Global Electrical Grid Market Insights Forecasts to 2033

• The Global Electrical Grid Market Size was Valued at USD 263.27 Billion in 2023
• The Market Size is Growing at a CAGR of 5.57% from 2023 to 2033
• The Worldwide Electrical Grid Market Size is Expected to Reach USD 452.9 Billion by 2033
• Europe is Expected to Grow the fastest during the forecast period.

The Global Electrical Grid Market Size is Anticipated to Exceed USD 452.9 Billion by 2033, Growing at a CAGR of 5.57% from 2023 to 2033.

Market Overview

A network of power suppliers and customers connected by transmission and distribution lines and administered by one or more control centers is known as an electrical grid. Delivering energy from generation sources to consumers over a large region is a complicated and significant system. Generation facilities, transformers, transmission lines, substations, distribution lines, and consumers are some of the parts that make up the grid.

According to the Department of Energy, a steady supply of energy is essential to the US economy, national security, and even the health and safety of its people. With more than 9,200 electric generating units with a generating capacity of more than 1 million megawatts linked to more than 600,000 miles of transmission lines, the American electric grid is a technological wonder. Infrastructure for generating and transmission is not all that makes up the electric grid. Entire asset owners, manufacturers, service providers, and federal, state, and local government authorities collaborate to manage one of the world's most dependable electrical grids. In order to provide access to dependable, safe, and affordable energy, the Office of Electricity (OE) is collaborating with its public and commercial partners to enhance, modernize, and clean sources of energy. 

Report Coverage

This research report categorizes the market for electrical grids based on various segments and regions forecasts revenue growth and analyzes trends in each submarket. The report analyses the key growth drivers, opportunities, and challenges influencing the electrical grid market. Recent market developments and competitive strategies such as expansion, product launch, and development, partnership, merger, and acquisition have been included to draw the competitive landscape in the market. The report strategically identifies and profiles the key market players and analyses their core competencies in each sub-segment of the electrical grid market.

Driving Factors

The electrical grid market is propelled by a number of factors, the first is the growing need for dependable and effective power distribution and transmission networks, which is being fueled by the world's population growth and increasing urbanization. With more people living in cities, there is an increasing need for a strong and durable electrical infrastructure. The transition to renewable energy sources, which include wind, solar, and hydropower, is another important factor. The integration of these intermittent energy sources into the grid necessitates the development of smart grid technologies that can efficiently manage and balance the supply and demand of electricity. Governments and regulatory bodies are also a major factor, as they are putting policies and incentives in place to promote energy efficiency, which is fueling the demand for sophisticated grid solutions and smart metering systems. Furthermore, the need for modernization and improvements in many current electrical grids is due to their aging infrastructure. This is aimed at enhancing resilience, minimizing outages, and optimizing overall efficiency. The development of smart grid systems, energy storage, and digital technologies is facilitating the advancement of more intelligent and efficient electrical grid solutions, thus driving the market's growth.

Restraining Factors

The growth and development of the electrical grid market are hindered by various limiting factors. A significant obstacle is the substantial investment necessary to upgrade and modernize the current grid infrastructure, which can pose a financial challenge, especially for developing countries and regions with limited resources. Additionally, the incorporation of renewable energy sources into the grid necessitates a considerable investment in grid-scale energy storage solutions and smart grid technologies, which may be cost-prohibitive in some situations. In some regions, the lack of clear guidelines and incentives for grid modernization can hamper the adoption of new technologies due to regulatory and policy uncertainty. The coordination and integration of the electrical grid system pose challenges because of its complex and interconnected nature, as different stakeholders, including utilities, system operators, and government agencies, often have conflicting interests and priorities. The overall costs and complexity of grid upgrades and expansion can be increased by the need for robust cybersecurity measures and the risk of cyber threats.

Market Segmentation

The electrical grid market share is classified into type and application.

• The renewables segment is estimated to hold the highest market revenue share through the projected period.

Based on the source, the electrical grid market is classified into natural gas, coal, hydro, renewables, and others. Among these, the renewables segment is estimated to hold the highest market revenue share through the projected period. First off, the rapid expansion of renewable energy sources like solar, wind, and hydropower is being fueled by the worldwide movement towards decarbonization and sustainability. Globally, governments are putting laws and incentives in place to promote the use of renewable energy, which is leading to a rise in the installation of these systems and an increase in the amount of renewable energy that can be used by the electrical grid. Furthermore, compared to conventional fossil fuel-based generation, renewable energy technologies particularly solar photovoltaic and wind turbines have become more competitive and financially sustainable due to their dropping costs. Because of its affordability and the growing demand for clean energy, renewable energy infrastructure is being invested in and deployed, which is fueling the expansion of the renewables sector within the electrical grid market. Furthermore, the development of advanced grid technologies, like smart grids and energy storage solutions, is being driven by the need to integrate and manage the intermittent nature of renewable energy sources. This is further solidifying the position of the renewables segment as the highest revenue contributor in the electrical grid market during the projected period.

• The generation segment is anticipated to hold the largest market share through the forecast period.

