Power Grid Market Report with Emphasis on Sustainable Development Goals (SDGs)

Overview of the Global Power Grid Market

The global power grid market is undergoing rapid transformation, playing a critical role in the generation, transmission, and distribution of electricity worldwide. According to Persistence Market Research, the market size is projected to reach US$ 308.5 million in 2025 and is expected to grow at a CAGR of 5.2% from 2025 to 2032, achieving a valuation of US$ 439.9 million by 2032. This growth highlights the increasing importance of modernized, resilient, and digitally integrated power infrastructures aligned with the Sustainable Development Goals (SDGs), particularly SDG 7 (Affordable and Clean Energy) and SDG 9 (Industry, Innovation, and Infrastructure).

Key Market Drivers and SDG Alignment

1. Renewable Energy Integration: The global push towards renewable energy sources such as wind and solar power is driving the need for advanced power grids capable of accommodating variable energy inputs, supporting SDG 7 and SDG 13 (Climate Action).
2. Grid Modernization and Smart Technologies: Investments in smart grid technologies and digital monitoring systems enhance grid efficiency and reliability, contributing to SDG 9 and SDG 11 (Sustainable Cities and Communities).
3. Rising Electricity Demand and Urbanization: Increasing urban populations and industrialization necessitate robust power grid infrastructure, supporting SDG 8 (Decent Work and Economic Growth) and SDG 11.
4. Climate Resilience and Stability: Advanced grid systems improve stability amid climate challenges, reinforcing SDG 13.

Market Segmentation and Sustainable Development

• By Product Type:
  • Transmission Lines
  • Substations
  • Distribution Systems
  • Smart Grid Technologies

  The transmission and smart grid segments are experiencing the fastest growth due to the need for improved grid efficiency and renewable energy integration, directly supporting SDG 7 and SDG 9.

• By End-User:
  • Residential
  • Commercial
  • Industrial

  The industrial sector holds a significant market share driven by increasing energy demands, aligning with SDG 8 and SDG 9.

Regional Insights and SDG Contributions

• North America: Leading the market with aggressive investments in smart grid solutions and infrastructure modernization, supporting SDG 7, SDG 9, and SDG 13.
• Asia-Pacific: Poised for significant growth due to rising electricity demand, urban development, and rural electrification projects in countries like China and India, advancing SDG 1 (No Poverty), SDG 7, and SDG 11.

Market Challenges and Risks

• High Capital Costs: Initial investments for modernized grid systems remain a barrier, especially in developing regions, impacting SDG 10 (Reduced Inequalities).
• Technical and Funding Constraints: Limited expertise and financial resources hinder large-scale upgrades, affecting SDG 9 and SDG 17 (Partnerships for the Goals).
• Cybersecurity Threats: Digital grid infrastructure faces risks that require proactive management to ensure reliability and safety, relevant to SDG 16 (Peace, Justice, and Strong Institutions).

Opportunities for Sustainable Growth

1. Grid Digitization and Automation: Adoption of IoT, AI, and blockchain technologies offers potential for enhanced grid management, supporting SDG 9 and SDG 12 (Responsible Consumption and Production).
2. Public-Private Partnerships: Collaboration in energy projects and electrification of transportation can accelerate sustainable development, aligned with SDG 17.
3. Rural Electrification: Expanding access to electricity in underserved regions promotes SDG 1 and SDG 7.

Key Market Players

• Siemens AG
• General Electric Company
• Schneider Electric SE
• ABB Ltd.
• Mitsubishi Electric Corporation
• Eaton Corporation
• Hitachi Energy Ltd.
• Toshiba Corporation
• CG Power and Industrial Solutions Ltd.
• Larsen & Toubro Limited

Notable innovations include Siemens AG’s AI-based grid software for predictive maintenance and Schneider Electric’s modular smart grid automation systems, both enhancing grid resilience and efficiency in line with SDG 9.

Conclusion

The power grid market is a cornerstone in the global transition towards sustainable and resilient energy systems. Its growth supports multiple Sustainable Development Goals, including affordable clean energy, industry innovation, climate action, and sustainable urban development. With continued technological advancements and supportive policies, the market is well-positioned for sustained expansion, offering significant opportunities for stakeholders committed to sustainable development.

1. Sustainable Development Goals (SDGs) Addressed or Connected

1. SDG 7: Affordable and Clean Energy
   • The article discusses the growth of the power grid market, emphasizing renewable energy integration, grid modernization, and rural electrification, all of which align with SDG 7’s goal to ensure access to affordable, reliable, sustainable, and modern energy for all.
2. SDG 9: Industry, Innovation, and Infrastructure
   • The focus on smart grid technologies, digital integration, and infrastructure upgrades corresponds to SDG 9’s aim to build resilient infrastructure, promote inclusive and sustainable industrialization, and foster innovation.
3. SDG 11: Sustainable Cities and Communities
   • The article highlights increasing urbanization and the need for better grid stability, which supports SDG 11’s target to make cities inclusive, safe, resilient, and sustainable.
4. SDG 13: Climate Action
   • The transition to renewable energy and the need to address climate challenges through resilient power grids relate to SDG 13’s focus on combating climate change and its impacts.

2. Specific Targets Under Those SDGs Identified

1. SDG 7 Targets
   • 7.1: By 2030, ensure universal access to affordable, reliable, and modern energy services (implied by rural electrification and expanding electricity access).
   • 7.2: Increase substantially the share of renewable energy in the global energy mix (implied by integration of renewables and grid modernization).
   • 7.3: Double the global rate of improvement in energy efficiency (implied by smart grid technologies and automation improving grid efficiency).
2. SDG 9 Targets
   • 9.1: Develop quality, reliable, sustainable, and resilient infrastructure, including regional and transborder infrastructure (implied by grid modernization and infrastructure upgrades).
   • 9.5: Enhance scientific research, upgrade technological capabilities of industrial sectors (implied by adoption of AI, IoT, and blockchain in grid management).
3. SDG 11 Targets
   • 11.6: Reduce the adverse per capita environmental impact of cities, including by paying special attention to air quality and municipal and other waste management (implied through cleaner energy and grid stability in urban areas).
4. SDG 13 Targets
   • 13.1: Strengthen resilience and adaptive capacity to climate-related hazards and natural disasters (implied by resilient power grid development).
   • 13.2: Integrate climate change measures into national policies, strategies, and planning (implied by government policies supporting clean energy and grid modernization).

3. Indicators Mentioned or Implied to Measure Progress

1. SDG 7 Indicators
   • 7.1.1: Proportion of population with access to electricity (implied by rural electrification projects and expanding electricity access).
   • 7.2.1: Renewable energy share in the total final energy consumption (implied by integration of renewables in the grid).
   • 7.3.1: Energy intensity measured in terms of primary energy and GDP (implied by improvements in grid efficiency and smart grid technologies).
2. SDG 9 Indicators
   • 9.1.1: Proportion of the rural population who live within 2 km of an all-season road (analogous to infrastructure accessibility, implied by grid expansion and modernization).
   • 9.5.1: Research and development expenditure as a proportion of GDP (implied by investments in AI, IoT, and blockchain for grid management).
3. SDG 11 Indicators
   • 11.6.2: Annual mean levels of fine particulate matter (PM2.5) in cities (implied by cleaner energy reducing pollution).
4. SDG 13 Indicators
   • 13.1.2: Number of countries with national and local disaster risk reduction strategies (implied by resilient grid infrastructure to climate hazards).
   • 13.2.2: Total greenhouse gas emissions per year (implied by transition to renewable energy and clean grid technologies).

4. Table of SDGs, Targets, and Indicators

Source: openpr.com