Overhead Power Cables Market is projected to be worth USD 117.86 billion by 2030, registering a CAGR of 7.67% during the forecast period (2022 - 2030), The market was valued at USD 64.11 billion in 2021. Power Cables help in generating energy that is being used by endpoints. The cables are designed in a way to carry loads.
The end-use application decides the use of specific types of cable. Different types of materials are used for manufacturing cables, out of which copper and aluminum are commonly used elements. In recent times, there has been a high demand for electricity due to increased infrastructural projects.
The pandemic has impacted industries globally positively and negatively. Besides food, health, and pharmaceuticals industries have witnessed growth while other sectors have been severally impacted. In this view, construction and reconstruction projects globally are halted. Owning to national and international lockdowns along with norms of social distancing.
Since construction and reconstruction activities are not part of essential services, hence the operations are completed halted. In addition to this, production units have been operating on partial capacities. Also, there has been an acute gap within the supply chain of raw materials due to national lockdowns.The pandemic is expected to impact overhead power cables' market value in the short run.
Drivers-In the high voltage cables type, the market growth in 2016 was estimated to be USD 28.77 billion. It is estimated by the year 2021, the market value will reach USD 64.11 billion with a CAGR of 6.72%. Thus, indicating growth for overhead power cables market value in the upcoming years.
Renewable power generation sources are the main driversfor overhead power cables' market size. There have been changes in building codes, which have increased the demand for power cables in the renewable energy sector. The government and international agencies have laid down targets to increase the usage of green energy.
In addition to the green energy targets, another market driver will be the replacement of conventional grid infrastructure. There has been the introduction of cutting-edge technologies that further promotes adequate functioning of companies in utility sectors. Nations are planning to implement smart grids for conserving energy. Along with the replacement of transmission and distribution services that are expensive and energy-consuming.
Opportunities- Power Cables are majorly used to transmit power which ranges from generation to consumption. The deployment of power lines has increased over the past few years. Owing to rapid industrialization and urbanization. Many countries like India have been focusing to provide 100% electrification to all its region.
This will provide opportunities for the overhead power cables industry to expand its market in high-growth regions. Also, new end-user companies are expanding their operations and exponential rates. For Example, automobile manufacturers have expanded their business globally due to increasing demands. Small and Medium-scale industries are increasing due to initiatives and incentives set by the government. These factors will fuel power cables demand, thereby influencing overhead power cables market growth.
Restraints- Exploration activities create environmental damage due to which international funding has been reduced. This will impact the raw material market for power cables.Also, the power cables market faces high price volatility in varied types of cables. This will further pose supply chain gaps, which will change the overhead power cables market outlook.
Challenges- Deploying power cables requires approval with detailed planning from the government authorities. The companies are requiring to plan the deployment in a way that does not impact other functions of the society. Efficient planning includes risk factors like accidents and impacts on the environment.
The project is delayed due to the long- time the government for approving the projects. This will pose challenges for manufactures in the overhead power cable industry to reach higher growth targets.
Cumulative Growth Analysis- Countries in global contexts are expanding to offshore power projects for fulfilling the electricity demand. This will improve the demand for high voltage cable types. The power cable industry is majorly dominated by power and telecommunications. In the energy sector, power cables are highly used which is followed by telecommunications. It is estimated that growing demand in the energy sector will drive the market for power cables. In this view, the electricity demand has increased from the year 2018 by nearly twice. It is being assumed that US and Chinese markets will be the highest demanding regions for power. Thus, constituting 70% of the total demand from the globe.
Value Chain Analysis-
Power cables are majorly used as conductors for distributing and transmitting electrical energy. The power cables are designed with conductors, insulation materials, PVC sheaths, and others. The use of different materials is done for high durability to prevent exploitation from industries and the environment. The use of power cables is extensively done in submarines for purpose of transmission. They are also used in underground and overhead utility networks.
Also, the regulatory framework requires industries and residential for reducing carbon emissions. Many countries have established green building codes that have improved the demand for power cables. There has been shifting from conventional to smart grids which are expected to fuel overhead power cable market size.
Overhead power cable market size is segmented into further subsections listed below.
In the year 2019, it was recorded that the power cable market size was valued at USD 60.96 billion. The electricity demand from the year 2018 has increased due to an increase in urbanization and industrialization in Asian- Pacific regions. In countries like Japan, China, Korea, and India high urban migration is witnessed. Due to which construction activities for industrial, residential, and commercial spaces have been increased. Also, in Asian- Pacific, there has been an increasing shift to renewable sources of energy. This will lead to the Overhead power cable market growth. Following Asia- Pacific, Europe, and North America will be the highest growth owing to stringent laws on environmental damage. Also, these regions will invest in construction and reconstruction activities. Due to which the overhead power cable market size will expand.
The overhead power cables market is highly competitive as companies try reaching customers located globally. A list of competitors are given below
In the year 2019, has received agreements from MHI Vestas to supply Windlink cable kits for approximately two years. The contract serves areas of Vestas Installation projects like China, Europe, the USA, and Brazil. The cable kits include low and medium-voltage cables. In the year, 2020, Jan De Nal Group was awarded supply and installation of high voltage power cables in the Dutch offshore.
Overhead power cable market report aims to provide detailed information through coverage on various aspects.
|Market Size||2030: USD 117.86 billion|
|CAGR||7.67% CAGR (2022-2030)|
|Historical Data||2019 & 2020|
|Forecast Units||Value (USD Million)|
|Report Coverage||Revenue Forecast, Competitive Landscape, Growth Factors, and Trends|
|Segments Covered||Product Type , Voltage , Users|
|Geographies Covered||North America, Europe, Asia-Pacific, and Rest of the World (RoW)|
|Key Vendors||General Cable Technologies Corp., Southwire Co. LLC, Zhejiang Shengda Steel Tower Co. Ltd., KEC International Ltd., Kalpataru Power Transmission Ltd., Nexans S.A., Prysmian S.p.A., Shandong DingChang Tower Co. Ltd., Nanjing Daji Iron Tower Manufacturing Co. Ltd., and Sumitomo Electric Industries Ltd.|
|Key Market Opportunities||New product launches and R&D Amongst major key Players|
|Key Market Drivers||
Frequently Asked Questions (FAQ) :
In the forecast from 2022-2030, it is estimated that overhead power cable market growth will reach a CAGR of 7.67%.
During the forecast period, the overhead power cable market value will be worth USD 117.86 billion by 2030.
The key market players include Prysmian Group (Italy), Nexans (France), NKT Cables (Denmark), Encore Wire Corporation (U.S), ABB (Switzerland), General Cables (U.S), Finolex Cables (India), BRUGG Cables (Switzerland), Bahra Cables Company (Suadi Arabia), Polycab India (India) and KEI Industries (India).
The high need for electricity and changing building codes will be driving the overhead power cable market growth.
The power Cables market witnessed high price volatility in specific cables types. In addition to this, international monetary agencies have reduced funding for exploration activities which will impact the raw material markets.
In recent times, companies are undertaking acquisition and merger strategies for strengthening their market share.
In this view, market segments are sub-divided into product type, voltage, and end-user.
The regional analysis is done for Asia- Pacific, North America, Europe, and other regions.
Asia-Pacific is considered to be the highest growth region owing to an increase in reconstruction activities along with changing greener building codes.