Download Sample, Introduction of Renewable Energy and Smart Grids is Driving the Market Expansion
The global rise in electrical energy use has resulted in a significant reliance on power generators that deliver electricity to customers. However, the negative environmental effect of burning fossil fuels to create electricity has led to the need to minimize greenhouse gas emissions (GHG). As a result, cleaner kinds of renewable energy generation, such as solar and wind technologies, have arisen. Additionally, renewable energy sources are being viewed as the future energy source with the primary goal of saving the environment, reducing ozone layer depletion, and managing global warming. According to the International Energy Agency, the total share of renewable energy accounted for 28.7% of the global power generation in 2021.
Countries all around the world are spending substantially on offshore wind, solar, and onshore wind, paving the way for industry growth. Furthermore, the incorporation of advanced technologies in grid infrastructure is anticipated to enhance the efficiency of a utility company. As a result, prominent utility networks throughout the world have embarked on the task of replacing these aging grid infrastructure networks with technological innovations like smart grid networks. The replacement of distribution and transmission lines is also part of this development. Furthermore, the replacement of overhead lines with underground cables to reduce the hazards of accidents, power leakage and unmapped use has resulted in significant investments in the power cable business.
Countries all around the world are spending substantially on offshore wind, solar, and onshore wind, paving the way for industry growth. Furthermore, the incorporation of advanced technologies in grid infrastructure is anticipated to enhance the efficiency of a utility company. As a result, prominent utility networks throughout the world have embarked on the task of replacing these aging grid infrastructure networks with technological innovations like smart grid networks. The replacement of distribution and transmission lines is also part of this development. Furthermore, the replacement of overhead lines with underground cables to reduce the hazards of accidents, power leakage and unmapped use has resulted in significant investments in the power cable business.
Rising Government Policies for Renewable Energy Production are Aiding the Market Growth
The development in the trend of renewable energy generation is one of the significant elements influencing the expansion of the power cable sector. Furthermore, an increase in the deployment of new power grid infrastructure drives up demand for power cables. For example, the increased number of developing nations is causing a shortage of power grid infrastructure to transport energy; as a result, governments in such countries are focusing on constructing safe power grid infrastructure. The development of smart grid infrastructure necessitates the use of modern power cables to ensure the efficient and stable transfer of electricity.
The construction of smart grids can enhance energy efficiency, eliminate power outages, and promote the integration of renewable energy sources into the system. As a result, governments have been promoting the use of smart grid technologies, which is anticipated to stimulate demand for power cables in the forecast period. Additionally, governments are also offering subsidies and incentives to encourage the development of renewable energy sources, which is likely to stimulate demand for power cables. Overall, government regulations, investments in smart grid infrastructure, and support for renewable energy sources are anticipated to stimulate demand for power cables.
The construction of smart grids can enhance energy efficiency, eliminate power outages, and promote the integration of renewable energy sources into the system. As a result, governments have been promoting the use of smart grid technologies, which is anticipated to stimulate demand for power cables in the forecast period. Additionally, governments are also offering subsidies and incentives to encourage the development of renewable energy sources, which is likely to stimulate demand for power cables. Overall, government regulations, investments in smart grid infrastructure, and support for renewable energy sources are anticipated to stimulate demand for power cables.
Recent Trends in the Power Cable Industry
- Growth of renewable energy driving demand for specialized transmission cables.
- Increasing demand for high-voltage underground cables in urban areas.
- Adoption of eco-friendly materials for insulation and jacketing.
- Expansion of offshore wind farms requiring long-distance submarine cables.
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Contracts and Agreements are Providing Traction to the Power Cable Market Development
Major market participants are focusing on research and development to create novel products that meet customer demand. They are also adopting various market strategies like product launches, mergers, collaborations, and acquisitions in order to strengthen their position in the power cable business. For instance, in November 2019, Siemens Gamesa Renewable Energy granted Nexans a substantial two-year contract to provide Windlink® cables for its onshore and offshore wind turbines. Again, In November 2019, Vestas Wind Systems granted Nexans a two-year global supply contract to produce Windlink® cable kits for onshore wind turbines in Europe, the United States, and China. This recent arrangement strengthened Nexans' long-standing position as a global supplier to Vestas.
Later, in April 2020, TenneT awarded contracts to the collaboration Jan De Nul Group and LS Cable & System for the delivery and installation of high-voltage cables for the grid connection of the Dutch offshore wind farms Hollandse Kust Noord and West Alpha. Jan De Nul Group was responsible for the shipping, laying, and safeguarding of the cables developed and manufactured by LS Cable & System. The execution will take place offshore in 2022-23. Furthermore, in October 2022, NKT was awarded a contract for the HVDC (high-voltage direct current) onshore power cable system for the Hertel-New York project, which is the Canadian transmission line that will connect to the CHPE transmission line, created by Hydro-Québec.
Later, in April 2020, TenneT awarded contracts to the collaboration Jan De Nul Group and LS Cable & System for the delivery and installation of high-voltage cables for the grid connection of the Dutch offshore wind farms Hollandse Kust Noord and West Alpha. Jan De Nul Group was responsible for the shipping, laying, and safeguarding of the cables developed and manufactured by LS Cable & System. The execution will take place offshore in 2022-23. Furthermore, in October 2022, NKT was awarded a contract for the HVDC (high-voltage direct current) onshore power cable system for the Hertel-New York project, which is the Canadian transmission line that will connect to the CHPE transmission line, created by Hydro-Québec.
