Industry: Energy & Utilities
Published Date: March-2025
Format: PPT*, PDF, EXCEL
Delivery Timelines: Contact Sales
Number of Pages: 182
Report ID: PMRREP33901
The global power grid market size is anticipated to reach a value of US$ 308.5 Mn in 2025 and is set to witness a CAGR of 5.2% from 2025 to 2032. The market will likely attain a value of US$ 439.9 Mn in 2032.
Imagine living in a society where every switch flick is a gamble- where towns go dark, factories halt manufacturing, and hospitals struggle to keep life-saving equipment running. This is the actual outcome of power grid failure, and it is not a dystopian fantasy.
Even developed countries are susceptible to grid failures, as evidenced by the 2021 grid collapse in Texas that resulted in hundreds of fatalities and billions of dollars in damages. Despite being one of the most complex and important systems in the world, the power grid is frequently overlooked- until something goes wrong.
Power grids are under tremendous pressure to upgrade as demand for electricity is predicted to increase by 25% worldwide by 2030. These are becoming more than simply a necessity. They are the cornerstone of a sustainable future as a result of the rise of renewable energy and smart grids, which is revolutionizing how the world distributes and uses electricity.
Key Highlights of the Power Grid Industry
|
Global Market Attributes |
Key Insights |
|
Power Grid Market Size (2025E) |
US$ 308.5 Mn |
|
Market Value Forecast (2032F) |
US$ 439.9 Mn |
|
Projected Growth (CAGR 2025 to 2032) |
5.2% |
|
Historical Market Growth (CAGR 2019 to 2024) |
4.3% |
Historical Period Saw Rise in Power Grid Investments While Renewable Energy Integration Faced Challenges
As per Persistence Market Research, in the historical period from 2019 to 2024, the global power grid industry witnessed a decent CAGR of around 4.3%. During this period, Asia Pacific emerged as a significant hub for grid investments, propelled by high energy demands.
Power consumption increased dramatically in the region as AI-related industries grew. Hence, leading corporations like Tokyo Electric Power Company Holdings announced their plans in August 2024 to invest more than US$ 3 Bn through 2027 in transmission infrastructure improvements. The goal of this strategic investment was to meet the energy-intensive requirements of AI technologies as well as the integration of renewable energy.
Existing power grids in specific countries, however, faced integration issues because of the rapid growth of renewable energy, especially solar and wind power. Due to a lack of grid capacity and storage options, around 10% of the U.K.’s projected wind power generation was reduced in 2023. Curtailments of nearly 30% were also seen in Northern Ireland, underscoring the urgent need for system modernization to effectively utilize renewable energy.
High Energy Consumption in Data Centers to Bolster Improvements in Power Grids through 2032
From 2025 to 2032, the power grid industry is likely to showcase a CAGR of 5.2%. Developments in cloud computing and artificial intelligence are set to boost growth of data centers, which is projected to propel electricity usage. Between 2023 and 2028, data centers are anticipated to be responsible for 44% of the rise in electrical loads in the U.S. alone. To fulfill the increasing demand, this surge is likely to require significant improvements in power grid capacity and dependability, thereby bolstering the market.
Due to the vast computational resources needed for AI training, prominent IT companies are likely to increase their investments in high-performance computing. For example,
Data centers are predicted to double their electricity usage by 2030, reaching 1,000 terawatt-hours (TWh) globally. It is due to the rapid growth of industries utilizing AI. As demand for electricity rises across such organizations, demand for upgraded power grids is anticipated to increase.
Growth Driver
Expansion of Offshore Wind Generation Capacity to Raise Investments in Grid Upgradation
Investments in the modernization of power grids are anticipated to rise in the foreseeable future with rapid expansion of offshore wind generation capacity. In Europe, Denmark and Germany have been at the forefront of developing High-Voltage Direct Current (HVDC) systems to maintain the transmission of long-distance power.
A €2.8 Bn interconnector between the U.K. and Germany called the NeuConnect project, for instance, is a notable example of how offshore wind is pushing grid upgrades and cross-border electricity trade. Similarly, the U.S. is planning to invest nearly US$ 1.2 Bn in offshore wind transmission with New Jersey and New York focusing on developing offshore wind hubs to route electricity to demand areas. The aforementioned initiatives are projected to positively influence the power grid industry through 2032.
Frequency Fluctuations and Instability Issues in Onshore Renewables May Hamper Demand
The power grid often faces intermittency issues as a result of onshore renewables, particularly solar and wind. In centralized power networks, maintaining steady frequency and voltage levels is increasingly difficult as more power is generated locally.
