KEY MARKET INSIGHTS
The size of the worldwide utility poles market, which was estimated to be worth USD 31.48 billion in 2021, is expected to increase by USD 49.98 billion by 2029, showing a CAGR of 6.2% over the forecast period, from USD 32.90 billion in 2022. Utility poles have undergone the unusual and stupefying COVID-19 pandemic, with lower sales across all areas compared with pre-pandemic levels. Our analysis shows that global industry for utility poles shrank -7.7% in 2020 compared to 2019.
Power lines, which are column-like structures, support universal utility and service infrastructures including power lines, wires, and cables. Telephone wires, transmission lines, distributing cables, and hydro poles are all supported by these poles. They can be used in numerous contexts. Depending on the needs and the available resources, these poles’ sizes and materials of construction can change. The utility poles can be found anything between 38 and 91 metres apart, and they are roughly 12 metres tall, depending on the topography.
COVID-19 IMPACT
Pandemic Delayed Projects which Temporarily Impacted the Market Growth
Many industries and nations have suffered as a result of the sudden increase of COVID-19. As a result of the stoppage in industrial activity, numerous countries around the world have had issues with regard to investments. The epidemic has also had a substantial impact on a number of small and medium-sized businesses, which has led to issues with cash flow and the lack of a competent workforce, among others.
Yet, a number of governments have promised financial assistance for numerous businesses, enabling different groups to accept the revenue shortfall. In addition, the businesses have concentrated on supporting crucial industries to maintain operational performance.
DRIVING FACTORS
The introduction of 4G has led to a boom in the global telecom industry. Several companies have announced the launch of 5G in both developed and emerging countries, which has resulted in a boom in the market. The required infrastructure must be put in place for the upcoming projects so that the technology can be utilised across the entire country. As a result, there is a greater demand for utility poles, which are frequently utilised for telecommunication in the local areas. The telecommunications industry is also encouraged by advancements in technology and rising consumer adoption of electronic devices, which ultimately drives the utility poles market’s growth.
The amount of energy consumed worldwide keeps rising. The ability of electrical producers to produce electricity is continually growing. As a result, there is a greater requirement for power transmission and distribution, which in turn increases the need for utility pole installation.
The installation of utility poles for effective power transmission and distribution is expanding in developing countries’ major attempts to offer energy in rural areas. Several developing countries, including Brazil, Russia, India, China, and South Africa, have expanded their energy demand, which has led to a surge in energy production and distribution projects.
Utility poles are in high demand due to the growing use of television and telecommunications in both industrialised and developing nations. The use of electronic devices is expanding as well.
RESTRAINING FACTORS
The use of underground cable laying is quickly expanding as the global power transmission, distributing, and communication industry changes. In the previous, underground cables were employed in places where employing overhead power lines could be hazardous or difficult. Yet, many developed and growing nations, such as China, Germany, India, and others, are swiftly shifting to underground connections. This is due to the advantages of underground connections, such as increased transmission grid reliability, a constrained space for fresh and innovative power stations with no room for expansion, the necessity for a transmitting corridor’s correct, and the fact that weather disruptions cannot harm such connections.
Yet, maintaining cables underground is more expensive than maintaining cables above ground. Despite this, countries are putting underground links into place because of the benefits they offer.
SEGMENTATION
By Pole Size Analysis
Based on kind, the market is separated into three categories: under 40 feet, between 40 and 70 feet, and over 70 feet. The segment between 40 and 70 feet is likely to rule the market for the estimated duration. It depicts the average height of the poles and is perfect in any meteorological condition. In the US, utility poles typically measure 40 feet in length and are 6 feet underground. However, the size of the poles changes according to the situation and requirements. In metropolitan settings, they are typically 125 feet apart and 300 feet apart, however the distance can vary significantly depending on the terrain.
The market for poles taller than 70 feet is likely to grow quickly over the course of the projected timeframe. The installation of such poles is expanding swiftly in areas where high-altitude poles are necessary. The need for such poles has significantly increased in recent years.
By Material Analysis
The market has been segmented into steel, concrete, composite, and wood categories. The wood category dominated the market in 2021. Yet, the replacement work for such poles is constantly increasing because of a number of issues with wood decaying with time.
The composite material market is expected to grow quickly over the course of the forecast period. Composite materials are increasingly being used to construct these kinds of poles due to their many benefits, including high strength, light weight, and cost effectiveness. Moreover, unlike wood, this material is unaffected by woodpecker damage.
By Application Analysis
The market segments consist of transmission lines, communication lines, distribution lines, and other lines. The transmission lines segment is predicted to have the highest CAGR during the projection period. Due to the rising demand for and consumption of electricity worldwide, distribution poles are becoming increasingly necessary. During the course of the forecast, it fuels segment growth as a result.
The telecommunications line segment is predicted to grow quickly during the course of the projection period. The installation of telephone lines has expanded globally due to the spread of internet services and the rise in long-distance communication. The growing use of smartphones, laptops, and other devices is another factor driving the segment’s growth.
REGIONAL INSIGHTS
The five major geographic regions of North America, Europe, Asia Pacific, Latin America, and the Middle East & Africa have been used to evaluate the global market.
The Asia Pacific region is anticipated to experience growth at the fastest rate throughout the forecast period as a result of the rising construction of these poles all through the region’s urban and rural areas. The need for electricity is increasing every day. The installation of such poles is increasing as a result of the significant work being done by the governments of various developing nations, including India, Vietnam, China, Indonesia, Malaysia, and others, to offer consistent energy in rural and disaster-prone areas.
China’s economy is expanding at the second-fastest rate in the world. With an average annual increase of 2.5–3%, the demand for power is likewise among the highest in the world. While the installed generation capacity is 1,505 GW, the peak load exceeds 650 GW. Transmission cables and utility poles are therefore increasingly in demand.
North America has a firmly established market. Nonetheless, there are other locations in the region that are undergoing rehabilitation and upgrading work. Steel or composite poles will take the place of wooden ones, according to the American government. According to the Department of Energy (DoE), there are between 175 million and 180 million utility poles in the US.
Europe is predicted to have phenomenal growth during the projection period. Utility poles are necessary as part of the appropriate infrastructure since there is an increased need for the area’s energy to be distributed and transmitted in a reliable manner. The installation of renewable energy and the conversion from a conventional to a renewable source of electricity further boost demand.
The Middle East and Africa area is expected to expand in the future years. Infrastructure development is now taking place in the region’s rural areas. The installation in the region is also being aided by how swiftly the work is moving forward to supply energy in such locations.
The region of Latin America is expected to see tremendous growth in the years to come as a result of increased expenditures in infrastructure development. The government is making an effort to provide its citizens with dependable networks and electricity. Moreover, nationwide upgrades and replacement projects are in progress. As a result, the market in South America is growing faster.
KEY INDUSTRY PLAYERS
Several utility pole industry players have a presence on the local, regional, and global markets. To strengthen their position internationally, several businesses place a premium on creating products with increased strength density, reduced weight, and high efficiency. Also, a large number of players are producing the tubular pole structure locally or regionally. Market participants are introducing poles in various materials and sizes for various applications.