Electrical Grid Market Size, Share & Trends Analysis growing at a CAGR of 5.6% from 2024 to 2030
The global electrical grid market size was estimated at USD 268,266.1 million in 2023 and is projected to reach USD 390,973.9 million by 2030, growing at a CAGR of 5.6% from 2024 to 2030. Increasing demand for electricity globally, supported by rapid urbanization and industrialization, is expected to drive the market over the coming years.
Key Market Trends & Insights
- In terms of region, Asia Pacific was the largest revenue generating market in 2023.
- In terms of segment, natural gas accounted for a revenue of USD 268,266.1 million in 2023.
- Natural Gas is the most lucrative source segment, registering the fastest growth during the forecast period.
Market Size & Forecast
- 2023 Market Size: USD 268,266.1 Million
- 2030 Projected Market Size: USD 390,973.9 Million
- CAGR (2024-2030): 5.6%
- Asia Pacific: Largest market in 2023
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With the rising population and expansion of economies, the need for reliable and efficient electricity supply is expected to grow, pushing investments and developments in electrical grid infrastructure to ensure stability and meet the growing consumption demands. For instance, as reported by the Observer Research Foundation, India’s population is likely to grow from 1.4 billion in 2023 to 2 billion by 2050.
Drivers, Opportunities & Restraints
The growing adoption of renewable energy sources is likely to remain a contributing factor to market growth. With a global shift towards sustainable and clean energy, there is a growing requirement to integrate solar, wind, and hydro energy into the existing grid. This integration requires advancements in grid technology and infrastructure to manage the variable and decentralized nature of renewable energy sources, thus driving market growth.
A significant restraint in the electrical grid market is the high cost of upgrading and maintaining grid infrastructure. Upgrade of aging electrical grids to handle contemporary demands and the integration of renewable energy sources requires substantial investment. This financial challenge can slow down upgrades and expansions, particularly in regions with limited economic resources.
However, the rise of smart grid technologies presents a substantial opportunity in the electrical grid market. Smart grids use digital communications technology to monitor and manage the transport of electricity from all generation sources to meet the varying electricity demands of end-users efficiently. This technology enables better prediction of electricity demand, real-time monitoring of grid status, and enhanced fault detection, paving the way for more efficient grid management and operations.
