The global power transmission and distribution market is evolving rapidly, driven by renewable energy integration, grid modernization, and cross-border electricity trade, with significant investments in advanced technologies and infrastructure upgrade.
New Delhi, Feb. 11, 2025 (GLOBE NEWSWIRE) — The global power transmission and distribution market was valued at US$ 325.15 billion in 2024 and is expected to reach US$ 454.84 billion by 2033, growing at a CAGR of 3.8% during the forecast period 2025–2033.
The global power transmission and distribution (T&D) market is undergoing significant transformation, driven by the increasing demand for electricity, the integration of renewable energy sources, and the need for grid modernization. This growth is fueled by the rapid adoption of advanced technologies, such as high-voltage direct current (HVDC) and flexible AC transmission systems (FACTS), which enable efficient long-distance electricity transmission. The U.S. power transmission and distribution market, valued at USD 82.96 billion in 2022, is expected to grow at a CAGR of 2.95% during the forecast period. Investor-owned electric companies in the U.S. invested US$ 30.0 billion in transmission infrastructure in 2023, reflecting the importance of modernizing the grid to meet future demands.
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Asia Pacific dominates the global market, accounting for 41.98% of the market share in 2024, with China leading the way in ultra-high voltage (UHV) projects. The global T&D landscape is also being shaped by initiatives like the Biden administration’s Federal-State Modern Grid Deployment Initiative, which aims to accelerate the deployment of modern grid technologies. As the world transitions to a more sustainable energy future, the power transmission and distribution market will play a critical role in ensuring the reliability, efficiency, and resilience of the grid. This article delves into the key aspects of the market, including investment trends, capacity expansion, major players, and technological advancements.
Key Findings in Power Transmission and Distribution Market
| Market Forecast (2033) | US$ 454.84 billion |
| CAGR | 3.8% |
| Largest Region (2024) | Asia Pacific (41%) |
| By Asset | Transmission Lines (61%) |
| By End Users | Electric Utility (58%) |
| Top Drivers |
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| Top Trends |
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| Top Challenges |
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Capacity Expansion and Grid Modernization to Having Positive Impact on Market Growth
The global power transmission and distribution market is undergoing significant capacity expansion to meet the growing demand for electricity. The U.S. transmission system, which currently consists of over half a million miles of transmission lines, may need to double in size by 2050. The Brattle Group reports that the U.S. needs to add approximately 8,000 miles of transmission lines annually to keep pace with demand. This expansion is particularly important in the central U.S. wind belt, where the largest transmission expansions are expected.
Advanced technologies like Dynamic Line Ratings (DLR) are playing a crucial role in increasing the capacity of existing infrastructure, with the potential to boost capacity by up to 40%. The integration of renewable energy sources into the grid is also driving the need for grid modernization. The Department of Energy Office of Electricity is developing a data strategy for the U.S. power sector, while the Pacific Northwest National Laboratory is working on tools to integrate renewable energy into grid systems. These efforts are essential to ensuring the grid can handle the increased load from renewable energy sources and maintain reliability.
Technological Advancements in Power Transmission and Distribution
Technological advancements are transforming the power transmission and distribution market, enabling more efficient and resilient grids. The adoption of high-voltage direct current (HVDC) and flexible AC transmission systems (FACTS) is facilitating efficient long-distance electricity transmission. Smart grids and digitalization are also playing a key role in modernizing the traditional T&D infrastructure. The use of digital technologies and the Internet of Things (IoT) in power distribution is on the rise, enhancing the efficiency and reliability of the grid.
Grid-Enhancing Technologies (GETs) have the potential to significantly improve grid performance, but their adoption has been hindered by a lack of rigorous, independent testing and data availability. The U.S. Department of Energy is actively involved in projects to demonstrate the benefits of GETs, which could pave the way for wider adoption. Innovations such as microgrids and distributed energy resources (DERs) are also enhancing the efficiency and resilience of power distribution infrastructures, making them more adaptable to the changing energy landscape.
Major Players and Their Vision in the Power Transmission and Distribution Market
The power transmission and distribution market is dominated by several major players, each with a unique vision for the future of the industry. ABB Ltd., a leading global technology company, is focused on developing sustainable energy solutions. Siemens AG, one of the largest producers of energy-efficient technologies, is committed to resource-saving innovations. General Electric Company (GE) is a major player in the T&D industry, with a focus on digital solutions for grid modernization.
