Electric Power Transmission and Distribution Equipment Market - Regional Analysis
APAC Market Insights
Asia Pacific industry is estimated to dominate majority revenue share of 52.6% by 2035. The market’s growth in APAC is attributed to large-scale urbanization and increasing demands for electricity. Numerous national governments in APAC countries are investing in smart cities and smart grids, necessitating transmission and distribution equipment. For instance, the United Nations estimated Tokyo to be the world’s largest city with 37 million residents, followed by New Delhi, and Shanghai. The high population density and increasing disposable income in these urban centers are boosting demands for electricity, which correlates with the growth of the electric power and distribution equipment sector.
China holds the largest share in the APAC electric power transmission and distribution equipment market sector. The growth is attributed to large-scale projects in the country necessitating distribution and transmission equipment and a robust domestic supply chain. For instance, the Observatory of Economic Complexity reported China to be the top exporter of electrical machinery and equipment in 2022 with an estimated USD 1.1 trillion in exports. Additionally, China dominates the global supply chain of solar equipment and has increased the proportion of solar infrastructure in the country, boosting demand for equipment. Government investments in grid modernization activities such as ultra-high voltage (UHV) transmission lines have positioned to country to provide lucrative opportunities in the market. For instance, in September 2024, China announced the completion of the 750 kV ultra-high voltage (UHV) power transmission project in the Xinjiang Uyghur autonomous region.
India is poised to increase its revenue share in the APAC market by the end of the forecast period. A key growth driver of the electric power transmission and distribution equipment market of India is the government's push to increase renewable energy capacity. For instance, in April 2023, the government declared plans to add 50 GW of renewable energy capacity annually for the next 5 years to reach 500 GW by 2030 and invite bids from FY 2023-24 to FY 2027-28. This allows companies to leverage opportunities and supply equipment to support the country’s push to build a robust renewable energy infrastructure. Additionally, the energy transition of the country provides lucrative opportunities to businesses as the sheer size of the infrastructure that needs to be modernized is considerably large. For instance, in February 2024, GE Vernova announced that it had secured orders worth multi-million dollars from the Power Grid Corporation of India (PGCIL) to supply 765 kV shunt reactors for various transmission projects in the country.
North America Market Insights
The North America market is projected to register the fastest growth in the electric power transmission and distribution equipment market. The rapid growth is attributed to large-scale investments in grid modernization led by the U.S. and Canada. A major driver is the growing investments in offshore wind and solar farms that necessitate high-voltage equipment such as transformers and switchgear. Additionally, the adoption of smart transformers in power grids is soaring leading to a surge in demand for equipment. The electric power transmission and distribution equipment sector is positioned to benefit from the push for grid resilience in North America owing to the prevalence of hurricanes, and it has increased demands for robust energy systems and underground cables that can withstand harsh conditions.
The U.S. leads the market share in the electric power transmission and distribution equipment market of North America. The OEC reported that in 2022, the U.S. accounted for USD 181 billion in exports and USD 449 billion worth of imports of electronics. The high rate of imports is owed to the large-scale use of grid modernization projects in the country as well as building a robust renewable power infrastructure. For instance, in October 2024, the government announced an additional USD 2 billion to improve grid protection against extreme weather conditions and expand transmission which is set to benefit 38 projects across 42 states to upgrade around 1000 miles of transmission and increase grid capacity. The favorable trends are poised to increase the profit share of the market in the U.S.
Canada is projected to register rapid growth in the electric power transmission and distribution equipment market and increase its revenue share by the end of the forecast period. The growth is due to a favorable regulatory environment that allows businesses to invest in building a robust renewable energy infrastructure. For instance, in October 2024, the government announced USD 500 million in additional funding for a clean electricity program to support local utilities and system operators that are working to clean their electricity. Businesses are leveraging the favorable regulatory ecosystem in Canada to improve their manufacturing facilities. For instance, in July 2024, Hitachi Energy announced that the local government invested around USD 22.8 million in the Hitachi Energy HVDC simulation center and transformer factory modernization.
