Transmission And Distribution Equipment Market Size and Share
Market Overview
| Study Period | 2021 - 2031 |
|---|---|
| Market Size (2026) | USD 545.06 Billion |
| Market Size (2031) | USD 755.23 Billion |
| Growth Rate (2026 - 2031) | 6.74% CAGR |
| Fastest Growing Market | Asia Pacific |
| Largest Market | Asia Pacific |
| Market Concentration | Medium |
Major Players *Disclaimer: Major Players sorted in no particular order Image © Mordor Intelligence. Reuse requires attribution under CC BY 4.0. | |
Transmission And Distribution Equipment Market Analysis by Mordor Intelligence
The Transmission And Distribution Equipment Market size is estimated at USD 545.06 billion in 2026, and is expected to reach USD 755.23 billion by 2031, at a CAGR of 6.74% during the forecast period (2026-2031).
Progress is anchored by unprecedented electrification mandates, ultra-high-voltage (UHV) network build-outs, and fast-paced substation digitization. Utilities must now handle two-way power flows from renewable sources while hardening infrastructure against extreme weather, shortening replacement cycles, and lifting capital intensity. Additional growth stems from green-hydrogen electrolyzer parks and hyperscale data centers that each demand dedicated high-voltage feeders, reversing the historical pattern of incremental load growth. Asia-Pacific is the epicenter of expansion thanks to China’s ±1,100 kV backbone and India’s rural electrification drive, while North American and European utilities deploy digital substations compliant with IEC 61850 to enhance resilience and cybersecurity. Equipment suppliers that can integrate SF₆-free switchgear, edge analytics, and modular designs are best placed to capture the next wave of grid investment.
Key Report Takeaways
- By equipment type, power cables led with 25.3% revenue share in 2025; transformers are forecast to expand at a 7.9% CAGR through 2031.
- By voltage class, high-voltage assets commanded 43.1% of the transmission and distribution equipment market share in 2025, while the UHV tier is projected to grow at a 9.8% CAGR through 2031.
- By installation type, replacement activity accounted for 58.4% of the transmission and distribution equipment market size in 2025, yet greenfield projects are set to rise at an 8.1% CAGR to 2031.
- By end-user, utilities held a 53.6% share of 2025 spending; the industrial segment records the highest projected CAGR at 7.7% to 2031.
- By geography, Asia-Pacific captured 46.1% of the transmission and distribution equipment market in 2025 and is growing at an 8.2% CAGR, the fastest worldwide.
Note: Market size and forecast figures in this report are generated using Mordor Intelligence’s proprietary estimation framework, updated with the latest available data and insights as of January 2026.
Global Transmission And Distribution Equipment Market Trends and Insights
Drivers Impact Analysis
| Driver | (~) % Impact on CAGR Forecast | Geographic Relevance | Impact Timeline |
|---|---|---|---|
| Accelerated Grid-Modernization Mandates in North America & Europe | 1.2% | North America & EU, with spillover to OECD markets | Medium term (2-4 years) |
| Expansion of Ultra-High-Voltage (UHV) Lines in Asia | 1.5% | APAC core (China, India), spillover to ASEAN | Long term (≥4 years) |
| Utility Capex Shift Toward Digital Substations & SF₆-Free Switchgear | 0.9% | Global, led by EU and North America | Short term (≤2 years) |
| Electrification of Large Industrial Loads (Green Hydrogen, Data-Centers) | 1.3% | Global, concentrated in North America, EU, Middle East | Medium term (2-4 years) |
| Rapid Urban Electrification in Middle-Income Economies (ASEAN, Africa) | 1.0% | ASEAN, Sub-Saharan Africa, South Asia | Long term (≥4 years) |
| Replacement Cycle of Legacy Oil-Filled Transformers ≥40 Years Old | 0.8% | North America, Europe, Japan | Short term (≤2 years) |
| Source: Mordor Intelligence | |||
Accelerated Grid-Modernization Mandates in North America & Europe
National programs are redirecting utility capital toward resilience, capacity, and cybersecurity upgrades. The U.S. Department of Energy allocated USD 10.5 billion for transmission reinforcement, spurring accelerated bids for high-voltage transformers, digital relays, and advanced conductors. In Europe, the REPowerEU initiative targets 25 GW of new cross-border capacity by 2030, propelling demand for IEC 61850 digital substations. Utilities now specify process-bus architectures that cut copper cabling by 80%, reduce footprint, and enable autonomous fault isolation. Nordic pilots are layering blockchain-based peer-to-peer trading onto distribution grids, elevating the functional requirements of medium-voltage switchgear. Collectively, these modernization mandates tighten project timelines, reward suppliers with turnkey capabilities, and reinforce the growth outlook of the transmission and distribution equipment market.
