U.S. Power Infrastructure Market Size & Share Analysis - Trends, Drivers, Competitive Landscape, and Forecasts (2025 - 2032)

The U.S. power infrastructure market is on a significant growth trajectory, with its valuation projected to surge from USD 264.2 billion in 2024 to USD 455.6 billion by 2032, advancing at a robust CAGR of 7.2% between 2025 and 2032. This expansion is driven by the country's transition to cleaner energy systems and rapid advancements in grid technologies.

Federal and state-level policies, including tax incentives and renewable energy mandates, are fostering the deployment of solar and wind energy. In parallel, battery energy storage systems (BESS) are gaining traction as a reliable solution to balance the variable nature of renewable energy sources. Moreover, the rising adoption of electric vehicles and the growing need for EV charging infrastructure are prompting a modernization of the national grid, supported by AI-enabled smart grid technologies. Strategic public-private partnerships and innovative financing approaches further bolster the country's capacity to meet increasing electricity demand and ensure a stable, sustainable energy future.

Key Insights

Substations emerged as the leading segment in 2024, holding a 55% revenue share. These critical components of the grid require substantial investment due to the aging infrastructure and rising electricity transmission demands across the U.S.

Transformers are the fastest-growing category, expanding at a CAGR of approximately 7.5%. The growth is attributed to the increasing integration of solar and wind power, which necessitates adaptive transformer technologies for effective voltage management.

The industrial sector holds the largest application share at 45% in 2024, driven by power-intensive operations in manufacturing, mining, and chemicals. The sector consumed 1,025 TWh of electricity in 2023, marking a 2.3% rise from 2020.

Residential applications are growing rapidly due to electrification trends, smart home adoption, and government incentives promoting energy-efficient living. Residential construction spending hit USD 1,626.6 billion in May 2025.

The southern U.S. is both the largest and fastest-growing regional market, accounting for a 45% share. The region's booming population, warm climate, and industrial density fuel the demand for expanded and modernized power infrastructure.

Texas, Florida, and Georgia are leading renewable energy expansion in the South, with Texas recognized as the top wind power producer nationwide.

Renewable energy is the primary market trend, driven by technological innovation, falling costs, and robust federal support. The U.S. government's Inflation Reduction Act and state-level mandates continue to incentivize solar and wind projects.

The U.S. generated 894 kWh of clean electricity in 2023 and plans to boost solar capacity by 45% from 2024 to 2026. The energy mix includes biomass (60%), wind (18%), hydro (10%), and solar (11%).

Electrification of transportation is another key driver, with EV sales reaching 1.6 million units in 2024, capturing over 10% market share. The development of widespread charging networks is a priority for supporting this transition.

Market fragmentation stems from the presence of a wide array of players, from multinationals to regional firms. Each addresses different aspects of the grid-transformers, switchgear, substations-across diverse U.S. regions.

Leading companies include GE Vernova Inc., ABB Ltd., Siemens Energy AG, Toshiba Corporation, Eaton Corporation plc, and Mitsubishi Electric Corporation, among others.

Recent strategic developments include ABB's partnership with Paragon Energy, Mitsubishi Electric's collaboration with GE Vernova, and major investments by Eaton Corporation and Constellation, reflecting the sector's dynamic expansion.