ACSS Market

Global ACSS (Aluminum Conductor Steel Supported) Market Size (2024 to 2032)

The size of the global ACSS market was worth USD 11 Billion in 2023. The global market is anticipated to grow at a CAGR of 5.2% from 2024 to 2032 and be worth USD 17.36 billion by 2032 from USD 11.57 billion in 2024.

Current Scenario of the Global ACSS Market

Presently, the ACSS market is growing strongly due to increased power consumption, which is because of population growth, industrialization, urbanization, and higher usage of air conditioners in developed countries. Moreover, the cable and conductor industries are experiencing technological innovations that allow them to endure high temperatures and carry out consistent high-voltage power transmission. Currently, market players, through these technologies, are emphasizing growing load capacity, effectively distributing electricity at large distances with the lowest power losses, and enhancing reliability and stability.

Apart from this, the increased occurrence of extreme weather conditions around the world is putting pressure on the existing power and cable infrastructure. For instance, the U.S. electrical grid is especially unprepared for the growing temperatures and the consequent power demands originating from the nation’s extensive cooling needs.

MARKET DRIVERS

The rising demand for power transmission and electricity, steady improvements in conductor design and production procedures, and replacement or upgrade of aging infrastructure propel the ACSS market's growth.

Also, the growing need for robust and high-capacity electrical transmission line conductors to meet the escalating power demand is pushing forward the industry. Moreover, favorable government policies are another factor contributing to the market’s upward growth trajectory.

Increased use of electric vehicles, heat pumps, and ever-rising consumer electronics is resulting in higher electricity consumption. According to the International Energy Agency’s Electricity Report 2024, around 85 percent of fresh electricity demand through 2026 will originate from outside advanced countries, with China contributing significantly even as the nation’s economy experiences structural changes.

As the world economies speeds up its transition to clean sources of power generation to satisfy all the additional electricity requirements the demand for ACSS will surge in the coming three years. In addition, renewables are expanding quickly and nuclear power is on course to reach new record levels next year. This will lead to low-emission generation to surpass strong power demand growth.

MARKET RESTRAINTS

Technical limitations are derailing the growth of the ACSS market. These include the corrosion of the steel core, high density due to the steel core, and elevated sag due to greater CTE.

Moreover, transmission constraints are decreasing the growth of solar, wind, and storage resources, which are affordable power sources available today. For instance, according to the study conducted by the U.S. Department of Energy’s (DOE) 2023 National Transmission Needs Study (NTNS), interregional transmission capacity has to go up six-fold, and intraregional transmission should double by 2040. Thus, both factors are hampering the expansion of the ACSS market.

MARKET OPPORTUNITIES

The replacement of the old power transmission line and upgrading existing infrastructure are providing potential opportunities for the ACSS market. The growing adoption of electric vehicles and charging stations across the five regions will be a major market growth factor in the coming years.

On the other hand, as per a 2024 report, a consistent rise in oil and petroleum products consumption globally, especially in Asia Pacific, could soon create a shortage of supply, particularly if oil & gas organizations remain focused on reducing capital expenditure. It is also predicted that peak consumption will arrive at least a decade away. Therefore,

this scarcity will spike the demand for electricity in both industrial and commercial sectors, ultimately benefiting the ACSS market.

MARKET CHALLENGES

Planning, institutional, coordination, permitting, up-front costs, and technical barriers in advanced conductor deployments are obstructing the advancement of the ACSS market. The planning barriers include workforce shortage, regular changes in assumptions due to massive increases in load and generation forecasts, lack of standardization in the planning forecast window, and absence of sufficient information on the system’s performance and health, impairing their capacities to rapidly capitalize on the opportunities provided. Further, difficulties in getting permits also affect market growth. Such as space or location constraints for reconductoring, triggering the latest environmental sanctioning at the federal or state level, and the lack of clarity for allowing reconductoring.

REPORT COVERAGE

SEGMENT ANALYSIS

Global ACSS Market Analysis By Type

The 19-wire segment is expected to lead the category in the ACSS market during the forecast period. This can be attributed to the increased focus of several countries on upgrading and expanding their power grids. Also, the need for high-performance conductors to enhance transmission efficiency and capacity is contributing to the growth of the segment’s market share. In addition, the rising integration of renewable energy sources like solar and wind is further influencing the requirement for ACSS cables to withstand greater operating temperatures. Additionally, rapid digitalization, the application of modern technologies such as artificial intelligence, and the expansion of data centers are surging the demand for 19 wires. As per a report, it is predicted that the data center's electricity needs will rise by 160 percent by 2030. Also, ChatGPT queries demand about ten times more power to process than Google searches.

