Impact of COVID-19 on the High-Voltage Cables & Accessories Market
The COVID-19 pandemic has posed challenges such as health issues, financial losses, and so on. The global market for high-voltage cables and accessories largely depends on the demand from the construction industry, urbanization projects, grid-connection projects, and power distribution networks. However, the COVID-19 crisis has affected the demand for electrical power across the globe, owing to the lockdown restrictions implemented by government authorities to prevent the spread of the virus. The demand for electricity is generated largely by manufacturing hubs such as the US, India, China, the European Union, and the rest of the world. Also, the electricity consumption from modes of commutation, such as local trains as well as metros and monorails, has reduced drastically during the current crisis, which, in turn, has hampered the demand for high-voltage cables and accessories utilized in the transportation and power distribution sectors.
Electricity Demand in Key regions, 2017-2020 (%)
According to the MRFR analysis, the global recession, the reduced spending power of individuals, and the halt in construction projects in the year 2020 are expected to lower the demand for electricity further. However, the increasing number of people working from their homes has sustained the demand for electricity from the residential segment. Government initiatives to rebuild the economy through lowered interest rates on loans, favorable taxation policies, etc. are expected to provide a silver lining for the industry in the coming quarters.
Source: The U.S. Energy Information Administration
Source: Primary Experts, Secondary Sources, and MRFR Analysis