Expansion of Ultra-High-Voltage Lines in Asia
China commissioned 3,500 circuit-kilometers of UHV corridors in 2025, extending ±1,100 kV backbones that move remote wind and solar over 2,000 kilometers with under-3% losses.[1]State Grid Corporation of China, “±1,100 kV Corridor Commissioning Update,” sgcc.com.cn India followed with tenders for six new 800 kV AC substations, while ASEAN utilities evaluate UHV interconnectors for cross-border power trade. UHV equipment relies on specialized silicone rubber insulation and altitude-rated bushings, narrowing the supplier pool and supporting premium pricing. Long-distance corridors lower cumulative right-of-way costs versus multiple 400 kV expansions, making the economic case compelling once lines exceed 1,500 kilometers. These dynamics feed directly into the transmission and distribution equipment market as operators scale orders for 1,000 MVA transformers, composite insulators, and ±800 kV GIS bays.
Utility Capex Shift Toward Digital Substations & SF₆-Free Switchgear
The European Union’s F-Gas regulation caps SF₆ inventory at 2014 levels and mandates a 79% reduction by 2030, triggering rapid adoption of clean-air and fluoronitrile alternatives.[2]European Commission, “REPowerEU Plan,” ec.europa.eu ABB AirPlus and Siemens Blue GIS together captured 35% of 2025 European switchgear orders, underscoring a wholesale pivot toward eco-designs. Digital substations replace copper control wiring with fiber-optic networks, cutting installation labor by 40% yet demanding new cybersecurity protocols. North American utilities retrofit legacy yards with phasor measurement units to meet updated reliability standards, driving incremental demand for outdoor-rated edge servers. This capex reallocation accelerates sensor, software, and low-GWP switchgear sales, deepening the breadth of the transmission and distribution equipment market.
Electrification of Large Industrial Loads
Green-hydrogen electrolyzers reached 12 GW in 2025, each gigawatt-scale complex consuming power on par with an aluminum smelter. Hyperscale data centers used 17 GW in North America alone in 2025, fueled by artificial-intelligence workloads that require continuous baseload power. Both asset classes negotiate direct 220 kV interconnections, bypassing distribution grids and calling for custom transformers with harmonic filters. Utility planners in Virginia’s Loudoun County already fast-track voltage-support projects to accommodate dense data-center clusters.[3]Dominion Energy, “Data Center Transmission Study,” dominionenergy.com Electrolyzer developers specify rectifier transformers with dynamic tap-changers, pushing unit costs 20% above traditional industrial ratings. These heavy, concentrated loads propel steady, high-margin sales across the transmission and distribution equipment market.
Restraints Impact Analysis
| Restraint | (~) % Impact on CAGR Forecast | Geographic Relevance | Impact Timeline |
|---|---|---|---|
| Volatile Prices of Electrical-Grade Steel & Copper | -0.7% | Global, acute in Asia-Pacific manufacturing hubs | Short term (≤2 years) |
| Lengthy Permitting for New Transmission Corridors in OECD Markets | -0.5% | North America, Europe, Australia | Long term (≥4 years) |
| Delayed Utility Cashflows Owing to Tariff Freezes in Emerging Economies | -0.4% | South Asia, Sub-Saharan Africa, Latin America | Medium term (2-4 years) |
| Skilled-Labour Shortage for High-Voltage Field Services | -0.3% | Global, concentrated in OECD markets | Medium term (2-4 years) |
| Source: Mordor Intelligence | |||
Volatile Prices of Electrical-Grade Steel & Copper
Grain-oriented electrical steel climbed 35% between 2024 and 2025, while copper averaged USD 9,200 per ton in 2025, pressuring transformer makers locked into fixed-price contracts.[4]London Metal Exchange, “Specialty Steel and Copper Price Index,” lme.com Manufacturers experiment with amorphous-metal cores to cut steel use and reduce no-load losses; however, material costs rise 40-50%, limiting broad substitution. The concentration of electrical-steel output in East Asia, where three nations supply 75% of capacity, introduces geopolitical vulnerability for Western utilities. Resulting margin compression may delay upgrades, tempering near-term order volumes within the transmission and distribution equipment market.