Global ACSS Market Analysis By Application

The utilities segment is projected to dominate this category of the ACSS market. This is primarily due to its ability to transmit greater power through existing transmission zones without the requirement for key infrastructure upgrades. Further, its string design allows it to be more resistant to mechanical pressure and environmental elements, such as corrosion, ice, and wind.

REGIONAL ANALYSIS

North America is experiencing a major shift in its aluminum trade and is expected to positively impact the ACSS market in the years to come. For example, the United States implemented an anti-dumping probe against 15 extruded aluminum goods exporting nations, including Mexico and Vietnam. Mexico is the biggest exporter of aluminum extrusions to the U.S., with a value of USD 660 million out of USD 3.19 billion. Moreover, the aluminum demand in the U.S. is still to reach the pre-COVID-19 levels, and as per the Q3 2023 data, there was a decline of 4.4 percent to 19993 million pounds from 20908 million pounds. However, the ACSS market witnessed a robust surge of 14.7 percent on an annual basis due to persistent growth in the electrical infrastructure industry. This partly compensated for the downfall witnessed. Hence, its market share is believed to rise in the forecast period.

Asia Pacific ACSS market displayed considerable developments and applications and is predicted to propel at a faster pace during the estimation period. The area’s steel sector has shifted from a catch-up stage to being a world leader. This is because of advancements such as aluminum conductors and steel-reinforced cables, which provide improved qualities like heat dispersion, ecological pressure resistance, and high insulation resistors. Besides this, the Chinese industry, a key ACSS manufacturer, saw a positive trend in the aluminum wires and cables owing to a steady inflow of new orders. However, the APAC market has already begun to face the challenges presented by the introduction of the Carbon Border Adjustment Mechanism (CBAM) by the European Union, trade sanctions, and inflated duties on Chinese Aluminum imports.

Europe's ACSS market is a mature industry with steady growth in the past few years. The region has a well-established power transmission infrastructure. Moreover, the industry players are looking to incorporate life cycle analysis (LCA) into system dynamics (S.D.) in the steel industry. Furthermore, the regional market growth I expected to increase with the development of insulation models emphasizing decarbonization, technology evolution, energy consumption, and scrap recycling to handle environmental problems like GHG emissions. Additionally, the industry is characterized by a large proportion of intra-European trade and partnerships among nations. Also, producers are progressively engaged in regional supply chains and examining joint ventures to expand their market reach. This helps the countries from entering into a possible trade dispute to strict ecological and emission laws, ultimately benefiting the market.

Latin America's ACSS market is witnessing a rise and is anticipated to drive forward during the forecast period. The regional market is propelled by the existing investments in power distribution and transmission infrastructure. Apart from this, its market size is expected to increase with the major grid modernization projects initiated by Brazil, Colombia, and Argentina. For instance, Brazil’s transmission grid is seeing a massive shift as it plans to make 3 to 5 G.W. of renewables annually over the next ten years, at a time when transmission capacity is very restricted in Latin America.

KEY PLAYERS IN THE GLOBAL ACSS MARKET

Companies playing a prominent role in the global ACSS market include APAR Industries Ltd., L.S. Cable & System, KJV Alloy Conductors (P) Ltd., Hengtong, K M Cables & Conductors, Hanhe Cable, General Cable, Sumitomo Electric Industries, Ltd., JDS Transformer Industries Pvt Ltd., Nexans, Southwire, DeAngeli Prodotti, Bekaert, and Others.

RECENT HAPPENINGS IN THE GLOBAL ACSS MARKET

• In June 2024, CTC Global Press released the grand launch of its fifth AC Conductor Core production factory in Pune, India. The country’s drive to increase the capacity and enhance the efficiency of its electricity grid is the main reason behind its selection.

DETAILED SEGMENTATION OF THE GLOBAL ACSS MARKET INCLUDED IN THIS REPORT

This research report on the global ACSS market has been segmented and sub-segmented based on type, application, and region.

By Type

• 7 Wires
• 19 Wires
• 37 Wires
• 61 Wires
• Others

By Application

• Industrial Use
• Utilities Use
• Others

By Region

• North America 
• Europe 
• Asia Pacific
• Latin America 
• Middle East & Africa