Global Electric Power Transmission and Distribution Equipment Market Values (2022 - 2027)
The global electric power transmission and distribution equipment market is anticipated to grow at a CAGR of 6.04% from 2022 to 2027, and the market size was valued at USD 216.4 billion in 2021.
Global Electric Power Transmission and Distribution Equipment Market Overview
Electric power transmission and distribution equipment refers to the infrastructure to transmit and distribute electricity from a power generation source to end users. This equipment includes transmission lines, substations, transformers, and distribution lines. Transmission lines are typically high-voltage (between 115 kV and 765 kV) power lines that carry electricity over long distances, often hundreds of miles, from the power generation source to substations. Substations are facilities that receive electricity from transmission lines and transform it to a lower voltage (usually between 4 kV and 69 kV) for distribution to end users. Transformers are used to step down the electricity voltage for distribution to end users. Distribution lines are typically medium-voltage (between 4 kV and 35 kV) power lines that carry electricity from substations to end users. Depending on the specific location and application, these lines may be overhead or underground. In addition to transmission and distribution lines and substations, other equipment used in the transmission and distribution of electricity includes circuit breakers, switches, and protective relays, which are used to control and protect the transmission and distribution system.
Global Electric Power Transmission and Distribution Equipment Market Drivers
As electricity demand increases, there is a corresponding need for more transmission and distribution equipment to meet this demand, which is one of the major factors promoting the growth of the electric power transmission and distribution equipment market. According to the International Energy Agency (IEA), global electricity demand is expected to continue to grow in the coming decades, driven by population and economic growth, particularly in developing countries. In 2019, global electricity demand was approximately 25,000 TWh (terawatt-hours), with the most significant consumers being China, the United States, and India. These three countries together accounted for more than half of global electricity demand. Electricity demand is expected to continue to grow in the coming decades, with the IEA projecting that global electricity demand could reach around 40,000 TWh by 2040. However, the growth rate in electricity demand is expected to slow in the coming decades due to increasing energy efficiency and the deployment of renewable energy sources.
Many countries have aging transmission and distribution infrastructure that must be replaced or upgraded, generating the need for electric power transmission and distribution equipment and resulting in market growth. Technological advancements are anticipated to propel market growth. The development of new technologies, such as smart grids and renewable energy sources, can drive the demand for advanced transmission and distribution equipment. Government policies and regulations are acting favorably toward the market’s growth rate and helping it grow further. Governments can play a role in the electric power transmission and distribution equipment market through policies and regulations that support the development and deployment of new technologies or the upgrading of existing infrastructure. Furthermore, increasing concerns about climate change and the need to reduce greenhouse gas emissions can drive the demand for renewable energy sources, which may require new transmission and distribution infrastructure and resulting the market growth.
Global Electric Power Transmission and Distribution Equipment Market Restraints
High costs associated with constructing and maintaining transmission and distribution infrastructure significantly restrain the market growth. Furthermore, stringent regulatory frameworks and lack of funding are further anticipated to inhibit the market’s growth rate. In addition, environmental concerns, technological limitations, and competition from other energy sources are estimated to limit the market’s growth rate.
Global Electric Power Transmission and Distribution Equipment Market Opportunities
The increasing deployment of renewable energy sources is creating a demand for new transmission and distribution infrastructure is anticipated to offer growth opportunities in the market. Renewable energy sources are typically located in remote or dispersed locations, such as on offshore platforms or in remote areas, and therefore require new transmission and distribution lines to bring the electricity they generate to the grid. The development of smart grids is expected to offer growth possibilities for the market participants in the electric power transmission and distribution equipment market. To support the deployment of smart grids, new transmission and distribution equipment is needed, such as advanced sensors, meters, and communication systems, as well as advanced power electronics and energy storage systems. The development of these technologies is creating opportunities for the electric power transmission and distribution equipment market.
