Global power transmission and distribution conductors market is set to reach $6.6bn and $26.9bn respectively in 2024, says GlobalData

26 October 2020 (Last Updated October 26th, 2020 12:41)

Global power transmission and distribution conductors market is set to reach $6.6bn and $26.9bn respectively in 2024, says GlobalData

The global power transmission and power distribution conductors markets are expected to grow with a CAGR of 1% and 3.6%, during the forecast period (2020–2024). According to GlobalData, a leading data and analytics company, the global market is estimated to grow in the forecast period, primarily due to developments in the countries of the US, China, and India. In 2024, the aggregate market value of the aforementioned countries is estimated to account for 42.4% and 44.8% of the global power transmission and power distribution markets.

The company’s latest report ‘Power Transmission and Distribution Conductors, 2020 – Global Market Size, Competitive Landscape and Key Country Analysis to 2024’ reveals that the global transmission and distribution conductors markets are projected to grow due to rising electricity demand, growing development of new generation facilities, initiatives focused on enhancing grid reliability and improving reliability, climate change, government agendas, and the need for upgradation. The support for renewables such as offshore wind, distance disparity between generators and consumer load centres, and utilisation of direct current (DC) mode of transmission are driving the global transmission conductors market. Several countries across the world have proposed transmission corridors and other projects to facilitate the development of an expansive grid network, within the country or spanning boundaries, to improve reliability and power flow in the system, relieve power flow congestion, and reduce retail prices.

Distribution network segment across the world are aging, inefficient, suffer from power thefts, and are becoming increasingly complex, due to the integration of various distributed technologies. The prevalence of distributed energy technologies has changed the mode of interaction between the consumer and the grid. Based on market development, nations with established distribution networks are focused on transitioning their power systems to reduce environmental impacts and on the replacement of aging assets. Developing markets face various challenges such as evolving power generation mix, lack of power distribution capacity, load shedding, power thefts, market reformation, and growing urban population, which are necessitating the development of distribution networks.

GlobalData’s report also finds that in the forecast period, China, India, and the US will be the prominent markets for power transmission and power distribution conductors. The market drivers, for China and India are nearly identical, such as economic growth, robust industrial sector, and growing integration of renewable energy having contributed and will continue to contribute to the market growth over the forecast period. The power transmission conductors market in China is expected to reach $1.3bn in 2024, with an aggregate value of $6.3bn in 2024, while the Indian market is expected to grow at a CAGR of 8.2% to reach $1.1bn in 2024. Rural electrification, improving access to power, proliferation of captive power generation, and growing urban population are driving the distribution markets in China and India. The power distribution conductors market in China is estimated to grow at a CAGR of 1.9% to reach $2.05bn in 2024, while the India market is expected to grow with a CAGR of 2.1% to reach $2.9bn in 2024.

The US market is well established and comprehensive, however, its infrastructure is aging and would require significant upgradation to adapt to changes in the dynamics of the power sector. The retrofitting and upgradation of distribution assets, smart grid projects, and distributed energy generation contributed and will continue to contribute to the market growth over the forecast period. Other factors including development of integrated energy systems, electric mobility, grid resilience, and conversion to underground cabling are also expected to positively influence the market. The power transmission and distribution conductors markets are expected to reach $0.4bn and $7.2bn respectively in 2024.