Global grid investment enters a “golden cycle,” driving a surge in demand for power equipment.

The International Energy Agency (IEA) recently released a report indicating that cumulative global grid investment between 2025 and 2030 will reach $21.4 trillion—averaging over $3.5 trillion annually—representing a doubling of investment compared to the previous five-year period.

Global electricity demand is projected to grow by 3.7% in 2026, significantly outpacing the growth rate of overall energy demand. Three key factors are driving the increased demand for power equipment: first, the large-scale modernization of aging grids in Europe and the US has extended delivery lead times for high-voltage transformers to 2–4 years, creating a 30% supply gap; second, the rapid expansion of power consumption by AI-driven data centers is expected to double global data center electricity usage by 2030; and third, the acceleration of the global energy transition—with renewable energy capacity surpassing coal—is fueling a surge in orders for transmission, distribution, and energy storage equipment supporting wind and solar projects.

Energy storage has emerged as a core growth driver; institutions forecast that new global installations of advanced energy storage systems will reach 497 GWh in 2026—a year-on-year increase of over 71%—with rapid market expansion underpinned by four major regions: China, North America, Europe, and the Middle East.