Power Equipment Market Size & Share Analysis - Growth Trends and Forecast (2026 - 2031)

Global Power Equipment Market Trends and Insights

Rapid Renewable-Led Grid Modernization

Global operators are refitting networks to manage voltage fluctuations and reverse fault currents introduced by solar and wind inverters. IEA data show 507 gigawatts of renewable capacity came online in 2024, with USD 600 billion in grid reinforcements needed by 2030.^{[1]International Energy Agency, “Renewables 2025,” iea.org} Transformer suppliers now integrate sub-second tap-changers, while switchgear vendors deploy arc-suppression modules that address bidirectional currents. Siemens Energy reported a 34% year-on-year rise in grid-stabilization orders in 2025, driven by North Sea offshore wind and Australia’s solar-plus-storage build-outs. IEEE 1547-2018 ride-through compliance has become the baseline for North American procurement, forcing vendors to certify anti-islanding features. These requirements are pushing R&D budgets toward interoperability rather than raw efficiency.

Urbanization-Fuelled Infrastructure Expansion in Emerging Economies

The United Nations projects India, Indonesia, and Nigeria will add 420 million urban residents between 2024 and 2035, demanding 280 gigawatts of new capacity.^{[2]United Nations DESA, “World Urbanization Prospects 2025,” un.org} India’s Power Grid Corporation awarded USD 4.2 billion of 765-kilovolt contracts in 2025, while Indonesia’s PLN is procuring 15,000 distribution transformers annually through 2030. ABB opened a 50,000-square-meter transformer facility in Bengaluru in June 2025 to satisfy local-content rules. Suppliers are engineering cost-optimized products with shorter lead times, emphasizing volume over incremental efficiency.

Hyperscale Data-Center Back-Up Power Build-Out

Cloud operators are self-generating to guarantee uptime for AI training clusters. Microsoft deployed 1.2 gigawatts of backup capacity in 2024, mostly natural-gas engines and fuel cells. Cummins saw data-center generator orders jump 47% in early 2025, with average ratings rising to 3.5 megawatts. Google will pilot small modular reactors by 2028, signaling a move toward baseload captive assets. Regulatory shifts such as California’s proposed diesel limits are steering demand toward gas and hydrogen. This fragmentation creates parallel demand streams for utility-scale and modular equipment.

Rural Electrification & Mini-Grids

Development banks are funding containerized diesel-solar hybrids across Africa and South Asia. The World Bank’s Scaling Mini-Grids program financed 2,100 systems in 2024, each requiring smart inverters, low-voltage panels, and ruggedized switchgear. Vendors must design for harsh climates and minimal maintenance, often bundling long-term service contracts. Utilities in Kenya and Nigeria are adopting bi-directional meters that credit surplus solar exports. These deployments broaden the addressable base of the power equipment market beyond traditional utilities.

Volatile Copper & Rare-Earth Supply Chains

Copper prices swung between USD 9,100 and USD 10,850 per ton from 2024 to mid-2026, creating 15%–18% bill-of-materials variance for transformers.^{[3]London Metal Exchange, “LME Copper Historical Data 2024-2026,” lme.com} Neodymium oxide spiked to USD 94,000 per ton in early 2025 as Chinese export quotas tightened.^{[4]Reuters, “China Rare-Earth Quotas Tighten, Prices Surge,” reuters.com} GE redesigned generator rotors with lower rare-earth content to offset a 220-basis-point margin squeeze reported in 2025 filings. Western governments issued USD 2.8 billion of grants in 2025 for domestic refining, but commercial output will not arrive before 2028. Vendors are trialing copper-aluminum hybrids and ferrite magnets, trading some efficiency for cost predictability.

Cyber-Security Certification Delays for Smart Switchgear

NERC’s 2024 CIP revisions stretched certification cycles from 6 to 14 months, prompting utilities to postpone commissioning until devices pass penetration tests. Hitachi Energy disclosed that 22% of its 2025 switchgear backlog faced IEC 62351 bottlenecks, especially in Australia. The EU’s NIS2 Directive assigns liability to manufacturers, compelling exhaustive supplier audits. Smaller firms lacking ISO 27001 credentials risk exclusion from vendor lists, fueling consolidation within the power equipment market.

Segment Analysis

By Equipment Type: Turbines Lead Amid Combined-Cycle Resurgence

Turbines captured 27.1% of 2025 revenue, underpinning the largest slice of the power equipment market share, and they are set to expand at a 9.2% CAGR through 2031. Mitsubishi Power won a USD 1.1 billion order in February 2025 for six M701JAC units supporting Texas solar variability. Generators, particularly hydrogen-ready reciprocating sets, are scaling in off-grid mines and data-center campuses. Meanwhile, transformers face a two-track future: sub-36-kilovolt distribution models supply urban networks, whereas 100 MVA-plus power units feed ultra-high-voltage corridors. Switchgear is transitioning to solid-state interruption, evidenced by ABB’s 2024 acquisition of a software-defined protection firm. HVDC subsea cables are booming, as Prysmian’s EUR 8 billion backlog indicates.

Digitally enabled sensors embedded across these products generate predictive insights that shorten outage durations and cut O&M budgets. Edge analytics allow utilities to defer costly replacements, while manufacturers monetize data via subscription dashboards, reinforcing recurring-revenue profiles that underpin the broader power equipment market.