COVID-19 impact on the electric power transmission and distribution equipment market
The COVID-19 pandemic has had a mixed impact on the electric power transmission and distribution equipment market. The global economic downturn caused by the pandemic has led to a slowdown in the construction of new transmission and distribution projects and a reduction in electricity demand in some areas. This has led to a decrease in the demand for electric power transmission and distribution equipment. However, the impact of the pandemic on the electric power transmission and distribution equipment market has not been uniform across all regions. In some areas, such as China and India, the demand for electric power transmission and distribution equipment has remained relatively stable or even increased due to ongoing economic growth and the construction of new transmission and distribution projects. In other regions, such as Europe and the United States, the economic downturn has significantly impacted the demand for electric power transmission and distribution equipment. During the forecast period, the global electric power transmission and distribution equipment market is predicted to register a healthy CAGR.
Key developments in the market:
In May 2022, the Interconnection Innovation e-Xchange (i2X) launch by the U.S. Department of Energy (DOE) is expected to drive the growth of the electric power transmission and distribution equipment market by solving America's power grid challenges and promoting clean energy. The initiative brings together grid utilities, operators, tribal and state governments, energy justice organizations, and other stakeholders.
Global Electric Power Transmission and Distribution Equipment Market Segmentation
Global Electric Power Transmission and Distribution Equipment Market – By Products
Based on products, the cables and lines segment dominated the electric power transmission and distribution equipment market in 2021. Cables and wires are essential components of electric power transmission and distribution equipment. They transmit electricity from the power generation source to end users through transmission and distribution lines.
On the other hand, the transformer segment is predicted to grow at a healthy CAGR during the forecast period.
Global Electric Power Transmission and Distribution Equipment Market – By Sales Channel
Based on the sales channel, the indirect channel segment captured a significant share of the global electric power transmission and distribution equipment market in 2021. Under this segment, the commercial distribution segment is expected to hold a considerable share of the global market during the forecast period. As a result, the direct channel segment is estimated to grow at a healthy CAGR during the forecast period.
Global Electric Power Transmission and Distribution Equipment Market – By Region
Regionally, the Asia-Pacific region captured more than 50% of the global electric power transmission and distribution equipment market in 2021. The Asia-Pacific (APAC) region is a significant electric power transmission and distribution equipment market. The region is home to some of the world's largest and fastest-growing economies, including China, India, and Southeast Asia, which are driving the demand for electricity and the development of new transmission and distribution infrastructure. In addition, the market growth is driven by increasing electricity demand, expanding renewable energy sources, and developing smart grids.
Europe was the second-largest regional market worldwide in 2021 and is predicted to showcase a steady CAGR during the forecast period. The European electric power transmission and distribution equipment market is a promising regional market, with a strong focus on deploying advanced technologies and integrating renewable energy sources. In terms of market share, Germany is the largest market for electric power transmission and distribution equipment in Europe, followed by France and the United Kingdom. Other countries in the region, such as Italy, Spain, and the Netherlands, are also significant players in the market.
Global Electric Power Transmission and Distribution Equipment Market Key Players
Frequently Asked Questions
Between 2022 to 2027, the global electric power transmission and distribution equipment market is anticipated to grow at a healthy CAGR of 6.04%.
Growing demand for electricity, increasing adoption of technological advancements, and support from the governments are propelling the submarine optical fiber cables market growth.
The global electric power transmission and distribution equipment market is segmented by product into transformers, switchgear, insulators & fitters, cables & lines, and others.
APAC played a vital role in the global electric power transmission and distribution equipment market in 2021.
Companies such as ABB Ltd., Alstom SA, CG Power, and Industrial Solutions Limited, Eaton Corporation, EMCO Limited, General Electric, Hubbell Incorporated, Itron Incorporated, Kohler Company, Larsen & Toubro Limited, Mitsubishi Electric Corporation, Schneider Electric SE, Siemens AG, TBEA Co., Ltd are playing a leading role in the electric power transmission and distribution equipment market.
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