The Global Utility Poles Market Stands At USD 46 Billion In 2022, And It Is Expected To Shoot Up To USD 70.1 Billion By 2030 at a CAGR Rate Of 3.8% For The Forecast Period Of 2023 – 2030.

Utility Poles Market Overview:

With lower-than-expected demand across all regions compared to pre-pandemic levels, the utility poles have experienced the unprecedented and staggering COVID-19 pandemic. According to our research, the global market for utility poles experienced a decline of -7.7% in 2020 compared to 2019.

Public utility and services infrastructures like power lines, wires, and cables are supported by utility poles, which are column-like structures. These poles support hydro poles, transmission lines, distribution cables, and telephone wires. They can be applied in a variety of ways. The size of these poles and the substance used to construct them vary depending on the requirements and the resources available. Depending on the topography, the utility poles are located anywhere between 38 and 91 metres apart and are around 12 metres tall.

Market Dynamics:

Latest Trends:

Increasing Composite Material Development in the Poles Market to Support Growth

Globally, the use of composite materials is expanding quickly, and composite material poles have superior qualities, which encourages the construction of such poles. Additionally, using this material in the utilities sector is very beneficial and cost-effective. Over the others, these poles are also more lightweight and dependable. Communication and power utility companies have used composite poles extensively during the past ten years. These poles also address a number of issues that arise with concrete, steel, and wood poles.

One reason composite poles have taken the place of wood poles is their longer lifespan; on average, wood poles are projected to survive for about 40 years. A wood pole may, however, only endure a small portion of that time in some installations before needing to be replaced. Pests and woodpeckers cause millions of dollars' worth of damage to wood poles each year in North America. If woodpeckers attack a wood pole aggressively, it may become physically unable to support its principal design load as little as two or three days after installation. The usual service life of some composite poles is 80 years, therefore switching from wooden to composite poles can prevent the need for pole replacements for that long. Wildlife cannot destroy composite poles.

As a result, composite pole installation is significantly growing over other types. Additionally, composite poles are more flexible and can take weights like a tree falling on a line better. The aforementioned elements generate profitable opportunities for composite poles all over the world.

Driving Factors:

Rapidly Growing Telecommunications Sector to Promote Utility Pole Installation

With the introduction of 4G, the telecom business is flourishing internationally. The market is currently booming as a number of businesses have announced the rollout of 5G in both developed and developing nations. For the next initiatives, the necessary infrastructure must be put in place so that the technology can be used throughout the entire nation. The need for utility poles—which are commonly used for telecommunication throughout the regions—increases as a result. The telecommunications sector is further boosted by technical improvement and expanding electronic gadget penetration, which eventually fuels the utility poles market's expansion.

This business is bringing in more money and providing jobs for many nations. For instance, China Mobile Limited, which employs over 456,239 people worldwide, is one of the major employers in the telecommunications industry. While Vodafone employs about 92,005 people, Verizon offers over 135,000 employment.

Increased global energy demand is encouraging the installation of utility poles.

Global energy consumption is always increasing. Electricity suppliers are constantly increasing their capacity for generating electricity. This raises the demand for power transmission and distribution, which in turn raises the need for installing utility poles.

Developing nations are making significant efforts to provide energy in rural regions and are increasing the installation of utility poles for efficient electricity transmission and distribution. Energy generating and distribution projects have increased as a result of the rising energy demand in different developing nations, including Brazil, Russia, India, China, and South Africa.

Due to the rising use of television and telephones in both developed and developing countries, utility poles are in great demand. Electronic devices are also becoming more commonly used.

Restraining Factors:

The market is being hampered by a rising trend toward underground connections.

The usage of subterranean cable laying is fast rising as the worldwide transmission, distribution, and communication sector undergoes transformation. Where using overhead lines could be risky or challenging in the past, underground cables were used instead. However, a number of both developed and developing countries, including China, Germany, India, and others, are quickly converting to underground connections. This is because underground connections have a number of benefits, including improved transmission grid reliability, a limited amount of room for new and existing substations with no room for expansion, the requirement for a transmission corridor's right-of-way, and the fact that weather disturbances cannot damage such connections.

Even yet, underground cable maintenance is more expensive than above cable maintenance. Despite this, nations are implementing underground connections due to the advantages they provide.

Segmentation Analysis:

By Pole Size Analysis:

The market is divided into three types based on type: below 40 feet, between 40 and 70 feet, and over 70 feet. During the anticipated period, the market is expected to be dominated by the segment between 40 and 70 feet. It is ideal for all climatic circumstances and represents the average height of the poles. The typical utility pole in the US is around 40 feet long and 6 feet underground. The size of the poles varies, though, depending on the location and needs. They are normally 300 feet apart in rural areas and 125 feet apart in urban areas, however the distance can vary greatly depending on the terrain.