For example, power curtailments have resulted from grid frequency changes brought on by Texas's (ERCOT) rapidly expanding onshore wind and solar power, which accounted for about 40% of the state's electricity in 2023. The cost of operations has increased as utilities are now forced to invest billions in grid stability measures.
Increasing Deepwater Oil and Gas Exploration Activities to Create Growth Prospects
Rising deepwater oil and gas exploration activities are anticipated to create new opportunities for key players in the power grid market. Drilling, processing, and extraction operations on deepwater oil and gas platforms depend heavily on electricity. These platforms were previously powered by gas turbines, but a move toward grid electrification is opening new economic prospects.
With Equinor's Johan Sverdrup oil field powered entirely by onshore electricity via subsea cables, Norway is setting the standard by cutting carbon emissions by 90%. Power companies and cable manufacturers like ABB and Nexans set to benefit from this trend, which is increasing demand for subsea high-voltage transmission systems.
As deepwater fields are usually located hundreds of kilometers offshore, effective power transmission requires High-Voltage Direct Current (HVDC) technology. New contracts are being created for grid solution providers because of the surging use of HVDC systems. For example,
Component Insights
Transformers to Gain Traction as Need for Reliable and Uninterrupted Electricity Supply Surges
In the global power grid industry, the transformer segment is predicted to account for a share of 19.4% in 2025. Transformers are essential parts of electricity distribution and transmission, allowing power to flow safely and efficiently throughout the electrical system. As controlling voltage levels and maintaining grid stability are crucial given the rising demand for power, the transformer segment is anticipated to rise significantly.
On the other hand, the variable speed drive segment is predicted to witness a considerable CAGR through 2032. Increasing focus on energy economy and integration of cutting-edge technology into industrial processes are pushing the need for variable speed drives.
The components help control the speed of electric motors in accordance with the intended output, resulting in energy efficiency and sustainability. This is consistent with global efforts to encourage energy-efficient and sustainable activities.
Power Source Insights
Rising Sustainability Concerns and Demand for Efficiency to Boost Natural Gas Adoption
Natural gas is anticipated to hold a share of around 16.3% in 2025. It is considered a popular and relatively eco-friendly fossil fuel that strikes a balance between efficiency and environmental concerns. Its surging use in the production of electricity and its ability to meet baseload and peaking power demands is estimated to boost the segment.
It is projected that the renewable energy sector, which encompasses solar, wind, and hydropower, will develop at a fast pace in future. Increasing concern for sustainability and the global transition toward low-carbon energy sources are boosting the exponential rise of renewable energy capacities. Reduced costs and supportive government regulations have contributed to the rapid rise of renewable energy sources, positioning the segment as a focal point for future developments in the power generation industry.
Asia Pacific Power Grid Market
Power Grid Modernization in India and China to Transform Asia Pacific’s Energy Landscape
Asia Pacific is anticipated to hold around 29.5% of the power grid market share in 2025. In the region, India is set to be one of the fastest growing countries in terms of revenue.
India’s power grid is the backbone of its developing economy, supporting businesses, industries, and the daily lives of more than 1.4 Bn people. However, the country’s grid system faces significant challenges due to rising demand for electricity, increased integration of renewable energy, and need for a robust infrastructure.
To modernize India’s power infrastructure, for example, the Ministry of Power, led by Prime Minister Mr. Narendra Modi, introduced a US$ 109.50 Bn plan in September 2024 to enhance the country’s energy security and power grid. Mr. Manohar Lal, Union Minister of Power, also launched the National Electricity Plan 2023 to 2032.
It focuses on extending the country’s transmission network to make room for an estimated peak demand for 458 GW by 2032. Such initiatives in India are anticipated to ensure uninterrupted power supply across rural and urban areas, as well as extend renewable energy capacity.
China, on the other hand, continues to rely significantly on coal-fired power plants. However, to fulfill its climate goals and reduce its dependence on fuel imports, the country is constructing wind and solar power plants at a rapid pace.
The power grid is being overloaded by the new unstable generation, necessitating the installation of more power lines and energy storage devices. Demand for steel and copper may rise in tandem with increased investment in energy infrastructure. For example,
Europe Power Grid Market
Europe’s Power Networks Adapt as the U.K. Seeks Expansion and Germany Embraces Smart Grids
Europe will likely experience ups and downs in the field of power grids due to various challenges in countries like the U.K. Currently, the U.K. power grid is under growing pressure to expand and modernize to keep up with the changing energy landscape.
