Lagos — The global markets for transmission and distribution conductors are forecast to grow at a compound annual growth rate (CAGR) of 1% and 3.6%, respectively, between 2020 and 2024.
The US, China, and India will propel the global markets over the next four years, with the three countries accounting for a share of 42.4% (transmission) and 44.8% (distribution) of the global market value in 2024, according to GlobalData, a leading data and analytics company.
The company’s latest report, ‘Power Transmission and Distribution Conductors, 2020’, reveals that environmental factors, fuel resource constraints, geo-political risks and evolving technologies are transforming the global power sector. Growing emphasis on reduction of carbon emissions is also creating a promising market for renewables and other grid assets.
Nirushan Rajasekaram, Power Analyst at GlobalData, says: “Initiatives to enhance electricity grids, development of cross-border interconnections, integrating renewables, growing power demand, refurbishment of conventional assets and upgradations are some of the major factors driving the markets for transmission and distribution conductors. Large populations and robust domestic manufacturing industries in China and India will necessitate the development of new infrastructure and will provide the necessary critical mass to substantially influence global market trends. The expansion of the power grid is a result of actions taken to improve rural electrification and grid reliability, increase the penetration of renewables and accommodate smart technologies, while sustaining their economic growth.”
Countries with developed grids such as the US, UK and Germany will focus on improving grid operational flexibility and resilience to accommodate the various distributed technologies being integrated into the grid. The upgradation of old grid assets and integration of cutting-edge innovations such as IT applicability will help sustain a steady demand for conductors over the forecast period.
Rajasekaram concludes: “There is a strong requirement for new grid infrastructure to support the changes within the power generation and consumer segments of the power sector. Economic growth and social development are heavily intertwined with resource consumption such as electricity in most countries and as these countries continue to grow, the demand for electricity, and consequently the investments into the power sector, will grow and drive the markets for power transmission and distribution conductors.”