Global Transmission Towers market value to grow moderately

The global transmission towers market will increase in value at a moderate to slow place over the coming years, climbing from $9.6 billion between 2006 and 2013 to $11.2 billion during 2014 to 2020, says a new report from research and consulting firm GlobalData.

According to the company’s latest report, this increase in revenue will be driven mainly by the need for major economies to replace their old Transmission & Distribution (T&D) infrastructure.

Sayani Roy, GlobalData’s Analyst covering Power, says: “The existing T&D infrastructure in developed economies has become old and inefficient, leading to transmission losses. The need to curtail this issue has prompted regional governments to invest in upgrading their energy infrastructure.”

Additionally, the growing power demand in Asian countries will further boost the transmission towers market in this region. Roy continues: “In order to maintain their economic boom, many Asian nations will need to enhance their T&D infrastructure. With rising populations in major cities and expanding semi-rural areas, the transmission tower markets in these countries are expected to grow at a higher rate than those of other nations.”

However, the rising price of steel could affect the revenue margins of transmission tower market players across the globe.

The analyst says: “Steel is used as the main raw material in transmission towers and accounts for the majority of their production cost.

“For tower manufacturing companies with facilities all over the world, steel prices vary from region to region, depending upon availability as well as import and export restrictions. This could be a more significant concern for mid-size firms that don’t buy steel in bulk and lack the same negotiating power with suppliers, which global players possess,” Roy concludes.