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The Asia Pacific MV and HV underground cables and accessories market size stood at USD 4.40 billion in 2019 and is expected to reach USD 7.73 billion by 2027, exhibiting a CAGR of 7.7% during the forecast period.
Various types of medium voltage (MV) and high voltage (HV) cables and accessories are widely integrated into the power transmission & distribution (T&D) networks across numerous industry verticals to support efficient electricity transfer between locations. The cables are manufactured with advanced materials equipped with enhanced insulation abilities to withstand weather fluctuations in different locations. Consequently, medium and high power lines are being increasingly installed in underground locations to avoid exposure to severe weather conditions such as storms and lightning to ensure reliable power supply to customers.
Constrained Operations amid COVID-19 to Affect MV and HV Underground Cables and Accessories Industry Expansion
The health and economic emergency caused by the sudden outbreak of the COVID-19 pandemic has significantly dented various commercial and industrial operations. The halt in regular functions has considerably declined power demand worldwide since the beginning of the current year, affecting utility companies' functioning and revenues. As a result, the MV and HV underground cables and accessories market growth has been hindered due to the lack of investments influenced by the limited demands of several end-user industries.
For example, the shutdown of operations across different industrial verticals has led to a significant decline in electricity demand from various sectors, affecting the overall industry landscape. In December 2020, the International Energy Agency (IEA) stated that the total electricity demand across China in February 2020 was about 13.1% lower than the corresponding period last year. The virus originated in China, and the country imposed strict lockdown measures in January 2020 to contain the spread at its peak time.
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Favorable Initiatives to Expand Electricity Networks in Remote Locations to Shape Market Dynamics
Various governments and organizations have unveiled their plans to upgrade and amplify the reach of power infrastructures in distant areas. Administrations are focused on developing their electricity infrastructure to establish a reliable power supply network and are simultaneously introducing new policies and investment opportunities to support the transition. For instance, in February 2020, the Indian government introduced the Union Budget 2020-21 with a substantial amount of about USD 2.3 billion dedicated to the Ministry of Power. The administration also stated that it had provided an extra sum of over USD 786 million to the National Rural Electrification Scheme called the Deen Dayal Upadhyaya Gram Jyoti Yojana (DDUGJY).
Product Advancements by Leading Players to Modernize Supply Networks will Complement Growth Pace of the Market
Increasing efforts by market participants to launch efficient and innovative products are likely to intensify the competitive landscape and propel the Asia Pacific MV and HV underground cables and accessories market growth. These companies are striving to introduce new alternatives with enhanced fault detection methods and effective operations under harsh underground conditions. For example, in August 2020, Sumitomo Electric collaborated with TEPCO Power Grid, Inc. to fabricate the first remote cable monitoring system equipped with sensor-based technologies that can operate the current underground power transmission lines.
Exponential Growth in Energy Demand & Setting up of New Transmission Lines to Fuel the Market
Emerging economies in Asia Pacific have been showcasing a promising surge in energy consumption over the past several years, underpinned by rapid industrialization and urbanization. Consequently, different public and private establishments have been making substantial investments to boost the region’s energy infrastructure to serve the increasing power needs. For instance, in July 2020, the IEA stated that the overall investment in power infrastructure across Indonesia totaled about USD 12.7 billion in 2019, rising from around USD 10.6 billion in 2017. It further revealed that in 2019, about 38.6% of the total amount was devoted to renovating power links in the country.
Growing Adoption of Green Energy Technologies to Open New Paradigms for Market Expansion
Low-carbon power generation technologies are one of the fastest-growing methods implemented to cut the harmful greenhouse gas (GHG) discharges from power generation units. Different global organizations have introduced ambitious targets as well as stringent policies to keep a check on the overall carbon footprint. For example, in September 2015, South Australia's government unveiled its investment plans to place around AUD 10 billion to facilitate the setup of low-carbon energy generation technologies by 2025. The guidelines include several objectives, such as 50% of the state’s electricity production is to be contributed through renewable resources by the target year.
High Initial Capital Investment to Place Underground Cables May Obstruct Growth
The need for substantial capital costs to lay cables in underground locations may dampen the MV and HV underground cables and accessories market prospects. Placing an underground cable necessitates a list of additional procedures, such as excavating deep horizontal tunnels and essential large pieces of land to conduct the operations, limiting its installation potential in certain locations. Furthermore, it is also difficult to perform maintenance and repair works on underground lines as compared to the overhead lines due to the difficulties in locating the exact fault location from the surface.
Medium Voltage Underground Cable Type to Hold the Largest Market Share
Based on type, the Asia Pacific MV and HV underground cables and accessories market is broadly divided into cable type and accessories type. The cable-type segment is further sub-categorized into medium voltage and high voltage, followed by further classifications. In contrast, the accessories segment is grouped into cable joints, terminators, connectors, clamps, etc. The medium voltage cables segment is expected to account for a substantial portion of the market due to the speedily developing residential and commercial sectors coupled with the setting up of new, small industrial facilities.