Lengthy Permitting for New Transmission Corridors in OECD Markets
A typical U.S. transmission line consumes seven to ten years from scoping to energization, with 60% of the timeline tied to environmental reviews and right-of-way negotiations. Europe faces parallel obstacles, as the North Sea Wind Power Hub saw a three-year extension for marine habitat assessments. Financing costs rise sharply during prolonged pre-construction periods, inflating total project budgets by as much as 20%. Utilities increasingly shift toward prefabricated substations that shorten on-site work by 40%, partially mitigating delays but not eliminating permitting bottlenecks. These procedural hurdles restrain growth potential for the transmission and distribution equipment market over the long term.
Segment Analysis
By Equipment Type: Cables Consolidate Pole Position Amid Urban Undergrounding
Power cables captured the largest share of the transmission and distribution equipment market in 2025 at 25.3% and are forecast to advance at a 7.9% CAGR through 2031. Urban authorities prioritize underground networks that reduce outages and free up real estate, while offshore-wind developers favor 220 kV submarine circuits to evacuate power from deep-water platforms. Transformers, the second-largest slice, gain momentum as utility-scale battery farms need step-up units that synchronize storage assets with transmission backbones. Gas-insulated switchgear (GIS) maintains a premium price due to reduced footprint in dense city yards, despite accelerating shifts to SF₆-free media. Towers, poles, insulators, and shunt reactors post steady but moderate growth, sustained by refurbishment of aging lines and the rollout of composite materials enabling aerial construction in remote terrain. Miscellaneous items such as surge arresters and instrument transformers provide recurring aftermarket revenue, reinforcing supplier service models and broadening the transmission and distribution equipment market.
Note: Segment shares of all individual segments available upon report purchase
By Voltage Level: High Voltage Dominates, UHV Surges
High-voltage classes between 35 kV and 220 kV represented 43.1% of 2025 sales, reflecting their universal role as regional grid workhorses. Nevertheless, the ultra-high-voltage tier above 800 kV is projected to log the fastest 9.8% CAGR, driven by Asia’s ±1,100 kV DC corridors. Extra-high-voltage assets from 220 kV to 765 kV enjoy stable replacement demand, while medium-voltage equipment fills urban distribution and industrial campus needs. Low-voltage hardware remains a volume-oriented segment, where speed of delivery outstrips technical differentiation. Hybrid strategies emerge as utilities purchase modular transformers upgradable from 400 kV to 765 kV, giving planners future headroom and enlarging the transmission and distribution equipment market size attached to each project.
By Installation Type: Replacements Lead but Greenfield Projects Accelerate
Replacement activity accounted for 58.4% of 2025 installations as fleets installed during the 1970s and 1980s approach end-of-life. Utilities deploy dissolved-gas analysis, infrared thermography, and partial-discharge sensors to defer capex, yet many oil-filled transformers older than 40 years require full replacement to maintain reliability standards. Greenfield builds, set to grow at an 8.1% CAGR, concentrates in renewable energy zones, offshore-wind substations, and fast-growing industrial parks across ASEAN and the Middle East. Containerized, factory-prefabricated designs that cut site work by 30-40% gain traction, expanding the transmission and distribution equipment market share of manufacturers offering turnkey packages.
By End-User: Utilities Dominate, Industrial Demand Diversifies
Utilities held 53.6% of global spending in 2025 and are forecast to climb at a 7.7% CAGR as grid-integration mandates for variable renewables intensify. Industrial buyers in metals, petrochemicals, and refining electrify process heat and adopt skid-mounted substations, widening the order book. Hyperscale data-center operators demand transformers above 100 MVA and specialized harmonic filters, creating a niche segment with premium margins. Residential developers continue rolling out pad-mounted transformers and underground residential distribution that minimize aesthetic impact. Performance-based procurement, where suppliers guarantee lifecycle efficiency and reliability, further redefines competition across the transmission and distribution equipment market.
