Global power transmission component market to cross the coveted 100-billion-dollar frontier by 2024, driven by numerous government initiatives
Uninterrupted & sustainable power, as on today, has an influential impact on the economic growth of a nation. Power transmission component market, in this regard, has witnessed massive expansion over the recent years, primarily driven by the demand to achieve grid security and smart grid infrastructure. In order to ensure uninterrupted electricity supply, regional governments have introduced supportive policy interventions that have played a crucial role in uplifting the overall power transmission component industry trends. In terms of revenue generation, global power transmission component market size was pegged at USD 60 billion in 2016, and is further expected to chart out a lucrative growth graph in the ensuing years. This billion-dollar industry primarily generates its revenue from the demand of power transmission components that are massively deployed in refurbishment and retrofitting projects of existing and new grid infrastructure across the globe.
U.S. Power Transmission Component Market Size, By Voltage Level (USD Million)
Speaking of governmental refurbishment initiatives, it would be important to take note of one of the ambitious smart grid infrastructure initiatives that is currently underway in the US and China. Smart grids in these regions are seen as an effective way to increase efficiency of the electric network, reduce energy consumption, and better accomplish electricity generation from renewable sources. On these grounds, the US Department of Energy, in 2016, announced an investment of USD 3.3 billion in deploying smart grid technology to harness more flexible, resilient, reliable, secure, and efficient electrical power. Reports also reveal that the DOE invested an additional amount of USD 685 million in smart grid regional and energy storage demonstration projects, which resulted into significant power transmission component market demand. According to industry analysts, U.S. power transmission component market has been characterized as a favorable business sphere, having attained a valuation of over USD 5 billion in 2016.
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Delving deeper into the regional landscape of power transmission component industry, Korea, India, and Japan have also witnessed significant and long-term governmental initiatives where the deployment of smart meters and renewable energy power generation are the defining foundations of the energy domain. India’s recently established National Smart Grid Mission has outlined a deployment schedule of smart grids for the next ten years, in which the total investment was estimated to be raised around USD 44.9 billion for smart grid infrastructure deployment. According to industry experts, India is undergoing rapid transformation to develop its power sector and is therefore seen as one of the largest potential smart grid market for domestic as well as international vendors. Reports cite that, the initiatives taken by the NSGM will significantly propel the regional power transmission component industry share, as they broadly cover the deployment of smart grids, AMI, monitoring and control of distribution transformers, sub-station renovation and modernization, and distributed generation in terms of solar PV.
Analyzing the pace of smart grid-related developments and investments on a global scale, it has been speculated that the power transmission component industry players will exercise some tried-and tested growth strategies such as product development, M&As, joint ventures, and investment in R&D activities. Mitsubishi Electric Corporation, for instance, is investing millions of dollars in an effort to design & manufacture power transmission components that will reduce electric losses, which in turn would prove beneficial for the environment. Industry analysts deem such product development methods to emerge successful for companies to bolster their presence in power transmission component market. On the other hand, mergers & acquisitions and R&D investments within power transmission component industry will continue to reign supreme, as larger utilities are expected to meet their diversification and expansion goal through these strategies. For example, China’s Three Gorges Corp., has signed contracts and invested in 81 overseas projects, amongst which it expects five out of the ten largest hydropower stations across the world to be owned, built, and operated by the company. This mega hydropower generation project is further likely to draw tremendous demand for power distribution networks, in turn fortifying power transmission component industry share. In fact, it has been reported that the global power transmission component market size will exceed USD 100 billion by 2024, with an annual growth of 6% over 2017-2024. Analysts speculate such vibrant growth strategies and governmental interventions to be imperious in the generation of lucrative growth avenues that would further shape the future of power transmission component market in the worldwide energy sector.
Author Name :Ojaswita Kutepatil