1 Global Electricity Transmission Market Insight Analysis
The global Electricity Transmission market is valued at USD 112,290 million in 2024, with a CAGR of 6.2% from 2024 to 2033.
Electricity transmission refers to transporting high-voltage electrical power from power generation plants to distribution substations via transmission lines and associated equipment such as capacitors and transformers.
Figure Global Electricity Transmission Market Size (M USD) and CAGR (2024-2033)
2 Electricity Transmission Market Growth Drivers and Restraints
Growth in electricity demand: With the acceleration of global economic development, industrialization and urbanization, electricity demand continues to rise. According to the International Energy Agency, global electricity demand will increase by about 2% year-on-year in 2022, with demand in the Asia-Pacific region increasing by about 3.3%, India and China increasing by about 8.4% and 2.6% respectively, the Americas increasing by 2.3%, and the Middle East increasing by more than 2.6% due to various factors. The increase in electricity demand directly stimulated the expansion of the transmission market and became a key driving force for industry growth.
Green and low-carbon development: Countries actively promote the development of green and low-carbon industries and increase investment in clean energy, such as renewable energy, nuclear power, power grids, energy storage and other fields. The growth of the new energy market has prompted innovation in energy and power technology and promoted the construction of new power grids. In the new power system, the proportion of new energy has increased. As a key link, the development of power transmission technology is crucial to ensure that the power grid absorbs renewable energy. Energy transformation has brought new development opportunities to the power transmission industry.
Cross-border power grid project promotion: The construction of the global energy Internet has made progress, and cross-border interconnection projects have increased. Driven by the Belt and Road Initiative, China has launched a series of clean energy and power interconnection projects with neighboring countries; Europe has actively promoted the construction of cross-border power grids, such as the Egypt-Cyprus-Greece DC transmission project; the United States also plans to strengthen the construction of cross-regional transmission networks. These projects have expanded the scale of the transmission market and provided impetus for industry growth.
Impact of extreme weather: Extreme weather such as snow, ice, and strong winds can damage transmission lines and towers, reduce the transmission capacity of transmission lines, and wildfires in summer can also seriously interfere with energy networks. For example, Hurricane Gudrun hit Sweden in 2005, causing power outages in rural areas for up to 20 days, causing huge economic losses to society. Extreme weather increases transmission costs and system failure risks, restricting industry development.
3 Technological Innovations in the Electricity Transmission Market
Development of new transmission technology: High-voltage direct current (HVDC) technology continues to advance. HVDC converters can achieve interconnection and long-distance transmission of power grids of different frequencies, effectively reduce transmission losses, improve grid stability and power quality, and promote the integration of renewable energy.
For example, HVDC technology is widely used in connecting island and continental power grids, such as power transmission between the UK and continental Europe, and between mainland Australia and Tasmania. In addition, the research and development of new cable materials, the construction of ultra-high voltage transmission projects, and the development of digital transmission technology are also constantly advancing, which has improved the performance and efficiency of the transmission system.
Smart grid construction: Smart grids use information and communication technologies to achieve real-time monitoring and regulation of power supply and usage status to achieve energy saving, loss reduction and enhanced grid reliability. Countries have upgraded old circuits or built smart grid systems. In the future, a new generation of digital enabling technologies such as digital edge terminals, ubiquitous communication networks, computing power and storage, as well as algorithms and applications, will be widely used in power systems to achieve digital transformation and digital twins of power systems and improve the level of smart grids.
Strategic layout adjustment: Enterprises optimize business layout and expand market share through mergers and acquisitions. For example, China Southern Power Grid acquired the assets of Enel in Peru, expanding its business scope in the international market; State Grid acquired the equity of Chilean Power Transmission and Distribution Company, strengthening its market layout in Latin America. These M&A activities help companies acquire resources, technology and market channels and enhance their international competitiveness.
Industry integration trend: Some companies achieve resource integration and synergy through mergers and acquisitions. Duke Energy of the United States sold its commercial distributed power generation business to ArcLight Capital Partners to focus on its core business; Xcel Energy optimized resource allocation and improved operational efficiency through a series of measures. Industry integration helps optimize resource allocation, improve corporate operational efficiency, promote industry concentration, and promote the optimization and upgrading of industrial structure.