Note: Segment shares of all individual segments available upon report purchase

By Power Generation Source: Renewables Reshape Equipment Specifications

Renewables claimed 61.2% of 2025 demand and are forecast for a 12.4% CAGR, shifting design targets from capacity to controllability. Transformers now require broader voltage-regulation bands, and circuit breakers must clear bidirectional faults. Thermal plants are pivoting to flexible peakers; Siemens Energy’s HL-class ramps from 0% to 100% in under 10 minutes. Nuclear’s small modular reactors will necessitate radiation-tolerant switchgear by 2028.

Solar farms deploy distributed medium-voltage gear, while offshore wind hinges on subsea cables and floating substations. Carbon-capture retrofits add auxiliary loads, compelling uprated generators. Nuclear relicensing cycles drive digital control upgrades compliant with NRC cyber rules. Consequently, equipment architecture has become fuel-agnostic, emphasizing integration over type.

By Voltage Class: High-Voltage Transmission Gains Strategic Priority

Equipment above 36 kilovolts will grow at 8.5% through 2031, reflecting strategic investment in backbone corridors. China’s State Grid completed the ±500 kV Zhangbei line in 2024 and plans three additional ±800 kV projects announced in 2025. India is piloting 1,200 kV AC lines to slash line losses over 1,000 km. Gear rated 1–36 kV still holds 44.9% of 2025 sales, but adoption of automated fault isolation and demand-response interfaces is deepening digital penetration.

Low-voltage equipment serves residential niches; Schneider Electric’s Acti9 integrates arc-fault detection and remote monitoring for smart homes. European utilities converge on 20 kV to cut copper usage, whereas U.S. grids remain at 12.47 kV, sustaining duplicate supply chains. EPC-wrapped procurement dominates ultra-high-voltage projects as utilities outsource engineering complexity, and that dynamic is boosting vertical-integration strategies across the power equipment market.

Note: Segment shares of all individual segments available upon report purchase

By Application: Power Generation Accelerates as Captive Assets Proliferate

Power-generation equipment will log the fastest 9.1% CAGR through 2031, reflecting hyperscale and industrial self-generation. Transmission applications held 39.5% of 2025 revenue, anchored by cross-border HVDC schemes in Europe and Asia. Distribution gear benefits from urbanization, though price pressure persists as utilities demand extended warranties. AWS reported 4.3 gigawatts of captive capacity in 2025, underscoring the pivot to private generation.

U.S. DOE allocated USD 10.5 billion in 2024 for interregional lines set to break ground post-2026. Distribution networks are turning into active meshes, mandating tap-changing transformers and reclosers with integrated comms. Rural programs in Sub-Saharan Africa require containerized sets capable of operating in high-temperature environments. This diversification broadens total addressable markets, honing vendor focus on modularity and configurability.

By End-User: Industrial Segment Electrifies Heat and Transport

Utility buyers still command 59.7% of 2025 spending but are moving to performance-based contracts. Industrial customers, forecast for an 8.8% CAGR, are installing electric arc furnaces and microgrids. ArcelorMittal’s March 2025 plan to deploy 1.2 gigawatts of arc furnaces creates demand for harmonic-filtering switchgear. Eaton’s 2025 report shows microgrid controller sales doubling, led by pharma and food processors. Utilities like Southern Company installed 850 megawatts of grid-scale batteries in 2024, pairing advanced inverters with frequency-support algorithms.

Commercial buildings deploy energy-management systems that optimize HVAC and lighting against time-of-use tariffs. The boundaries between segments blur as factories export surplus power, utilities pay residential customers for demand response, and shopping centers host EV chargers needing substation-level capacity. These cross-currents reinforce continuous demand diversity within the power equipment market.

Note: Segment shares of all individual segments available upon report purchase

Geography Analysis

Asia-Pacific held 50.4% of global revenue in 2025 and will sustain a 9.0% CAGR, propelled by China’s ±800 kV corridors, India’s renewables auctions, and ASEAN coal-to-gas conversions. State Grid invested USD 58 billion in 2024, emphasizing long-haul HVDC to coastal load centers. India auctioned 50 gigawatts of renewables in 2024, triggering USD 12 billion of evacuation contracts. Japan’s 1.2 gigawatt Chiba offshore wind farm, awarded in 2025, requires floating substations and 66 kV cables. South Korea’s Green New Deal budgets KRW 73.4 trillion through 2030 for digital substations. ASEAN nations secured USD 4.2 billion in ADB transmission funding in 2025.

North America and Europe prioritize grid resilience. The U.S. Inflation Reduction Act’s tax credits catalyze projects like the 3 GW TransWest Express line. Germany approved EUR 24 billion of expansion in 2025, including SuedLink. The UK road-mapped 4,000 km of offshore circuits costing GBP 18 billion. Nordic states expand cross-border connectors such as the EUR 1.3 billion NordLink.

South America and the Middle East show rising opportunity. Brazil auctioned 15 GW of concessions in 2024, drawing Siemens Energy and WEG bids. Chile’s Atacama solar corridor employs 500 kV lines commissioned in 2025. Saudi Arabia earmarked USD 7.5 billion in 2024 for renewable transmission under PIF. DEWA let a USD 1.8 billion 400 kV contract in 2025 for the MBR Solar Park integration. Off-grid African mini-grids financed by the World Bank round out demand diversity.