NAED’s new Electrification Research Project, “Drivers, Disruptors, & Scaling Your Business,” focuses on different markets that will be impacted by the nation’s growing demands for energy. This week, NAED focuses on efforts to modernize the grid and the larger impact on electrification initiatives around the country.
While it is a traditionally tighter market for many distributors, the investment by utilities will have a far-reaching impact on different areas of business. In 2025, the utilities sector is expected to bring about $10 billion in sales to the channel, primarily with products related to the substation equipment, line hardware, switchgear, and eBOS. In all, modernizing the grid is expected to bring in about $90 billion, with a majority of utilities’ capital investments allocated to distribution in low- and medium-voltages.
In addition, the report offers more on factors impacting growth and considerations for other types of projects, including:
- Interconnect times and impact on timelines to increase energy generation
- Emerging projects that can help meet growing demand, such as microgrids and virtual power plants
- Bridge projects as a potential opportunity in a traditionally tight market
- The types of products that are typically sourced by distributors
NAED worked with market research firm Ducker Carlisle, along with a Steering Committee of Members and Leadership, and the association’s Education & Research Foundation Board to complete the first-ever study on electrification for NAED members.
The study delivers valuable insights to better understand:
- What’s driving electrification – and what may disrupt it
- The most promising project areas for distributors
- How to strategically scale and prepare your team
The results of the larger research study show that distributors should consider building new capabilities to provide and capture value in this evolving ecosystem to take advantage of gaps in the value chain. It is recommended that distributors focus resources on targeted sectors, stock selected products, build capabilities to succeed, and prioritize strategically rather than spreading resources. The research provides NAED members with 5 keys for prioritizing opportunities, including defining your “core” within an intersection of products and solutions to target customers.
All NAED members can download the report on Grid Modernization for free by going to NAED’s e-store. There you can also find other reports related to the study: Data Center Opportunities, an Executive Summary and an Executive Brief, by going to the NAED e-store. You will need to log into your account and the price will be adjusted once it is added to your cart. Next week, be sure to look for the report on Industry and Commercial Building Energy Management that will provide an updated forecast for this growing market.
The NAED Education and Research Foundation would like to thank the current and legacy companies of the Channel Advantage Partnership (CAP). Since 2003, they have dedicated their time and resources to the NAED Foundation’s research and education initiatives.
For additional questions, please contact NAED’s Member Engagement Team at memberengagement@naed.org
Tagged with electrification, NAED, research