Hitachi Energy Ltd. (formerly Hitachi ABB Power Grids) is a global technology leader in sustainable energy solutions, while Schneider Electric SE specializes in digital automation and energy management. Eaton Corporation PLC provides energy-efficient solutions for electrical, hydraulic, and mechanical power management. Tata Power, one of the largest integrated power companies in India, is focused on expanding its renewable energy portfolio. These companies are driving innovation in the T&D market, helping to shape the future of the global energy landscape.
Global Initiatives and Projects in Power Transmission and Distribution Market
Global initiatives and projects are playing a critical role in the development of the power transmission and distribution market. The Biden administration launched the Federal-State Modern Grid Deployment Initiative in collaboration with 21 states, aiming to accelerate the deployment of modern grid technologies. China’s State Grid Corporation (SGCC) commissioned the Zhundong Anhui South ±1,100-kV DC project, spanning 3,304.7 kilometers, as part of its efforts to reduce coal consumption and air pollution.
The UK is implementing a new two-step offer process for grid connections to accelerate the integration of clean energy projects. The Ethiopia-Kenya Power Systems Interconnection Project aims to facilitate electricity exchange between the two countries, enhancing regional energy security. These initiatives and projects are essential to addressing the challenges of the global energy transition, ensuring that the power transmission and distribution infrastructure can support the increasing demand for electricity and the integration of renewable energy sources.
Impact of Solar Power Capacity Expansion on Power Transmission and Distribution Market
The rapid expansion of solar power capacity is significantly impacting the demand for power transmission and distribution (T&D) infrastructure. As solar installations grow, the need for efficient and upgraded T&D systems becomes critical to handle the variable and decentralized nature of solar energy. In 2024, the U.S. added over 32 GW of solar capacity, pushing the total installed capacity to more than 200 GW. This surge has led to increased stress on existing grids, particularly in regions with high solar penetration, such as California and Texas, where grid operators are grappling with managing peak solar generation during midday hours.
The integration of solar power into the grid requires advanced technologies like dynamic line rating (DLR) and flexible AC transmission systems (FACTS) to optimize power flow and reduce congestion. For instance, California’s grid operator, CAISO, has invested in DLR systems to increase the capacity of existing transmission lines by up to 40%, addressing the challenges posed by solar variability. Additionally, the U.S. Department of Energy has allocated $2.5 billion in funding for grid modernization projects, focusing on enhancing grid resilience and integrating renewable energy sources like solar. These investments are crucial as solar power generation often exceeds local demand, necessitating long-distance transmission to areas with higher electricity consumption.
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Solar Expansion Driving T&D Upgrades and Decentralization
The decentralization of solar power generation, particularly through rooftop solar installations, is reshaping the traditional power transmission and distribution market landscape. In 2024, over 5 million U.S. households have installed rooftop solar, contributing to the need for upgraded distribution networks to manage bidirectional power flows. Utilities are increasingly deploying smart grid technologies, including advanced metering infrastructure (AMI) and distributed energy resource management systems (DERMS), to efficiently integrate rooftop solar into the grid. For example, New York’s Reforming the Energy Vision (REV) initiative has invested $1 billion in smart grid technologies to support the growing number of distributed solar installations.
Moreover, large-scale solar projects, such as the 2.7 GW Gemini Solar Project in Nevada, are driving the need for new high-voltage transmission lines to connect remote solar farms to urban centers. The project is expected to require over 200 miles of new transmission infrastructure, highlighting the significant T&D investments needed to support solar expansion. In Europe, Germany’s Energiewende policy has led to the construction of over 1,000 km of new transmission lines to transport solar energy from the sunny south to industrial hubs in the north. These developments underscore the critical role of T&D infrastructure in enabling the global transition to solar energy and ensuring grid stability in the face of increasing renewable generation.
Global Power Transmission and Distribution Market Major Players:
- American Electric Power Company, Inc.
- Dominion Energy, Inc.
- Duke Energy Corporation
- E.ON SE
- Enel SpA
- National Grid plc
- NextEra Energy, Inc.
- Power Grid Corporation of India
- State Grid Corporation of China
- Tokyo Electric Power Company Holdings
- Other Prominent Players
Key Segmentation:
By Asset
- Transmission Line
- Distribution Line
By End User
- Electric Utility
- Industrial
- Renewables
By Region
- North America
- Europe
- Asia Pacific
- Middle East & Africa
- South America
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