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The global power cables market size was valued at USD 168.28 billion in 2019 and is projected to reach USD 272.88 billion by 2027, growing at a CAGR of 6.8% from 2020 to 2027. The rising demand for electricity along with new infrastructure projects, adoption of renewables like solar and wind, rising mining activities & petroleum and natural gas industries will create several growth opportunities for the power supply cables market growth.
Power cables are the means through which the generated power is being used at the end use points. These cables are available in various load-carrying capacities and insulation layers, which differentiates them. Based on the end use application, the preferred type of cable is selected. okays are used at various stages of transmission and distribution along with these cables to adjust the voltage flowing through these cables. Several materials are used for the manufacturing of these cables, among which copper and aluminum are the most preferred elements owing to their high conductance.
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Introduction of Renewable for Power Generation Drives the Market
Following growing popularity of renewable energy, the market for these cables has gained pace over the last decade. Major factors for this have been the green energy targets set across various countries and global initiatives to bring down the use of fossil fuel. With the primary aim of preserving the environment, controlling ozone layer depletion, and controlling global warming, renewable energy sources are being looked upon as the future energy. Countries across the globe are investing heavily in offshore wind, solar, onshore wind, which opens doors for the expansion of this market.
Replacement of Conventional Grid Infrastructure with Smart Grids Will Drive the Market
The introduction of advanced technologies in grid infrastructure promotes the efficient functioning of the utility company. Therefore the replacement work of these aged grid infrastructure networks with new technological advancements like smart grids network has been taken up by leading utility networks in nations across the globe. This work also includes the replacement of the distribution and transmission lines. Also, the replacement of overhead lines with underground lines to avoid risks of accidents, power leaks, and unmapped use has brought in heavy investments in the power cables industry.
Increasing Demand for Energy and Power Will Aid Market Growth
Power cables are used for the transmission of power, starting from its generation to its consumption. In the past decade, the population across the globe has risen at a healthy rate, which has led to heavy urbanization. This has led to the construction of new residential buildings, commercial complexes, workplaces, and the establishment of industries that certainly require electricity as a basic need. This has led to the deployment of power lines for every customer at very diverse locations. This, coupled with 100% electrification targets of many countries, holds immense opportunities for the power cables market growth in the coming years.
Development of Present and Introduction of new End-User Industries
In today’s world, electricity stands as one of the basic needs of any industry. In recent years the end-user industries of electricity have expanded at an exponential rate, which has created a huge demand for electricity. For instance, the manufacturing hubs of automobile manufacturers have spread across the world with rising demand. The deman for pharmaceuticals has also increased with a rise in the number of health cases. New refineries are being built, exploration activities are being carried out at the harsh location; the mining industry has also expanded. Small scales industries have also being introduced. These factors directly create a demand for these cables of various voltages. Therefore the market for power cables is expected to rise along with the expansion of present and introduction of new end use industries.
Complex Planning and Delay in Authorization Procedures Can Hamper the Market Growth
Deployment of power cables requires exceptionally detailed planning and authorization from the government. This planning has to be such that it does not affect the other factors of society by creating a risk of accidents and adverse effects on the environment. The authorization work for sanctioning of a project also takes a long time, which can lead to a delay in achieving the required targets. Also, the other factor that can hinder the market growth is the volatility in prices of raw materials, which are being used for the manufacturing of various these cable types.
Underground Cables to Gain Market Share Owing to their Operational Advantages
Based on the installation, this market is segmented into the overhead, underground, and submarine power cables. The overhead segment dominates the market, but in the coming years the underground cabling is projected to gain pace as European countries and countries from other parts of the world are focusing on switching from overhead cables to underground cables in the coming years. The advantages of underground cables include fewer transmission losses, fewer chances of accidents, help in good aesthetics, and safety. Submarine these cables are mainly used for transmission of high power between countries and states.
Low Voltage Cables Will Dominate the Market Owing To Deployment across Every Sector
Based on the cable type, the power cable market is segmented into low voltage cables, medium voltage cables, and high voltage cables. The low voltage cables are expected to dominate the market owing to excessive infrastructure development in the residential sector. Urbanization has been the root causefor the rise in construction projects for the accommodation of the migrating people. Also, the introduction of modern electronic devices has opened doors for LV cables in the residential sector. The higher voltage cables are expected to also grow with new power generating techniques being used and power trade between nations.
