Medium Voltage Cables Market Size, Share & COVID-19 Impact Analysis, By Installation (Overhead and Underground), By Voltage (1 kV - 15 kV, 16 kV - 35 kV, and 36 kV - 70 kV), By Application (Industrial, Commercial, and Utility), and Regional Forecast, 2021-2028

The global medium voltage cables market size was USD 31.47 billion in 2020 and is projected to grow from USD 33.61 billion in 2021 to USD 55.31 billion in 2028 at a CAGR of 7.4% in the 2021-2028 period. The global impact of COVID-19 has been unprecedented and staggering, with medium voltage cables witnessing a negative demand shock across all regions amid the pandemic. Based on in depth analysis, the global market exhibited a decline of -9.6% in 2020. The sudden rise in CAGR is attributable to this market’s demand and growth returning to pre-pandemic levels once the pandemic is over.

Energy is the quintessential need to smoothly conduct daily life operations in small households as well as large-scale industrial facilities. Various types of cable assemblies are readily utilized to conduct the electric current and run power in and out of establishments. Medium Voltage (MV) cables are produced using different materials, such as aluminum and copper, and are largely installed across distribution networks. These products significantly help in providing power to numerous application verticals with high efficiency and safety.

Decreasing Energy Demand and Limited Investment Opportunities amid COVID-19 to Impede the Market Growth

The sudden increase in the affected population with the severe acute respiratory syndrome (SARS) CoV-2 virus has degraded the fiscal situation of various nations. Numerous countries and industries have observed the shutdown of operations to adhere to strict guidelines, such as social distancing and national lockdowns, to contain the outbreak. Furthermore, various players that operate in the industry have also reported different problems including a substantial decline in the overall revenues and a drop in new investment opportunities.

Moreover, several organizations are currently working on developing a vaccine to enable the lifestyle as per pre-pandemic situations. Also, different state and federal governments have introduced economic stimulus plans to aid various sized businesses to overcome the impact of COVID-19. These packages are also directed to ramp up investments across different verticals, thereby stabilizing the demand for medium voltage cables. For instance, in March 2020, the government of India announced an assistance plan to help the electricity distribution companies strengthening their liquidity positions. The administration offered several benefits including reducing security sum by about 50% for future purchases, renouncement of late payment penalties, and a three-month moratorium for payments.

LATEST TRENDS

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Collaborations to Boost the Technological Landscape to Shape Industry Outlook

Different industry players have initiated partnership efforts to boost the integration of advanced solutions, propelling the market. The key market participants have also introduced new alternatives to effectively optimize the setup and functioning of cables with different voltage ratings. For instance, in August 2020, TEPCO Power Grid, Inc. and Sumitomo Electric Industries cooperated to fabricate a new remote cable monitoring system specializing in underground networks.

Paradigm Shift Toward Clean Energy Generation Technologies to Boost Industry Outlook

Growing concerns to reduce the harmful greenhouse gas emissions have propelled countries to deploy significantly low carbon power generation alternatives aiding the medium voltage cables market growth. The installation of various renewable energy systems has pushed MV cable manufacturers to design new and efficient solutions to accommodate the rise of clean technologies, such as solar and onshore & offshore wind power, into grid networks.

DRIVING FACTORS

Rapidly Increasing Energy Demand & Need for Reliable Power Supply to Foster Growth

Various developing as well as developed countries have observed a significant rise in energy intake over the years, favoring the global market. Several nations have also experienced significant investments to transform the transmission & distribution networks and support reliable electric supply across different verticals. For instance, according to the Global Energy Statistical Yearbook 2020, the total global electricity consumption soared significantly between 2010 and 2019, observing nearly a 24.3% increase during the period. The report further stated that the majority of this growth was witnessed in developing regions, such as Asia Pacific and the Middle East and Africa.

Developing Electricity Infrastructure to Play a Pivotal Role in Shaping Medium Voltage Cables Market Trends

Rapid industrialization and urbanization have propelled the requirement to advance the energy infrastructure in various nations to adapt to the fast-paced growth. Besides, the increasing construction expenditure to build energy-efficient substructures with overhead & underground electrical designs is likely to generate significant demand for medium voltage cables. Consequently, efficient MV cables and their accessories are required to transfer energy to the remote areas of several countries, favoring the industry expansion.

RESTRAINING FACTORS

High Initial Expenditure and Project Delays May Obstruct Market Growth

Enhanced expenditure of laying cables in underground locations owing to the high cost of civil work may hamper the medium voltage cable market. Additionally, underground installation projects entail complex maintenance operations including difficult inspection & repair procedures as compared to overhead cables.

SEGMENTATION

By Installation Analysis

Overhead Cables Segment to Observe Significant Growth over the Forecast Period

Based on installation, the global market can be bifurcated into underground and overhead. The overhead installation segment is expected to witness substantial growth owing to ease of installation, low transmission losses, and low deployment costs. Additionally, underground cables are also experiencing considerable traction due to feasible placement in numerous industry verticals such as power utilities and mining.