A robust power distribution network is significant as the U.K. speeds up its electrification and renewable energy transformation. The National Infrastructure Commission (NIC) estimates that the country may require up to US$ 63 Bn in power distribution upgrades by 2050, which is double the current investment rate. However, accomplishing this transition is projected to require significant expenditure.
By 2050, the U.K. is anticipated to require investments ranging from US$ 47 Bn to US$ 63 Bn, as a step change in funding is needed for local power networks in Great Britain. The investment is set to be essential in lowering long-term energy costs for consumers and fulfilling the government's growth mission.
In Germany, the scenario is completely different. Combining a variety of traditional and renewable energy sources, the country’s power grid is among the most sophisticated in the world. With new goals for cutting carbon emissions and raising the proportion of renewable energy in the generation of power, the country has been a global pioneer in the shift to clean energy.
Challenges with grid stability and efficiency, however, have emerged as a result of the move to decentralized energy generation and variable renewable energy sources like solar and wind. Hence, Germany has been investing in intelligent grid management systems and digitization to solve these challenges and guarantee a safe and dependable electricity supply.
In February 2025, for example, PSI Software AG and E.ON collaborated to implement an intelligent, standardized network control system to improve the sustainability, security, and efficiency of Germany’s energy distribution grid. The initiative is projected to be completed by 2029. An important step in updating the country’s energy infrastructure will be taken when it unifies the control systems across E.ON's grid companies.
North America Power Grid Market
U.S. and Canada Boost Power Grid Resilience with Investments in Clean Energy and Transmission
The power grid in North America is an interconnected and vast network, consistently adjusting in real time to balance demand and supply. Millions of miles of transmission lines, thousands of power plants, and a wide variety of energy sources must all maintain the delicate balance of producing and consuming electricity at the same time.
Its biggest challenge to date is adjusting to a world that is electrifying at a rapid rate while reducing emissions as demand increases, extreme weather worsens, and new technologies transform how much power is used. North America is seeking to extend its ultra-high-voltage transmission networks to close the gap between renewable energy sources and the rising demand for power. The U.S. power grid market is showcasing developments in terms of capacity expansions.
The U.S. Energy Information Administration, for example, anticipates the addition of 63 gigawatts (GW) of new utility-scale electric-generating capacity to the U.S. power grid in 2025. Compared to 2024, when 48.6 GW of capacity was installed, this amount represents about 30% increase. Nearly 81% of the anticipated total capacity additions are made up of solar and battery storage, with solar accounting for more than 50% of the growth.
On the other hand, Canada is witnessing the implementation of several grid modernization plans. SaskPower, in May 2024, planned to invest US$ 1.6 Bn in the provincial electricity system from 2024 to 2025 for grid upgrades and maintenance, smart meter installations, growth projects, and new generation.
Compared to 2023 to 2024, the capital investment represents a US$ 433 Mn increase. The government's dedication to a thriving economy and resilient communities driven by dependable, renewable electricity is demonstrated by this record investment.
The global market for power grids is anticipated to see the approval of several new projects to enhance grid reliability and capacity in various countries. A few industry giants are also collaborating to gain each other’s expertise for initiating grid enhancement projects. The market is further projected to witness the introduction of smart grids and blockchain-based energy transactions.
A handful of companies are anticipated to invest huge sums in grid automation, real-time monitoring, and digital transformation to remain at the forefront. GE and Siemens, for example, are conducting research on AI-backed predictive maintenance, whereas Tesla is striving to integrate battery storage solutions into power grids to reduce reliance on conventional power generation.
Key Industry Developments
|
Report Attributes |
Details |
|
Historical Data/Actuals |
2019 - 2024 |
|
Forecast Period |
2025 - 2032 |
|
Market Analysis Units |
Value: US$ Bn/Mn, Volume: As applicable |
|
Geographical Coverage |
|
|
Segmental Coverage |
|
|
Competitive Analysis |
|
|
Report Highlights |
|
|
Customization and Pricing |
Available upon request |
By Component
By Power Source
By Application
By Region
To know more about delivery timeline for this report Contact Sales
The market is set to reach US$ 308.5 Mn in 2025.
The industry will likely be valued at US$ 439.9 Mn in 2032.
The industry is set to surge at a CAGR of 5.2% through 2032.
ABB, Siemens Energy, and General Electric are a few key players.
Increasing need for reliable and uninterrupted power supply across the globe is anticipated to spur demand.
