OVERHEAD LINE PRODUCT MARKET SIZE AND SHARE ANALYSIS - GROWTH TRENDS AND FORECASTS (2023 - 2030)

The Overhead Line Product Market size is expected to reach US$ 31.55 billion by 2030, from US$ 19.78 billion in 2023, at a CAGR of 6.9% during the forecast period. Overhead line products include transmission cables, conductors, towers, insulators and other accessories used for overhead power transmission and distribution. These products offer efficient power transmission over long distances. Key drivers of the market include investments in grid expansion and upgradation of aging infrastructure.

The Overhead Line Product Market is segmented by product type, voltage range, end-user, material, installation type and region. By product type, the conductors segment accounted for the largest share of the market in 2022. Conductors are used to carry electric current and form an integral component of overhead power lines. Rising demand for efficient conductors such as ACSR, AAAC, ACAR and ACCR is driving the growth of this segment.

Overhead Line Product Market Regional Insights:

• North America is expected to be the largest market for Overhead Line Product Market during the forecast period, accounting for over 41.2% of the market share in 2022. The growth of the market in North America is attributed to investments in upgrading aging grid infrastructure and the expansion of renewable energy capacity.
• The Asia Pacific market is expected to be the second-largest market for Overhead Line Product Market, accounting for over 22.5% of the market share in 2022. The growth of the market in Asia Pacific is attributed to rapid industrialization and infrastructure development in the emerging economies.

• The Europe overhead line product market is the third-largest in the world, driven by factors such as a well-established electricity grid, high electricity demand, and environmental regulations, accounting for over 25% of the market share in 2022. Germany is the largest market in the region, followed by France and Italy.

Figure 1. Global Overhead Line Product Market Share (%), By Region, 2023

Overhead Line Product Market Drivers:

• Investments in grid infrastructure expansion and modernization: Governments and utilities globally are increasing investments in grid infrastructure such as transmission lines and substations to meet the rising electricity demand. Projects to upgrade aging grid networks, reduce transmission losses and integrate renewable energy are key drivers boosting the overhead line product market. Similar grid expansion projects in emerging economies like India and Southeast Asia also present major growth opportunities.
• Rapid growth in renewable energy capacity: The increasing focus on renewable energy sources to meet sustainability goals is driving the growth of overhead transmission networks to integrate large-scale wind and solar power capacity. According to IEA, global renewable power capacity is estimated to increase by over 60% between 2019 and 2024 to over 2800 GW. Investments in overhead infrastructure to transmit power from generation sites to consumption centers will boost the demand for conductors, cables, towers and other line components.
• Policies to improve electricity access: Government policies to improve electricity access in rural areas and emerging economies are catalyzing investments in overhead electricity transmission networks. The International Renewable Energy Agency estimates that investments of USD 220 billion are required in transmission infrastructure in Africa alone to achieve universal electrification by 2030. Similar policy commitments in Asia and Latin America to reduce energy poverty also augur well for market growth.
• Advancements in manufacturing technologies: The market is benefitting from advancements in technologies such as 3D printing, robotics and data analytics to improve speed, quality and cost-effectiveness of overhead line component manufacturing. Use of advanced materials like carbon fiber, nanomaterials and alloys is also enhancing efficiency, capacity and lifespan of overhead line products. Investments in R&D and new technologies by companies is enhancing productivity, thereby supporting market growth.

Overhead Line Product Market Opportunities:

• Leveraging digital technologies for smart grids: The adoption of digital technologies such as IoT, sensors, automation and data analytics in transmission networks is transforming them into smart grids. This offers opportunities for overhead line products integrated with monitoring, control and communication capabilities. Companies can focus on developing smart overhead line components suitable for enabling two-way communication, self-healing grids and predictive maintenance.
• Growing deployment of high-capacity HVDC lines: Rising adoption of ultra high voltage direct current (UHVDC) transmission capable of transmitting large blocks of power over long distances is creating lucrative opportunities. According to Global Transmission, the global HVDC transmission capacity is expected to increase from 400 GW in 2019 to over 2600 GW by 2030. This will drive demand for robust HVDC cables, converters and other equipment to enable long-distance overhead UHVDC networks.
• Upgradation of aging infrastructure in developed regions: Modernization of obsolete transmission infrastructure in North America and Europe presents an opportunity for upgraded overhead line products and solutions. USA’s power infrastructure received a D+ rating in 2021 by ASCE requiring an investment of over USD 400 billion by 2029. Line components with improved capacity, monitoring capabilities and resilience can replace life-expired equipment in aging networks in developed regions.
• Growing adoption of composite core conductors: Overhead conductors made using composite materials such as aluminum and steel reinforced core are gaining prominence owing to their higher strength, capacity and lower sag. Rising popularity of composite core conductors is opening up new markets for manufacturers.

