Utility Vegetation Management Market Size, Share & COVID-19 Impact Analysis, By Service (Treatment, Pre-planning & Monitoring, and Reactive Repair), By Technology (Insecticides & Herbicides, Plant Growth Regulators, LiDAR, and Others), and Regional Forecast, 2022-2029

The global utility vegetation management market size was valued at USD 22.87 billion in 2021. The market is expected to grow from USD 24.28 billion in 2022 to USD 39.27 billion by 2029, exhibiting a CAGR of 7.1% during the forecast period. The global COVID-19 pandemic has been unprecedented and staggering, with utility vegetation management experiencing lower-than-anticipated demand across all regions compared to pre-pandemic levels. Based on our analysis, the global market exhibited a decline of 3.4% in 2020 as compared to 2019.

Vegetation management is the process of controlling and removal of unwanted vegetation from weeds and shrubs to branches and trees. Such vegetation harms assets such as power lines, railroads, and more, which can have a significant impact on communities and the quality of services provided. Utility vegetation management includes analysis of vegetation growth along with transmission lines and their safe removal.

COVID-19 IMPACT

Reduction in Electrical Grid Setups During Lockdown Reduced Market Growth

There was a massive reduction in new deployments of transmission grid infrastructure due to COVID-19 lockdowns. The pandemic affected the ongoing transmission and distribution projects globally. Furthermore, new project investments were reduced due to lower electricity requirements in industries.

However, a slight rise in the development of green technology infrastructure propelled the market landscape. Technological advancements in monitoring technologies, such as LiDAR, are expected to lead to the utility vegetation management market growth.

LATEST TRENDS

Adoption of Advanced Pruning Methods for Minimum Impact on the Ecosystem

Evolution of environment-friendly utility vegetation management programming to ensure minimal impact on managed ecosystems requires skilled arborists, exploiting advanced tracking, monitoring, mapping technologies, and more holistically managing vegetation near utilities.

Increasing investments in newer technologies and partnership efforts by the companies are anticipated to bolster market growth. For instance, Velodyne Lidar, Inc. announced a new multi-year agreement with Visimind Group, a Swedish company, to provide customers in Europe and the Middle East & Africa with integrated solutions, including mapping and vegetation management, powered by Velodyne’s technology.

In November 2022, AiDash, a provider of satellite and AI-powered operations, maintenance, and sustainability solutions, announced a strategic investment of USD 10 million from SE Ventures, backed by Schneider Electric. The fund will be used to enhance its satellite and Artificial Intelligence(AI)-powered vertical SaaS products such as Intelligent Vegetation Management System.

The enhancement in technologies related to pre-planning and monitoring for vegetation management is anticipated to bolster the market.

DRIVING FACTORS

Extreme Weather Events to Enhance the Need for Market Growth

Increasing frequency and severity of extreme weather disasters increase the probability of trees outside the right-of-way falling into and tripping electric power lines. This has enhanced the need for urgent remediation measures. This has also bolstered periodic maintenance services in utility vegetation management.

In November 2022, many parts of Canada, such as Vancouver and Langley, were affected by storms. Almost 330,000 people lost power in the storm, as strong winds and heavy rains knocked down trees weakened by drought over the summer and fall. The reactive repair service provided by utility vegetation management companies is gaining traction.

Moreover, global warming has caused rise in temperatures. Increasing temperatures and prolonged summers increase vegetation growth rates, reduce pruning cycles, and increase the recurrence of vegetation treatment around utilities.

Increasing the Mileage of Power Lines to Enhance Power is Bolstering Market Growth

Expanding the network of distribution and transmission power lines globally to enhance power accessibility to every region is anticipated to bolster the demand for utility vegetation management services and solutions.

Increasing electrification efforts in various regions are enhancing the development of power lines in rural, urban, and even forest areas, driving the need for investments. In November 2022, European Investment Bank and Endesa signed a loan to finance the investments that the e-distribución of Endesa will make during the 2022-2024 period in the improvement, modernization, and expansion of electricity distribution networks.

The increasing investments in Distributed Energy Resources (DERs) have also bolstered the mileage of power lines, driving the demand for vegetation management in utilities. In November 2022, the Public Utility Commission of Texas unanimously approved an aggregated distributed energy resource pilot to generate 80 MW of flexible resources in Texas.

The adoption of smart grids globally bolsters the demand for vegetation management services. In April 2021, the U.S. government announced that the Western Area Power Administration Transmission Infrastructure Program with USD 3.25 billion fund started accepting applications for project development support.

RESTRAINING FACTORS

High Costs of Vegetation Management to Restrain Market Growth

Vegetation management requires skilled professionals such as arborists to determine the growth of various trees and to identify troublesome plant patterns in different locations near transmission lines. Tree trimmers and pruners with good biological know-how are required for vegetation management. The low availability of such technical personnel and high human capital costs are anticipated to restrain the market growth.

Moreover, vegetation management also involves the safe disposal of plant waste. These plant wastes are often transported to landfills, adding to landfill costs and logistical costs. These plants are sometimes transported to various bioenergy and chemical plants for further processing. The waste management costs of the cut vegetation near utility areas are anticipated to contribute to a high price. Moreover, the monitoring technologies being extremely new and under development add to the massive price of utility vegetation management.

