Electric Transmission and Distribution Equipment Market - Global Industry Size, Share, Trends, Opportunity, and Forecast, 2021-2031

The Global Electric Transmission and Distribution Equipment Market is projected to expand from USD 200.56 Billion in 2025 to USD 282.73 Billion by 2031, reflecting a CAGR of 5.89%. This sector comprises a broad spectrum of high, medium, and low-voltage hardware essential for conveying power from generation sites to final consumers, encompassing components such as switchgear, transformers, cables, and circuit breakers. Market expansion is chiefly driven by the critical global need to incorporate renewable energy resources into established grids and the requirement to renovate obsolete infrastructure to facilitate broad electrification. Furthermore, escalating electricity consumption arising from the growth of industrial automation and data centers provides additional motivation for utilities to modernize grid capacities to maintain efficiency and reliability.

Despite this upward trajectory, the industry encounters notable obstacles regarding supply chain bottlenecks and high financing costs which threaten to delay project schedules. As reported by the International Energy Agency, global investment in electricity grids was anticipated to hit USD 400 billion in 2024, spurred by favorable policies in leading economies. Nevertheless, ongoing deficits in essential components, particularly large power transformers, persist as a significant barrier to the rate of market growth and the punctual completion of grid modernization initiatives.

Market Drivers

Rising global electricity consumption serves as a primary catalyst for the Electric Transmission and Distribution Equipment Market, creating an urgent need for infrastructure strengthening. This increase is amplified by the widespread adoption of electric vehicles, the electrification of heating systems, and the growth of energy-intensive data centers powering artificial intelligence.

As load demands escalate, utility companies are compelled to acquire sophisticated switchgear and transformers to uphold system stability and avert outages, thereby directly increasing equipment sales. According to the International Energy Agency's 'Electricity 2024' report released in January 2024, global electricity demand was projected to increase by 4% in 2024, marking the fastest growth rate since 2007, barring the post-pandemic recovery. Consequently, manufacturers are seeing a rise in orders to sustain this load expansion and guarantee reliable power distribution to residential and industrial users.

The incorporation of renewable energy further quickens market momentum by necessitating substantial grid updates to handle variable generation sources. Wind and solar farms, frequently located in remote areas, require new high-voltage transmission lines and upgraded substations to effectively move energy to populated regions. This shift creates an urgent demand for hardware designed to control voltage fluctuations and manage bidirectional power flows.

As noted by Lawrence Berkeley National Laboratory in their April 2024 'Queued Up' report, nearly 2,600 gigawatts of storage and generation capacity were actively seeking grid interconnection in the United States by late 2023. To back these modernization endeavors, substantial capital is being mobilized by both private and public sectors; for instance, the U.S. Department of Energy announced a direct investment of USD 2.2 billion in 2024 across eight projects intended to integrate clean energy and expand grid capacity.

Market Challenges

Supply chain limitations, specifically the severe scarcity of vital components like transformers, present a major obstacle to the Global Electric Transmission and Distribution Equipment Market's development. This bottleneck causes a significant gap between the rising need for grid modernization and the industry's capacity to supply necessary hardware. Manufacturers struggle to obtain raw materials such as grain-oriented electrical steel and lack the manufacturing bandwidth to meet utility demands. As a result, these logistical difficulties compel network operators to delay infrastructure improvements and the integration of renewable energy projects, thereby directly constraining market growth.

The severity of these disruptions is highlighted by drastically extended procurement schedules, which add complexity to capital planning for utilities. According to the National Rural Electric Cooperative Association, the average lead time for ordering and receiving new distribution transformers extended to roughly two years in 2024. Such extreme delays not only drive up project expenses but also hinder the timely energization of industrial facilities and new housing developments. The failure to acquire this essential equipment on a reliable timeline substantially impairs the sector's operational efficiency and retards the overall progress of global electrification initiatives.

Market Trends

The trend towards submarine and underground cabling solutions is transforming the market as utilities focus on enhancing grid resilience against severe weather conditions and reducing the visual footprint of infrastructure. This strategy is gaining favor for long-distance interconnectors that enable cross-border energy trading and the linking of isolated grids, successfully avoiding the environmental objections often raised against standard overhead lines. Illustrating this shift, Prysmian Group announced in an August 2024 press release regarding the 'Marinus Link' project that it had won a contract valued at €600 million to provide high-voltage direct current cables to link Tasmania and Victoria. This development highlights a strategic commitment to hardening transmission networks while guaranteeing consistent power supply across difficult geographic landscapes.

Concurrently, there is a significant surge in the implementation of advanced grid technologies, specifically High-Voltage Direct Current (HVDC) systems, which are engineered to minimize transmission losses and control complex load flows over long distances. This technological shift is essential for operators striving to stabilize networks that increasingly rely on variable renewable inputs and remote offshore wind resources. The industrial scaling of these systems is clearly visible in the financial results of leading equipment producers. For instance, in its 'Earnings Release Q4 FY 2024' from November 2024, Siemens Energy reported that its Grid Technologies business segment realized a comparable revenue increase of 32.2% for the fiscal year, emphasizing the swift global uptake of these advanced transmission solutions.

Key Players Profiled in the Electric Transmission and Distribution Equipment Market

• ABB Ltd.
• Siemens AG
• General Electric Company
• Schneider Electric SE
• Eaton Corporation PLC
• Mitsubishi Electric Corporation
• Hyundai Electric & Energy Systems Co., Ltd.
• Crompton Greaves Consumer Electricals Limited
• Toshiba Corporation
• TBEA Co.

Report Scope

In this report, the Global Electric Transmission and Distribution Equipment Market has been segmented into the following categories:

Electric Transmission and Distribution Equipment Market, by Equipment:

• Wire & Cable
• Switchgear
• Transformer
• Meter
• Insulator & Capacitor

Electric Transmission and Distribution Equipment Market, by Product:

• Transformer
• Switchgear
• Insulators & Fittings
• Cables & Lines

Electric Transmission and Distribution Equipment Market, by End User:

• Energy & Utilities
• Industrial
• Commercial
• Residential

Electric Transmission and Distribution Equipment Market, by Region:

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

Competitive Landscape

Company Profiles: Detailed analysis of the major companies present in the Global Electric Transmission and Distribution Equipment Market.

Available Customization

The analyst offers customization according to your specific needs. The following customization options are available for the report:

• Detailed analysis and profiling of additional market players (up to five).

This product will be delivered within 1-3 business days.