Market Size and Overview:

In 2023, the Global Power Transmission Equipment Market achieved a value of USD 229 billion, with a projected expansion to USD 342.06 billion by 2030. Forecasts for the period spanning 2024 to 2030 indicate a compound annual growth rate (CAGR) of 5.9%. Transmission networks, facilitating the movement of electrical energy through interconnected lines, constitute a vital component of electric transmission systems. Ongoing advancements in transmission and distribution equipment aim to meet future power grid requirements. Recent trends in the energy industry emphasize renewable sources to meet growing power demands. As infrastructure development in residential and commercial sectors progresses, the need for electric power transmission and distribution equipment will correspondingly increase. Additionally, global technological advancements are expected to drive demand for this equipment.

Key Market Insights:

The Edison Electric Institute (EEI) predicts annual electric vehicle sales in the USA to surpass 1.2 million by 2025, with electric vehicles projected to account for 9% of global electricity demand by 2050. This trend is anticipated to extend the demand for electric power transmission, control, and distribution equipment. Moreover, data from the International Energy Agency highlights a 1.1% year-to-date increase in Colombia's total net electricity production in June 2023, underscoring the growing demand for electric power transmission, control, and distribution equipment globally. Furthermore, advancements in materials science have led to more efficient and durable transmission lines and equipment, augmented by the integration of IoT, AI, and Big Data analytics in grid operations.

Global Power Transmission Equipment Market Drivers:

Growing urbanization drives the market for electric transmission and distribution equipment

Rapid urbanization and the increasing demand for smart appliances globally are driving the growth of the electric transmission and distribution equipment market. Urbanization, industrialization, and commercial expansion contribute to this demand, along with the need for technologically advanced electrical equipment for smart infrastructure. Additionally, rising disposable incomes and the digitization of lifestyles positively influence market growth.

Global Power Transmission Equipment Market Restraints and Challenges:

Despite the advantages of electrical power transmission and distribution equipment, several factors hinder market growth. The high initial investment in grid materials and installation, including security devices like transformers and overhead components, poses a challenge. Additionally, the need for relay systems, circuit breakers, and contractors for safety exacerbates installation costs, potentially limiting market expansion.

Global Power Transmission Equipment Market Opportunities:

Renewable energy presents a significant opportunity for market growth, driven by increasing awareness of global warming and the transition towards emission-free energy sources. Adoption of renewable energy, including wind, solar, geothermal, and biomass, reduces reliance on fossil fuels and lowers electricity costs. As many countries prioritize renewable energy, the demand for electric power transmission and distribution equipment is expected to rise, presenting ample opportunities for market expansion.

Global Power Transmission Equipment Market Segmentation:

By-Products

• Transformer
• Power Transformer
• Distribution Transformer
• Switchgear
• Circuit Breaker
• Fuse
• Distribution Control Panel
• Others
• Insulators & Fittings
• Cables & Lines
• Others

The segment of Cables and Lines demonstrated the highest market revenue in the year 2023. This growth is attributed to the expansion of smart grid infrastructure, power distribution networks, and advancements in power transmission technology. Cables, due to their insulation, offer a distinct advantage over bare overhead conductors, ensuring a relative level of safety. Flexible power cables find applications in portable machinery, equipment, and electronics. When designing and manufacturing these cables, factors such as rated voltage, current capacity, maximum working temperature, and intended usage by the customer are all carefully considered.

The Transformer segment is poised to increase its market share during the forecast period. This growth is fueled by the rapid pace of urbanization and industrial development worldwide. Transformers play a crucial role in altering current for efficient power transmission and distribution, controlling voltage levels. Initially designed to maintain a balance between electricity generated at high voltages and its consumption at lower voltages, transformers find applications across various industries, including electrical energy transmission and power grid infrastructure.

By Sales Channel

• Indirect Channel
• Commercial Distribution
• Catalog Distribution
• Retail Box Stores
• E-commerce
• Direct Channel

The Indirect Sales Channel emerged as the market leader with the largest share in 2023. This segment is experiencing growth due to the increasing number of end-users, including commercial enterprises, catalog distributors, and e-commerce platforms. Within the indirect sales channel, commercial distribution held the largest portion of market development. The rising commercial activities in urban centers of countries such as the United States, Canada, India, and China are driving the market demand. Additionally, the growth of the e-commerce industry is contributing to market expansion.

