Dallas, TX (PRWEB) February 08, 2014
Installation of New Transmission and Distribution Infrastructure to Meet Power Demand, Increases the Need for Transmission Towers
There has been an increasing demand for electricity globally, mostly in emerging economies such as China, India, Eastern Europe and Latin America, due to the increased pace of industrial activity in these regions. Traditionally, the global Transmission and Distribution (T&D) markets were concentrated in the regions of North America and Western Europe. However, in recent years there has been a change in this trend, and the focus of activities in the global T&D market has shifted to the South-East Asian, South Asian, Eastern European and Latin American nations. This trend has developed for two main reasons: first, the low-cost advantage that company can derive by shifting some of their operations to these countries; and second, the growing domestic demand in these emerging economies for increased industrial and commercial production. To meet the growing demand for power, countries will require increased investments in electricity infrastructure. Such growth in the installed capacity will require additional infrastructure investments for installing new T&D infrastructure, increasing the demand for transmission towers.
The installation of new T&D infrastructure depends upon the country's economic growth. Many developing countries such as India and China have shown increased economic and population growth rates. To maintain the economic growth rate and to satisfy the electricity need of the rising population, the governments of these countries plan to invest in building energy infrastructure. The growth rate of new installations of T&D infrastructure has been slow in most developed countries. In these developed countries, new opportunities are expected to come from upcoming technologies, and the maintenance and replacement of old T&D infrastructure. This is particularly the case in North American and European markets, which have traditionally been the major markets for most T&D equipment manufacturing companies. With the rise of new and developing economies that are witnessing higher economic growth rates and lower labor cost, the growth of the T&D markets in developed countries is slow by comparison, having reached a state of relative maturation.
Grid Interconnections with Growing Renewable Energy Sources Expected to Drive Demand for Transmission Towers
Emphasis on the commercialization of renewable energy across the world is expected to drive the growth of grid interconnections, leading to a growth in demand for transmission towers. Renewable energy resources are often found in far-off places where a transmission network does not exist. In the future, the expansion of transmission networks is expected to enable the transfer of electricity from power plants situated in remote areas to load centers, which will require the deployment of T&D infrastructure, including transmission towers.
Many countries are in the process of integrating their regional grids to form a nationwide grid. The idea is to have a seamless flow of electricity across the nation. The development of renewable energy has also given a further boost to grid interconnection. In European countries, work is in progress to form a single European grid among all European Union nations. Moreover, as the economies of Asian countries develop further, energy trade between them is expected to rise. In many countries the transmission networks are not reliable enough to transfer electricity from the growing number of power plants. The increased focus on renewable energy and grid interconnections is expected to increase the installation of T&D lines and thereby drive the demand for transmission towers.
Increased Capital Spending and Investment for Industrial Development Expected to Boost the Growth of the Transmission Towers Market
The installation of T&D equipment including transmission towers is a basic requirement for every manufacturing unit and there are no substitutes for it in high-power industrial applications. The unique capabilities of T&D equipment and infrastructure, used for supplying power to machines, directly benefits industries, leading to capital spending and investment. This is one of the few reasons the markets have remained healthy despite economic problems and downturns in various regions of the world.
In the aftermath of the economic recession of 2008, the governments of the US and many of the countries in Europe and Asia-Pacific have committed more federal funds for investment in infrastructure projects such as new power grids, generation and T&D infrastructure. Many industries have been supported by federal and state governments through incentives and tax credits for capital purchases of energy-efficient equipment.
Powering this equipment requires it to be connected to the T&D network. Therefore, the huge investments committed by these governments are expected to percolate down, boosting the growth of the transmission towers market as well.
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