The world is undergoing a significant transformation driven by the electrification of the economy. This trend has the potential to span decades and has implications for different areas of the market.
At its core, the electrification theme revolves around the increasing role of electricity in various sectors. Electricity demand, which has been flat for a long time, is poised for sustainable growth over the next few decades.
According to the U.S. Energy Information Administration, electricity demand is expected to rise 27 percent from 2022 to 2050. And, notably, projections over shorter time horizons are trending higher. For instance, grid planners forecast nationwide electricity demand to increase 4.7 percent over the five-year period ending 2028, while estimates from the same report a year earlier called for 2.6 percent growth.
POWERFUL TAILWINDS
Several factors are supporting sustained growth in the electrification space. Decarbonization