Global transmission and distribution infrastructure to reach $789.2b by 2035

Thanks to rising power demand and grid modernisation, amongst others.

The global transmission and distribution infrastructure market is projected to reach $789.2b by 2035, reflecting a compound annual growth rate of 4.2% from 2025 to 2035.

According to Transparency Market Research Inc., Asia Pacific is a major growth engine, driven by rapid urbanisation, industrialisation, and extensive rural electrification programs in countries like India and China.

The market’s expansion will be driven by rising electricity demand, grid modernisation, renewable energy integration, and the need for reliable and efficient power distribution systems.

“The governments are also investing in smart grids, integrating distributed energy resources such as wind and solar, and regulatory needs for energy efficiency,” it said.

“Industry leaders are emphasising new-age technologies such as automation, real-time monitoring of the grid for improving dependability and reducing losses,” it added.

Utility companies are rolling out predictive maintenance, digital twin technologies, and AI-based grid optimisation for enhanced reliability. The other factors include cross-border transmission initiatives and strategic partnerships.

Meanwhile, ageing infrastructure, financial viability of utilities, regulatory and policy uncertainty, and supply chain constraints are some of the challenges that should be addressed to boost the market’s growth.

“The shift from a centralised, fossil-fuel-based system to a decentralised, clean-energy-based grid will be the central theme of the decade. This will necessitate a doubling of current grid investments, with an estimated $600b annually by 2030 needed to complement the growth in renewable energy capacity,” the report said.

“The focus will be on creating a unified, interconnected, and highly flexible energy ecosystem capable of meeting diverse demands while ensuring reliability and sustainability,” it added.