February 29, 2024
Overhead Line Product Market

Expanding Deployment Of Renewable Energy Presents Growth Opportunities For Overhead Line Product Market

The overhead line product market is estimated to be valued at US$19.78 Bn in 2022 and is expected to exhibit a CAGR of 6.9% over the forecast period 2023-2030, as highlighted in a new report published by Coherent Market Insights.

Market Overview:

Overhead line products include conductors, fittings & fixtures, insulators, and cables that are used for distribution of electricity through overhead lines. Conductors carry electricity over long distance through transmission and distribution lines, while insulators mounted on structures such as poles help avoid short circuits.

Market Dynamics:

The expanding renewable energy sector is a major driver for the overhead line product market. Growing investments in solar and wind energy projects across the world necessitate longer transmission lines to carry electricity from renewable energy farms to demand centers. This is increasing the need for conductors, fittings, insulators, cables and other overhead line equipment. Furthermore, aging power infrastructure in many countries is driving replacement demand. Modernization and upgradation of transmission and distribution networks with new overhead lines requires fresh investments in overhead line products.

Market key trends:

One of the key trends in the overhead line product market is the growing adoption of advanced and high-performance conductors. With rapid urbanization and industrialization globally, the demand for reliable and efficient power transmission infrastructure has increased significantly. Advanced conductors made of materials like aluminum alloy coated steel (AAAC), all-aluminum alloy (AAAI), and aluminum conductor composite core (ACCC) offer benefits like lower weights and higher heat and current carrying capacities. This enables transmitting more power with the same tower and infrastructure setup. These high-performance conductors are increasingly being used for new transmission line projects as well as upgradation of existing ones.

SWOT Analysis

Strength: Advanced products like ACCC and AAAC conductors offer better efficiency and load carrying ability.
Weakness: Setting up new transmission lines require high initial investments. Dependency on crude oil prices for raw material prices.
Opportunity: Growing investment in smart grid and renewable energy integration provides opportunities for network expansions.
Threats: Presence of several local and regional players increases competition. Natural calamities can disrupt supply chains and projects.

Key Takeaways

The global Overhead Line Product Market is expected to witness high growth, exhibiting CAGR of 6.9% over the forecast period, due to increasing investments in grid infrastructure development and integration of renewable energy.

The market size for overhead line products was valued at US$ 19.78 Billion In 2023. The Asia Pacific region dominated the global market with over 35% share in 2023 led by countries like China, India and Japan. This is attributed to ongoing projects for transmission network expansion and upgradation supported by government policies.

Regional analysis:

The Asia Pacific region is expected to maintain its leading position during the forecast period, growing at a CAGR of over 7%. This can be attributed to continuous investments by countries like China, India and ASEAN nations towards upgrading aging infrastructure and ensuring grid reliability to support economic growth. Countries like India have also set ambitious renewable energy targets, fuelling opportunities for transmission sector.

Key players operating in the overhead line product market are Nexans, Prysmian Group, General Cable, Sumitomo Electric Industries, Encore Wire, Finolex Cables, KEI Industries, Polycab Wires, APAR Industries, Sterlite Technologies, Gupta Power, Diamond Power Infrastructure, Kalpataru Power Transmission, SAE Towers, ZTT, Midal Cables, J Power Systems, Super Solutions, KEI Power, and Skipper.

*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it