Power And Control Cable Market to witness remarkable growth opportunities from smart grid networks, Global revenue to surpass USD 180 billion by 2024
Publisher : Fractovia | Published Date : 2017-05-05Request Sample
With the ultimate goal to improve electric grid & communication network, Power and control cable market has seen some interesting dynamics over the recent years. The shifting trends from conventional to renewable energy integration for power generation has directly and substantially favored power and control cable market. Moreover, growing investments in expansion and development of electric network for effective power transmission has propelled the deployment of these cables globally. In consequence, the companies operating in this highly-fragmented cable market are likely to see a positive swing in their product sales over the years ahead. In April 2017, L&T Construction finalized a deal of USD 817 million with Kahramaa- Qatar General Electricity and Water Corporation to expand the power transmission network in Qatar. The project will undertake the engineering, procurement, and construction of 30 gas-insulated substations of medium, low, and high voltage levels and 560 km of underground cables of voltage ranges- 132 KV and 66 KV. As per the estimates MEA power and control cable market is estimated to record a CAGR of 7% over 2016-2024.
Russia Power And Control Cable Market, By Voltage, 2016 (USD Billion)
Rapid industrialization in the developing economies is expected to lead power and control cable industry to a major turnaround in the coming years. Companies such as General Cable, Nexans, Sumitomo Electric Industries, The Furukawa Electric Co., Ltd., Southwire Company LLC, Havells, and Prysmian Group are likely to benefit from this changing scenario of the market. These power and control cable industry participants are witnessing fierce competition from local and new entrants on grounds of pricing strategy playing an important role in embellishing the profitability index.
Especially in the last two decades, the power flow demand has witnessed a notable upsurge, owing to the swift urbanization in the developing countries. The Government of China spent over USD 68.7 billion in 2015 for the development of new grid infrastructure. Likewise, the European countries including Germany and France have also been seen making significant investments for the replacement of old distribution and transmission networks. Such initiatives have generated heavy deployment of power cables across the grid infrastructure. Reportedly, in 2016, power cables accounted for more than 80% of the overall power and control cable industry share.
Over the past years, the global electric power consumption has witnessed a healthy growth rate of over 5% with China accounting for more than 40% of the total demand. The exponentially increasing electricity demand worldwide is leading to significant investments to enable optimized transmission and distribution with minimal energy wastage. Consequently, power and control cable market is set to record a massive business expansion over the coming seven years. As per a report by Global Market Insights, Inc., “Power and control cable market is anticipated to grow at an annual rate of 9% over the period of 2016-2024, and is set to exceed USD 180 billion by 2024.”
Russia power and control cable market is flourishing, owing to the intensive measures taken for the development of smart grid infrastructure in the region. Another country contributing majorly to power and control cable industry demand is Turkey, which accounted for USD 2 billion in 2016. This country has always been a preferred choice for the market giants because of the greater market proximity and its ideal geographical location.
Based on the types of voltages, power and control cable market is segmented in low, medium, and high cables. The low voltage (LV) power and control cable market is estimated to register a CAGR of 9% over the period of 2016-2024, subject to its growing deployment across small scale manufacturing units and residential sector. On the other hand, the high voltage power and control cable industry will be primarily driven by the need to carry bulk electricity from main station to substations. Increasing need for uninterrupted power supply and bulk transfer of power energy with minimal line loss has also stimulated the global power transmission lines & towers market to grow at 6% CAGR from 2016-2024.
Taking into consideration the application landscape of power and control cable market, the utility sector is set to cross a USD 90 billion mark by 2024. This segment is booming due to the growing demand for LV distribution substation for the development of smart cities.
Apart from utility, the industrial power and control cable market is likely to grow at a rate of 8% over the period of 2016-2024. Rising demand for captive power generation in industries has a positive impact on the expansion of industrial application of power and control cable market.
The intensive measures taken in order to develop EHV and UHV network along with micro grid has augmented the U.S. power and control cable industry share.
However, the adoption of wireless power transmission technologies will, to an extent, limit the growth of power and control cable market. But the dynamically changing grid infrastructures and exponentially rising power demand are certain to keep the power and control cable market demand radical.
