Global electricity transmission poles market was valued at US$6.386 billion in 2019 and is expected to grow at a CAGR of 6.83% over the forecast period to reach a total market size of US$9.495 billion in 2025. Electricity poles, also called power poles, support wires and electric cables that carry electricity from power companies to end users. Material that are used in the production of electricity transmission poles include wood, steel, and composite. The choice of material depends on its use which determines the life span of the electricity transmission pole. Electricity transmission poles are used to support and carry electrical lines, distribution lines, and sub-transmission lines.
Rising global electricity consumption is one of the major factors that is fuelling the growth of electricity transmission poles market worldwide. According to the IEA (International Energy Agency), global electricity final consumption was 4.0 per cent higher than the previous year and reached 22,315 TWh. Out of this, the total electricity final consumption in OECD (Organization for Economic and Co-Operation Development) countries was 9,728 TWh while in non-OECD countries, the total electricity final consumption totalled to 12,587 TWh in 2018. The four largest non-OECD electricity consuming nations in 2018 included India, Brazil, China, and the Russian Federation, out of which China accounted for the largest share, at 47.8 per cent of total non-OECD consumption. Also, electricity in non-OECD is dominated by industrial demand which accounts for 50 per cent of final electricity consumption. Much of the rising consumption of electricity in OECD countries has taken place in the residential, commercial, and public services sectors since 1974. Industrial sector remained the largest end use sector for electricity consumption in 2018. However, the industry’s share of electricity consumption is now only marginally greater than that of residential and commercial sectors.
Rising number of factories across various industries is also a factor that is contributing to the growth of global electricity transmission poles market. Growing urban infrastructural development in developing economies has boosted the construction of residential as well as commercial buildings which is also driving the demand for electricity transmission poles, thus positively impacting the growth of the global electricity transmission poles market.
Advancements in the global energy sector is also contributing to the growth of global electricity transmission poles market. Growing demand for energy-efficient and resilient power grids is another factor that is bolstering the growth of global electricity transmission poles market. Rapidly growing demand for unhindered electricity supply across various sectors has also fuelled the revenues of market players in the global electricity transmission market. Increasing investments, both public and private, in smart grids in both developed and developing economies will continue to pave the way for new distribution lines and poles as replacement of older infrastructure, thereby driving the overall market growth of electricity transmission poles. IN 2017, the Mexican energy minister announced to invest US$646 million in the implementation of a smart grid over the next eight years. In the APAC region, Southeast Asian countries are projected to invest more than US$8 billion in smart grid infrastructure between 2018 and 2027. The Government of Canada, through the Ministry of Natural Resources, announced a funding of $100 million towards the development of smart grids in the country in 2018.
Market players are engaged in various growth strategies including partnerships and mergers and acquisitions (M&As), thereby driving the overall marker growth during the forecast period. In April 2018, the integrated provider of treated wood products, carbon compounds, and wood treatment chemicals- Kopper Holdings Inc. - signed an agreement to acquire the Industrial division of Cox Industries, Inc. for $200 million. Cox Industries is a manufacturer and distributor of power distribution and transmission poles, pilings, and related products to electric co-operatives, investor-owned utilities, municipalities, and other entities. In August 2018, Hill & Smith Acquired Ohio-based Engineered Endeavours Inc., a leading manufacturer of utility poles for the power distribution and wireless cellular markets.
However, there has been a gradual shift towards advanced electricity infrastructure that is expected to limit the use of poles and wires, thus hindering the market growth. For instance, In Australia, under the new rules devised by the Australian Energy Market Commission (AEMC), distribution businesses across the country will be allowed to service remote areas with stand-alone power systems while avoiding costly network upgrades. This new rule is going to pave the way for off-grid renewables to replace poles and wires. Moreover, longer average life span of electricity transmission poles is also a major hurdle in the growth of global electricity transmission poles market. In August 2018, Texas Electric Cooperatives fixed an alliance with Koppers for its several system upgradation in order to enhance and expand the plant’s product line. In February 2019, Vectren Corporation and CenterPoint Energy, Inc. announced the completion of their merger and named the new company as CenterPoint Energy which is headquartered in Houston. This merged company is well-positioned with regulated electric and natural gas utility businesses in eight states, serving more than 7 million metered customers.
Cement electricity transmission poles to witness a substantial CAGR during the forecast period
By material, the global electricity transmission poles market has been segmented by wood, cement, and steel. The wood segment accounted for the major market share in 2019 since wood is the pioneering material for making electricity transmission poles. In North America, there are estimated 130 million wood poles in North America, according to the woodpoles organization. Concrete electricity transmission poles market is projected to witness a significant CAGR during the forecast period. The application of cement (concrete) poles as overhead electrical transmission line has increased on account of its properties such as higher strength, longer life, and the potential to span longer distances as compared to steel poles. Moreover, concrete electricity transmission poles have relatively low maintenance costs and high electrical resistance. The drawbacks of cement electricity transmission poles include vulnerability to damage and high self-weight.
North America holds a considerable share in the global electricity transmission poles market
By geography, global electricity transmission poles market has been segmented into five major regional markets- North America, South America, Europe, Middle East and Africa (MEA), and Asia Pacific (APAC).
The North American Electricity Transmission Poles market accounted for the significant share in the global electricity transmission poles market in 2019. High electricity consumption in countries like the United States and Canada is driving the growth of electricity transmission poles market. The electricity sector in these countries is witnessing major investments in new electricity distribution and transmission infrastructure as the existing infrastructure is aging and needs to be refurbished. Electric power transmission and distribution in the United States is in dire need of expansion as well as upgradation since increasing loads and aging equipment and infrastructure is putting pressure on more and more investments. Growing focus on green energy solutions in both North America and European region will continue to augment the demand for new electricity transmission poles during the next five years, thus fuelling the regional market growth. Favourable government policies and regulations to promote greener technologies and new energy sources are boosting the demand for advanced distribution and transmission infrastructure which, in turn, is expected to positively impact the overall growth of the global electricity transmission poles market during the forecast period. For example, Canada’s Economic Action Plan includes the Clean Energy Fund which is a five-year program, with $795 million of investment, to support clean energy technology research.
Asia Pacific (APAC) electricity transmission poles market is projected to witness a substantial compound annual growth rate during the period 2020-2025 on account of rising investments in electricity transmission and distribution infrastructure in countries like India, China, and Philippines. The 150 MW Burgos wind farm in Ilocos Norte, Philippines, includes the 43-km long transmission line with 127 lattice steel towers and 20 steel poles.
Impact of COVID-19 on global electricity transmission poles market
The recent COVID-19 pandemic has a very marginal impact on the growth of global electricity transmission poles market with a decline in investments in electricity transmission and distribution across different regions and/or countries as compared to non-COVID scenario. Mandatory lockdowns and social distancing measures have resulted in a decline in economic growth across the globe which has reduced the investment in the development as well as replacement projects across the electricity transmission poles market.
Prominent key market players in the global electricity transmission poles market include Koppers Inc., KEC International Ltd., Skipper Limited, Europoles GmbH & Co. KG, Nippon Concrete Industries Co., Ltd., Weatherspoon & Williams LLC, Valmont Industries, Inc., NELLO, NOVA POLE, Finntrepo Ltd, PPL, OTDS UK Ltd., and Eiforsa. These companies hold a noteworthy share in the market on account of their good brand image and product offerings. Major players in the global electricity transmission poles market have been covered along with their relative competitive position and strategies. The report also mentions recent deals and investments of different market players over the last two years.