Power Distribution Component Market Size

Power Distribution Component Market Size

Power Distribution Component Market size surpassed USD 200 billion in 2022 and is anticipated to expand at 8% CAGR from 2023 to 2032.

Growing focus on the refurbishment and retrofitting activities for the modernization of existing grid infrastructure is anticipated to have a positive impact on the industry outlook. Both public, as well as private entities across developing economies, are investing heavily in the deployment of next-generation technologies, tools, and techniques to facilitate resilient, reliable, efficient, and affordable access to electricity.
 

Additionally, the constantly escalating global demand for electricity is expected to spur grid development activities, therefore fostering significant power distribution component market demand. For instance, the Central Electricity Authority (CEA) of India projects the annual electricity demand to record a 7.2% annual growth from 1,320 billion units in 2021/22 to 1,874 billion units in the year ending in March 2027. Hence, the rising electricity needs and a surge in industrial and construction activities will complement industry expansion.
 

Advanced power distribution relies on next-generation technologies for applications. Slow-paced evolution of technologies may restrain overall business development. Moreover, growing political tensions and power struggles among leading economies may negatively influence the vitality of regional, local, and global energy sectors thereby restricting investments. Low- and middle-income economies struggle the most when it comes to technological evolution due to a lack of investments and resources. Hence, macroeconomically induced supply chain disruptions and lack of technical sophistication could restrict market growth.