By Voltage Analysis

1 kV - 15 kV Voltage Segment is Backed by Various Operational Advantages Favoring their Demand

Based on voltage, this industry can be primarily categorized into three segments, 1 kV - 15 kV, 16 kV - 35 kV, and 36 kV - 70 kV. 1 kV - 15 kV cables are likely to observe a significant growth rate owing to their numerous functioning benefits such as long operational life, low power losses, easy integration into cable circuit designs, and fewer power interruptions. Also, the 16 kV - 35 kV segment is set to hold a substantial market share due to its large application potential across numerous industries including water treatment facilities, petrochemical plants, textile & steel mills, and others.

Furthermore, enhanced voltage array capabilities, reduction in costs for ring and radial intra-array configurations, less requirement for substation systems, and multiple design alternatives are among the key factors propelling the 36 kV - 70 kV segment demand.

By Application Analysis

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Rapid Infrastructural Development to Aid Utility Application to Lead the Market Size

Based on application, this market can be broadly trifurcated into industrial, commercial, and utility. The utility sector is anticipated to hold a dominating position in the market owing to the increasing urbanization and rural electrification projects along with development in electrical infrastructure to serve the increasing demand. Additionally, increasing construction activities of advanced public infrastructure are set to propel the growth of the medium voltage cables in commercial applications.

The industrial segment is set to grow significantly over the forecast period supported by increasing investment in transforming various verticals along with increasing infrastructure activities across the chemical & petrochemicals, industrial robotics, and cable instrumentation sectors.

REGIONAL INSIGHTS

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The market has been analyzed geographically across five key regions including North America, Asia Pacific, Latin America, Europe, and the Middle East & Africa. The Asia Pacific market was estimated at USD 11.14 billion in 2020 and is likely to lead the market size over the forecast period. Various factors such as strong economic growth of nations, rapid electrification objectives, increasing energy demand, and optimized cable manufacturing capabilities are some of the key factors promoting regional expansion.

The European market is projected to observe significant growth owing to the significant carbon reduction targets along with a rising inclination toward boosting the clean energy generation potential. In addition, the European Commission has directed the member countries to adhere to substantial near and long-term targets to limit carbon discharges. For instance, in March 2020, the Commission proposed the new European Climate Law to state the target and guidelines to achieve carbon-neutrality by 2050. The legislature further directed member states to diminish GHG emissions by at least 55% from 1990 levels by 2030.

Significant investments to transform different industries, such as oil & gas, mining, and petrochemicals, along with the presence of key players are projected to bode the growth of the North America market. Besides, the U.S. and Canada are also focusing on expanding their renewable energy generation capacity to support the energy transition and bridge the energy demand gap. For example, in March 2020, the International Renewable Energy Agency (IRENA) reported that the total installed clean energy capacities in the U.S. equaled over 264.5 GW in 2019 rising from about 246.6 GW in 2018, observing around 7.3% year-on-year increment.

KEY INDUSTRY PLAYERS

Nexans SA is Targeting to Secure Large Contract to Fortify its Global Foothold

The global market has observed many local, regional, and global participants manufacturing and providing MV cables at different stages. These companies emphasize majorly on developing advanced solutions and acquiring long-term agreements to deliver products in bulk quantity. For example, in October 2020, NKT declared to enter into a long-term frame agreement with a Sweden-based utility company called Ellevio to deliver low and medium voltage cables for four years. The company is set to provide power cables from 1 to 36 kV to boost and strengthen the power grid across Central Sweden.

Furthermore, Nexans, a French cable manufacturer providing numerous advanced solutions, is focusing on gathering large contracts and offering its innovative cabling portfolio to enhance its reach.

For instance, in July 2020, the company inked a new agreement worth about EUR 2.1 million or over USD 2.3 million to supply 206 km of its fire-retardant power cables. The products are set to be integrated with Serbia’s largest power plant and include about 144 kV of low voltage cables along with 62 km of MV cables.

LIST OF KEY COMPANIES PROFILED:

• Prysmian Group (Italy)


• Nexans (France)


• NKT A/S (Denmark)


• ABB (Switzerland)


• Brugg Cables (Switzerland)


• Riyadh Cables Group Company (Saudi Arabia)


• ZTT (China)


• General Cable Technologies Corporation (U.S.)


• FURUKAWA ELECTRIC CO., LTD. (Japan)


• Jiangnan Group Limited. (China)


• Tratos (England)


• Universal Cables Ltd. (India)


• Schneider Electric (France)


• DUCAB (UAE)


• Synergy Cables (Israel)

KEY INDUSTRY DEVELOPMENTS:

• April 2020 – General Cable Corporation declared to complete its brand integration with Italy-based Prysmian Group. The combination will enable Prysmian SPA to strengthen its multi-brand architecture with the joining of three key commercial brands.


• December 2019 – NKT announced to conclude the purchase of the Technology Consulting division by ABB to fortify its R&D capabilities. The acquisition is aimed at fostering the company’s ability to improve several areas including Applied Mechanics, Chemistry & Materials, and Electrical Testing, in power cable development.

REPORT COVERAGE

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The market research report presents a comprehensive assessment of the global medium voltage cables market by offering valuable insights, facts, industry-related information, and historical data. Several methodologies and approaches are adopted to make meaningful assumptions and views. Furthermore, the report offers a detailed industry analysis and information as per market segments, helping our readers to get a comprehensive overview of the global market. 

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