Impact of Covid-19 Outbreak on Power Transmission Cables Market
The power transmission cables are used for the transmission of electricity from the generating unit to the end-users. They are used in the transmission of electricity to commercial and residential users. The COVID-19 pandemic has spread across the globe, which has resulted in partial or complete lockdowns and the shutting down of businesses. The increasing usage of electricity from the residential sector is expected to drive the demand for power transmission cables. However, the closing down of many manufacturing companies owing to the revenue losses caused by the pandemic, as well as the temporary shutdown of operational activities in various plants, has significantly lowered power consumption, which, in turn, is hindering the growth of the power transmission market. Besides, the increasing investments in renewable energy require the installation of the power transmission lines to connect with the existing grid.
Worldwide Electricity Production from 2014 to 2018 (Twh)
The spread of COVID-19 has significantly impacted renewable energy projects. The lockdown has caused a delay in power projects owing to the disruptions in supply chain activities, issues in the project financing, and unavailability of the workforce. Similarly, the delays in renewable energy projects owing to the import dependency caused by the lockdown are also hampering the growth of the market. The renewable energy sector is highly dependent on imports, especially from China. Global supply constraints have widely impacted the renewable energy sector. Even though countries across the world have begun to ease the restrictions gradually, the impact of the lockdowns is still being felt. Health-safety measures and social distancing guidelines are delaying construction projects and are causing supply chain disruptions, which is directly impacting the commissioning of renewable electricity projects. All these factors are hindering the growth of the power transmission cables market.
Source: Primary Experts, Secondary Sources, and MRFR Analysis