July 15, 2024

The Increased Investment In Transmission Line Infrastructure Modernization Is Anticipated To Open Up New Avenue For The Overhead Line Product Market

The Overhead Line Product Market is estimated to be valued at Us$ 19.78 Bn in 2023 and is expected to exhibit a Cagr Of 6.9% over the forecast period 2023 To 2030, as highlighted in a new report published by Coherent Market Insights.

Market Overview:

Overhead line products are used for transmission and distribution of power through overhead lines. These products include conductors, insulators, transformers, and other hardware products required for the installation and maintenance of overhead power lines. Conductors include AAC, AAAC, ACAR and other aluminum/copper alloys used for efficient power transmission over long distances. Insulators made from porcelain/polymer materials provide insulation between conductors and earth. Transformers are installed at transmission stations for stepping up/down voltages as per requirements.

Market Dynamics:

The growth of the overhead line product market is driven by increasing investments made by governments and utility providers globally in upgrading aging power infrastructure and expanding transmission and distribution networks. According to estimates, over $4 trillion needs to be invested in grid infrastructure by 2040 to meet growing electricity demand worldwide. Additionally, there is a shift from obsolete network components to modernized products such as advanced conductors, composite insulators, smart transformers etc. for improved efficiency, reliability and lower transmission losses. These factors are expected to fuel the demand for overhead line products during the forecast period.

Another key factor boosting the market growth is the rising integration of renewable energy sources into existing grids. Countries are installing numerous offshore and onshore wind and solar projects which require significant investments in new transmission lines and grid upgrades. The addition of renewable energy assets increases the complexity of power systems and drives the need for modernized overhead line infrastructure equipped with latest technologies. This in turn accelerates the consumption of conductors, insulators and associated hardware products.

Segment Analysis

The Overhead Line Product Market comprises of products like conductors, fittings & fixtures, insulators & hardware, cables and overhead lines. Among these, the conductors segment dominated the market in 2022 with a share of over 35%. This is because conductors are the primary components in overhead lines and help in effective power transmission over long distances. Materials like aluminum conductors steel reinforced (ACSR) and all aluminum conductors (AAC) are extensively used for this purpose and constitute a bulk of demand in this segment.

PEST Analysis

Political: The governments across regions are increasingly focusing on upgrading aging power infrastructure and enabling wider rural electrification through overhead power networks. Supportive regulations promote infrastructure development projects.

Economic: Rising industrialization and urbanization along with the growth in energy demand is propelling grid upgrade projects worldwide. Market players benefit from increased investments in transmission and distribution networks.

Social: Access to reliable electricity is integral to overall societal progress and enables better standards of living. Overhead lines play a critical role in ensuring universal electrification goals.

Technological: Advancements in high-efficiencyconductors and insulator materials help enhance power conductivity and safety aspects. New installation methods facilitate faster project execution.

Key Takeaways

The Global Overhead Line Product Market Size is expected to witness high growth, exhibiting CAGR of 6.9% over the forecast period, due to increasing investments in upgrading transmission grids. The market size for 2023 is estimated at US$ 19.78 Bn.

Regional analysis

Asia Pacific dominates the global overhead line product market with over 35% share led by China, India, Japan and ASEAN countries. This is attributed to ongoing grid modernization programs and new connections in populous emerging nations of the region. The North American and European markets are projected to grow at a steady pace between 2023-2030 backed by investments in renewable integration and reliable distribution infrastructure.

Key players

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, Skipper. These companies are focused on new product development and capacity expansions to strengthen market position.

*Note:

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