U.S. Electric Power Transmission and Distribution Market
Report Code: 13356
U.S. Electric Power Transmission and Distribution Market Size & Share Analysis - Trends, Drivers, Competitive Landscape, and Forecasts (2025 - 2032)
This Report Provides In-Depth Analysis of the U.S. Electric Power Transmission and Distribution Market Report Prepared by P&S Intelligence, Segmented by Application (Transmission Line, Distribution Line), Product (Transformers, Switchgear, Insulator & Fittings, Cable & Lines), Voltage (Low, Medium, High), End User (Energy Utilities, Industrial, Commercial, Residential), and Geographical Outlook for the Period of 2019 to 2032
U.S. Electric Power Transmission and Distribution Market Growth Potential
Market Statistics
Study Period
2019 - 2032
2024 Market Size
USD 89.9 Billion
2025 Market Size
USD 91.6 Billion
2032 Forecast
USD 110.4 Billion
Growth Rate (CAGR)
2.70%
Largest Region
West
Fastest-Growing Region
South
Nature of the Market
Consolidated
Largest Application Category
Transmission
Growth Forecast
Key Players
Key Report Highlights
Market Size and Forecast
Industry Trend
Regulatory Landscape
Demand Trend Analysis
Companies Recent Strategical Developments
Key Stakeholders
Voice of Industry Experts/KOLs
Future Opportunity
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U.S. Electric Power Transmission and Distribution Market Outlook
The U.S. electric power transmission and distribution market valued USD 89.9 billion in 2024, and this number is expected to increase to USD 110.4 billion by 2032, advancing at a CAGR of 2.7% during 2025–2032. The rising electricity needs, growing population, expanding cities, and booming industrial output drive the marker. These factors create a necessity to develop contemporary transmission and distribution systems and overhaul the existing infrastructure.
The U.S. is therefore undertaking grid modernization and digitalization initiatives to make the power infrastructure more accommodating of the growing population and renewable electricity, resilient to natural and manmade disasters, and responsive to the rising electricity demand. These efforts include the creation of smart grids to improve both infrastructure flexibility and operational efficiency, along with real-time monitoring and preventive maintenance capacities.
Renewable power generation integration requires the development of adaptive transmission and distribution facilities because of its intermittent energy output, thus promoting increased investment in the electrical infrastructure. The growing market for electric vehicles creates additional stress on the present grid, in turn, requiring extensive investments to accommodate the rising power needs.
Future growth in the market will result from public policy-supported investments that enhance power grid strength along with renewable energy participation. The Inflation Reduction Act offers financial benefits for clean energy technology investments that both quicken renewable energy adoption and increase the need for updated transmission and distribution systems. This market shows signs of growth stability because of advancing technologies combined with rising power consumption requirements together with demands for green energy solutions.
U.S. Electric Power Transmission and Distribution Market Emerging Trends
Grid Modernization and Smart Grids Are Trending in Market
The U.S. is undertaking a substantial number of extensive grid modernization projects involving the implementation of smart grids, advanced sensors, and real-time data analysis for efficiency and reliability. The growing urbanization and industries are demanding more electricity and requirements for modernization of transmission and distribution infrastructure for providing needed capacity. In 2023, electricity sales to industrial consumers in the U.S. amounted to approximately 1,025 terawatt-hours, marking a 2.3% increase from 2020.
These high-tech solutions allow power utilities to deal with the rising electricity consumption and integrate renewable power sources efficiently. The U.S. Energy Information Administration (EIA) projects that U.S. energy consumption will increase by 0% to 15% from 2022 to 2050, driven by economic growth and population expansion.
The expanding urban areas and industries drive power usage growth, which requires better transmission and distribution networks throughout the country.
Utilities are increasingly using two cutting-edge power transmission systems: high-voltage direct current (HVDC) transmission and flexible alternating current transmission systems (FACTS).
They provide efficient electricity transmission over long distances and enable offshore wind energy systems integration.
Several electric utilities spent a huge amount on transmission infrastructure modernization and expansion in the country in 2023 like American Electric Power (AEP), Duke Energy, and PPL Corporation.
The Federal-State Modern Grid Deployment Initiative works to speed up modern grid deployment via advanced technology adoption.
The Inflation Reduction Act offers financial benefits to clean energy technologies, which expands investment in transmission and distribution systems.
Key Drivers: Government Policies and Resilience Investments
Government policies including the Inflation Reduction Act function as a main driver for speeding up investments in the electric power T&D market. The Inflation Reduction Act gives financial support that enables widespread adoption of clean energy solutions involving wind power and solar power and energy storage systems through modernized and enhanced transmission wiring for efficient interconnection. The opportunity for utilities to invest in both renewable energy sources and their required infrastructure becomes financially beneficial through government-sponsored tax credits and grants for renewable projects.