Volatility of Raw Material Costs and Deployment Difficulties are Likely to be a Challenge for the Market Participants
Power cable deployment necessitates meticulous planning and regulatory approval. This planning must be done in such a way that it does not negatively impact other aspects of society by increasing the danger of accidents and having a negative impact on the environment. The authorization process for project sanctioning also takes a long time, which might contribute to a delay in meeting the specified objectives. Another issue that may impede market growth is the volatility of raw material costs, which are employed in the manufacture of various cable types. All these factors are anticipated to be responsible for the impediment of the market.
ABB, Bahra Cables Company, BRUGG Cables, Encore Wire Corporation, Finolex Cables, General Cable, KEI Industries, Nexans, NKT Cables, Polycab India, Prysmian Group, Riyadh Cables Group Company are some of the prominent market players operating in the global power cable market.
ABB, Bahra Cables Company, BRUGG Cables, Encore Wire Corporation, Finolex Cables, General Cable, KEI Industries, Nexans, NKT Cables, Polycab India, Prysmian Group, Riyadh Cables Group Company are some of the prominent market players operating in the global power cable market.
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Rising Urbanisation, Replacement of Aging Grid Infrastructure and Expansion of Oil and Gas Sector is Accelerating the Market Growth
Asia Pacific is anticipated to experience significant growth in the power cable industry during the forecast period. This growth can be attributed to the rising urbanization in countries like China, India, and Japan. Moreover, the urban migration has resulted in the development of new industrial, residential, and commercial complexes, which has paved the way for market expansion. Another key element influencing the growth of the Asia Pacific market is the efforts made to obtain as much energy from renewable sources as possible. Following Asia Pacific, North America and Europe are among the key market hotspots.
Growth in renewable energy adoption, replacement of aging grid infrastructure, conversion of overhead lines to underground lines, expansion of oil and gas exploration operations, and increased mining activities are among the primary reasons driving the growth of this market. Furthermore, with expanding sectors such as oil and gas and electrification ambitions in many nations, Latin America, the Middle East, and Africa offer enormous market prospects.
Growth in renewable energy adoption, replacement of aging grid infrastructure, conversion of overhead lines to underground lines, expansion of oil and gas exploration operations, and increased mining activities are among the primary reasons driving the growth of this market. Furthermore, with expanding sectors such as oil and gas and electrification ambitions in many nations, Latin America, the Middle East, and Africa offer enormous market prospects.
The report provides a detailed overview of the power cable market insights in regions including North America, Latin America, Europe, Asia-Pacific, Oceania, and the Middle East and Africa. The country-specific assessment for the power cable market has been offered for all regional market shares, along with forecasts, market scope estimates, price point assessment, and impact analysis of prominent countries and regions. Throughout this market research report, Y-o-Y growth and CAGR estimates are also incorporated for every country and region, to provide a detailed view of the power cable market. These Y-o-Y projections on regional and country-level markets brighten the political, economic, and business environment outlook, which are anticipated to have a substantial impact on the growth of the power cable market. Some key countries and regions included in the power cable market report are as follows:
| North America | United States, Canada |
| Latin America | Brazil, Mexico, Argentina, Colombia, Chile, Central America Countries, Caribbean Countries, Rest of Latin America |
| Europe | Germany, United Kingdom, France, Italy, Spain, Russia, Poland, Netherlands, Switzerland, Belgium, Sweden, Austria, Norway, Denmark, Czech Republic, Rest of Europe |
| Asia Pacific | China, India, Japan, South Korea, Australia & New Zealand, Indonesia, Singapore, Malaysia, Philippines, Vietnam, Thailand, Bangladesh, Rest of Asia Pacific |
| Middle East and Africa | GCC Countries, South Africa, Nigeria, Egypt, Turkey, Morocco, Ethiopia, Algeria, Israel, Iran, Iraq, Kenya, Rest of MEA |
Power Cable Market Research Report Covers In-depth Analysis on:
- Power cable market detailed segments and segment-wise market breakdown
- Power cable market dynamics (Recent industry trends, drivers, restraints, growth potential, opportunities in power cable industry)
- Current, historical, and forthcoming 10 years market valuation in terms of power cable market size (US$ Mn), volume (Meter), share (%), Y-o-Y growth rate, CAGR (%) analysis
- Power cable market demand analysis
- Power cable market pricing analysis over the forecast period (by key segment and by region)
- Power cable market regional insights with a region-wise market breakdown
- Competitive analysis – key companies profiling including their market share, product offerings, and competitive strategies.
- Latest developments and innovations in the power cable market
- Regulatory landscape by key regions and key countries
- Supply chain and value chain analysis in the power cable market
- Power cable market sales and distribution strategies
- A comprehensive overview of the parent market
- A detailed viewpoint on the power cable market forecast by countries
- Mergers and acquisitions in the power cable market
- Essential information to enhance market position
- Robust research methodology
- Frequently Asked Questions -
How does the global demand for power cables impact market growth?
The global demand for power cables is influenced by urbanization, industrial growth, and infrastructure development, contributing to the overall expansion and evolution of the power cable market.
What are the key drivers of growth in the power cable market?
Key growth drivers include the rising demand for electricity, increasing renewable energy projects, technological advancements in cable materials, and global urbanization leading to new infrastructure projects.
What challenges are faced by manufacturers in the power cable industry?
Challenges include high raw material costs, environmental regulations, fluctuating demand across regions, and the need for continual innovation to improve the efficiency and sustainability of power cables.
