Electric Power Distribution Market, with a 4.78% CAGR, is projected to increase from USD 219.575 billion in 2025 to USD 277.266 billion in 2030.
Electric power distribution refers to the process of delivering electrical power from a high-voltage transmission system to individual customers or consumers. It involves the distribution of electrical energy from a high-voltage transmission network to the end users through a network of power lines, transformers, substations, and other related equipment. The goal of electric power distribution is to ensure that the electrical power reaches the end-users safely and reliably while maintaining the quality and stability of the power supply. The increasing amount of renewable energy generation is an important factor in the growth of this market because as the production of energy increases so will the need for efficient distribution. For example, according to IEA, out of the total energy generation in 2021, 28% was from renewable sources. The total renewable energy capacity is projected to reach 2382.9 GW by 2027. Such growth in renewable energy production will drive the growth of the electric power distribution market. Other driving factors for the market are increasing demand for electricity, integration of renewable energy sources, government regulations and initiatives, technological advancements etc.
Electric power distribution plays a critical role in ensuring that the electricity generated at power plants reaches the end users safely, reliably, and efficiently. The distribution system must be designed and operated to accommodate the changing patterns of electricity demand while maintaining the stability and quality of the power supply. Thus, with the growing demand and supply of electricity, the electric power distribution market is set to experience growth in the coming years. For instance, IEA data shows that the share of electricity in the final energy consumption has increased from 18.9% in 2019 to 19.6% in 2021 and is expected to grow up to 21.6% by 2030. Additionally, the share of electricity used in residential buildings as part of final energy consumption has gone up from 33.6% in 2019 to 34.1% in 2021. Similarly, the share of electricity used in industries as a part of final energy consumption has increased from 21.3% in 2019 to 21.5% in 2021.
The growth of the electric power distribution market in this region is being driven by a combination of factors, including rapid urbanization, increasing population, and the need to upgrade and expand existing distribution infrastructure to meet growing demand. Increasing industrialization is a key reason behind the growth of this market. The industrial sector consumes a significant amount of electricity for manufacturing, processing, and other operations. Therefore, as industrialization increases, so does the demand for electricity which in turn increases the demand for electric power distribution systems. For instance, according to the National Bureau of Statistics of China, the country’s industrial production increased by 3.6% in 2022 as compared to 2021. Similarly, industrial production in India increased by 4.3% in 2022, as per the Ministry of Statistics and Programme Implementation. Australia also experienced an increased industrial production by 0.49% in 2022, according to the Australian Bureau of Statistics. Apart from this, initiatives taken by the governments for the development and maintenance of electric power distribution plants are also important factors in the growth of this market. For instance, in October 2022, Fujitsu and Chugoku Electric Power Transmission & Distribution Co., Inc. reported the successful completion of joint trials aimed at testing the practical application of environmental data in power transmission infrastructure maintenance. The trials focused on the implementation of dynamic line rating (DLR), a promising next-generation technology for power networks, and the utilization of drones for enhancing the maintenance of electric power distribution facilities. Such factors will propel, the market growth in the Asia Pacific region during the forecast period.
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