Electricity Transmission Infrastructure Market Set for 4.4% CAGR Growth, Empowering Manufacturers Through 2035

The Electricity Transmission Infrastructure Market is entering a decade of transformative growth. Valued at USD 45.4 billion in 2025, the market is projected to reach USD 69.8 billion by 2035, expanding at a compound annual growth rate (CAGR) of 4.4%. This trajectory highlights not only rising electricity demand but also the critical need for manufacturers to design solutions that ensure reliability, efficiency, and scalability in global energy systems.

For manufacturers, this expansion represents more than rising demand—it signals a wave of opportunity to deliver innovation that solves pressing challenges in energy delivery, integration of renewables, and modernization of outdated systems.

Why Growth is Accelerating

Energy networks worldwide are under mounting pressure. Demand is surging as industries digitize, populations expand, and electrification accelerates across sectors. The rise of electric vehicles, urbanization, and renewable integration is reshaping the requirements of power grids. These shifts are creating robust demand for advanced transmission infrastructure—particularly transformers, switchgear, and high-voltage solutions that safeguard grid stability while reducing losses.

Governments and regulatory bodies are also playing a defining role. By enforcing stricter efficiency standards and supporting smart grid initiatives, they are ensuring that next-generation equipment finds rapid adoption. Manufacturers who align with these requirements stand to lead the market, benefitting from both regulatory incentives and long-term contracts.

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Segmental Insights Shaping the Industry

Transformers, including power and distribution units, are projected to dominate with 41.2% of market share in 2025. Their role in converting voltage levels efficiently and minimizing energy losses makes them indispensable. For manufacturers, the demand for advanced transformer technologies—featuring high-capacity cores, smart monitoring, and improved insulation—presents a powerful growth avenue.

Overhead Transmission: Reliability at Scale

Overhead power transmission lines are expected to secure 64.2% of market share in 2025. Their cost-effectiveness and ease of deployment, especially across long distances and rugged terrains, make them the preferred choice. Continuous innovation in conductor materials and tower design enhances both performance and lifespan, creating room for manufacturers to innovate in durability and efficiency.

HVDC Technology: The Game Changer

High-voltage direct current (HVDC) is set to lead the technology segment with 39.6% share in 2025. Its ability to deliver electricity efficiently over vast distances while enabling renewable integration positions it as a cornerstone of the future grid. Manufacturers investing in advanced converter stations, power electronics, and digital controls will be at the forefront of this high-growth segment.

Regional Dynamics Driving Market Momentum

North America and Asia-Pacific are emerging as hotbeds of investment. The United States is expected to see significant growth, driven by mega-projects like the Grain Belt Express, which will transport 4,000MW of renewable energy across multiple states. Meanwhile, China leads globally, with a forecast CAGR of 5.9%, propelled by massive state-backed infrastructure projects and rising industrial demand.

Europe remains equally pivotal, with Germany commanding a dominant position in the Western European market. Regulatory emphasis on decarbonization, coupled with rising investments in renewable integration, ensures consistent demand for advanced infrastructure solutions.

For manufacturers, these regional shifts highlight the importance of localized strategies—customizing solutions to regulatory frameworks, industrial priorities, and terrain-specific challenges.

Challenges and Opportunities Ahead

Despite the strong growth trajectory, the industry faces significant challenges. Long-distance transmission still results in energy losses, while rising raw material costs for steel, copper, and aluminum drive up production expenses. Manufacturers who can deliver cost-effective, energy-efficient solutions while reducing maintenance overheads will gain a competitive edge.

Digitalization, predictive maintenance, and smart grid technologies offer manufacturers an opportunity to provide value beyond hardware—through integrated, intelligent solutions that extend asset lifecycles and improve reliability.

Competitive Landscape

Leading players including ABB Limited, Siemens AG, General Electric Company, Hitachi Limited, Mitsubishi Electric, Alstom SA, Eaton, Toshiba Corporation, and OSRAM Licht AG are actively investing in product innovation and long-term contracts. With global electrification accelerating, the race is not only about market share but also about setting the standards for grid modernization.

Manufacturers entering or expanding in this market must consider strategies that go beyond traditional equipment delivery. Developing technologies that integrate seamlessly into smart grids, align with decarbonization goals, and ensure long-term operational savings will be critical to capturing new opportunities.

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A Future Defined by Innovation

The Electricity Transmission Infrastructure Market presents a clear message: growth and transformation are inevitable. With investments in smart grids, HVDC technology, and renewable integration accelerating worldwide, manufacturers have a unique window to shape the future of electricity delivery.

As the market expands from USD 45.4 billion in 2025 to USD 69.8 billion by 2035, those who focus on solving efficiency challenges, delivering innovation at scale, and aligning with regulatory and sustainability goals will define the next era of electricity transmission.

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Future Market Insights, Inc. (ESOMAR certified, recipient of the Stevie Award, and a member of the Greater New York Chamber of Commerce) offers profound insights into the driving factors that are boosting demand in the market. FMI stands as the leading global provider of market intelligence, advisory services, consulting, and events for the Packaging, Food and Beverage, Consumer Technology, Healthcare, Industrial, and Chemicals markets. With a vast team of over 400 analystsworldwide, FMI provides global, regional, and local expertise on diverse domains and industry trends across more than 110 countries.

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