voltage transfer of electricity from power plants to substations near populated areas. It also includes the development, maintenance, and operation of transmission lines and towers that span long distances. Transmission focuses on efforts to modernize the grid, incorporating smart grid technologies to improve the efficiency, reliability, and security of electricity transmission. Challenges such as aging infrastructure, growing demand, and the integration of renewable energy sources are driving innovations and investments in this segment to ensure a stable electricity supply.

Region Insights

North America electrical grid market is characterized by its focus on modernizing aging infrastructure and adopting renewable energy sources to ensure a cleaner, more sustainable power system. The U.S. and Canada are deploying modern technologies in smart grids, energy storage, and demand response programs to increase grid reliability and manage the growing electricity demand more efficiently.

Asia Pacific Electrical Grid Market Trends

Asia Pacific held over 45% revenue share of the overall electrical grid market. The Asia Pacific region is likely to witness rising demand for electrical grid market, primarily due to the rapid industrialization and urbanization in countries like China and India. Governments across the region are heavily investing in upgrading and expanding their existing power infrastructure to meet the rising demand for electricity from both residential and commercial sectors.

India electrical grid market is anticipated to driven by government's ambitious initiatives to ensure reliable power supply to every part of the country. The integration of renewable energy resources, with a major focus on solar energy, is a key component of India's energy strategy to achieve energy self-sufficiency and reduce dependency on fossil fuels. For instance, in February 2024, the government of India announced PM Surya Ghar scheme with investment of around USD 8,955.0 million. With this, government plans to increase solar rooftop capacity and will help residents to generate their own electricity.

Europe Electrical Grid Market Trends

The European Union's stringent regulations and policies advocating for green energy have led to increased investments in renewable energy sources and the modernization of the electrical grid to support decentralized power generation. Emphasis on innovation, such as energy storage technologies and digitalization of the grid with advanced metering infrastructure, is expected to propel the market growth.

Key Electrical Grid Company Insights

Some of key players operating in market include General Electric and Fuji Electric.

• General Electric (GE) is a multinational company with a focus on renewable energy, aviation, healthcare, and power. The company focuses on technological advancements, providing a range of products and services that support a variety of industries worldwide.

• Fuji Electric was established in 1923 in Japan, specializes in electrical equipment manufacturing, including energy generation, transmission, and distribution products. The company provides effective power solutions, focusing on energy management systems, semiconductors, and drive systems.

Recent Developments

• General Electric (GE) is a multinational company with a focus on renewable energy, aviation, healthcare, and power. The company focuses on technological advancements, providing a range of products and services that support a variety of industries worldwide.

• In March 2024, Schneider Electric India announced investment of USD 381.9 million (~INR 3,200 crore) for domestic investments and exports.

Electrical Grid Market Report Scope

Global Electrical Grid Market Report Segmentation

This report forecasts revenue growth at global, country, and regional levels and provides an analysis of the latest trends in each of the sub-segments from 2018 to 2030. For this study, Grand View Research has segmented the global electrical grid market report based on source, application, and region.

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

  • Natural Gas

  • Coal

  • Hydro

  • Renewables

  • Others

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

  • Generation

  • Transmission

  • Distribution

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

  • North America

    • U.S.

    • Canada

    • Mexico

  • Europe

    • Germany

    • UK

    • Russia

  • Asia Pacific

    • China

    • India

    • Japan

    • South Korea

  • Central & South America

    • Brazil

  • Middle East & Africa