Transmission and distribution infrastructure revenues to double by 2020

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The growing demand for electricity in emerging economies caused by the relocation of industrial activity to areas like China, India, Eastern Europe and Latin America will substantially boost investment in  transmission and distribution infrastructure, according to a new analysis published by business intelligence firm Global Data.

The market is anticipated to grow at a compound annual growth rate (CAGR) of 7.9% from 2010 to 2020, yielding $15.53 billion in revenues by 2020. The company says the need globally to replace aging T&D infrastructure also will contribute to the growth.

The report notes that historically the global T&D markets were centered in North America and Western Europe, but that more recent activity has concentrated in South and Southeast Asia, Eastern Europe and Latin America.

That shift in the market, particularly for transmission towers, came about for three reasons, Global Data says: cost advantages for companies that move their operations, growing domestic demand in those regions for more commercial and industrial production, and growing populations in those markets – which means more consumers. For developed countries, the opportunities for growth are expected to come from emerging technologies and maintenance and replacement of aging infrastructure.

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