Transmission Line Market Size, Share, and Industry Analysis, By Type (Overhead, Underground, and Submarine), By Voltage (130kV-220kV, 221kV-660kV, and Above 660kV), By Application (Industrial and Utility), and Regional Forecast, 2024-2032

The global transmission line market size was valued at USD 99.14 billion in 2023. The market is projected to grow from USD 105.98 billion in 2024 to reach USD 158.62 billion by 2032, exhibiting a CAGR of 5.2% during the forecast period.

A transmission line can be defined as an electricity transferring system widely used to transmit electrical energy from generating substations to the distribution networks. These lines comprise four components: inductance, resistance, capacitance, and shunt conductance. These lines can also be defined as interconnected lines, enabling electricity movement across the infrastructure of such systems from the generation site to the distribution source.   

The global COVID-19 impact has been unprecedented and staggering, with transmission lines witnessing a negative demand shock across all regions amid the pandemic. The outbreak of the pandemic has also disrupted supply chains as governments across several countries announced lockdowns and imposed travel bans. This led to delays in many projects and created a shortage of labor. Many industries were not operational during the lockdown, reducing the electricity demand from the industrial sector worldwide.

Transmission Line Market Trends

Increasing Energy Demand to Augment Market Growth

Energy consumption in Asia Pacific, Europe, and other regions has been increasing widely. The main reasons behind the strong increment in power consumption are the growth of the manufacturing sector, economic development, increasing population, and increasing data centers. Developing regions, in particular, are experiencing high electricity demand owing to the expansion and development of infrastructure. Industrialization, urbanization, and rising living standards increase the demand for electricity generation.

As many countries worldwide are witnessing a rapid increase in electricity demand, to fulfill such demand, these countries are increasing their power generating capacity either by expanding the generating capacity of existing ones or by installing new plants. In addition, pollution is also widely increasing, for which governments in many countries imposed stringent carbon emission norms. Therefore, the focus on the renewable sector is increasing, particularly toward such line generation. These factors drive the growth of the market over 2024-2032.

Transmission Line Market Growth Factors

Expansion of Smart Grids and Micro-grids Network Propel Growth in the Market

Smart grids are expanding worldwide as the investment in smart grid networks is widely increasing. Governments are also focusing on smart grid expansion in several countries. The investment in cross-border grid networks is also increasing across the world. Along with the smart grid, the micro-grid network is expanding immensely worldwide. The increasing power consumption surges the demand for network infrastructure for electricity worldwide. 

According to the International Energy Association, the European Commission presented the EU action plan for the digitalization of the energy system at the end of 2022. The Commission expects about USD 633 billion of investments in the European electricity grid by the end of 2030. USD 184 billion will be used for digitalization, including automated grid management, digital technologies for metering, and smart meters. Similarly, Asian countries are investing in smart grid power distribution. For instance, in 2022, India launched a USD 38 billion scheme to support the power distribution players and improve distribution infrastructure in the country. 

Rising Retrofit and Refurbishment of Existing Infrastructure Augmented Market Growth

Several developing countries worldwide have initiated refurbishment or replacement work on the existing transmission infrastructure. This increases the demand in the market as the existing infrastructure is aging, and it somehow does not provide maximum efficiency. The refurbishment or retrofit of the existing infrastructure helps increase efficiency and extend the life of the infrastructure. This refurbishment and retrofit of existing infrastructure drive the growth of the market.  

As per the International Energy Agency, in 2022, the U.S. announced the Grid Resilience Innovative Partnership (GRIP) Program, along with a funding opportunity of USD 10.5 billion to support the upgradation and expansion of U.S. electric grids, which involved the digitalization of power system using smart grid and other advanced technologies. Countries such as China, India, and Japan focus on upgrading their power systems in the Asia Pacific. For instance, China plans to modernize and expand its power grid system with USD 442 billion in investments by 2025. Similarly, in 2022, Japan announced a funding program of USD 155 billion to promote revamping the existing power infrastructure and investments in smart power grids. 

RESTRAINING FACTORS

Higher Dependency on Import May Hinder Market Growth

The transmission lines and towers involve the high use of raw materials such as cables, steel, and alloys. Many countries across the world are majorly dependent on the import of such raw materials from other countries. This restricts the growth of the market as the import and export regulations fluctuate, which impacts the overall cost of such equipment. The fluctuations in steel prices also affect the market negatively.  

Transmission Line Market Segmentation Analysis

By Type Analysis

Underground Segment Held Dominant Market Share in 2023

The market share is broken down by type into underground, overhead, and submarine. The underground segment is expected to dominate the market share across the world. The developed regions such as North America and Europe have maximum such lines under the ground. The majority of developed regions have underground installations. The underground installation of such lines is not disturbed by weather conditions, and it causes fewer outages than overhead. The underground lines have a better appearance and high efficiency as the chances of faults are very low. Several developing regions are working to convert their overhead lines into the underground.

The submarine segment is expected to grow significantly over 2024-2032. The demand for such lines is increasing in the market as offshore farm installation is increasing worldwide. According to the Global Wind Energy Council, offshore wind energy has registered a new installation of 35 GW in 2020. The increasing installation of offshore wind energy increases the demand for the submarine segment.  

By Voltage Analysis

220kV – 660kV Segment Led the Global Market Share during 20203

Based on installation, the market is split into 130kV – 220kV, 221kV – 660kV, and above 600kV. The 221kV – 660kV segment has dominated the market in 2020. The demand for transmission networks is increasing due to increasing demand for electricity in the market. The higher transmission line voltages reduce the transmission line losses.

The above 660kV segment is expected to grow significantly over 2024-2032. Urbanization is increasing along with the number of data centers across the world. This increases the demand for the high voltage segment over 2024-2032.

