Europe Transmission & Distribution Equipment Market Size 2024-2028

The Europe Transmission & Distribution (T&D) Equipment Market size is estimated to grow by USD 17 billion at a CAGR of 5.24% between 2023 and 2028. The market is experiencing significant growth due to increasing investments in T&D infrastructure to meet the rising demand for electricity. The digitalization of the energy sector is another major trend, with data playing an increasingly important role in optimizing energy production and distribution. However, this digitalization also brings new challenges, particularly in the form of cybersecurity risks. As the grid becomes more interconnected and reliant on digital technologies, securing T&D equipment against cyber attacks is becoming a top priority for utilities and energy companies. Additionally, the adoption of renewable energy sources and the integration of distributed energy resources into the grid and transformers are also driving market growth and innovation in T&D equipment. Overall, the market is expected to continue growing as utilities and energy companies invest in modernizing their infrastructure and integrating new technologies to meet the evolving demands of the energy sector.

What will be the Size of the Market During the Forecast Period?

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Key Market Customer Landscape

Our analysis of the adoption life cycle of the market indicates its movement between the innovator's stage and the laggard's stage. The report illustrates the lifecycle of the market, focusing on the adoption rates of the major countries. Technavio has included key purchase criteria, adoption rates, adoption lifecycles, and drivers of price sensitivity to help companies evaluate and develop growth strategies from 2023 to 2028. 

 Market Customer Landscape

Market Dynamics

The market encompasses a range of technologies and components used in the transfer and distribution of electrical energy from power generation sources to end-users. This market caters to various power sources, including Wind energy, Solar energy, Hydroelectric power, Biomass, Geothermal energy, and Offshore wind power. T and D equipment includes cable and lines, transformers, switchgear, circuit breakers, meters, belts, chains, interconnecting lines, conductors, insulators, capacitors, and other related components. The growing adoption of electric vehicles (EV) is driving innovations in the distribution system network and smart grid technologies, with transformers, converters, circuits, wires, and fuses being crucial components in managing electric transmission and addressing energy demand. By leveraging green energy and improving electrical efficiency, the industry aims to reduce T&D losses through both direct sales channels and indirect sales channels. The market is driven by the increasing demand for electrical energy from renewable sources and the expansion of Transmission networks for Electric power transmission and Distribution system networks. The integration of smart appliances and the need for High-voltage electricity further boost the market growth.

Key Market Driver

One of the key factors driving the market growth is the increasing investment in T&D infrastructure. In Europe, there is an increasing investment by the government and private sectors in T&D infrastructure to improve the reliability of power supply and increase the capacity of the grid, driving the demand for new equipment.

Moreover, the growing investments can be attributed to several factors such as the requirement to upgrade aging infrastructure, meet the growing demand for electricity, integrate renewable energy sources, and improve grid reliability and resilience. Some of the various activities involved in the investment in T&D infrastructure include the construction of new power lines, substations, and transformers, upgrading existing infrastructure with new technology, such as digital monitoring and control systems, and conducting regular maintenance and repairs to ensure the system operates smoothly. Hence such investments are expected to drive the market during the forecast period.

Significant Market Trends

A key factor shaping the market growth is the growing demand for electric vehicles in Europe. Due to the increasing demand for electric vehicles in the market in Europe, there is a significant need for infrastructure to support the charging of these vehicles.  Hence, the increase in electric vehicles will lead to an increase in charging station infrastructure requirements which in turn will fuel the growth of the T&D market.

Additionally, the growth of electric vehicles offers a significant opportunity for the market in Europe, as it needs the installation of new charging stations and the upgrading of the existing T&D infrastructure to support the increased demand for electricity. Furthermore, several policies by the European governments encouraging the use of electric vehicles will significantly contribute to the growth. Hence, such factors are expected to drive the market during the forecast period.

Major Market Challenge

Insufficient periodic testing and inspection of power distribution and transmission equipment are one of the key challenges hindering the market growth. The equipment utilized for power distribution and transmission, such as transformers, switchgear, and cables, is subject to wear and tear over time, and can be susceptible to faults or failures if not properly maintained. Hence, such insufficient periodic testing and inspection of power distribution and transmission equipment can pose a significant threat to the safety and reliability of the electrical grid.

Furthermore, inadequate testing and inspection can lead to undetected faults or weaknesses that may eventually result in catastrophic failures, putting the safety of workers and the public at risk. Hence, it is essential to have periodic tests and inspections to avoid such risks. Hence, these factors can significantly hinder the market during the forecast period.