During the projected period, the market for poles taller than 70 feet is anticipated to expand rapidly. Where high-altitude poles are required, the installation of such poles is growing quickly. In recent years, there has been a large increase in demand for such poles.

By Material Analysis:

The market has been divided into segments for wood, concrete, composite, and steel. In 2021, the market was dominated by the wood category. However, due to a number of wood degrading problems over time, the replacement work for such poles is steadily growing.

During the forecast period, it is predicted that the composite material category will expand quickly. Since composite materials have several advantages, including high strength, light weight, and cost effectiveness, they are increasingly being used to build these kinds of poles. Additionally, unlike wood, this substance is resistant to woodpecker damage.

By Application Analysis:

Distribution lines, transmission lines, communications lines, and other lines make up the market segments. During the forecast period, the distribution line segment is anticipated to have the greatest CAGR. The need for distribution poles is growing due to the increased global demand and consumption of electricity. As a result, it fuels segment growth during the course of the forecast.

During the forecast period, the communications line segment is anticipated to increase rapidly. The proliferation of internet services and growing long-distance communication have increased the installation of telephone lines throughout the world. Another reason fueling the segment's rise is the increasing use of smartphones, laptops, and other devices.

Regional Insights:

Due to the increasing installation of these poles throughout the region's urban and rural areas, the Asia Pacific region is predicted to experience growth at the highest pace throughout the projected period. With each passing day, there is a growing need for electricity. Due to the substantial work being done by the governments of several developing nations, like India, Vietnam, China, Indonesia, Malaysia, and others, to provide constant energy in rural and disaster-prone areas, the installation of such poles is rising.

China has the second-fastest growing economy in the world. The demand for power is also among the greatest in the world, rising on average by 2.5–3% yearly. The peak load surpasses 650 GW, while the installed generation capacity is 1,505 GW. Due to this, utility poles and transmission lines are in more demand.

The market in North America is well-established. However, the area is undergoing renovation and improvement work in a number of places. The American government intends to replace wooden poles with steel or composite ones. The number of utility poles in the US is estimated by the Department of Energy (DoE) to be between 175 million and 180 million.

The forecast period is expected to see tremendous growth in Europe. Due to the increased demand for reliable distribution and transmission of energy throughout the area, suitable infrastructure, including utility poles, is needed. The demand is further increased by the installation of renewable energy and the switch from a conventional to a renewable source of electricity.

In the upcoming years, the Middle East & Africa region is anticipated to grow. Rural parts in the area are currently undergoing infrastructure development. Additionally, the installation in the area is being boosted by how quickly the work is progressing to provide energy in such places.

Due to increased investments in infrastructure development, it is predicted that the Latin American region would likewise experience significant growth in the years to come. The government is attempting to give its people reliable networks and electricity. Additionally, improvements and replacement work are being done across the nation. As a result, the market in Latin America is growing faster.

Scope Analysis

Recent Development:

• September 2022 - Sparta announced that it had been awarded a US$200,000 power pole replacement and power line work contract to update the UK's aging infrastructure. The contract will replace wooden poles with metal poles.
• August 2022 - KEC International received USD 13,130 million in new orders in various business areas. The Transmission & Distribution (T&D) division has won orders for 400kV transmission lines in India and the Middle East from the Power Grid Corporation of India through its UAE subsidiary, and is supplying steel towers, hardware, masts, etc. to the Americas. through its subsidiary SAE Towers
• November 2021 - Stella-Jones Inc. completed the acquisition of stock in Cahaba Pressure Treated Forest Products, Inc. through its previously disclosed US subsidiary. The purchase price totals $66 million and working capital is estimated at $8 million. .
• November 2022 - DDC member Surankote Shahnawaz Choudhary and JKPCC Secretary General started installation of utility poles in Potha, attended by JE, AEE, and local citizens from Sarpanch, PDD.
• October 2020 - The WAPA Board of Directors approved a project to advance electrical grounding, installation of composite poles, and other projects. The committee is the St. Approved a US$1.1 million contract with PECO International Electric for materials to support three underground electrical projects in Croix.

Market Segmentation

By Pole Size:

• Below 40ft
• Between 40ft-70ft
• Above 70ft
• Others

By Material:

• Steel
• Concrete
• Composite
• Wood
• Others

By Application:

• Transmission Line
• Distribution Line
• Telecommunication Line
• Others

By Companies:

• El Sewedy Electric Company (Egypt)
• Valmont Industries Inc. (U.S.)
• Skipper Ltd. (India)
• Nippon Concrete Industries Co., Ltd. (Japan)
• Hill & Smith Holdings Plc (U.K.)
• Stella-Jones Inc. (Canada)
• Fuchs Europoles GmbH (Germany)
• RS Technologies Inc. (Canada)
• Omega Factory (Saudi Arabia)
• KEC International (India)
• Pelco Products, Inc. (U.S.)
• Stella-Jones (Canada)
• Others