Note: Segment shares of all individual segments available upon report purchase
Geography Analysis
Asia-Pacific commanded 46.1% of 2025 revenue and is forecast to compound at 8.2% annually through 2031, lifted by China’s ±1,100 kV extensions, India’s nationwide 800 kV program, and ASEAN urbanization rates exceeding 6%. Japan and South Korea focus on seismic-resilient transformer replacements and digital-substation retrofits, underscoring a move from greenfield to brownfield investment. North America and Europe together contributed 35% of 2025 demand; growth moderates to 5-6% CAGR as these mature markets emphasize resilience upgrades, cyber-secure IEC 61850 rollouts, and SF₆-free switchgear compliance. The Middle East, South America, and Africa produced a combined 19% share, yet their 6.5-7.5% CAGR stems from green-hydrogen export hubs, Amazon-basin hydro evacuation lines, and Africa’s mini-grid deployments. Execution risks tied to tariffs, financing gaps, and skilled-labor scarcity persist, but local manufacturing footprints and flexible payment terms help suppliers secure contracts, sustaining the transmission and distribution equipment market across developing regions.
Competitive Landscape
Global revenue remains moderately concentrated; the ten largest vendors controlled roughly 45–50% of 2025 turnover, with regional asymmetry favoring Chinese firms in volume products and European or Japanese entities in UHV and digital niches. ABB and Siemens Energy extend vertical integration into power semiconductors and control software, enhancing solution stickiness while divesting commodity low-voltage lines to sharpen focus on grid modernization. Hitachi Energy won India’s largest-ever UHV transformer order, cementing leadership in 1,000 MVA class units. GE Vernova boosted GIS capacity in India, leveraging automated lines that cut cycle time by 40%. Technology differentiation circles around SF₆-free insulation, solid-state transformers, and open-protocol digital substations; yet IEC interoperability efforts threaten to commoditize hardware, shifting advantage toward predictive-maintenance software, field services, and cybersecurity credentials. Price competition intensifies as Indian and Chinese suppliers undercut incumbents by 20-30% on GIS pricing, eroding margins but broadening access to the transmission and distribution equipment market.
Transmission And Distribution Equipment Industry Leaders
ABB Ltd.
Siemens Energy AG
Schneider Electric SE
Mitsubishi Electric Corp.
Eaton Corp. plc
- *Disclaimer: Major Players sorted in no particular order
Recent Industry Developments
- July 2025: ABB introduced the SACE Emax 3 air circuit breaker, featuring predictive-maintenance analytics and zero-trust cybersecurity layers for AI data center feeders.
- July 2025: Siemens Energy has secured the role of preferred bidder for the construction of two HVDC converter stations as part of the GBP 2.5 billion Eastern Green Link 4 subsea electricity project, which will link Scotland and England.
- May 2025: Hitachi Energy acquired Eks Energy to strengthen digital grid capabilities, particularly in renewable integration.
- March 2025: Hitachi Energy announced an additional USD 250 million investment by 2027 to expand global production of critical transformer components.
Research Methodology Framework and Report Scope
Market Definitions and Key Coverage
Our study defines the global transmission and distribution (T&D) equipment market as all new high, medium, and low-voltage hardware that carries electricity from generation plants to the final drop point. Covered products span power and distribution transformers, circuit breakers, switchgear, conductors, towers, poles, insulators, protection and control devices, and overhead and underground power cables installed across utility, industrial, and commercial networks worldwide.
Scope Exclusions: Generation assets, refurbished or rental equipment, and standalone grid-software platforms lie outside our scope.
Segmentation Overview
- By Equipment Type
- Transformers
- Power Transformers (Above 72.5 kV)
- Distribution Transformers (Up to 72.5 kV)
- Switchgear
- Gas-Insulated Switchgear (GIS)
- Air-Insulated Switchgear (AIS)
- Other Switchgears
- Power Cables
- Transmission Cables
- Distribution Cables
- Transmission Towers
- Towers
- Poles
- Voltage Regulators
- Insulators
- Capacitors
- Shunt Reactors
- Other Equipment Type
- Transformers
- By Voltage Level
- Low Voltage (Up to 1 kV)
- Medium Voltage (1 to 35 kV)
- High Voltage (35 to 220 kV)
- Extra-High Voltage (220 to 765 kV)
- Ultra-High Voltage (Above 800 kV)
- By Installation Type
- New Build/Greenfield
- Upgrade and Replacement
- By End-User
- Power Utilities (Transmission System Operators, Distribution Utilities, Renewable Plant Owners and IPPs)
- Industrial (Oil and Gas, Metals and Mining, Petrochemicals)
- Commercial (includes Data-Centers)
- Residential
- By Geography
- North America
- United States
- Canada
- Mexico
- Europe
- Germany
- United Kingdom
- France
- Spain
- Italy
- Nordic Countries
- Russia
- Rest of Europe
- Asia-Pacific
- China
- India
- Japan
- South Korea
- ASEAN Countries
- Rest of Asia-Pacific
- South America
- Brazil
- Argentina
- Colombia
- Rest of South America
- Middle East and Africa
- Saudi Arabia
- United Arab Emirates
- South Africa
- Egypt
- Rest of Middle East and Africa
- North America
Detailed Research Methodology and Data Validation
Primary Research
Mordor analysts then interview grid operators, EPC contractors, component OEMs, and energy-sector regulators across Asia-Pacific, North America, Europe, and emerging regions. These conversations verify installation rates, typical ASPs, lead-time bottlenecks, and policy drivers, letting us close gaps spotted during desk work and refine scenario assumptions.
