High Voltage Cable Market Outlook - 2027
The global high voltage cables market size was valued at $14.6 billion in 2019, and is projected to reach $23.4 billion by 2027, registering a CAGR of 6.0% from 2020 to 2027. High voltage cable (HVC) are cables used for electric power transmission at high voltages over long distances. In general, there are three types of installation of HVCs: overhead, underground, and submarine. Underground cables are preferable due to their application in various industries such as power utilities, oil & gas, and mining. High voltage cable market growth is driven by growing infrastructure. Numerous huge infrastructure projects have started in the past few years in developing countries such as China, Japan, India, and Dubai. These infrastructure projects include commercial and residential buildings such as offices, shopping malls, apartments, theaters, and parks. These projects require a large number of HVCs to deliver power, which supplements the growth of the market. Government initiatives and investments have also fueled the growth of the market.
Countries across the world are creating off shore power projects to fulfill the increased demand of electricity. The Japanese government is constructing a floating wind farm, twelve miles away from sea cost and is expected to install 140 floating wind turbines by 2020. In addition, the China Ship Building Industry Corporation is constructing floating nuclear power plant in South China Sea and is expected to be completed by 2018. These projects ensure increase in demand forall three types of HVCs during the forecast period as they are located in oceans and river basins.
The high voltage cable market analysis is done based on type, end user, and region. Based on type, the market is divided into overhead, underground, and submarine. Among the three types of cable, the underground HVC segment holds significant share in the global high voltage cables market, owing to its high accuracy in terms of power loss as compared to overhead cables. However, the submarine cable is expected to witness the fastest growth during the forecast period. Overhead HVCs are expected to witness a decline during the forecast period as they have high power loss, a shabby look, and frequent fault occurrence; they are estimated to be replaced by underground cables in five to six years. Nexans signed a sales agreement with Energinet.dk to replace 500km of overhead cables with underground cables in Denmark.
Submarine is projected as the most lucrative segment.
The end user segment is further bifurcated into the industrial, renewable energy, and infrastructure segments. The industrial segment includes power utilities, oil & gas, mining, chemical & petrochemical, and others (paper & pulp, wastewater treatment, manufacturing, and cement industry); the renewable energy segment is divided into hydro, wind, and others (solar, geothermal, and tidal); and the infrastructure segment is divided into commercial and residential.
Infrastructure is projected as the most lucrative segment.
Based on geography, the market is segmented into North America, Europe, Asia-Pacific, and LAMEA. Asia-Pacific was the highest revenue-generating region in 2015 and is likely to be the fastest growing region duringthe forecast period. China and Japan together accounted for around 75% of the total Asia-Pacific market. From the growth perspective, China and Japan are also the two potential markets, expected to witness considerably higher growth rates duringthe forecast period. In Asia-Pacific, China is the leading energy producer among different countries as China produced 5,810,500 GWh of electricity, which required large number of HVC for electricity transmission. Numerous leading players are entering into HVC market in Asia-Pacific. For instance, the General Cable Technology Corporation signed sales agreement with MM logistics Co. Ltd. to sell its Asia-Pacific operation to MM logistics.
LAMEA is expected to grow with a CAGR of 7.4% during the forecast period.
The global high voltage cable market comprises players such as PrysmianGroup, Dubai Cable Company Pvt. Ltd., NKT Cables, Nexans, South wire Company, LLC, and Sumitomo Electric Industries, Ltd. that hold significant high voltage cable market share. These players have been adopting various strategies to gain higher share or to retain leading positions in the market. Top winning strategies are analyzed by performing a thorough study of the leading players in the textile dyes market. Comprehensive analysis of recent developments and growth curves of various companies help understand the growth strategies adopted by them and their potential effect on the market.
Key benefits for stakeholders
The report provides extensive qualitative and quantitative analyses of the current high voltage cable market trends and future estimations of the market size from 2019 to 2027 to determine the prevailing opportunities.
Comprehensive analysis of factors that drive and restrict the growth of the high voltage cables market size is provided.
Estimations and forecast are based on factors impacting the market growth, in terms of both value and volume.
Profiles of leading players operating in the high voltage cables market has been provided, and this helps in understanding the competitive scenario.
The report provides extensive qualitative insights on the significant segments and regions exhibiting favorable market growth.
The high voltage cable market forecast is done from 2020-2027.
High Voltage Cable Market Report Highlights
By End User
Key Market Players
NKT Cables, HITACHI, LTD., Prysmian group, TBEA Co. Ltd., Dubai Cable Company Pvt. Ltd., Nexans, Siemens AG, Southwire Company, LLC, TELE-FONIKA Kable S.A., Sumitomo Electric Industries, Ltd.
The major factors that fuel the demand for HVCs are growing industrialization, urbanization, upgradation of power grids, and increase in the number of power plants of renewable energy resources. The industries like oil and gas, mining, power utilities, and chemicals have invested in the development of infrastructure to accommodate the increased power transmission requirements. Power grids in the various, developed countries of North America and Europe have become less efficient with time; the grid infrastructure needs to be upgraded so that a continuous power supply can be provided and power shortages can be avoided. The demand of HVCs is expected to grow significantly due to new, mega-projects being planned and built. Dubai has invested around $14 billion to generate 5,000MW of solar power project by 2030. With these and many more projects in the pipeline, the demand for HVCs is expected to grow by leaps and bounds in the near future.
The leading players such as ABB, Prysmian Group, General Cables Technologies Corporation, NKT Cables, and Nexans are working on new technologies to make the transmission through HVC even more efficient. Itaipu systems in Latin America has installed line-commutated current source convertors on 6,300MW lines. These technological advancements sometimes require replacing old cables with new ones, which drives the demand for the HVC market. In addition, the prominent players of the market are expected to increase their reach in markets all across the globe, with collaborations, product launches, and acquisitions.