Global Power Cable Market Overview
The key driver impacting the power cable market is the rising population and urbanization, which leads to increasing demand for power globally. the growing electricity demand results in massive electricity generation which is likely to boost market demand in the coming years. for instance, according to the International energy outlook(Stated Policies Scenario), in 2019 electricity demand globally grows at 2.1% every year till 2040, twice the primary energy demand rate. this increases total electricity’s share in final energy consumption to 24% in 2040 from 19% in 2018. electricity demand growth is set to be specifically strong in developing economies. In 2018, world total electricity consumption reached 22 315 TWh, which is around 4.0% higher compared to 2017. moreover, rising concerns towards greenhouse gas emissions lead to growth in penetration of renewable energy in power generation is also estimated to be a significant determinant that adds growth to the market.
According to Value Market Research, the global power cable market size was valued at around USD 150 billion in 2020 and is estimated to grow at a CAGR of about 9% during the forecast period of 2020 to 2026.
The augmented investments in the power sector and upgrading power transmission and distribution systems are estimated to improve market demand in the forecast period. for instance, according to the International energy outlook(Stated Policies Scenario), in 2019 the worldwide total power sector investment accounts $20 trillion over the period to 2040. It is 20% high than yearly spending from 2010 to 2018. the power sector stands for 50% of total energy supply investment globally and it includes spending on new power plants, distribution, and transmission lines, with upgrades and refurbishments. In the sustainable development scenario, power sector investment is almost $1.2 trillion for each year on an average to 2040, it is around 60% more than recent spending levels. however, the development of slow-paced technological evolution across developing regions may hamper the global power cable industry in the long run. the current industry trends, such as the growing need to replace old grid infrastructure and increased smart grid technology adoption, are expected to provide beneficial market opportunities for the market players.
The power cable market is vast, with many local and global players. The key leaders follow several strategies to develop their market position, such as mergers, contracts, acquisitions, expansions, extending product portfolio, product innovations, to improve their market share globally. for instance, in April 2020, LS Cable & System declared that it had signed a contract with the Netherlands-based TeneT to supply submarine cables. The deal worth is 100.74 million Euros. The major players included in the report are Prysmian Group, General Cable Technologies Corporation, Nexans SA, Sumitomo Electric Industries Ltd., NKT AS, Fujikura Ltd., LS Cable & System, Encore Wire Corporation, Southwire Company LLC, Elmeridge Cables Limited, Furukawa Electric Ltd., and Others.
In this research report, the power cable market is segmented by installation, voltage, end-user, and region.
Analysis by Installation:
By installations, the report is categorized into overhead, underground, and submarine. The overhead segment dominates the installation segment with over 30% share in 2020. It is an extensively used approach across the world, specifically in less populated countries, as it is the easiest and cost-effective form of installation. Moreover, it is a highly adopted installation technique in countries that are usually prone to natural calamities such as earthquakes thus contributing to the growth in the forecast period.
Analysis by Voltage:
By voltage, the report is categorized into Up to 240V, 240V – 1kV, 1kV – 15kV, 15kV – 100kV, 100kV – 250kV, Above 250kV. The 15kv to 100 kV dominates the voltage segment with over 20% share in 2020. It is due to the rising number of renewable energy projects together with new grid connections. Also, it includes insulation and conductor, which makes it appropriate for being run across underwater and underground applications Moreover, growing demand for these cables from the end-users such as power distribution, telecom, oil and gas, and aerospace and defense contributes to the vast market demand in the forecast period.
Analysis by End-User:
By end-user, the report is categorized into residential, commercial, industrial, and utility. The utility segment dominates the end-users with over 20% share in 2020. It is due to the high demand for power in rural areas which leads to increasing installations of new grids to reach out to distant locations to fulfill power demand. The rising technological up-gradation of grid infrastructure, such as shifting the old transmission lines to high voltage lines in order to keep away from the transmission losses, is also driving the market. Moreover, rise in renewable energy generation, the electricity trade is likely to augment, resulting in the building of higher capacity interconnection lines contributes to the vast market demand from utility sector in the forecast period.
Analysis by Region:
In the regional outlook of the global power cable market, the Asia Pacific region dominates with a 30% market share during the forecast period. It is due to the rising population and increasing urbanization that is boosting demand for power and energy in India, China, South Korea, and Japan, leading to more adoption of power cables in the forecast period. Moreover, rising government initiatives such as Make in India” and “Go Green” and high investment in exploiting various renewable energy sources such as wind and solar contribute to the development of the power cable market across the Asia Pacific.
Market Segmentation covered in the Report:
- Up to 240V
- 240V – 1kV
- 1kV – 15kV
- 15kV – 100kV
- 100kV – 250kV
- Above 250kV
- North America
- The Asia Pacific
- Latin America
- The Middle East and Africa
This market research report has been produced by gathering information on the basis of primary and secondary research. Secondary research has been done by using various sources which include (but not limited to) Company Websites, Paid Data Sources, Technical Journals, Financial Reports, SEC Filings, and other different industry publications.
If specific information is required which is not currently within the scope of the report, it can be provided as a part of customization.