Up to 240V Segment will lead the Market Following Growth of Residential Sector
Based on voltage, the power cable types market is segmented into up to 240V, 240V-1kV, 1kV-15kV, 15kV-100kV, 100kV-250kV, and above 250kV. The residential sector has expanded exponentially in recent years owing to growth in population and heavy urbanization. This has lead to an increased demand for electricity in the sector and the construction of new residential homes. Introduction of renewable, construction of new power plants, and switch towards smart grids will see the other segments also witness a considerable rise in the coming years. Further, the construction of offshore wind farms will also fuel the growth of cables having high power transmission capacity.
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Utilities Segment Will Dominate the Market Owing To Demand for Electricity In New Locations
In terms of end-user, the market is segmented into residential, commercial, industrial, and utility. The utilities segment is expected to lead the market owing to setting up new ones to suffice the demand for electricity in places deprived of the same. Utilities are also being constructed to the introduction of renewable and specifically solar and wind. These require utilities to store and transmit the generated power. Also, in several countries, the replacement of the aging grid infrastructure has been carried out, which drives the market for utilities. The residential sector holds the highest customer base for the consumption of electricity and therefore is expected to show healthy growth. Industrial and commercial sectors will also grow at a good pace during the forecast period.
Asia Pacific Power Cables Market Size, 2019 (USD Billion)
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The power supply cables market size in Asia Pacific stood at USD 60.96 billion in 2019. The demand for electricity has witnessed a tremendous hike in the region following the constant rise in population and urban migration in countries like China, India, South Korea, and Japan. This has led to the construction of new industrial, residential homes and commercial complexes, which has opened the doors for market growth. Another important factor that has influenced the growth of the market in Asia Pacific is the efforts put in acquiring maximum energy from renewable sources. Following Asia Pacific, North America and Europe are among the other hotspots for the market. Growth in renewable energy adoption, replacement of older grid infrastructure, switch from overhead lines to underground lines, expanding oil and gas exploration activities, more mining activities are among the major factors driving the growth of this industry. Countries such as the US, UK, Germany, Italy, and Spain are the key contributors to the market. Latin America and the Middle East and Africa also hold immense opportunities for the market with growing industries like oil and gas and electrification plans in many countries.
The spread of Covid-19 has certainly impacted the global industry and, on a bigger scale, the power industry. As in Europe, solar is looked upon as long term power generation source the interruption in the supply of required solar material from China has led to a delivery bottleneck and therefore delays in many planned projects. Similarly, it has impacted Nations like the US, India, Germany, Spain, and Italy, which had interrupted their operation in the sector as a security precaution against the spread of COVID-19. In the coming years, the projections are that the projects would be carried out at higher efficiency to make up for the lost ground during lockdown periods.
ABB, Prysmian Group and Nexans Are Among the Leading Players in the Market
The competitive landscape of the market for power cables depicts a market dominated by ABB, Prysmian Group, and Nexans. An established brand image in the market with customer satisfied service in past years has been one of the major factors that has helped these companies grow This has also helped these companies to have a wider reach to various customers sitting in different corners of the world. Also, the introduction of new efficient products to keep pace with the market has led these companies to have a diverse product portfolio and enhanced their sales performance.
Many regional and domestic power cables companies such as Riyadh Cables Group Company, Polycab India, Finolex Cables, and Encore Wire Corporation, among others, have entered the market and are trying to expand their business in their respective sub-regions.
An Infographic Representation of Power Cables Market
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The power cables market research report provides a detailed analysis of the market and focuses on key aspects such as leading companies, product types, and leading applications of the product. Besides this, the report offers insights into the market trends and highlights key industry developments. In addition to the aforementioned factors, the report encompasses several factors that have contributed to the growth of the market over the recent years.
Value (USD Billion)
By Cable Type
Fortune Business Insights says that the global market size was USD 168.28 billion in 2019 and is projected to reach USD 272.88 billion by 2027.
In 2019, the market value stood at USD 168.28 billion.
Growing at a CAGR of 6.8%, the market will exhibit healthy growth in the forecast period (2020-2027).
The overhead segment is expected to be the leading segment in this market during the forecast period.
The introduction of renewable energy is fuelling the demand for these cables.
Prysmian Group, ABB, and Nexans are among the leading players in the global market.
Asia Pacific dominated the market share in 2019.
The growing population has led to infrastructure development and along with the expansion of end use sectors for power cables and therefore fueling this market growth.
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