Desk Research
We begin by mapping the installed grid base and investment flows using open datasets from tier-one public sources such as the International Energy Agency, U.S. Energy Information Administration, UN Comtrade, World Bank, International Renewable Energy Agency, and the International Council on Large Electric Systems. These help us size annual equipment demand through indicators like line-kilometers added, transformer MVA additions, and regional utility capex plans. Company 10-Ks, investor decks, and reputable trade press deepen insight into manufacturer pricing and technology shifts, while D&B Hoovers and Dow Jones Factiva offer revenue splits that anchor supplier roll-ups. The sources listed are illustrative; many additional feeds are consulted to cross-check figures and clarify gray areas.
Market-Sizing and Forecasting
A top-down construct converts national transmission-line, substation, and distribution-feeder expansion budgets into equipment outlays, which are then validated against sampled bottom-up checks on supplier shipments and utility tender data. Key model inputs include annual line-kilometer additions, average transformer MVA per substation, copper-price linked ASP movement, renewable-capacity interconnection queues, and stated national grid-modernization budgets. Forecasts deploy multivariate regression coupled with ARIMA smoothing to project each variable before rolling them into the market outlook. Stress-test scenarios supplied by our primary respondents further bound highs and lows.
Data Validation and Update Cycle
Outputs undergo variance reviews, peer audits, and reconciliation with external grid investment benchmarks. Reports refresh every twelve months, and we trigger interim updates when major tariff reforms, large stimulus bills, or technology cost shocks occur. A final analyst pass right before publication ensures clients receive the latest calibrated view.
Why Mordor's Transmission and Distribution Equipment Baseline Is Dependable
Published estimates often diverge because firms pick different component baskets, voltage bands, and refresh cadences.
Key gap drivers include narrower scopes that omit distribution gear, reliance on historical shipment values without ASP re-indexing, currency translation choices, and varying treatment of utility stockpiles. Mordor's disciplined scope alignment, annual refresh, and dual-lens validation reduce these skews.
Benchmark comparison
| Market Size | Anonymized source | Primary gap driver |
|---|---|---|
| USD 500.24 B (2025) | Mordor Intelligence | |
| USD 342.64 B (2024) | Global Consultancy A | Excludes low-voltage distribution assets; uses trailing line-construction spend only |
| USD 260 B (2023) | Trade Journal B | Counts manufacturer shipments but misses aftermarket replacements and inflation-adjusted ASPs |
| USD 184.12 B (2025) | Industry Association C | Captures direct utility purchases, omits industrial and commercial network upgrades |
Taken together, the comparison shows how definition breadth, input freshness, and price treatment sway totals.
By anchoring values to transparent physical drivers and vetting them through ongoing expert dialogue, Mordor delivers a balanced, traceable baseline decision-makers can rely on.
Key Questions Answered in the Report
What is the current value of the transmission and distribution equipment market?
The market is valued at USD 545.06 billion in 2026 and is projected to hit USD 755.23 billion by 2031.
Which region leads spending on transmission and distribution equipment?
Asia-Pacific holds 46.1% of 2025 revenue, driven by China’s UHV build-out and India’s rural electrification rollout.
Why are utilities shifting toward SF₆-free switchgear?
European F-Gas rules mandate a 79% reduction in SF₆ use by 2030, prompting rapid adoption of clean-air and fluoronitrile alternatives.
How fast will ultra-high-voltage equipment grow?
UHV assets above 800 kV are forecast to expand at a 9.8% CAGR between 2026 and 2031.
Which end-user segment is growing the fastest?
Industrial customers, fueled by green-hydrogen and data-center projects, are projected to grow at 7.7% CAGR through 2031.
What factors could restrain market growth?
Volatile electrical-steel and copper prices, along with protracted transmission-line permitting, could temper near-term expansion.
