The global electricity transmission poles market was valued at US$6.070 billion in 2020 and is estimated to grow at a CAGR of 6.92% over the forecast period to reach a total market size of US$9.695 billion in 2027.
Electricity poles, also called power poles, support wires and electric cables that carry electricity from power companies to end-users. Materials that are used in the production of electricity transmission poles include wood, steel, and composites. 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, including distribution lines, and sub-transmission lines.
Rising global electricity consumption is one of the major factors that is fuelling the growth of the electricity transmission pole market worldwide. According to the IEA (International Energy Agency), global electricity final consumption was 4.0 percent higher than the previous year and reached 22,315 TWh. Out of this, the total electricity final consumption in OECD (Organization for Economic Co-Operation and Development) countries was 9,728 TWh while in non-OECD countries, the total electricity final consumption totaled 12,587 TWh in 2018. India, Brazil, China, and the Russian Federation were the four largest non-OECD electricity consumers in 2018, with China accounting for the major share, accounting for 47.8 percent of total non-OECD consumption. Also, electricity in non-OECD countries is dominated by industrial demand which accounts for 50 percent 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. The 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 the residential and commercial sectors.
The rising number of factories across various industries is also a factor that is contributing to the growth of the global electricity transmission pole 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 pole market.
Advancements in the global energy sector are also contributing to the growth of the global electricity transmission pole market. The growing demand for energy-efficient and resilient power grids is another factor that is bolstering the growth of the global electricity transmission pole 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 replacements for older infrastructure, thereby driving the overall market growth of electricity transmission poles. In 2017, the Mexican energy minister announced plans 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 2025. The Government of Canada, through the Ministry of Natural Resources, announced funding of $100 million for 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 market 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 for 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, the longer average life span of electricity transmission poles is also a major hurdle in the growth of the global electricity transmission pole market. In August 2018, Texas Electric Cooperatives announced an alliance with Koppers for its several system upgrades 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 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 are 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 2020 since wood is the pioneering material for making electricity transmission poles. In North America, there are an estimated 130 million wood poles in North America, according to the Woodpoles organization. The concrete electricity transmission pole market is projected to witness a significant CAGR during the forecast period. The application of cement (concrete) poles as overhead electrical transmission lines has increased on account of their 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.
The North American Electricity Transmission Poles market accounted for a significant share of the global electricity transmission poles market in 2020. High electricity consumption in countries like the United States and Canada is driving the growth of the electricity transmission pole market. The electricity sector in these countries is witnessing major investments in new electricity distribution and transmission infrastructure as the existing infrastructure is ageing and needs to be refurbished. Electric power transmission and distribution in the United States is in dire need of expansion as well as upgrading since increasing loads and ageing equipment and infrastructure are putting pressure on more and more investments. The growing focus on green energy solutions in both North America and the European regions 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.
The Asia Pacific (APAC) electricity transmission poles market is projected to witness a substantial compound annual growth rate during the period 2020-2027 on account of rising investments in electricity transmission and distribution infrastructure in countries like India, China, and the Philippines. The 150 MW Burgos wind farm in Ilocos Norte, Philippines, includes a 43-km long transmission line with 127 lattice steel towers and 20 steel poles.
As stated by Consumers Energy in a release on May 2022, it will invest $100 million in 2022 to minimize the frequency and duration of power disruptions. In order to make the power grid more stable for Consumers Energy's electric consumers, the energy provider will make considerable changes to its high voltage distribution (HVD) system. Consumers Electricity's five-year, $5.4 billion Electric Reliability Plan includes HVD enhancements this year as part of a bigger effort to develop a more stable and resilient energy system.
In the spring of 2021, work on a new Osprey Substation at the Duke Energy-owned Osprey Energy Center in Auburndale began. Between the new substation northwest and the Kathleen Substation, a new transmission line will be built. One of two new transmission lines planned as part of the Polk County Reliability Enhancement Project is a 230-kilovolt (kV) transmission line connecting Osprey and Kathleen. The new line will run roughly 26 miles northwest from the Osprey Energy Center to the Kathleen Substation in Polk County, which is currently operational. The Osprey-Kathleen transmission line will begin construction in spring 2023 once vegetation is removed.
According to May 2022 release by Orange & Rockland, it has committed approximately $144 million in the year to strengthen and increase the stability of its electric system, as well as to promote the development of new energy efficiency and sustainable energy projects, to prepare for summer's peak electrical needs. This investment adds to O&R's almost $1 billion in electric system maintenance and reliability projects over the last ten years.
Electricity poles, also called power poles, support wires and electric cables that carry electricity from power companies to end-users. Materials that are used in the production of electricity transmission poles include wood, steel, and composites. 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, including distribution lines, and sub-transmission lines.
Rising global electricity consumption is one of the major factors that is fuelling the growth of the electricity transmission pole market worldwide. According to the IEA (International Energy Agency), global electricity final consumption was 4.0 percent higher than the previous year and reached 22,315 TWh. Out of this, the total electricity final consumption in OECD (Organization for Economic Co-Operation and Development) countries was 9,728 TWh while in non-OECD countries, the total electricity final consumption totaled 12,587 TWh in 2018. India, Brazil, China, and the Russian Federation were the four largest non-OECD electricity consumers in 2018, with China accounting for the major share, accounting for 47.8 percent of total non-OECD consumption. Also, electricity in non-OECD countries is dominated by industrial demand which accounts for 50 percent 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. The 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 the residential and commercial sectors.