By Application Analysis

Utility Segment to Grow at Highest CAGR during Forecast Period

Based on application, the market is segmented into industrial and Utility. The utility segment held a dominant market share in 2020 and is expected to expand at a significant CAGR during the forecast. The majority of such lines are in the utility segment across the world. The demand for electricity is increasing widely across the world due to an increase in urbanization and smart city projects. This increases the growth of the utility segment in the market.

The industrial segment is likely to grow significantly over 2024-2032. The demand for electricity and consumption of electricity is increasing widely around the world. Industrialization is increasing rapidly around the world. This drives the growth of the industrial segment over 2024-2032.

REGIONAL INSIGHTS

Geographically, the global transmission line market share is broken down into North America, Asia Pacific, Europe, Latin America, and the Middle East & Africa.

Asia Pacific is expected to lead the global market over 2024-2032. This region's electricity demand is rapidly increasing due to the increasing population. Urbanization and industrialization are also increasing in this region. The investment in transmission and distribution is also increasing in this region. The government is increasing electricity generation within the region, increasing the demand for such lines' installation. The increasing capacity of renewable energy also increases the installation of such lines. In 2020, the region installed more than 55 GW of wind capacity. This drives the industry growth in the Asia Pacific region.

Europe is expected to grow at a significant pace over 2024-2032. This region constantly expands its electricity generation capacity due to increasing demand for uninterrupted power supply. These are the key factors driving the growth of the market in Europe. The increase in capacity will increase the demand for such lines in the region.

The North American region is expected to grow significantly over 2024-2032. The region is currently experiencing high power consumption and high penetration of electronic equipment. This results in an increase in power capacity generation, which further increases the demand for such lines. The region even increased the existing transmission line repair and retrofit works. This drives the market growth in the North American region over 2024-2032. 

The Middle East and Africa region is expected to grow significantly over 2024-2032. The governments in this region are highly focused on expanding the transmission infrastructure and upgrading the existing infrastructure. This region is also expanding its renewable energy capacities. This drives the transmission line market growth in the Middle East and Africa region over 2024-2032.

The Latin America region is estimated to foresee growth over 2024-2032. The demand for uninterrupted power supply is widely increasing within the region, which increases the need to expand electricity generation capacities. Governments in several countries in this region are phasing out coal and nuclear plants and installing renewable energy sources. This increases the establishment of a transmission network and drives growth in the region.    

List of Key Companies in Transmission Line Market

Key Players Increasing their Concentration on New Contracts

The global market is booming with the presence of leading market players across both developed and developing regions. Currently, Nexans, Arteche Group, Prysmian Group, Kiewit, ABB, and General Electric are some of the market leaders. These are securing new contracts and adopting new strategies to expand their market reach.  

For instance, in June 2021, Prysmian Group announced securing a USD 9000 million contract to supply high-voltage DC cable systems for an underground transmission project in the US This contract is a part of the SOO Green HVDC Link, a 2100 MW interregional transmission project to connect two of the largest energy market in the US.

In October 2021, Hitachi ABB announced a contract to build an interconnection allowing Egypt and Saudi Arabia to exchange up to 3000 MW of power. The project is likely to be worth USD 900 million. The interconnection line will carry power along a 1350 km route using overhead power lines and a subsea cable along the Red Sea.

LIST OF KEY COMPANIES PROFILED:

• Nexans (France)


• ABB (Switzerland)


• General Electric (US.)


• Prysmian Group (Italy)


• Sumitomo Electric (Japan)


• Valard (Canada)


• Arteche Group (Spain)


• MYR Group (US.)


• Kiewit (US.)


• Burns & McDonnell (US.)


• AECOM (US.)


• Salasar (India)

KEY INDUSTRY DEVELOPMENTS:

• February 2024- Nexans received a contract for a power utility to support energy transition in Italy. Nexans is signed to provide 6,000 km of low- and medium-voltage power distribution cables and services. The cables will be manufactured at Nexans Italian plant in Battipaglia and use 100% guaranteed low-carbon aluminum, reducing greenhouse gas emissions by 35% to 50%.


• June 2023- ArcelorMittal Nippon Steel, India's advanced steel cold rolling mill in Hazira, Gujarat, appointed ABB for electrification and automation contract for steel processing lines. ABB will provide advanced electrification and automation systems, which include the ABB Ability System 800xA distributed control system (DCS) and associated equipment and components for enhanced energy efficiency, optimized zinc consumption, and high levels of corrosion resistance throughout the steel production process.


• May 2023- Nexans received an order from TenneT, a Transmission System Operator (TSO) for the Netherlands and part of Germany, for turnkey high voltage direct current projects for offshore wind farms. Nexans would be responsible for the three grid projects: full engineering, procurement, construction, and installation, including civil works (EPCI) of over 2,160 km of subsea and land cables.


• September 2021- India and Nepal agreed to develop a second transnational transmission line with a capacity of 20,000 MW. Both countries have agreed to construct this project to supply 20,000 MW of electricity.


• May 2021- Salasar announced a contract worth INR 238.65 crore (USD 32 million) from Power Grid to construct transmission lines and substations in Arunachal Pradesh. The contract includes constructing a transmission line network of 132KV type and Extra High Voltage capacity substations.

REPORT COVERAGE

The transmission line market research report includes a detailed industry analysis and focuses on key aspects such as leading companies, type, Voltage, and leading product applications. Besides this, the report offers insights into the market trends and highlights key industry developments. In addition to the factors above, the report encompasses several drivers that have contributed to the growth of the advanced market over recent years.

REPORT SCOPE & SEGMENTATION