4 Global Electricity Transmission Market Size by Type
Direct Current (DC) transmission involves the movement of electrical power in the form of direct current. This method is particularly advantageous for long-distance transmission due to its lower power losses and cost-effectiveness compared to traditional AC systems. In 2024, the market value for DC transmission reached $35,753 million USD, accounting for approximately 31.84% of the total global electricity transmission market.
DC transmission is especially effective in scenarios where power needs to be transmitted over long distances, such as from remote renewable energy sources to urban centers. The use of High-Voltage Direct Current (HVDC) systems has been a significant driver for the growth of this segment. HVDC systems can reduce transmission losses, integrate renewable energy more effectively, improve power quality, and enhance the stability of interconnected grids. This technology is increasingly being adopted in regions with abundant renewable energy resources, such as the Middle East, Africa, and parts of Asia Pacific.
Alternating Current (AC) transmission is the more conventional method used for power transmission. AC systems allow for efficient power transmission over shorter distances and facilitate easier voltage transformation. In 2024, the market value for AC transmission was $76,537 million USD, representing 68.16% of the total global electricity transmission market.
AC transmission is widely used in existing power grids and is essential for the distribution of electricity to residential, commercial, and industrial consumers. The flexibility of AC systems in terms of voltage transformation and the ability to connect multiple power sources make them indispensable in modern power grids. AC systems are also crucial for integrating distributed energy resources and maintaining grid stability.
Table Global Electricity Transmission Market Size and Share by Type in 2024
Type | Market Size (M USD) 2024 | Market Share 2024 |
|---|---|---|
DC | 35753 | 31.84% |
AC | 76537 | 68.16% |
5 Global Electricity Transmission Market Size by Application
The residential application segment includes the transmission of electricity to residential buildings such as apartments, villas, and dormitories. In 2024, the market value for the residential application was $31,767 million USD, accounting for 28.29% of the total global electricity transmission market. This segment is driven by the increasing demand for electricity in urban and suburban areas, as well as the need for reliable power supply to support daily household activities.
The industrial application segment involves the transmission of electricity to industrial areas, including manufacturing plants and factories. In 2024, the market value for the industrial application was $52,091 million USD, representing 46.39% of the total market. The growth in this segment is primarily driven by the expansion of industrial activities and the increasing demand for electricity to power machinery and production processes. Industrial consumers often require high-capacity and reliable power supply to maintain their operations.
The commercial application segment includes the transmission of electricity to commercial buildings and areas, such as retail stores, shopping malls, and office buildings. In 2024, the market value for the commercial application was $23,536 million USD, accounting for 20.96% of the total market. This segment is influenced by the growth of the service sector and the increasing demand for electricity to support business activities, including lighting, heating, and cooling systems.
Table Global Electricity Transmission Market Size and Share by Application in 2024
Application | Market Size (M USD) 2024 | Market Share 2024 |
|---|---|---|
Residential | 31767 | 28.29% |
Industrial | 52091 | 46.39% |
Commercial | 23536 | 20.96% |
Others | 4896 | 4.36% |
6 Global Electricity Transmission Market Size by Region
North America, which includes the United States and Canada, is a well-developed region with a significant market value for electricity transmission. In 2024, the market value for North America was $22,527 million USD, accounting for 20.06% of the total global electricity transmission market. The region is characterized by advanced infrastructure and a focus on grid modernization and reliability. The United States, in particular, is investing heavily in upgrading its transmission lines to support the integration of renewable energy sources and improve grid resilience.
Europe is another well-developed region with a strong emphasis on renewable energy integration and grid modernization. In 2024, the market value for Europe was $17,837 million USD, representing 15.88% of the total market. European countries are at the forefront of adopting smart grid technologies and HVDC transmission systems to enhance grid efficiency and support the transition to a low-carbon economy. The region is also investing in cross-border interconnections to improve energy security and market integration.
The Asia Pacific region is the largest market for electricity transmission, driven by rapid economic growth and increasing electricity demand. In 2024, the market value for Asia Pacific was $57,645 million USD, accounting for 51.34% of the total global electricity transmission market. China and India are key drivers in this region, with significant investments in new transmission projects to support their expanding economies. The region is also focusing on integrating renewable energy sources and improving grid reliability to meet the growing demand for electricity.