Based on the application, the electrical grid market is divided into generation, transmission, and distribution. Among these, the generation segment is anticipated to hold the largest market share through the forecast period. This is explained by the continued requirement for dependable and effective infrastructure for power generation in order to supply the rising demand for electricity throughout the world. Strong and scalable power generation capabilities are now essential as population increase and industrialization propel economic expansion. Additionally, in order to incorporate intermittent energy sources like solar, wind, and hydropower into the electrical system, large investments in grid-scale generation assets are becoming necessary. To guarantee a steady and secure supply of electricity, governments, and utility companies are aggressively investing in the development of new generation capacity as well as the renovation and modernization of already-existing power generation facilities. Throughout the course of the projection period, it is anticipated that the generation sector will continue to contribute the greatest amount of revenue to the electrical grid market thanks to its emphasis on improving generation capabilities and the expanding use of distributed energy resources and microgrid solutions.

Regional Segment Analysis of the Electrical Grid Market

• North America (U.S., Canada, Mexico) 
• Europe (Germany, France, U.K., Italy, Spain, Rest of Europe)
• Asia-Pacific (China, Japan, India, Rest of APAC)
• South America (Brazil and the Rest of South America) 
• The Middle East and Africa (UAE, South Africa, Rest of MEA)

Asia Pacific is anticipated to hold the largest share of the electrical grid market over the predicted timeframe.

Asia Pacific is anticipated to hold the largest share of the electrical grid market over the predicted timeframe. First off, the area is rapidly becoming more urbanized and economically growing, which is driving up demand for power in both the household and commercial sectors. To keep up with this increased need for energy, nations like China, India, and Southeast Asia are making significant investments in the upgrading and extension of their electrical grid infrastructure. Furthermore, with nations like China, India, and Japan rapidly increasing their solar, wind, and hydroelectric capacity, the Asia Pacific area is leading the world's shift to renewable energy sources. In order to properly integrate and manage the intermittent nature of these energy sources, the demand for smart grid solutions and advanced grid technologies is being driven by this transition towards renewable energy. In addition, governments throughout the Asia-Pacific area are putting laws and policies into place that encourage the creation of sustainable energy infrastructure and offer financial assistance and incentives for grid modernization initiatives. Over the anticipated period, the region's big population and quickly rising economies, along with the regulatory backing, are expected to continue propelling the expansion of the electrical grid market in the Asia Pacific.

Europe is expected to grow at the fastest CAGR growth of the electrical grid market during the forecast period, driven by several key factors. First off, substantial investments in the renovation and growth of the electrical grid infrastructure in the region are being driven by the European Union's ambitious energy and climate targets, such as the aim of becoming carbon neutral by 2050. This covers integrating renewable energy sources, implementing smart grid technology, and enhancing the efficiency and resilience of the grid. In addition, there is a great need for grid renovation and upgrades due to the region's aging grid infrastructure and the requirement to handle the growing penetration of distributed energy resources like rooftop solar and electric vehicles. The electrical grid market in Europe is expanding at an accelerated rate as a result of policies and incentives being implemented by governments and regulatory organizations to promote the use of these cutting-edge grid technologies. Furthermore, Europe is becoming a global leader in the implementation of cutting-edge grid technology thanks to the region's strong emphasis on digitization and the development of cutting-edge technologies like energy storage, enhanced metering, and automation systems. This technological leadership, together with the region's dedication to energy transition and sustainability, is anticipated to propel the electrical grid market in Europe to the quickest compound annual growth rate over the course of the forecast period.Top of FormBottom of FormTop of Form

Competitive Analysis:

The report offers the appropriate analysis of the key organizations/companies involved within the electrical grid market along with a comparative evaluation primarily based on their product offering, business overviews, geographic presence, enterprise strategies, segment market share, and SWOT analysis. The report also provides an elaborative analysis focusing on the current news and developments of the companies, which includes product development, innovations, joint ventures, partnerships, mergers & acquisitions, strategic alliances, and others. This allows for the evaluation of the overall competition within the market.

List of Key Companies

• ABB Limited
• Hitachi Energy
• Toshiba Corporation
• Siemens AG
• Sumitomo Electric
• Fuji Electric
• General Electric
• Schneider Electric SE
• Havells
• Eaton
• Others

Key Target Audience

• Market Players
• Investors
• End-users
• Government Authorities 
• Consulting And Research Firm
• Venture capitalists
• Value-Added Resellers (VARs)

Recent Developments

• In March 2024, A USD 381.9 million investment was announced by Schneider Electric India for both domestic and export projects.

• In May 2024, The U.S. Federal Energy Regulatory Commission approved the first major electric transmission policy update in over a decade that aims to speed up new interregional lines to move more clean energy to meet growing demand amid the explosion of electric vehicles, data centers, and artificial intelligence.

Market Segment

This study forecasts revenue at global, regional, and country levels from 2023 to 2033. Spherical Insights has segmented the electrical grid market based on the below-mentioned segments: 

Global Electrical Grid Market, By Source

• Natural Gas
• Coal
• Hydro
• Renewables
• Others

Global Electrical Grid Market, By Application

• Transmission
• Distribution
• Generation

Global Electrical Grid Market, By Regional Analysis

• North America
  • US
  • Canada
  • Mexico
• Europe
  • Germany
  • UK
  • France
  • Italy
  • Spain
  • Russia
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Australia
  • Rest of Asia Pacific
• South America
  • Brazil
  • Argentina
  • Rest of South America
• Middle East & Africa
  • UAE
  • Saudi Arabia
  • Qatar
  • South Africa
  • Rest of the Middle East & Africa