SEGMENTATION

By Service Analysis

Treatment Segment to Hold Significant Share Owing to High Adoption of Vegetation Removal Technologies

Based on service, the market is segmented into treatment, pre-planning & monitoring, and reactive repair. The treatment segment is expected to hold the lion’s share due to increasing adoption of vegetation removal and growth regulation technologies.

The pre-planning & monitoring segment is anticipated to grow at a high CAGR due to the technological development of visualization software and technologies such as aerial monitoring such as drones, satellites, and LiDAR. The reactive repair is a significant segment due to the high number of natural calamities that lead to trees falling near utility lines.

By Technology Analysis

Insecticides & Herbicides Segment to Proliferate Due to Ease of Utilization

By technology, the market is segmented into insecticides & herbicides, plant growth regulators, LiDAR, and others. The insecticides & herbicides segment holds a significant market share as insecticides & herbicides are utilized to remove weed growth near transmission lines and to control insects near the vegetation, which might damage power lines.

Plant growth regulators are used to control the length of growth of trees, which might cause the tangling of utility lines. They are also used to control the growth of weeds in the region of electrical utility infrastructure.

Light Detection and Ranging (LiDAR) is used for monitoring vegetation in critical electric utility areas. The others segment includes aerial mapping technologies such as drones, satellite imaging technologies, and other vegetation pruning tools.

REGIONAL INSIGHTS

The market has been analyzed across five key regions, including North America, Europe, Asia Pacific, Latin America, and the Middle East & Africa.

North America has the dominant utility vegetation management market share due to its high spending on vegetation management services and solutions. According to Leidos’ Commercial Energy, electric utilities in the U.S. spend almost USD 7 billion annually on utility vegetation management services and solutions.

Germany dominated the Europe market in 2021 due to its technological advancement such as satellite-based vegetation monitoring solution. In August 2021, Earth Observation company LiveEO’s satellite-based vegetation monitoring solution for the medium-voltage network was rolled out with the German grid operator E.DIS. The country's technological advancements are propelling the European market landscape.

The increasing industrial development in China and rapid urbanization throughout the region have driven electricity demand. This has led to an expansion of transmission lines in the region. The growing infrastructure development in Asia Pacific propels the regional landscape. In June 2022, China's State Grid announced an over USD 22 billion investment in ultra-high voltage in the second half of 2022. Such investments are anticipated to drive market growth.

Brazil is anticipated to lead the Latin American market due to the country's efforts in reducing its carbon footprint, which propelled the development of renewable energy, thereby increasing the electric infrastructure development in the region.

The massive growth in urbanization in the Middle East & Africa, especially the GCC, has led to increased electric infrastructure development. This is anticipated to propel market growth in the region.

KEY INDUSTRY PLAYERS

BASF SE and Corteva to Dominate the Industry Landscape as they are Concentrating on Enhancing their Product Capacities

The market share for utility vegetation management is highly fragmented with numerous players. Each of the present companies in the market has a strong foothold in their base country and region. BASF SE, Corteva, and NM Group are the leading players with a strong presence across different countries. Their successful operations will help them to acquire contracts and have a considerable market share in the coming years.

The competition among top players in the market is very high as they are targeting to expand across regions. The one with unique offerings in technology, portfolio, design, efficiency, and more will capture the maximum end-user attention.

Again, the market is not stagnant; if a company comes up with extra benefits and advancements, other companies will target more innovation. So, there is always hardcore competition among top-notch players.

LIST OF KEY COMPANIES PROFILED:

• Corteva (U.S.)


• NM Group (U.S.)


• BASF SE (U.S.)


• Boultbee Vegetation Management (U.S.)


• Helena Professional Products (U.S.)


• Iapetus Infrastructure Services (U.S.)


• Leidos (U.S)


• TRC Companies, Inc (U.S.)


• Capgemini (France)


• IBM (India)


• Cyient (U.S.)


• GETAC (Taiwan)


• ArborSystems, Inc. (U.S.)

KEY INDUSTRY DEVELOPMENTS:

• August 2022 - Lapetus Infrastructure Services launched the Trees & Lines podcast, sharing expert insights into the future of the vegetation management utility industry. The podcast wants to champion the highest standards in Utility Vegetation Management (UVM).


• August 2022 – A Trees & Lines podcast by Iapetus Infrastructure Services was launched, focusing on insights into the prospect of the UVM industry.


• August 2021 – FuVeX, a long-range drone manufacturer, and LiveEO demonstrated tech complementation for UVM in the joint project ‘ROM(EO)’.


• April 2021 – The California Public Utilities Commission (CPUC) directed the Pacific Gas and Electric Company (PG&E) to take corrective action and prioritize clearing vegetation along its highest-risk power lines as part of its work to contain wildfires. This engagement placed PG&E in the first step of an enhanced oversight and enforcement process to implement the corrective actions and ensure improved safety performance.


• February 2021 – AiDash launched the 2021 Vegetation Management Best Practices Guide for Electric Utilities, which can reduce vegetation management costs by 20% and improve reliability by 15%. The e-book talks about the new technologies that can bring a revolution in utility O&M activities, especially in vegetation management.

REPORT COVERAGE

The research report comprehensively assesses the global utility vegetation management market by offering valuable insights, facts, industry-related information, and historical data. Several methodologies and approaches are adopted to make meaningful assumptions and views. Furthermore, the report offers detailed market analysis and information in terms of market segment, helping our readers get a comprehensive global industry overview. 

Report Scope & Segmentation