The Growing Spree of the Electricity Transmission Poles Market
The Electricity Transmission Poles Market is expected to grow at a compound annual growth rate of 6.92 % over the forecasted period to reach a market size of US$9.695 billion in 2027 from the US$6.070 billion in 2020. Electricity transmission poles, also known as power poles, help in the transfer of electricity from power companies to the end-users by the use of wires and electric cables. Materials used in the production of an electricity transmission pole include elements like steel, wood and composites. The choice of material depends on it’s the purpose for use, which further determines the life span of these poles. Electricity transmission poles help in the support and carriage of electrical lines, which includes distribution lines, as well as sub-transmission lines. Factors like rising electricity consumption worldwide, advancements in the global energy sector and the increasing number of factories across various countries have contributed to the increase in the demand of these poles and subsequently leading to the overall growth of the market.
Increasing Energy Consumption to Augment Growth of the Market
The inclining electricity consumption across the globe is considered to be a key factor leading to the growth of the electricity transmission pole market. According to the IEA (International Energy Agency), the global electricity final consumption in 2018 was 4% higher than the year before and went up to reach a figure of 22,315 TWh. In this global mix, the total electricity final consumption of the OECD (Organization for Economic Co-Operation and Development) countries was about 9,728 TWh while that of the non-OECD countries, amounted to a figure of 12,587 TWh. Countries like India, China, Brazil, and Russia were four of the largest countries of the non-OECD in regards with the electricity consumption in that period. China, which accounted for the lion's share, held a share of about 47.8% of the total electricity consumption by the non-OECD countries. Also, electricity consumption in these non-OECD countries is mainly dominated by industrial demand which accounts for about 50% of the final electricity consumption there. Majority of the inclining electricity consumption in the OECD countries has taken place in the commercial, residential and the public services sectors since the past five decades. The growing number of factories in various industries and the increasing development of urban infrastructure in the developing economies has given a boost to the construction of not only residential but also commercial buildings which in turn has increased the demand for electricity consumption and thus led towards substantial growth in the market. The industrial sector was observed to be the largest end-use sector for electricity consumption back in 2018. However, in more recent times, the share of electricity consumption of the industrial sector is only marginally greater than the shares of the residential, as well as commercial sectors.
Cement Electricity Transmission Poles to Show Promising Growth During the Forecasted Period
In terms of segmentation by material, the electricity transmission poles market can be divided into wood, cement, and steel. The wood electricity transmission poles segment accounted for the majority of the market share back in 2020 as wood is considered to be the pioneering material for making these poles with an estimated figure of 130 million wood poles in the region of North America, as reported by the Woodpoles organization. However, the cement segment of the market is predicted to show a promising growth during the forecast period. The application of these cement poles as overhead electrical transmission lines has been on an incline due to their properties such as greater strength, longer life and also, the potency to span a longer distance when compared to steel poles. Further, sement electricity transmission poles are also shown to have relatively low maintenance costs along with a high electrical resistance. Due to all these reasons the cement poles have observed an increase in their demand and hence, the cement segment is predicted to witness significant growth during the analysed period.
North America to Hold a Significant Share in the Electricity Transmission Pole Market
In terms of geography, the electricity transmission pole market has been segmented into five major regions, Europe, North America, South America, Asia Pacific and Middle East and Africa. In 2020, the Electricity Transmission Poles market in the North American region held a significant share of the global electricity transmission poles market. The growth of the electricity transmission pole market in this region is driven by the rising electricity consumption in countries like the Canada and the United States. Adding to that, the electricity sector in these countries has observed major investments in new infrastructural projects for electricity distribution and transmission as the pre-existing infrastructure there is turning obsolete and needs to be updated and refurbished. The electric power transmission and distribution in the US has been in a critical need of expansion and upgradation as rising loads and a dated equipment and infrastructure are exerting pressure on more investments. Further, the increasing focus on green energy solutions in the regions of North America and Europe will catalyse the growing demand for new electricity transmission poles in the analysed period, hence, augmenting the growth of their regional markets. Favourable government schemes and regulations in order to promote greener technologies and fresh energy sources have shown to boost the demand for the infrastructure of advanced distribution and transmission, which consequently is expected to drive the overall growth of the electricity transmission poles market. For instance, the Economic Action Plan of Canada has included the Clean Energy Fund. This is a five-year program, with investment worth $795 million in order to support research and development clean energy technology.
