Government Regulations Favouring Renewable Energy Generation, Particularly Wind Energy Drive Market
Favorable government regulations and rising renewable energy usage, along with reasonability of wind turbine installation costs are making a strong case for consumption of the renewable energy sources. This trend is expected to drive power grid system market during the forecast years. Concerns about decreasing greenhouse gas emissions, rise in the search for power security, opposition to traditional nuclear power, and a lack of progress in nuclear power applications are expected to boost demand for renewable power as well. For instance, the Climate Act calls for a 49% reduction in greenhouse gas emissions by 2030 compared to 1990 levels, and a 95% reduction by 2050. This is forcing the major developed and developing nations to opt for renewable energy sources as they produce minimal carbon footprints and reduce greenhouse gas emissions. Such a large integration of renewable energy grid in the traditional power grid will drive the power grid system market in the coming years.
Moreover, in the field of renewable energy, wind power is gaining significant importance as it facilitates both on-shore and off-shore installation. The offshore wind installation market is expected to expand due to the choice for best site selection, and the availability of improved technology and turnkey solutions from various service providers. As a result, numerous public, private organizations, and offshore operators have been interested in the potential of offshore wind generation. For instance, in 2021, Hecate Independent Power Limited (HIP), a renewable energy project firm established in the United States, announced the HIP Atlantic Project, which will deploy about 10 GW of floating and fixed wind power in the North Atlantic, UK. Such participation from the major market player will drive the growth of offshore wind energy, which in turn will propel the growth of the market.
Cables are Predicted to be The Most Important Component Section due to the up-gradation of traditional transmission lines
The cables segment is estimated to dominate the power grid system market by component in the coming years. The main factors for increased segment expansion are urbanization and industrialization. Power cable adoption has been primarily pushed by the HV power transmission and offshore oil and gas industries. Increased expenditures on smart power transmission and distribution system upgrades, as well as the development of smart grids, are expected to boost the segment expansion. The need for cables is also being driven by the necessity for power grid interconnections in densely populated areas.
Increased Energy Consumption to Drive the Asia Pacific Power Grid System Market Growth
The Asia Pacific power grid system market is likely to be driven by factors such as rising energy consumption, the government's push for the adoption of renewable energy sources, and more investment in the sector. Additionally, stringent regulatory standards to reduce carbon footprints, as well as favorable government incentives such as feed-in tariffs and tax breaks to increase demand for renewables, will increase demand for power grid systems. The Asia Pacific maintains a significant market share due to the widespread adoption of these technologies and a strong emphasis on renewable energy growth. Furthermore, the region's rising smart cities development plans are likely to drive market expansion.
China is the world's greatest energy producer as well as the region's largest market. The country's high degree of industrialization and expanding urbanization are likely to bolster market expansion. The Chinese government’s initiatives to reduce reliance on fossil fuels in order to stabilize CO2 emissions and assure a clean and efficient type of energy are creating opportunities for the renewable energy market players in the region. China intends to reduce CO2 emissions to 5150 million tonnes by 2035 and 2,600 million tonnes by 2050. Moreover, the Chinese government intends to expand the amount of renewable energy in its energy mix to roughly 37% by 2035 and 58% by 2050. This may result in creating new power grid systems and integration of the traditional power grids. Hence, driving the regional power grid system market growth.
In addition, the Indian power grid system market revenue is expected to grow at an exponential rate during the projected period, owing to rising industrialization, urbanization, and commercialization, as well as the government's emphasis on renewable power facilities. For example, the Indian government has launched new renewable energy programs with a target of 175 GW by 2022. Ongoing power outages, combined with increased electricity demand, will increase demand for decentralized networks and the use of conventional power sources, further influencing technology adoption and increasing grid implementation.
Global Power Grid System Market: Competitive Landscape
Companies in the power grid system market are launching new items while also launching collaborations, alliances, and partnership agreements. For instance, Nexans was awarded a contract under the framework agreement in January 2022 to build roughly 110 km of high-voltage cables for South Fork Wind, a joint venture between Orsted and Eversource. The three-phase 138 kV high-voltage alternative current (HVAC) export cables will be integrated with two fiber-optic cables and will transport 132 MW of power to Long Island, New York. Moreover, in December 2021, Prysmian Group was awarded two additional offshore wind farm projects in the United States by Vineyard Wind for a total of roughly USD 900 million. The first cabling project, worth around USD 300 million, will connect the 804 MW Park City offshore wind farm to the Connecticut electrical grid. The Commonwealth Wind cabling project is estimated to cost $580 million. Prysmian Group will design, provide, install, and commission three export submarine power cable links, as well as HVAC 275 kV three-core cables with XLPE insulation and single-wire armoring, to connect Commonwealth Wind to the Massachusetts electrical grid.
Few of the players in the power grid system Market include ABB (Switzerland), TechnipFMC (UK), General Electric (US), Siemens Energy (Germany), Baker Hughes (US), Prysmian Group (Italy), Nexans (France), Schlumberger (US), Aker Solutions ASA (Norway), Hitachi Energy (Switzerland), DEME (Denmark), SSG Cable (China), Oceaneering International (US), NKT (Denmark), LS Cable & System (South Korea), ZTT (China), Sumitomo Electric Industries, Ltd. (Japan), TE Connectivity (Switzerland), Intertek Group (UK), Teledyne Marine (US), J+S Subsea (UK), Schneider Electric (France), Deep C (Norway), Apar Industries (India), and Furukawa Electric Co., Ltd. (Japan).
Global Power Grid System Market is Segmented as Below:
Key Elements Included In The Study: Global Power Grid System Market
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