The global utility poles market registered a revenue of nearly $44,688.0 million in 2018, and is anticipated to grow at 2.7% CAGR, surpassing $55,360.7 million by 2026.
The market will witness a decline in the growth during the coming years; this is due to the pandemic in 2020. The market decline is due to the shutting down of various industries across the globe. The whole world is locked down and no operational activities are permitted across the globe which has created a huge chaos in the overall market, consequently impacting the growth in the forecast period.
|Recovery By||Realtime BPS||*Estimated market Size, 2020,
|**Real Time market Size, 2020,
|2.9%||2.7%||Q3/Q4 2022||21||USD 47,159.9 Million||USD 28,296.0 Million|
* The numbers are estimated prior to the COVID-19 Pandemic in 2020
** The data will vary depending on upcoming developments announced by the operating players
KEY ASPECTS OF THE INDUSTRY
BOOMERS AND DECLINERS
Increasing use of poles in the electricity sector is predicted to be the major driving factor for the market in the forecast period. Moreover, the demand from telecommunication sector is also predicted to drive the market in the forecast period. In addition, energy distribution and energy transmission are fundamental applications of utility poles that play a crucial role in network maintenance.
The stringent government rules and regulations are predicted to hamper the market growth in the forecast period. Increase in the trend for underground cables and wiring network may hamper the market growth in the coming years. Moreover, for setting up the poles in the interior areas, tress need to be cut down on a large scale. Strict rules and regulations against deforestation are predicted to hamper the market growth in the forecast period.
Currently, the complete world is under a lockdown and hence most of the organizations have shut their operational work, which has impacted the utility poles market vastly. Construction at major sites have been stopped, which has also hindered the market growth of the utility poles market in the forecast period. According to an analysis done by ICRA, a unit of ratings agency ‘Moody's’, the expected losses at state-run electricity distribution utilities (Discoms) would rise two-thirds to Rs 50,000 crore in FY21 with an addition of Rs 20,000 crore in book level losses in the current year itself. The COVID-19 outbreak has reduced the power demand sharply in the month of March and April and such fall have noticed first time ever.
Decreasing use of electricity and abrupt stop at construction sites have impacted the utility poles market to a large extent. Increasing investment in the power sector and improvement in transmission and distribution network in various region across the globe is predicted to create more investment opportunity in the forecast period. For instance, the government of Kenya is planning to provide free electricity to all the residents by 2022 by launching various plans.
MANAGING SUCCESS AMIDST
THE PANDEMIC STRESS
As it has been noticed that the market is predicted to recover by Q3/Q4 of 2022. The increase in the demand of utility poles is predicted to grow by establishing real time competitive market for electricity and their supplies, post the pandemic settles. Government is making reforms and construction operations are to begin at the earliest. Government has made it a mandate for the buyers to buy electric appliances from government shops, which is predicted to eventually help the economy of the country. For instance, Indian government has asked the buyers of electricity industry, including DISCOMs, to purchase the items for the construction purposes to boost the country’s economy. In addition, many developed countries such as US have significantly made more effort to implement large scale debt driven measures than governments of developing countries.
The emergence of composite utility poles that exhibit superior properties and are cost effective in nature are projected to create more investment opportunities for the market in the forecast period. In addition acceptance of composite material in utility poles industry is also predicted to create more investment opportunities for the investors in the forecast period.
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- Long-term and Short-term impact of Covid-19 on the market
- Cascading impact of Covid-19 on the Utility Poles Market , due to the impact on its extended ecosystem
- Understanding the market behaviour pre- and post-Covid-19 pandemic
- Strategic suggestions to overcome the negative impact on your business or turn the positive impact into an opportunity