by The global Overhead Line Product Market is estimated to be valued at Us$ 19.78 Bn in 2023 and is expected to exhibit a CAGR Of 6.9% over the forecast period 2023 To 2030, as highlighted in a new report published by Coherent Market Insights.
Market Overview:
The overhead line product market includes a wide range of products that are used in overhead power transmission systems. Some of the key products in this market include conductors, cable accessories, insulators, hardware, etc. Overhead power lines are extensively used for long-distance bulk power transmission across regions. They are more economical compared to underground cables for long-distance power transmission. The use of overhead lines allows for flexible routing above obstacles like roads, rivers etc. Overhead line products facilitate high-voltage transmission at low power losses over long distances.
Market key trends:
One of the key trends in the overhead line product market is the increasing investments in renewable energy across the globe. With growing concerns over greenhouse gas emissions and climate change, many countries are focusing on increasing the share of renewable energy such as solar and wind in their overall energy mix. This has significantly boosted investments in new renewable energy projects worldwide. Since most large-scale renewable energy projects rely on overhead power lines for transmission of electricity over long distances to load centers, the demand for overhead line products is expected to increase considerably over the coming years. The other major trend is the emphasis on upgrading aging power transmission infrastructure in developed economies. As the existing networks become outdated, governments are allocating increased budgets for network modernization projects involving installation of new overhead lines.
Porter’s Analysis
Threat of new entrants: The overhead line product market has very high initial capital requirements and long learning curves which act as entry barriers for new companies.
Bargaining power of buyers: Individual buyers have low bargaining power as overhead line products account for a small portion of their overall costs. However, large utility companies may negotiate with suppliers to get better prices.
Bargaining power of suppliers: A few large players dominate the supply market, giving them significant power to influence prices. However, the threat of backward integration by buyers keeps supplier power in check.
Threat of new substitutes: There exist no close substitutes for overhead line products currently. Underground cabling and wireless power transmission are still more expensive options compared to overhead lines.
Competitive rivalry: Competition is intense among the top players as they aggressively look to capture market share and benefit from economies of scale.
Key Takeaways
The Global Overhead Line Product Market Size is expected to witness high growth, exhibiting CAGR of 6.9% over the forecast period, due to increasing investments in transmission and distribution infrastructure upgrades globally. Asia Pacific captures more than 50% share of the overhead line product market in 2023, driven by rapid electrification in India, China, and other developing countries. The market in North America is expected to grow at a CAGR of 5.2% during the forecast period.
Key players operating in the overhead line product market are 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, and Skipper.
Regional analysis Asia Pacific dominates the global overhead line product market, owing to increased investments in power transmission and distribution projects across India, China, Vietnam, and other Southeast Asian countries. The Asia Pacific overhead line product market was valued at US$ 10.12 bn in 2023 and is projected to reach US$ 16.67 bn by 2030, growing at a CAGR of 6.3%.
*Note:
- Source: Coherent Market Insights, Public sources, Desk research
- We have leveraged AI tools to mine information and compile it
