The electricity transmission poles market is expected to grow at a compound annual growth rate of 6.92% over the analysed period to reach a market size of US$9.695 billion in 2027 from the US$6.070 billion in 2020. The prime reason driving the growth of the market is due to the global consumption of electricity is increasing. Another factor fueling the expansion of the world market for electricity transmission poles is the growing number of factories in a variety of industries. Moreover, another factor supporting the expansion of the global electricity transmission pole market is the rising demand for energy-efficient and robust power grids. However, there has been a gradual transition to more modern electrical infrastructure, which is anticipated to reduce the use of poles and wires and impede market expansion.
Growing urban infrastructure development in developing economies will boost the market growth
Growing urban infrastructure development in developing economies has boosted residential and commercial building construction, which is also driving demand for electricity transmission poles, positively impacting the growth of the global electricity transmission pole market. According to IEA the fastest-growing energy source in homes is electricity, which will make up half of all household energy use by 2050. Commercial buildings use more electricity as well. The IEA predicts that by 2050, electricity will supply more than 60% of commercial energy requirements. Living standards rise as household incomes and the service sector expand, and space-cooling technologies, like air conditioners, are used in more buildings. As a result, there will be a rapid increase in the use of electricity in buildings. Despite gains in efficiency, global end-use sectors are increasing energy consumption through 2050. The IEA predicts that demand for electricity will rise across all sectors, outpacing global population growth.
Cement electricity transmission poles are expected to grow at a rapid pace during the forecast period
The global electricity transmission poles market has been divided into three materials: wood, cement, and steel. During the forecast period, the concrete electricity transmission pole market is expected to grow at a rapid pace. The use of cement (concrete) poles as overhead electrical transmission lines has increased due to their superior properties such as higher strength, longer life, and the ability to span greater distances than steel poles. Furthermore, concrete electricity transmission poles have low maintenance costs and high electrical resistance. The disadvantages of cement electricity transmission poles include their brittleness and high self-weight. In 2020, the wood segment held the major share of the market. Wood was the first material used to make electricity transmission poles. According to the Woodpoles organisation, there are approximately 130 million wood poles in North America.
The growing popularity of undergoing connections may constrain the market growth
Infrastructure is viewed as a driving force in urban and regional development. An underground framework may be one of the few acceptable ways to encourage and support more sustainable growth in developed areas. A well-maintained, resilient, and adequately performing underground infrastructure is critical to cities’ long-term viability. Electrical cabling is the heart of any electrical network and is a critical, yet unfocused, aspect of the modernization process. Singapore and the Netherlands, for example, have very reliable underground public power supplies because they have exclusive medium-voltage cable distribution grids. Although they are also the most prone to failure. While most failures can be attributed to poor cable selection, proper selection is not only critical for power supply reliability and device and human safety, but it also prevents asset loss and saves costly business hours.
North America commands a sizable share of the global electricity transmission pole market
The global electricity transmission pole market has been divided into five major regional markets based on geography: North America, South America, Europe, the Middle East and Africa (MEA), and Asia Pacific (APAC). In 2020, the North American Electricity Transmission Poles market accounted for a sizable portion of the global electricity transmission poles market. The growth of the electricity transmission pole market is being driven by high electricity consumption in countries such as the United States and Canada. These countries’ electricity sectors are seeing significant investments in new electricity distribution and transmission infrastructure as existing infrastructure ages and need to be replaced. Electric power transmission and distribution in the United States is in desperate need of expansion and upgrade, as increasing loads and ageing equipment and infrastructure place increasing strain on investments. Favorable government policies and regulations promoting greener technologies and new energy sources are increasing demand for advanced distribution and transmission infrastructure, which is expected to positively impact the global electricity transmission poles market during the forecast period. In April 2022, Canada’s Economic Action Plan, for example, includes the Clean Energy Fund, a five-year programme with a $795 million investment to support clean energy technology research.
The Asia Pacific (APAC) electricity transmission poles market is expected to grow at a significant compound annual growth rate between 2020 and 2027, owing to increased investments in electricity transmission and distribution infrastructure in countries such as India, China, and the Philippines. The Burgos wind farm, located in Ilocos Norte, Philippines, has a 43-kilometer transmission line with 127 lattice steel towers and 20 steel poles.
The recent COVID-19 pandemic had only a minor impact on the global electricity transmission pole market, with a decrease in investments in electricity transmission and distribution across different regions and/or countries when compared to the non-COVID scenario. Mandatory lockdowns and social distancing measures have resulted in a global slowdown in economic growth, reducing investment in development and replacement projects across the electricity transmission pole market.
Despite the pandemic’s impact, major renewable energy projects were completed on time. For example, in 2020, the United States government issued various guidelines governing replacement, installation, and maintenance work for upcoming power projects.