Rising Utility Investments in Power T&D Infrastructure for Transitioning to the Smart Grid Standard Drives Market Growth

The global market for Power Transmission and Distribution Equipment is projected to exceed US$200 billion by 2024, driven by spiraling consumption of electricity, equally robust electric power production and distribution, and rising utility spending on upgrading transmission and distribution infrastructure to the smart grid standard.

Globally, per capita consumption of energy reflects the level of economic development of a nation. All forms of economic activity, such as industry, agriculture, or services are dependent on uninterrupted power supply. Electric power transmission involves bulk transfer of high voltage electrical energy generated by electric power plants and electrical grid substations to sub-stations at demand centers through transmission lines. When inter-connected with each other, transmission lines become transmission networks. Electricity distribution involves final stage delivery of electricity from sub-stations to end-users through distribution network inclusive of local distribution poles and local wiring. Aided by factors including rising urbanization, advancement in technologies and growth in commercial industries, the consumption of energy is set to further ascend in tune with rising demand from residential, commercial and industrial markets.

Healthy growth is projected for the market in the coming years driven by massive transformations in the global electricity infrastructure supported by declining cost of renewable energy, lowering prices of natural gas, favorable regulatory landscape, stringent emission standards, and steady advent and penetration of technologically innovative T&D systems and solutions. Future electricity grids and the T&D networks will evolve to become smarter, more decentralized, and more connected offering myriad benefits in terms of increased reliability, security, environmental sustainability, and asset utilization in addition to enabling more control, real-time optimization of consumption and production, fewer carbon emissions, greater choice, seamless interaction with customers, always-on connection, higher transparency, better reliability, and security, among other benefits.

Growing grid integration of renewable energy sources, rising prominence of ultra-high-voltage (UHV) transmission systems and intelligent smart distribution systems, increasing proliferation of dispersed generation in distribution systems, and digitization through the integration of smart sensor, smart meters, connected devices, Internet of Things (IoT), and other digital network technology systems and solutions represent game-changing disruptions in the global power T&D market. Other macro drivers for the global power T&D equipment market include robust demand for electricity globally, particularly in developing Asian markets; shift in competitive leadership from the west to the east, particularly China and India; and the huge potential offered to the leading companies by the Sub-Saharan African region in terms of T&D equipment deployment.

Asia-Pacific represents the largest and the fastest growing market worldwide with a projected CAGR of 5.8% over the analysis period. Rapid industrialization; massive utility/power infrastructure investments; expanding population and energy needs; government focus on rural and urban power grid construction; implementation of energy-efficiency standards, development of new urban settlements and townships and expanding real-estate activity in existing urban centers are driving the development of power transmission and distribution infrastructure in the region.

Key players in the market include ABB Limited, Bharat Heavy Electricals Limited (BHEL), CG Power and Industrial Solutions Limited (CG), DAIHEN Corporation, Eaton Corporation plc, Efacec Capital, S.G.P.S., SA, GE Grid Solutions, Hammond Power Solutions, Inc., Hubbell Incorporated, Hyosung Power & Industrial Systems Performance Group, Hyundai Electric & Energy Systems Co., Ltd., Imefy Group, JiangSu HuaPeng Transformer Co., Ltd. (JSHP), KONCAR - Elektroindustrija d.d., Mitsubishi Electric Corporation, Schneider Electric S.E., SGB-SMIT Group, Shihlin Electric & Engineering Corporation, Siemens AG, TBEA Co., Ltd., Wilson Power Solutions Ltd., and Xi'an XD Transformer Co., Ltd., among others.

View infographic | Report TOC