Furthermore, the cable joint accessories segment is anticipated to observe positive growth due to the indispensable need for joining different cables for effectively running them in underground locations. The 230 kV – 500 kV high-voltage cable sub-segment is projected to experience significant expansion owing to the financial support from various administrations to establish new medium and large businesses and distance electrification initiatives.
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Renewables End-user Segment to Exhibit the Highest Growth Rate over the Forecast Period
On the basis of end-users, this market can be categorized into utility, oil & gas, mining, renewables, transportation, and others. The renewables segment is likely to experience considerable evolution due to favorable policies, rising investment opportunities, and ambitious government targets.
The oil & gas segment is poised to grow significantly owing to the discovery of new hydrocarbon reserves along with the presence of high-capacity reservoirs.
The growth of the transportation segment is backed by the increasing expenditures and proliferation of charging infrastructures to support electronic mobility over long stretches.
The market has been analyzed across twelve key geographies operating across the region, namely, China, India, Japan, Australia, Indonesia, Thailand, Malaysia, Singapore, the Philippines, South Korea, Vietnam, and the Rest of Asia Pacific. China is expected to dominate the Asia Pacific MV and HV underground cables and accessories market share due to the country’s major shift towards clean energy deployment, positive plans for hydrocarbon exploration & production activities, and transformation of industrial infrastructures.
Furthermore, India is also expected to grow at a steady rate due to substantial rural electrification policies & opportunities, rising metal mining and production rates, and frequent power outage problems. For instance, in October 2020, Mumbai faced a sizable power loss, disturbing the city's electricity and water supply networks. The state’s energy minister specified that a technical glitch caused the outage at the government-owned transmission company’s 400 kV supply station.
Continuous up-gradation programs to refurbish and advance transmission & distribution lines are set to propel the South Korea MV and HV underground cables and accessories market. The country’s industrial growth is also attributed to the encouraging electric vehicle deployment initiatives and regular construction of high-capacity power generation plants. In January 2020, for instance, the South Korean Ministry of Commerce, Industry, and Energy declared subsidies over USD 810 million during the present year to boost the demand for electric vehicles (EVs) and improve the charging infrastructures in the country.
Prysmian Group to Focus on Delivering Advanced Products to Fortify Its Global Position
Prysmian Group is a global T&D lines manufacturer and supplier, with a strong portfolio of medium voltage underground cables offered in numerous countries. The company has a strong foothold across different geographies, such as North America, Europe, Asia Pacific, Latin America, and the Middle East & Africa, along with offices in many nations, including South Africa, Australia, France, Brazil, and Mexico. Furthermore, in May 2020, Prysmian reintroduced its P-Laser high-performance cable technology providing entirely recyclable possibilities for power transmission & distribution, coupled with the potential to reduce carbon footprint by 40%. The special offering is produced using the company’s High-Performance Thermoplastic Elastomer (HPTE) for improved electrical characteristics, easy manufacturing processes, effective performance at elevated temperatures, and lower CO2 emissions than the conventional cross-linked polyethylene (XLPE) material.
The Asia Pacific MV and HV underground cables and accessories market is notably fragmented. A wide number of global, regional, and state-level key players are offering various products & components to diverse industries. These companies are continuously undertaking multiple efforts to establish their position through collaboration initiatives and innovative product launches to maintain their competitive edge.
An Infographic Representation of Asia Pacific MV and HV Underground Cables and Accessories Market
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The Asia Pacific MV and HV underground cables and accessories market research report presents a comprehensive assessment of the market, offering valuable insights, facts, industry-related information, and historical data. Several research methodologies and approaches have been adopted to formulate meaningful assumptions and views. Furthermore, the report offers a detailed analysis and information as per market segments, helping our readers to get a comprehensive overview of the Asia Pacific industry.
Value (USD Billion)
Fortune Business Insights says that the Asia Pacific MV and HV underground cables and accessories market size was USD 4.40 billion in 2019 and is projected to reach USD 7.73 billion by 2027.
In 2019, the China market value stood at USD 2.29 billion.
Registering a CAGR of 7.7%, the market will exhibit modest growth over the forecast period (2020-2027).
The medium-voltage cable type segment is anticipated to dominate this market during the forecast period.
Growing energy demand, rural electrification policies, and increasing deployment of low-carbon generation technologies are the major factors driving the market's growth.
Prysmian Group, Nexans, Sumitomo Electric, and Kei Industries are key participants operating in this market.
China dominated the market in terms of share in 2019.
The introduction of power supply initiatives in remote areas requires the setting up new transmission & distribution lines, generating new installation opportunities for underground cables and accessories across the globe.
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