The current transmission and distribution networks display increased vulnerability to extreme weather events because they face rising frequency and severity of elements such as hurricanes, wildfires, and ice storms. The present situation demands more resilient infrastructure because it enables better grid reliability alongside quick power outage recovery. Utilities are improving their ability to handle natural disasters by financing grid infrastructure projects. Such investments form an essential component that enhances steady power distribution and decreases outage times following extreme weather events leading to heightened transmission and distribution market growth.
U.S. Electric Power Transmission and Distribution Market Segmentation and Category Analysis
Application Insights
The transmission bifurcation dominates the market, with a revenue share of 70% in 2024. This is because the transportation of electricity from power stations needs high-tension lines to connect generation sites to substations. Adaptive transmission lines also create an extensive system that permits different energy sources, particularly renewable ones, to integrate into the power grid, establish a stable energy supply, and ensure grid resilience.
The applications covered in the report are:
Transmission (Larger Category)
Distribution (Faster-Growing Category)
Product Insights
Transformers represent the largest category, which accounted for a revenue share of around 55% in 2024, and this category is further expected to maintain its position during the forecast period. Power grids depend heavily on transformers to boost voltage for maximum transmission distance and transform it to low voltage for delivery to the end user. Transformers play an important role in transmission and distribution network because they help keep the grid stable while working at full capacity. Transformers remain essential as the need for electricity rises with the swift relocation of the populations to cities and the nationwide adoption of clean energy technology.
Here are the product types studied in the report:
Transformers (Largest Category)
Power transformers
Distribution transformers
Switchgear
Circuit breakers
Fuses
Distribution Control Panels
Others
Insulator & Fittings
Cables & Lines (Fastest-Growing Category)
Others
Voltage Insights
The high category accounted for the largest revenue share, in 2024, and this category is further expected to maintain its position during the forecast period. High-voltage power systems provide the best way to send electrical power across long distances between power stations and substations. These systems help keep the power grid stable and let electricity reach all people. The power grid needs high-voltage systems to bring in energy from renewable or traditional sources efficiently. The greater the voltage, the lower the current loss, which is the main reason power is transmitted at high and ultra-high voltages over long distances. Electricity is generally transmitted in the U.S. between 230 kilovolts and 500 kilovolts.
Voltage types covered in this report are:
Low
Medium (Fastest-Growing Category)
High (Largest Category)
End User Insights
Utilities dominate the market, in 2024. This is because electric utilities handle all aspects of electricity production and delivery to end users through their robust facilities and operations. These companies maintain electrical grid infrastructure, produce and integrate renewable energy, and implement advanced technologies to enhance grid efficiency and resilience.
The end users covered in this report are:
Energy Utilities (Largest Category)
Industrial
Commercial
Residential (Fastest-Growing Category)
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U.S. Electric Power Transmission and Distribution Market Regional Growth Dynamics
The Southern region is the largest region in the U.S. electric power transmission and distribution market because both population density and industrial base together with growing urban areas drive. Texas stands as the leader in wind power generation while Florida demonstrates notable strength in solar power generation in the Southern states alongside Georgia. The Southern region demands greater electricity consumption during summer months because of air conditioner use leading to increased requirements for resilient power systems. Utilities in the southern region actively work to enhance their grid systems while carrying out expansion initiatives and building up strong networks to support increasing power requirements provide dependable service and implement renewable power systems successfully.
These regions were analyzed:
Northeast
Midwest
South (Fastest-Growing Category)
West (Largest Category)
U.S. Electric Power Transmission and Distribution Market Share
The U.S. electric power transmission and distribution market is highly fragmented because a wide range of products and systems with varying voltage ratings are used for T&D operations.
The market features well-known international companies, along with smaller vendors who specialize in particular product lines, such as power cables, transformers, and control equipment.
Many transmission and distribution firms battle for supremacy, which fuels creative technology advancements across the industry.
Companies are pushing to upgrade their services to outperform industry competitors, with the efforts of many centered around the integration of digital and AI-driven technologies into their systems.
Many large companies buy small transmission and distribution service businesses to enlarge their service offerings.
U.S. Electric Power Transmission and Distribution Companies:
General Electric
S&C Electric Company
American Electric Power
Duke Energy Corporation
Southern Company
Xcel Energy Inc.
PPL Corporation
Dominion Energy, Inc.
Entergy Corporation
NextEra Energy, Inc.
Consolidated Edison, Inc.
Exelon Corporation
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