Overhead Line Product Market Trends:

• Implementation of sensor-based monitoring solutions: Overhead line products integrated with sensors, IoT and communications hardware for remote monitoring of real-time conductor and tower conditions are a key trend. This allows predictive maintenance and early fault detection through data analytics. Major companies like GE and Siemens offer overhead line monitoring systems using technologies like LiDAR. Adoption of sensor-based monitoring is increasing for better grid asset management.
• Growing deployment of unmanned aerial vehicles: The increasing use of drone technology is enabling cost-effective and rapid inspection of overhead transmission infrastructure in remote areas. Advanced drones can survey lines over long distances to detect faults or encroachments.
• Rising demand for high-temperature low-sag conductors: Demand for overhead conductors designed using advanced alloys and materials to operate at higher temperatures with lower sag is rising supported by research and product development. For instance, 3M's Aluminum Conductor Composite Reinforced (ACCR) conductor uses carbon and glass fibers allowing higher capacity. CTC Global's advanced conductors also allow increased power density. Adoption of HTLS conductors is increasing driven by advantages.
• Undergrounding of transmission networks: Growing installation of underground transmission cables as a more reliable and resilient alternative to overhead lines is an emerging trend, especially in urban areas. North America and Europe account for over 70% of the global underground transmission cable installations. Although underground projects require higher investment, improved cable technology is driving adoption to boost network resilience.

Overhead Line Product Market Restraints:

• High costs and long project timelines: The overhead line product market is constrained by substantial capital requirements and lengthy project execution timelines. Constructing new overhead transmission infrastructure requires sizable investments in towers, conductors and cables that run into millions of dollars per kilometer of line length. The long planning and regulatory approvals also delay project execution affecting market growth.
• Concerns regarding grid stability and power quality: The stability and reliability challenges associated with overhead lines could restrain market growth. Overhead networks are exposed to environmental factors like storms, birds and vegetation affecting grid stability. Technical issues like voltage fluctuations and frequency disturbances due to VAR flows also affect power quality. Underground cables provide a more stable power supply.
• Permits and public opposition to new projects: Acquiring permits for new overhead transmission projects often involves extensive negotiations and environmental impact assessments causing delays. Also, public opposition due to right-of-way issues for overhead lines running through neighborhoods poses a barrier. These factors are discouraging investment in new overhead line infrastructure in developed regions.

Recent Developments:

New product launches:

• In January 2022, Nexans launched ultra-high voltage extruded insulation cables up to 525 kV AC and 800 kV DC for overhead lines. This expanded their product portfolio for power transmission applications.
• In March 2021, Sterlite Power launched Axion, a new range of high-performance power conductors with characteristics like high strength and low thermal expansion. It improves power transmission efficiency.
• In May 2020, Prysmian Group launched the Flextube cable designed specifically for overhead lines installation. It provides flexibility, ease of installation and reliability.

Acquisition and partnerships:

• In September 2022, Nexans acquired Centelsa, a leading manufacturer of power cable accessories in Latin America to strengthen its accessories business.
• In November 2021, Prysmian Group partnered with National Grid to provide high voltage underground cables for the landmark 2.8 GW SOO Green HVDC Link project in the US.
• In July 2020, Sterlite Power partnered with Sharper Shape to use drone technology for inspection and surveillance of overhead transmission lines.

Figure 2. Global Overhead Line Product Market Share (%), By Product Type, 2023

Top companies in Overhead Line Product Market:

• 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

Definition: The overhead line product market refers to the industry manufacturing various components used in overhead power transmission and distribution lines. It includes equipment such as high voltage transmission cables, conductors, insulators, towers and accessories that enable the transmission of electricity over long distances aerially. Key application areas are power utilities, railways, industries and renewable energy infrastructure. Rising investments by governments to expand and upgrade transmission networks globally are driving the growth of the overhead line product market.

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