Power Transmission Component Market Size

Market Size Snapshot

Note – Market size depicts the revenue generated over the financial year

The global market for power transmission components is set to grow rapidly, with a market size of $ 79.45 billion in 2024 rising to $ 123.50 billion by 2032. This growth represents a compound annual growth rate (CAGR) of 5.67% for the period from 2024 to 2032. The increasing demand for energy transmission systems and the growing investments in the power grid are the main drivers of this market. In addition, the growing efficiency of industrial processes and the reduction of energy losses are accelerating the adoption of advanced power transmission components. Further driving the market are the technological advancements such as smart grid solutions and the development of high-efficiency power transmission components. ABB, GE, and Siemens are the key players in this market. These companies are enhancing their product offerings through strategic acquisitions and new product launches. Recent collaborations for the development of next-generation transmission systems are an indication of the industry’s commitment to meeting the growing energy demand. These strategic initiatives will play a crucial role in shaping the future of the power transmission components market.

Regional Market Size

Regional Deep Dive

The Power Transmission Components Market is experiencing considerable growth across regions, driven by the increasing demand for energy, technological advancements, and the shift towards renewable energy sources. Each region has its own distinctive characteristics, which are influenced by the local economic environment, government regulations, and technological innovations. The market is characterized by the need for efficient power distribution systems, the aging of the existing grids, and the increasing importance of smart grids in order to enhance the reliability and efficiency of power transmission.

Europe

• Europe is at the forefront of adopting renewable energy sources, with the European Union's Green Deal pushing for significant investments in power transmission infrastructure to support the transition to a carbon-neutral economy by 2050.
• The companies ABB and Schneider Electric are making great strides in the development of HVDC, which is crucial for the connection of offshore wind farms to the mainland and thus the efficiency of power transmission in the region.

Asia Pacific

• The Asia-Pacific region is experiencing rapid urbanization and industrialization, leading to increased electricity demand, particularly in countries like China and India, which are investing heavily in modernizing their power transmission networks.
• India’s National Smart Grid Mission is a government-led effort to promote the installation of smart grids and advanced components that will significantly improve the efficiency and reliability of the power grid.

Latin America

• Latin America is focusing on renewable energy integration, with countries like Brazil and Chile leading the way in developing power transmission infrastructure to support their growing renewable energy sectors.
• Regulatory frameworks are evolving, with initiatives such as Brazil's New Energy Model promoting investments in transmission networks, which are crucial for connecting remote renewable energy sources to urban centers.

North America

• In the United States and Canada, a strong movement is being seen in the field of smart grids. General Electric and Siemens are at the forefront of developing new power transmission solutions, which increase the reliability and efficiency of the grid.
• Regulations, such as the measures taken by the Federal Energy Regulatory Commission (FERC) to encourage the integration of renewable energy sources, are driving the demand for new components for electricity transmission, especially in the context of the transition to a low-carbon economy.

Middle East And Africa

• In the Middle East and Africa, the market is driven by the need for reliable power supply in rapidly growing urban areas, with countries like Saudi Arabia investing in large-scale power transmission projects to support their Vision 2030 initiatives.
• The African Development Bank is funding various projects aimed at enhancing regional power transmission capabilities, which is expected to facilitate cross-border electricity trade and improve energy access across the continent.

Did You Know?

“Did you know that approximately 30% of electricity generated globally is lost during transmission and distribution due to inefficiencies in the power grid?” — International Energy Agency (IEA)

Segmental Market Size

The market for power transmission components is currently experiencing a period of sustained growth. The market is being driven by increasing demand for the transmission of electricity, and by the transition to renewable energy sources. This market is also being influenced by the need for more reliable infrastructure in the developing economies, and by stringent regulations aimed at reducing CO2 emissions. Technological developments in smart grid solutions are also improving the efficiency of power transmission systems. The market for power transmission components is currently in the stage of mass implementation, with companies such as Siemens and General Electric at the forefront of innovation. North America and Europe are at the forefront in the implementation of advanced grid solutions. The most important applications are in the field of high-voltage power transmission and substations, which are essential in integrating the electricity generated by renewable sources such as wind and solar. These applications are also influenced by trends such as the drive for sustainable development and decarbonization, while the Internet of Things and artificial intelligence are shaping the development of the market by enabling remote monitoring and the use of data for predictive maintenance.

Future Outlook

In the year 2032 the market is expected to grow from a turnover of 69,8 billion to 97,6 billion, a yearly increase of 11,000 million, and a compound annual growth rate of 6%. This growth is mainly due to the increasing demand for energy-efficient energy-transfer systems, caused by the growing importance of renewable energy sources and the modernization of the existing grid. The countries are striving to meet their carbon-reduction goals, which will lead to an increased investment in components for the integration of the energy from the sun and the wind into the grid. Besides that, a number of technological developments, such as the development of smart grids and high-voltage direct current (HVDC) systems, are expected to change the energy-transfer sector. These innovations will not only increase the efficiency and the reliability of the energy transfer, but will also reduce the transmission losses, which makes them essential for the transition to a sustainable energy system. Also, the favourable government policies to promote the use of renewable energy sources will lead to a further increase in the market. Also, the increasing use of energy-storage systems and the development of decentralized energy systems will play an important role in the future of the market and ensure that it will remain dynamic and responsive to the changing energy-transfer landscape.