Power and control cable market demand, of late, has observed a tremendous pull, in response to the transition that the power sector has undergone over the recent years to attain a more decentralized energy distribution. There has been a slew of investments across emerging economies with regards to the development of communication and infrastructural network, a factor that has accelerated power and control cable industry growth. In fact, as per a recent report published by the International Energy Agency- the overall electricity sector pegged the title of ‘largest addressee of energy investment’ in 2016. Fetching a huge investment of over USD 718 billion in 2016, the electricity domain led the energy investment recipient trail and for the first time surpassed the oil & gas sector. Experts claim the three major factors driving hefty investments in power domain to be decentralization, decarbonized power generation, and digitization. In light of these transitions in the power grid model, it is overt for power and control cable market to witness phenomenal gains in the ensuing years.
On the demand front, the continuing urbanization of major economies along with the rising need to overhaul the existing grid network have created lucrative business opportunities for power and control cable industry players. The United Nations in its 2014 report forecasted that the rapid pace of urbanization and escalating population would lead to an addition of 2.5 billion people under the category of urban population by 2050. Power domain on grounds of being closely linked with the overall GDP, will certainly thrive on the cusp of a massive change in the years ahead, in extension leaving a subsequent impact on power and control cable market size. In this context, it is important to note that the proliferation in EHV cables demand has contributed immensely toward global power and control cable industry share.
An in-depth insight of the power and cable industry dynamics across two principal economies:
China power and control cable industry
China has become world’s one of the largest power industry growth avenues with a strong pipeline of enviable projects pertaining to grid infrastructure and power transmission & distribution. Driven by the significant initiatives by the Chinese government toward electrical network development, the region stands as a lucrative avenue for the power and control cable industry growth. For instance, the country invested a lump sum amount of USD 68.7 billion toward refurbishment and development of grid infrastructure in 2015. Commitments by Chinese administration with regard to carbon emission reduction by 40% to 45% by 2020 than what it recorded in 2005 and increasing renewable energy incorporation in power generation also marks a transformation in the regional energy landscape, leaving a direct impact on power and control cable industry dynamics.
With China increasingly embracing clean energy trends and the increasing supply demand gap with regards to nation’s power requirement, smart grid technologies are certain to witness a commendable demand in the coming years. China power and control cable market proliferation can be majorly credited to this fundamental facet. In fact, with the advances toward infrastructural expansion and smart grid technologies, China would offer lucrative opportunities for power and control cable market players, particularly in areas of HV transmission, modernization of transmission network, and smart city projects.
Speaking along similar lines, the NDB (National Development Bank) of China in partnership with Ministry of Housing and Urban Rural Development made an announcement of investing over EUR 11.8 billion in national Smart cities development commencing post the Twelfth Five Year (2011-2015). Another recent instance depicting China’s active participation in power and control cable industry – the State Grid Corporation of China has recently announced its plan of investing approximately USD 350 billion toward grid expansion and development within the period 2016-2020. With such capital-intensive projects onboard, it is certain that the regional power and control cable market demand will upscale in the ensuing years. Procuring almost 40% of the regional revenue in 2016, China pegged the title of major revenue pocket of Asia Pacific power and control cable industry share, which is forecast to exceed a valuation of USD 100 billion by 2024.
U.S. power and control cable industry
U.S. has always been at the zenith of superiority, with regards to the growth of power and control cable industry developments. As the country has been observing humongous developments in the field of distribution and transmission modernization, the demand for advanced power and cables has become more obvious. In this regard, the Federal Government has further undertaken a slew of initiatives for the modernization of transmission network, which by extension has drastically impacted the commercialization of power and control cable market – in 2016, in order to reduce the curtailment rate, the central government announced a grant of USD 10 billion in the grid infrastructure across Western transmission network. In terms of commercialization, estimates claim the U.S. power and control cable industry to witness a y-o-y growth of 6% over 2017-2024.
The ongoing trends regarding clean and green energy encompassing the myriad sectors are also leaving a fundamental impact on power and control cable industry dynamics. Globally, utility sector is making prominent investments to enhance the capacity of transmission network, with regards to its energy efficiency. The latest report brought forth by ASCE (American Society of Civil Engineers) depicted that energy sector is witnessing a massive investment in order to ensure sustainability and long-term capacity. In fact, statistics claim that in 2015, almost 40% of the additional power requirement was addressed by renewables and natural gas system. Driven and phenomenally impacted by these trends, an integral vertical of the overall grid infrastructure business space, power and control cable market is likely to observe a renewed dynamism over the coming years.
Given the ubiquitous impact of power sector on economic effectiveness and personal welfare, safety standardizations play a vital role in shaping the power and control cable industry. Power suppliers need to comply with the quality standards and specifications to provide services at competitive cost. Bearing a testimony to the aforementioned fact- recently, effective from July 2017, new regulation has been introduced by the European Union which mandates all power and control cables underlining civil engineering projects to be CPR (Construction Projects Regulation) compliant and must carry a DoP (Declaration of Performance). Such strong regulatory groundwork is likely to bring a disruption in the overall power and control cable industry.
Taking into account the macro-economic growth and the significant efforts taken worldwide toward environmental viability, it is quite certain that the grid structure across emerging economies is set to undergo a consequential transformation in the coming period, leaving a subsequent impact on power and control cable market share. In light of these fundamental aspects, leading companies are investing in product innovation not only for greater cost competitiveness, but also for gathering enough substantiations with regards to the environmental impact. With rapid industrialization across major economies, these giants are also adopting novel organic strategies to score a competitive advantage at a global level, which undoubtedly has pushed the profitability index of power and control cable industry. A recent report put together by Global Market Insights, Inc. depicts that global power and control cable industry would record a massive valuation of USD 180 billion by 2024, with a projected CAGR of 9% over 2017-2024.
A research report titled “Power And Control Cable Market Size By Product (Power Cable, Control Cable), By Voltage (HV, MV, LV (LV Power, LV Control)), By Application (Utilities, Industrial (Power Plants, Oil & Gas, Cement)), Industry Analysis Report, Regional Outlook (U.S., Canada, Mexico, UK, France, Turkey, Germany, Russia, China, India, Japan, South Korea, Australia, Saudi Arabia, UAE, South Africa, Egypt, Brazil, Argentina, Peru), Price Trends, Competitive Market Share & Forecast, 2017 – 2024” is available at
https://www.gminsights.com/industry-analysis/power-and-control-cable-market