The power transmission lines and towers market is expected to register major gains through the coming years, propelled by an upsurge in adoption of expansion strategies such as mergers, acquisitions, and product developments by leading industry participants.
For instance, in September 2021, Nexans unveiled its second cable-laying vessel, the Nexans Aurora, for reinforcing its offering across the offshore wind and interconnector industry. The vessel is set to strengthen Nexans's position as a global leader in the cable-laying sector, playing a vital role in the world's journey to Net Zero.
Driven by similar advancements, the power transmission lines and towers market size valued at over $36 billion in 2020 is set to grow at a CAGR of around 4 per cent to reach $48 billion between 2021 and 2028, as per the latest research conducted by Global Market Insights.
Power transmission lines and towers market is set to reach $49 billion by 2028
While the Covid-19 pandemic had a slight impact on the overall industry in the year 2020, a number of the global economies are focusing on the over-compensation of these effects by fast tracking their operations.
The market growth is set to be propelled by favourable conditions comprising the usage of advanced power cables with reduced transmission losses and modernisation of existing transmission towers and lines.
Here are some key trends that are expected to bolster power transmission lines and towers industry expansion over the anticipated period:
RISING INVESTMENTS IN R&D
The industry is witnessing increasing investments in research and development (R&D) activities for the innovation and development of ecofriendly conductors that have low costs and high capacity. Furthermore, regulators are also focusing on enhancing the overload capacity and energy efficiency of transmission lines, which is favourable for market expansion.
Citing an instance, in November 2019, Kepco and LS Cable & System commercialised its superconductive cables that function on the superconductivity phenomenon where electrical resistance stops to exist at 196-degC and can transit 5 to 10 times more power with minimal voltage in comparison to traditional copper cables.
SMART GRID NETWORKS
The power transmission lines and towers market is set to grow on account of the rising adoption of renewable energy sources and ongoing technological innovations for HVAC electricity distribution networks.
While the industry is set to record a transition towards smart grid networks, the product demand is being fueled by the increasing inclination of regulators towards the implementation of smart grids across existing T&D infrastructure.
Surging investments in grid infrastructure coupled with ongoing urbanisation across developing countries will positively drive the demand for > 660 kV transmission lines. The market growth is impelled by the low sag capacity and high corrosion resistance of these lines.
Additionally, the ease of recycling and processing these cables along with reduced energy losses and negligible short circuit current is likely to spur product penetration over the forecast period.
Middle East & Africa power transmission lines and towers market will rise due to the refurbishment & revamping of the existing grid infrastructure
Middle East & Africa power transmission towers market share was valued at over $2 billion in 2020. Increasing technological enhancements across the power industry to cater to the growing energy demand will complement the business scenario. The integration of smart grid infrastructure throughout the T&D network systems along with favorable customer inclination toward the adoption of renewable technologies will positively influence the regional industry landscape.
The Saudi Arabia power line market is expected to cross $900 million at a CAGR of over 3 per cent through 2028. Strict government energy-efficiency standards coupled with the rising share of renewable electricity including solar and wind farms will drive product demand across the country. The regulatory inclination toward secure power supply from overhead lines combined with incentives for unconventional power generation will fuel the existing T&D grid infrastructure.
North America is witnessing the rapid development of high and ultra-high power transmission and distribution grids for the reduction of losses across the commercial and industrial sectors.
The region is further characterised by ongoing refurbishments and renovations of the T&D network and the increasing demand for electricity. Owing to these factors, the North America power transmission lines and towers industry is estimated to exceed $4 billion at a substantial rate of more than 6 per cent through 2028.
In a nutshell, the increasing demand for renewable energy and rising infrastructural investments across commercial and industrial sectors will positively boost the adoption of transmission towers over the estimated period.
RESTARTING INDUSTRIAL OPS
Power transmission lines and towers industry was slightly impacted due to the Covid-19 pandemic, witnessing a decline in sales on account of delay of numerous transmission line and tower projects, which was further driven by limited investments from public and private players and the restricted labour movement. Considering the slowdown in Covid-19 infected cases, the industry is set to recover its lost strength by the end of 2022.
Ongoing collaborations, agreements, and strategic partnerships will enhance the industry presence of various companies
Inorganic growth ventures, strategic implications, joint ventures, mergers, and contracts among eminent players will foster the industry statistics. For instance, in May 2020, Nexans signed a contract worth over $240 million with Ariadne Interconnection, a transmission system operator, for the Greece power grid. Under the contract, the company will design, supply, install, and commission a 500 kV HVDC cable system along a route of 335 km. The project is anticipated to be completed by 2023. This contract will help the company to increase its market presence across Greece.
Eminent players functioning across the power transmission lines and towers market include ZTT International, Sumitomo Electric Industries, Lamifil, Apar Industries, Nexans, CTC Global, Neccon, 3M, Gupta Power Infrastructure, Lumpi Berndorf, ZMS Cable, Hindustan Urban Infrastructure, Midal Cables, Alfanar, Cabcon India, Prysmian Group, Tropical Cable and Conductors, Sterlite Power, Gulf Cable and Electrical Industries, Riyadh Cables Group Company, KEI Industries Limited, Energya Cables Saudi Arabia, LS Cable & System, SWCC Showa Holding, Southwire Company, Special Cables, Alcon Marepha, Elsewedy Electric, Galaxy Transmissions, Arrow Cables, Kelani Cables, CMI Limited, Bekaert, Eland Cables, Tratos, KEC International, Skipper Limited, Jyoti Structures, CG Power and Industrial Solutions, MasTec, Tokyo Electric Power Company Holdings, and SAE Towers.
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