PUBLISHER: The Business Research Company | PRODUCT CODE: 1678267
PUBLISHER: The Business Research Company | PRODUCT CODE: 1678267
The power grid system refers to a physical infrastructure designed to deliver electricity from generation sources to end-users. This system consists of generating stations (power plants), a transmission system for long-distance power transfer, and a distribution system for delivering electricity to homes and businesses. The power grid ensures on-demand electricity supply to meet various energy needs.
Within the power grid system market, the main types of power supply include captive generation, wind power, and other power supplies. Captive generating plants are established by individuals, cooperative societies, or associations to primarily generate electricity for their own use. Components of power grid systems include cables, variable speed drives, transformers, and switchgear, applied both on seabeds and land.
The power grid system market research report is one of a series of new reports from The Business Research Company that provides power grid system market statistics, including power grid system industry global market size, regional shares, competitors with a power grid system market share, detailed power grid system market segments, market trends and opportunities, and any further data you may need to thrive in the power grid system industry. This power grid system market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenarios of the industry.
The power grid system market size has grown rapidly in recent years. It will grow from $10.81 billion in 2024 to $12.01 billion in 2025 at a compound annual growth rate (CAGR) of 11.1%. The growth in the historic period can be attributed to growing energy demand, expansion of renewable energy integration, urbanization and infrastructure development, government initiatives and investments, increasing electrification of industries.
The power grid system market size is expected to see rapid growth in the next few years. It will grow to $19.01 billion in 2029 at a compound annual growth rate (CAGR) of 12.2%. The growth in the forecast period can be attributed to electrification of transportation, global connectivity and interconnection, resilience and reliability requirements, policy support and regulatory frameworks, addressing energy access challenges. Major trends in the forecast period include cybersecurity concerns, decentralization and microgrids, policy and regulatory developments, electrification of industry, aging infrastructure renewal.
The growing adoption of subsea power cables is anticipated to drive the expansion of the power grid system market. The increased use of these cables correlates with a higher demand for electricity, particularly as many manufacturing processes are heavily reliant on electric energy. For example, in September 2024, Hanwha Group, a South Korea-based multinational conglomerate, projected that global demand for subsea cables will surge from $4.6 billion in 2022 to $21.3 billion by 2029. Consequently, as the prevalence of subsea power cables continues to rise, the demand for power grid systems is also expected to increase.
The escalating need for a reliable electricity supply is poised to steer the growth of the power grid system market in the foreseeable future. The term 'electricity supply' encompasses the entire process of generating, transmitting, and distributing electrical energy to end-users for diverse applications spanning residential, commercial, industrial, and transportation sectors. Power grid systems play a crucial role in efficiently managing the generation, transmission, and distribution of electrical energy across extensive distances, effectively minimizing energy losses during transmission and incorporating various electricity storage technologies. In June 2023, the U.S. Energy Information Administration reported that electricity sales in the United States reached 3,909 billion kWh (kilowatt-hour), or approximately 3.9 trillion kWh, in 2022-a notable increase from 103 billion kWh in 2021. This underscores the escalating demand for a robust electricity supply, propelling the growth of the power grid system market.
Leading companies in the power grid system market are concentrating on launching advanced solutions, such as grid connection technologies, to gain a competitive advantage. For instance, in October 2024, Hitachi Energy Ltd., a Switzerland-based technology firm, introduced Grid-enSure. This portfolio is designed to enhance grid resilience and promote sustainable energy by facilitating the integration of renewable resources into power systems. Utilizing cutting-edge technology and expertise, Grid-enSure aims to modernize power grids, particularly focusing on strengthening India's energy infrastructure.
Major companies in the power grid systems market are strategically introducing advanced solutions to maintain a competitive edge. One such innovation is the development of grid connection solutions by Hitachi Energy Ltd., a Switzerland-based technology company. Their product, Grid-eXpand, launched in August 2022, offers a range of modular and prefabricated grid connection solutions. These solutions are designed to accelerate grid expansion for a carbon-neutral future, featuring both air-insulated and gas-insulated grid connections. They are engineered, assembled, and factory-tested before delivery, ensuring scalability, customization to specific needs and grid code requirements, and replicability for fleet harmonization, ultimately reducing installed base complexity.
In December 2022, Power Grid Components Inc., a US-based provider of porcelain and glass insulators, made a strategic move by acquiring Meister International for an undisclosed amount. This acquisition aims to expand Power Grid Components Inc.'s product portfolio, strengthen its position in the electrical distribution industry, and enhance its ability to cater to customers with an expanded suite of insulator and utility hardware products. Meister International, the acquired company, is a US-based manufacturer specializing in hardware products and power grid systems.
Major companies operating in the power grid system market include Siemens AG, General Electric Co, Mitsubishi Electric Corporation, Fuji Electric Co Ltd., Schneider Electric S.E, ABB Ltd., Sumitomo Electric Industries Ltd., Toshiba Corporation, Larsen & Toubro Ltd., Eaton Corporation plc, Prysmian Group S.P.A, TBEA Co Ltd., Nexans S.A, NARI Group Corporation, LS Cable & System Ltd., Bharat Heavy Electricals Limited, XJ Group Corporation Ltd., Meidensha Corporation, KEC International Ltd., Pinggao Group Co Ltd., Schweitzer Engineering Laboratories Inc., CG Power and Industrial Solutions Limited, Powell Industries Inc., Hyundai Electric & Energy Systems Co Ltd., EMCO Limited, GE Grid Solutions, Rittal GmbH & Co KG, Elsewedy Electric Co S.A.E., L&T Electrical & Automation Ltd., C&S Electric Ltd.
Europe was the largest region in the power grid system market in 2024. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the power grid system market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.
The countries covered in the power grid system market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.
The power grid system market consists of sales of connectors, actuators, sensors, and penetrators. Values in this market are 'factory gate' values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors, and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.
The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).
The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.
Power Grid System Global Market Report 2025 from The Business Research Company provides strategists, marketers and senior management with the critical information they need to assess the market.
This report focuses on power grid system market which is experiencing strong growth. The report gives a guide to the trends which will be shaping the market over the next ten years and beyond.
Where is the largest and fastest growing market for power grid system ? How does the market relate to the overall economy, demography and other similar markets? What forces will shape the market going forward? The power grid system market global report from the Business Research Company answers all these questions and many more.
The report covers market characteristics, size and growth, segmentation, regional and country breakdowns, competitive landscape, market shares, trends and strategies for this market. It traces the market's historic and forecast market growth by geography.
The forecasts are made after considering the major factors currently impacting the market. These include the Russia-Ukraine war, rising inflation, higher interest rates, and the legacy of the COVID-19 pandemic.