The rising number of factories across various industries is also a factor that is contributing to the growth of the global electricity transmission pole 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 pole market.
Advancements in the global energy sector are also contributing to the growth of the global electricity transmission pole market. The growing demand for energy-efficient and resilient power grids is another factor that is bolstering the growth of the global electricity transmission pole 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 replacements for older infrastructure, thereby driving the overall market growth of electricity transmission poles. In 2017, the Mexican energy minister announced plans 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 2025. The Government of Canada, through the Ministry of Natural Resources, announced funding of $100 million for 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 market 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 for 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, the longer average life span of electricity transmission poles is also a major hurdle in the growth of the global electricity transmission pole market. In August 2018, Texas Electric Cooperatives announced an alliance with Koppers for its several system upgrades 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 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 are 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 2020 since wood is the pioneering material for making electricity transmission poles. In North America, there are an estimated 130 million wood poles in North America, according to the Woodpoles organization. The concrete electricity transmission pole market is projected to witness a significant CAGR during the forecast period. The application of cement (concrete) poles as overhead electrical transmission lines has increased on account of their 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 pole market
By geography, the global electricity transmission pole 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 a significant share of the global electricity transmission poles market in 2020. High electricity consumption in countries like the United States and Canada is driving the growth of the electricity transmission pole market. The electricity sector in these countries is witnessing major investments in new electricity distribution and transmission infrastructure as the existing infrastructure is ageing and needs to be refurbished. Electric power transmission and distribution in the United States is in dire need of expansion as well as upgrading since increasing loads and ageing equipment and infrastructure are putting pressure on more and more investments. The growing focus on green energy solutions in both North America and the European regions 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.
The Asia Pacific (APAC) electricity transmission poles market is projected to witness a substantial compound annual growth rate during the period 2020-2027 on account of rising investments in electricity transmission and distribution infrastructure in countries like India, China, and the Philippines. The 150 MW Burgos wind farm in Ilocos Norte, Philippines, includes a 43-km long transmission line with 127 lattice steel towers and 20 steel poles.
Key Developments
As a consequence of the rising need for efficient power grids and expanding power demand in nations all over the world, the electrical transmission poles sector has witnessed substantial growth.As stated by Consumers Energy in a release on May 2022, it will invest $100 million in 2022 to minimize the frequency and duration of power disruptions. In order to make the power grid more stable for Consumers Energy's electric consumers, the energy provider will make considerable changes to its high voltage distribution (HVD) system. Consumers Electricity's five-year, $5.4 billion Electric Reliability Plan includes HVD enhancements this year as part of a bigger effort to develop a more stable and resilient energy system.
In the spring of 2021, work on a new Osprey Substation at the Duke Energy-owned Osprey Energy Center in Auburndale began. Between the new substation northwest and the Kathleen Substation, a new transmission line will be built. One of two new transmission lines planned as part of the Polk County Reliability Enhancement Project is a 230-kilovolt (kV) transmission line connecting Osprey and Kathleen. The new line will run roughly 26 miles northwest from the Osprey Energy Center to the Kathleen Substation in Polk County, which is currently operational. The Osprey-Kathleen transmission line will begin construction in spring 2023 once vegetation is removed.
According to May 2022 release by Orange & Rockland, it has committed approximately $144 million in the year to strengthen and increase the stability of its electric system, as well as to promote the development of new energy efficiency and sustainable energy projects, to prepare for summer's peak electrical needs. This investment adds to O&R's almost $1 billion in electric system maintenance and reliability projects over the last ten years.
COVID-19's impact on the market for electricity transmission poles
The recent COVID-19 pandemic has had a very marginal impact on the growth of the global electricity transmission pole market, with a decline in investments in electricity transmission and distribution across different regions and/or countries as compared to the 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 development as well as replacement projects across the electricity transmission pole market.Competitive Insights
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 positiosn and strategies. The report also mentions recent deals and investments of different market players over the last two years.Segmentation
By Material
- Wood
- Cement
- Steel
By Area
- Rural
- Urban
By Geography
- North America
- United States
- Canada
- Mexico
- South America
- Brazil
- Argentina
- Europe
- Germany
- France
- UK
- Italy
- Middle East and Africa
- Saudi Arabia
- UAE
- Asia Pacific
- China
- India
- Japan
- South Korea
- Taiwan
- Thailand
- Indonesia
Table of Contents
1. Introduction
2. Research Methodology
3. Executive Summary
4. Market Dynamics
5. Global Electricity Transmission Poles Market Analysis, By Material
6. Global Electricity Transmission Poles Market Analysis, By Area
7. Global Electricity Transmission Poles Market Analysis, By Geography
8. Competitive Environment and Analysis
9. Company Profiles
Companies Mentioned
- Koppers Inc.
- KEC International Ltd.
- Skipper Limited
- Europoles GmbH & Co. KG
- Nippon Concrete Industries Co., Ltd.
- Weatherspoon & Williams LLC
- Valmont Industries, Inc.
- Nello Corporation
- Nova Pole International Inc.
- Finntrepo Ltd
Methodology
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Table Information
| Report Attribute | Details |
|---|---|
| No. of Pages | 124 |
| Published | July 2022 |
| Forecast Period | 2020 - 2027 |
| Estimated Market Value ( USD | $ 6.07 billion |
| Forecasted Market Value ( USD | $ 9.7 billion |
| Compound Annual Growth Rate | 6.9% |
| Regions Covered | Global |
| No. of Companies Mentioned | 10 |
