Impact of Covid-19 Outbreak on Power Distribution Cables Market
Power distribution cables are mainly used for the movement of the electricity from the transmission towers to the electric substations. The increasing need for electricity results in demand for power transmission networks, ultimately driving the growth of the power distribution cables market. The COVID-19 pandemic has spread across the globe. Due to the rapid spread of the coronavirus, the governments of the majority of the countries have imposed precautionary measures such as partial or complete lockdowns, resulting in closed schools, colleges, institutions, and offices and halting of all business operations except for essential goods and services. This shutdown has forced people to stay at home. People working from home and students attending online classes has increased the consumption of electricity in the residential sector and has also impacted the market growth. However, the reduction in industrialization as well as commercial activities, owing to the lockdowns, has led to a significant decline in the demand for electricity from the commercial and industrial sectors and is thus impacting the growth of the power distribution cables market.
Worldwide Domestic Electricity Consumption from 2014 to 2018 (Twh)
The expansion of the infrastructure and construction industry also drives the demand for power distribution cables. The local power distribution systems and power network cables are designed for the building and construction industry. However, the delays in construction projects owing to the COVID-19 pandemic are also impacting the growth of the market. The slowdown in construction activities and the reduced demand for conductors and power cables are hindering the growth of the market. Post the pandemic, the resumption of both industry as well as commerce is expected the drive the demand for power distribution cables over the forecast period.
Source: Primary Experts, Secondary Sources and MRFR Analysis