Who are the Major Market Companies?

Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.

Belden Inc: The company offers T and D equipment solutions for industrial automation, smart buildings, and broadcast markets such as FiberExpress Systems and 10GX System.

Dubai Cable Company Pvt. Ltd: The company offers T and D equipment solutions such as Three Core Unarmoured MV Cables 19 33kV class 2, Single Core Unarmoured MV Cables 12.7 22kV 1C.

We also have detailed analyses of the market's competitive landscape and offer information on 20 market companies, including:

• Eaton Corp. Plc
• Furukawa Electric Co. Ltd.
• General Electric Co.
• Hitachi Ltd.
• Hyundai Motor Co.
• LS Corp.
• Mitsubishi Electric Corp.
• Nexans SA
• NKT AS
• Prysmian Spa
• S and C Electric Co.
• Schneider Electric SE
• Siemens AG
• Southwire Co. LLC
• Sumitomo Electric Industries Ltd.
• Tele Fonika Kable SA
• Toshiba Corp.
• Vertiv Holdings Co.

Technavio report provides an in-depth analysis of the market and its players through combined qualitative and quantitative data. The analysis classifies companies into categories based on their business approaches, including pure-play, category-focused, industry-focused, and diversified. companies are specially categorized into dominant, leading, strong, tentative, and weak, based on their quantitative data analysis.  

Market Segmentation

By Application:

The distribution segment is estimated to witness significant growth during the forecast period. Factors such as the high number of grid interconnections among countries and the high renewable power generation are significantly contributing to the growth of this segment in Europe. Europe is the dominant leader in offshore wind power generation in the world, and these wind farms are situated miles away from the grid, requiring power to be transmitted over long distances, which has driven the need for power cables in the region.

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The distribution segment was the largest segment and was valued at USD 33.10 billion in 2018. Several countries are gradually moving toward the use of renewable energy, such as wind and solar, to achieve carbon emission reduction targets and reduce the dependency on fossil fuels. Several countries are shifting toward the use of renewable energy, such as wind and solar, to achieve carbon emission reduction targets and minimize the dependency on fossil fuels. Hence, factors such as the rising number of switchgear offshore wind energy plants in Europe, rising urbanization, and rapid industrialization are expected to drive the growth of this segment which in turn will drive the growth of the market during the forecast period.

Segment Overview

The market research report provides comprehensive data (region wise segment analysis), with forecasts and estimates in "USD billion" for the period 2024 to 2028, as well as historical data from 2018 to 2022 for the following segments.

• Product Outlook
  • Power cables
  • Transformers
  • Switchgear
• Application Outlook
  • Distribution
  • Transmission

Market Analyst Overview

Transmission and Distribution (TandD) equipment refer to the technologies and devices used in the transfer and distribution of electrical energy from power generation sources to end-users. The market caters to various power generation sources, including wind energy, solar energy, geothermal energy, hydroelectric power, biomass, and offshore wind power. The market comprises several components, such as power transformers, cables, switches, transmitters, insulators, super capacitors, protective devices, relays, circuit breakers, contactors, flexible power cables, belts, chains, and meters. The market is driven by the increasing demand for electrical energy from various sectors, including renewable sources like wind, solar, and biomass. The integration of smart appliances and the development of smart grids are also significant factors driving the market's growth.

Furthermore, the market is segmented into transmission networks and distribution system networks, with transmission networks handling the high-voltage electricity transfer from power plants to substations, and distribution system networks responsible for the distribution of electricity to end-users. Further, the European Commission (EC) has been placing mandates for companies to improve the efficiency of and upgrade old and high-loss power lines and transformers. The market includes both indirect and direct sales channels. Indirect sales channels involve the sale of equipment through distributors, while direct sales channels involve the sale of equipment directly to end-users. The market is expected to grow significantly due to the increasing demand for emission-free energy and the need for efficient and reliable power transmission and distribution systems.

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What are the Key Data Covered in this Market Report?

• CAGR of the market during the forecast period
• Detailed information on factors that will drive the market growth and forecasting of the market between 2024 and 2028
• Precise estimation of the size of the market size and its contribution to the parent market
• Accurate predictions about upcoming market trends and analysis and changes in consumer behavior
• Growth of the market industry across Europe
• Thorough market growth analysis of the market's competitive landscape and detailed information about companies
• Comprehensive market analysis and report on the factors that will challenge the market research and growth of market companies

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