Transmission Line Market Expected to Reach $80.9 Billion by 2032

According to a new report published by Allied Market Research, titled, “Transmission Line Market," The transmission line market was valued at $41.5 billion in 2022, and is estimated to reach $80.9 billion by 2032, growing at a CAGR of 7.2% from 2023 to 2032. Asia-Pacific is projected as the fastest-growing region with a CAGR of 7.6%

Introduction

Transmission line is conductive lines designed for transmitting power or electrical signals across long distances with efficiency. They are essential parts of many applications, including networking, power distribution, and telecommunications. Transmission lines, usually composed of copper, aluminum, or fiber optics, include characteristics such as impedance, capacitance, and inductance that control how signals propagate. These lines are essential to modern infrastructure and technology as they allow energy, such as data, to be transferred with minimal loss or distortion. This ensures dependable power delivery over long distances and reliable communication.

Market Dynamics

Increase in investment in grid modernization drives the transmission line market growth. According to the International Energy Agency (IEA), from 2015 to 2021, countries including Australia, Germany, Italy, Spain, and UK have witnessed substantial investments in their grids. As nations globally transition towards more sustainable and renewable energy sources, the demand for efficient transmission infrastructure becomes important. The International Energy Agency (IEA) is tracking the amount of money allocated by governments to support clean energy investment since 2020. The latest update of the IEA’s Government Energy Spending Tracker shows that the amount of money allocated by governments to support clean energy investment since 2020 has risen to $1.34 trillion.

Transmission line market outlook requires necessity of updating ageing infrastructure that is a major driver driving increased investment in grid modernization. Many transmission lines and substations in developed countries are nearing the end of their operational lifespan, leading to increased maintenance costs and greater susceptibility to failures and outages. Upgrading these systems with modern, technologically advanced transmission lines not only improves reliability but also enables higher capacity and more efficient transmission of electricity over long distances.

Furthermore, the transmission line market analysis shows that the transition towards a more decentralized energy landscape, characterized by distributed generation and microgrids, necessitates upgrades to the transmission infrastructure to facilitate the seamless integration of these systems into the grid. Transmission lines serve as the backbone of the grid, transporting electricity from power plants—whether traditional or renewable—to distribution networks and end-users. Thus, rise in investment in grid modernization is expected to drive to increase transmission line market share during the forecast period.

The complex installation process for transmission lines restrains the growth of the transmission line market. There is the need for extensive planning and design to determine the optimal route for the transmission line, considering factors such as terrain, environmental impacts, land use, and regulatory requirements. This planning phase often requires conducting environmental assessments, obtaining permits, and negotiating with landowners for rights-of-way, that is time-consuming and prone to regulatory hurdles and community opposition.

Once the route is determined, the actual installation of transmission line involves intricate engineering and construction work. This process typically requires erecting transmission towers or poles, stringing conductors, installing insulators, and implementing safety measures to comply with industry standards and regulatory requirements. Moreover, the construction of transmission lines often involves working in challenging environments such as remote or rugged terrain, which further complicates the installation process and increases costs. Thus, complex installation process is expected to hinder the transmission line market size.

The ageing infrastructure within the electrical grid offers a substantial growth opportunity for the transmission line market report. Ageing infrastructure is often characterized by deteriorating components, limited capacity, and vulnerability to disruptions, including extreme weather events and cyberattacks. The transmission line market trends show that utilities and grid operators are investing on transmission line replacement and upgrades to meet the growing demand for electricity, incorporate renewable energy sources, and promote electrification projects including smart grids and electric cars to address these problems. Thus, ageing infrastructure presented an excellent growth opportunity for the expansion of the transmission line industry.

Segments Overview

The transmission line market is segmented on the basis of product, type, voltage, end user, and region. By product, the market is bifurcated into AC transmission line and DC transmission line. Based on type, the market is divided into overhead transmission line, underground transmission line, and submarine transmission line. On the basis of voltage, the market is segregated into high voltage, extra high voltage, and ultra high voltage. Depending on end user, the market is classified into utility, telecommunication, and others. Region-wise, the market is studied across North America, Europe, Asia-Pacific, and LAMEA.

On the basis of product, the transmission line market is classified into AC transmission line and DC transmission line. DC transmission lines is projected to be the fastest-growing segment and AC transmission lines has garnered the highest share in the transmission line market.

Based on type, the transmission line market is classified into overhead transmission line, underground transmission line, and submarine transmission line. Overhead transmission lines is projected to be the fastest-growing segment and has garnered the highest share in the transmission line market.

On the basis of voltage, the transmission line market is classified into high voltage, extra high voltage, and ultra high voltage. Ultra high voltage is projected to be the fastest-growing segment and high voltage has garnered the highest share in the transmission line market.

Based on end user, the transmission line market is classified into utility, telecommunication, and others. Utility is projected to be the fastest-growing segment and has garnered the highest share in the transmission line market.

The major players operating in the global transmission line market are ABB, ARTECHE, General Electric, Hitachi Energy Ltd., MYR Group Inc., NEXANS, Prysmian Group, Salasar Techno Engineering Ltd., Sumitomo Electric Industries, Ltd., and Valard.

Other players include AECOM, Beta Engineering, Burns & McDonnell, Jyoti Structures Ltd., Kiewit Corporation, LS CABLE & SYSTEM, Siemens Energy, and Southwire Company, LLC.

Regional Analysis  

Region-wise, Asia-Pacific is projected to register robust growth during the forecast period. In China, the 1,000kV overhead line connecting Nanchang to Changsha, expected to be commissioned in 2023, that will be operated by the State Grid Corporation of China and is expected to carry alternating current (AC). Furthermore, the Ministry of New and Renewable Energy (MNRE) sanctioned the Intra State Transmission System (InSTS) in 2020 that includes approximately 9,400 circuit kilometers of transmission lines and substations with a total capacity of around 19,000 MVA.

Key Findings of the Study:

• On the basis of product, the DC transmission lines segment is expected to grow at a CAGR of 7.5%, in terms of revenue, during the forecast period.
• By type, the overhead transmission lines segment is expected to be the fastest growing segment, in terms of revenue, during the forecast period.
• On the basis of voltage, the ultra high voltage segment is expected to grow at a CAGR of 7.6%, in terms of revenue, during the forecast period.
• On the basis of end user, the utility segment is expected to be the fastest growing segment, in terms of revenue, during the forecast period.
• Region-wise, Asia-Pacific garnered a major share in 2022 in terms of revenue.