In their latest report, StatPlan Energy, specialists in the electricity sector, forecasts demand for transmission towers will increase at 1.6% cagr over the forecast period to 2020.
On the basis of there being approximately 16.2 million electricity transmission towers installed in the world, that means another 1.7 million added to the installed base. The current market is valued at $14.3 billion per year, but we consider that demand through to 2020 will steadily increase, a combination of new build in some regions and replacement in others. At nominal values StatPlan forecasts an annual market by 2020 worth almost half as much again as it is now.
Alongside this analysis is the market for utility poles. Excluding pole top assemblies, StatPlan estimates the 2014 global market at $7.7 billion; including pole top assemblies it is worth $12.9 billion. We don’t see quite the same growth in this sector, but still forecast a market in 2020 at nominal values which is 38% higher than it is now.
“Especially for those players also operating in the telecom towers sector, which we covered in another recent report, our numbers represent good news, but demand will vary greatly by region, from a cagr of 7.0% off a low base in sub-Saharan Africa to minimal growth in some more mature markets” says principal author and director Euan Blauvelt, “from a strategic planning perspective these forecasts are critical.”
StatPlan Energy concludes that companies seeking to grow rapidly must choose their battlegrounds carefully; as a consequence of a lumpy market we envisage significant activity in terms of mergers and acquisitions in coming years so that companies are best placed for investment in infrastructure.