The Direct Sales Channel is forecasted to witness significant growth during the projected period. The segment's demand is being propelled by consumers seeking personalized interactions and validation of product quality throughout the product lifecycle.

By Region:

• North America
• Asia-Pacific
• Europe
• South America
• Middle East and Africa

Asia-Pacific dominated the market with the highest revenue share in 2023 and is expected to continue this trend throughout the forecast period. The region's continued dominance is attributed to ongoing industrialization and commercial development worldwide. Factors such as population growth, improving standards of living, and increased disposable income are driving the demand for smart homes, appliances, and offices, consequently boosting the growth of the electric power transmission and distribution equipment market.

North America commands a significant market share in the electric power transmission and distribution equipment market. The region's early and rapid adoption of technology has led to market advancements. Furthermore, the increasing use of renewable energy sources for electricity generation is propelling market growth. Investments in electric power transmission and distribution equipment, coupled with the presence of key industry players, are expected to drive further market development in the region.

COVID-19 Impact Analysis on the Global Power Transmission Equipment Market:

The electric transmission and distribution equipment market experienced a decline in market value due to the impact of the COVID-19 pandemic. The global economic slowdown resulting from the pandemic affected the development of the electric transmission and distribution equipment market. Lockdown measures disrupted supply chains and raw material availability, impacting the manufacturing of transmission and distribution equipment. While industries and commercial sectors faced reduced demand due to lockdowns, the residential segment witnessed an increase in energy demand as people adhered to social distancing measures at home. This presents an opportunity for the electric transmission and distribution equipment market to expand its presence in the residential sector. As most nations lift lockdown restrictions, the market is expected to witness accelerated growth due to increased demand.

Latest Trends:

• SCADA Systems Revolutionizing the Relay and Industrial Control Industry

The relay and industrial control industry is increasingly embracing SCADA (Supervisory Control and Data Acquisition) systems to enhance process efficiency and productivity. SCADA systems enable remote monitoring of industrial processes such as power generation, manufacturing, and refining through coded signals transmitted over cloud networks. The adoption of SCADA systems is expected to rise, driven by factors such as scalability, ease of upgrades, the emergence of global smart grid initiatives, and the widespread use of cloud technologies. Additionally, the market benefits from the growing demand for energy and renewable energy projects. For instance, in May 2022, Electronics Corporation of India Limited (ECIL), a government-owned company, introduced programmable logic controllers (PLC) and SCADA software. The introduction of PLC and SCADA software is expected to boost the adoption of automation and controls across various industries, enhancing the efficiency and reliability of industrial processes through real-time monitoring and control.

• Increasing Focus on Product Innovations

Leading companies in the power generation, transmission, and control equipment market are emphasizing innovative products such as mainspring linear generators to offer reliable services to their customers. A linear generator is a type of electrical generator that directly converts mechanical energy, particularly linear motion, into electrical energy. The Mainspring Linear Generator utilizes a low-temperature, uniform reaction process that maintains peak temperatures below levels where NOx emissions form (1500°C), resulting in near-zero NOx emissions.

Key Players:

1. ABB Ltd.
2. Mitsubishi Electric
3. Larsen & Toubro
4. Schneider Electric
5. Siemens
6. Kirloskar Group
7. Eaton
8. Engine
9. Bharat Heavy Electricals Limited (BHEL)
10. EDF

Recent Developments:

• In May 2023, India's largest electric power transmission company, "Powergrid," partnered with Safdarjung Hospital and VMMC, signing a Memorandum of Understanding (MoU) to provide medical equipment for urology cancer patients. The agreement aims to offer financial support to Safdarjung Hospital and VMMC, enabling them to acquire advanced medical equipment.

• In May 2023, researchers from Oregon State University highlighted the potential for smart meters to destabilize the electric grid. Smart meters are digital devices that collect information on power consumption and transmit it to utility providers through communication networks.

• In May 2023, TotalEnergies launched Europe's first and largest battery energy storage project. The project, slated to be operational by the end of the following year, will utilize 40 Intensium Max High Energy lithium-ion containers from TotalEnergies' subsidiary, Saft.

• In May 2023, Schneider Electric, a market leader in energy automation and management, announced the release of the 'EvoPact' circuit breaker for its medium-voltage equipment.