Latin America is experiencing steady growth in its electricity transmission market, driven by expanding industrial activities and urbanization. In 2024, the market value for Latin America was $6,163 million USD, representing 5.49% of the total market. Brazil and Mexico are key players in this region, with investments in transmission infrastructure to support economic development and improve grid stability.
The Middle East is focusing on diversifying its energy sources and improving grid reliability to support economic growth. In 2024, the market value for the Middle East was $4,974 million USD, accounting for 4.43% of the total market. The region is investing in HVDC transmission systems to integrate renewable energy sources and improve grid efficiency. Countries like the UAE and Saudi Arabia are leading the way in adopting advanced transmission technologies.
Africa is investing heavily in improving its electricity transmission infrastructure to support economic development and reduce power outages. In 2024, the market value for Africa was $3,144 million USD, representing 2.80% of the total market. South Africa, Egypt, and Nigeria are key players in this region, with significant investments in transmission projects to enhance grid reliability and support the integration of renewable energy sources.
Figure Global Electricity Transmission Market Size (M USD) by Region in 2024
7 Global Electricity Transmission Market Analysis by Major Players
State Grid Corporation of China
Company Profile
The State Grid Corporation of China (SGCC) is a large central enterprise in the People’s Republic of China, primarily engaged in transmission and power supply business. Established on December 29, 2002, SGCC is a state-authorized investment institution and state holding company approved by the State Council of the People’s Republic of China. The company is responsible for building and operating China’s power grid, supplying electricity to the entire country. SGCC’s business distribution region spans across Asia, Latin America, Europe, and Australia. The company is committed to modernizing the grid and integrating renewable energy sources to support China’s transition to a low-carbon economy.
Product Offered
SGCC’s primary product offerings include high-voltage direct current (HVDC) transmission systems, which are crucial for long-distance power transmission and integration of renewable energy sources. The company has been a pioneer in developing ultra-high voltage (UHV) transmission lines, which significantly reduce power losses over long distances. SGCC is also heavily investing in smart grid technologies to enhance grid efficiency, reliability, and integration of distributed energy resources. Additionally, the company provides comprehensive transmission and distribution services, ensuring reliable power delivery to various regions in China.
Duke Energy Corporation
Company Profile
Duke Energy Corporation is an integrated energy utility that undertakes the generation, transmission, distribution, and sale of electricity. Established in 1904, the company operates in the Southeast and Midwest regions of the United States, providing electricity and related energy services to residential, commercial, and industrial customers. Duke Energy operates power plants using a diverse mix of coal, nuclear, natural gas, oil, and renewable sources. The company is also involved in the transportation and sale of natural gas and the procurement and marketing of electricity and fuel. Duke Energy’s business distribution region is mainly in North America.
Product Offered
Duke Energy’s primary product offerings include electricity generation from various sources, including coal, nuclear, natural gas, oil, and renewable energy. The company provides comprehensive transmission and distribution services to ensure reliable power delivery to customers. Duke Energy is also involved in the transportation and sale of natural gas to residential and commercial customers. Additionally, the company is developing and integrating renewable energy projects, such as solar and wind farms, to support the transition to a low-carbon economy. Duke Energy’s diverse portfolio of energy solutions ensures that it can meet the varying needs of its customers while maintaining a commitment to sustainability.
China Southern Power Grid Co Ltd.
Company Profile
China Southern Power Grid Co Ltd. (CSG) is responsible for the investment, construction, operation, and management of the Southern regional power grid in China. Established in 2002, the company provides power supply services to Guangdong, Guangxi, Yunnan, Guizhou, and Hainan provinces, as well as the Hong Kong and Macao regions. CSG is engaged in power purchase and sale business, responsible for power trading and dispatching. The company is also involved in domestic and international investment and financing, as well as foreign trade and international cooperation. CSG’s business distribution region is mainly in Asia.
Product Offered
CSG’s primary product offerings include comprehensive services for the transmission and distribution of electricity across the Southern region of China. The company is developing and implementing smart grid technologies to enhance grid efficiency and reliability. CSG is also integrating renewable energy sources, such as wind and solar, into the power grid. Additionally, the company is developing cross-border power transmission projects to support regional energy integration. CSG’s commitment to modernizing the grid and integrating renewable energy sources ensures that it can meet the growing electricity demands of the region while supporting sustainable development.