Increasing investments in renewable energy projects boosting the global power cable market
The renewable energy generation capacity has grown due to encouraging policies of various governments, incentives and rebates and this has led to a significant increase in the share of renewables and alternative sources of energy in the global energy market. More than half of the projects are driven by an increase in the renewable energy capacity as national utility companies are connecting with offshore wind farms. For instance, the Thornton Bank and the Thanet offshore wind farms are linked to domestic power grids. Due to high prices of energy and targets regarding renewable energy generation, renewable energy sources such as wind power and hydro power have become popular wherever their geographical feasibility exists. There is a need to connect these sources of renewable energy with the main grids and this is likely to remain a significant factor for the growth of the power cable market in the coming years.
Implementation of smart grids benefiting the global power cable market
A smart grid consists of an automated, widely distributed network for energy delivery with responsive and organic capabilities. Smart grids are being increasingly preferred since they enable the monitoring, analysis, control and communication which results in a significant reduction in energy consumption. For instance, China, the world’s largest consumer of electricity, consumed around 5.550 billion kWh of power in 2015. It is believed that China’s consumption will double by the year 2025 and triple by 2035. To cope with the increasing demand for power and to bring billions of kWh of power to its consumers, China has planned to build an elaborate network of smart grids. This development is likely to positively impact the global power cable market.
Increasing demand for power presents a lucrative opportunity for global power cable market
Due to increasing demand for power all over the world, the power supply entities are trying to catch up with the supply. In the course of the demand supply catch-up, there is a lot of opportunity for the power cable market. The world is moving towards sustainable energy development and to create a sustainable energy architecture, the component which is most important and most used is the power cable, which ultimately carries electricity. This presents a huge and a lucrative opportunity for the global cable market.
Extensive government support facilitating growth of the global power cable market
There are various policies being rolled out for the generation and distribution of energy. The governing bodies of different countries are taking steps for the proper utilization of the renewable forms of energy and safeguarding the existing ones. In some countries like India which is encouraging the digital economy is generating more and more energy from solar plants and wind energy which need appropriate power cables for the distribution of electricity generated from such sources. Such policies of the government are driving the global power cable market.
Global Power Cable Market Analysis, By Voltage Handling
The medium voltage segment was valued at US$ 1,865.3 Mn in 2017 and is forecasted to reach a valuation of US$ 3,188.3 Mn in 2026, reflecting a CAGR of 6.9% during the period of assessment. The low voltage segment was valued at US$ 2,321.4 Mn in 2017 and is predicted to reach a valuation of US$ 4,110.4 Mn in 2026, displaying a CAGR of 7.4% during the period of forecast.
Introduction to the Power Cable Market
Power cables are mainly used for power transmission and distribution purpose. It is an assembly of one or more individually insulated electrical conductors, usually held together with an overall sheath. The assembly is used for transmission and distribution of electrical power. Electrical power cables may be installed as permanent wiring within buildings, buried in the ground and run overhead or exposed. Flexible power cables are used for portable devices, mobile tools and machinery. These are designed and manufactured as per voltage, current to be carried, operating maximum temperature and purpose of applications desired by customer.
Persistence Market Research utilizes robust methodology and approach to arrive at market size and related projections. The research methodology for this report is based on a three dimensional model. We conduct about 45-60 min duration detailed interviews with product manufacturers; apart from this we also collect market feedback from industry experts. To validate this data, we interact with senior panel members having more than 10 years of experience in relevant field. The panel members help in validating the findings and fill the gaps if any. In addition, we leverage on our existing pool of information, paid database and other valid information sources available in public domain. Usually industry interactions extend to more than 50+ interviews from market participants across the value chain.
Persistence Market Research collects data from secondary sources including company annual reports, association publications, industry presentations, white papers, and company press releases apart from these we leverage over paid database subscriptions and industry magazines to collect market information and developments in exhaustive manner. After being done with desk research, detailed questionnaire and discussion guide is formulated to initiate primary research with key industry personnel; the discussion aims at collecting key insights, growth perspectives, prevalent market trends and quantitative insights including market size and competition developments. Both of these research approaches help us in arriving at base year numbers and market hypothesis.
In this phase, Persistence Market Research validates the data using macro and micro economic factors. For instance, growth in electricity consumption, industry value added, other industry factors, economic performance, growth of top players and sector performance is closely studied to arrive at precise estimates and refine anomalies if any.
Data Analysis and Projections
Data analysis and projections were made based on proprietary research frameworks and statistical analysis, which was further validated from industry participants. These frameworks include Y-o-Y growth projections, macro-economic factor performance, market attractiveness analysis, key financial ratios, and others.
For public companies we capture the data from company website, annual reports, investor presentations, paid databases. While for privately held companies, we try to gather information from the paid databases (like Factiva) and based on the information we gather from databases we estimate revenue for the companies. In addition, the team tries to establish primary contact with the companies in order to validate the assumptions or to gather quality inputs.
Standard Report Structure
Key Questions Answered
By Voltage Handling
By End-Use Industry