Electric Distribution Utility Market
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The global electric distribution utility market was estimated at USD 379.1 billion in 2023 and is set to grow at a CAGR of over 6.7% from 2024 to 2032.
The electricity demand keeps increasing while there is a shifting focus on renewable energy sources. Additionally, the improvements in distribution network efficiency and resilience, which help meet the growing energy demands of clients will complement the industry expansion.
| Report Attribute | Details |
|---|---|
| Base Year: | 2023 |
| Electric Distribution Utility Market size in 2023: | USD 379.1 Billion |
| Forecast Period: | 2024 to 2032 |
| Forecast Period 2023 - 2032 CAGR: | 6.7 |
| 2023 Value Projection: | USD 686.7 Billion |
| Historical Data for: | 2021-2023 |
| No of Pages: | 280 |
| Tables, Charts & Figures: | 29 |
| Segments Covered: | Components, End Use, Voltage, and Region |
| Growth Drivers: |
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| Pitfalls Challenges: |
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Upgradation in the regulatory requirements along with the technological advancements have dynamically uplifted the sector outlook. The utilities have included more renewables into their portfolios as they pay more emphasis on sustainability. Moreover, these factors are also accompanied by the increased electricity requirements that facilitated the utilities to improve their infrastructure; hence, better demand-response mechanisms that balance supply and consumption are possible. These factors are helping in the development of the market.
Based on component, switchgear segment is projected to surpass USD 193 billion by 2032. The growing deployment of smart grid technologies employing advanced communication & information technologies to optimize the generation, distribution, and consumption of electricity will add to the industry growth. In addition, the renovation of old electrical infrastructure across emerging and developed countries coupled with the expansion of power grids will drive growth in the switchgear market.
Based on end use segment, residential sector is set to observe a growth rate of over 7% through 2032. Implementation of new government regulations as well as wider acceptance of smart homes is putting the residential sector in considerable expansion. Moreover, the growing need for advanced products will also increase the power distribution system’s demand, as there’s an increasing requirement for safe and reliable electrical structures infrastructure across utility, residential, commercial, and industrial areas.
The U.S. electric distribution utility market is anticipated to surpass USD 79.5 billion by 2032 supported by the influx of significant investments in renewable energy projects. The growing energy demand coupled with the expanding long-distance distribution networks & modernizing local distribution systems, has stimulated the industry size. For instance, the Board of Public Utilities, New Jersey, launched the new grid modernization standards in April 2024, aiming to boost the state's electrical distribution system reliability, thereby, upgrading the current power grid infrastructure for better electricity supply resilience and competence.
On account of an increase in urbanization and improved technology and government policies, the electric distribution utility market in the Asia Pacific region is expected to expand rapidly over the upcoming timeframe. Collaboration between government agencies and private entities has greatly contributed to the investment for the construction of new electric distribution utility infrastructure, along with the enhancement of existing setups. For example, Tata Power in September 2024 entered into an association with Nissin Electric with the aim of introducing India’s first micro substation with a power voltage transformer that is a part of a pioneering demonstration project. It reaffirms the commitment of the two firms to utilize state of the art technologies to improve energy infrastructure and meet the increasing demand for clean energy in the country.
Key manufacturers consist of ABB, Eaton, GE Vernova, Hitachi Energy, Mitsubishi Electric, Schneider Electric, and Siemens, as well as other players, are harnessing smart technologies and diversified energy solutions. The major players account for a considerable market share due to a combination of geographical presence, technology resource and market positioning. Furthermore, the construction of the industry incentivizes cooperation and partnership since the utilities want to incorporate innovative technologies to enhance efficiency in customer service delivery.
Major players operating in the electric distribution utility industry are:
Market, By Component
Market, By End Use
Market, By Voltage
The above information has been provided for the following regions and countries:
Major players in the industry include ABB, ACWA Power, Anchor Electric, China Yangtze Power, Coil Innovation, Duke Energy, Eaton, Enel, Engie, Fuji Electric, GE Vernova, Hitachi Energy, and Iberdrola.
The U.S. market is poised to cross USD 79.5 billion by 2032, supported by significant investments in renewable energy projects and the modernization of distribution networks.
The residential segment is expected to observe a CAGR of over 7% through 2032, led by the adoption of smart homes and new government regulations.
The market size of electric distribution utility reached USD 379.1 billion in 2023 and is set to grow at a 6.7% CAGR from 2024 to 2032, driven by increasing electricity demand and a global shift towards renewable energy sources.