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EN_16958
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Pages: 152
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Jun 2016 | 3484 Views
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Author's :
Anshuman Budhiraja
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Tables: 37
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Charts: 97
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Global Medium Voltage Cables Market is expected to garner $54.2 billion by 2022, registering a CAGR of 6.5% during the forecast period 2016-2022. Medium voltage cable is a necessary component for power transmission and distribution in the voltage range of 1000 V to 35 kV. It is used across power, oil & gas, mining, chemicals (industrial), renewables, and infrastructure sector. Asia-Pacific is the largest contributor of medium voltage cables and it is anticipated to be the fastest growing market during the forecast period. Overhead lines show greater penetration in developing economies, such as Asia-Pacific and LAMEA, owing to lower costs. Underground cables have increased adoption in developed economies such as Europe.
The market witnessed notable growth owing to rising electricity demand globally, particularly in China, due to rapid industrialization and urbanization. In developed economies, such as Europe, requirement of increasing power generation and expanding wind sector offers significant growth potential. However, fluctuating prices of metals, such as copper, aluminum, and other metals, restrain the market growth. The demand for power infrastructure is driven by growing investments in renewables’ sector, thus offering significant opportunities for growth.
The report covers the study of the medium voltage cables market based on installations, end user, and geography. Based on installation type, the market is segmented into underground, submarine, and overhead installation. Key end users of medium voltage cables are industries, renewable sectors, and infrastructure sectors. Industries are segmented into oil & gas, mining & metals, chemicals & petrochemicals, cement & manufacturing, utilities and others; renewable sector is segmented into wind and solar; the infrastructure sector is segmented into Transportation and Commercial. Geographically, the classification includes North America (U.S., Canada, and Mexico), Europe (U.K., Germany, and Rest of Europe), Asia-Pacific (China, Japan, India, & rest of Asia-Pacific), and LAMEA (Brazil, Middle East, & Rest of LAMEA).
Numerous key players are operating in the market which include Prysmian SpA, General Cable Corporation, Nexans, NKT Cables, Sumitomo Electric Industries Ltd., Brugg Cables, Dubai Cable Company Private Limited, Leoni, Southwire, and TPC Wires & Cable Corporation. They have adopted various growth strategies to capture a larger market share and increase their customer base. Product launches, acquisitions, partnerships & agreements, and expansion are the prime growth strategies adopted by these companies to sustain the intense competition in the market. Presently, product launch strategy drives the market. In 2015, Prysmian SPA launched a new range of cable joints and cable termination kits under the Bitherm brand for both medium voltage 11kV polymeric and paper insulated three core cables, and expanded its product offering.
Source: Primary & Secondary Research and AMR analysis
Segment Review:
The medium voltage cables market is segmented by installation into underground, overhead and submarine. Among these, overhead accounts for the largest market size by value due to its increased usage in developing economies such as Asia-Pacific and LAMEA, on account of lower costs and easier maintenance. Underground cable installation is more prevalent in developed economies, such as Europe, owing to the high population density. In Asia-Pacific and LAMEA, high urbanization rate is estimated to accelerate the growth of underground cables on account of limited space availability for new and existing substations. The submarine segment is expected to witness robust growth rates during the forecast period. Submarine medium voltage cables are being increasingly used in Europe on account of the largest offshore wind-installed capacity. Asia-Pacific follows Europe in terms of the net offshore wind capacity addition, thus driving the requirement of submarine cables. In North America, offshore wind capacity addition is expected to increase in the coming years due to the vast wind energy potential available on the U.S. Coasts.
Source: Primary & Secondary Research and AMR analysis
Rapid industrialization and urbanization
Rapid industrialization and urbanization has been the key driving factor sustaining the growth of the medium voltage cables market. Industrialization and urbanization has been increasing at a much faster pace in the developing economies, resulting in more requirement for power generation, transmission, and distribution and thus is expected to boost the requirement of medium voltage cables.
Technological advancements
Innovations in the design of medium voltage cables has positively impacted the medium voltage cables market. Several players have taken steps and introduced improvements. Prysmian, a leading player in the cables market, introduced P-laser, which has high-performance insulating system technology (HPTE) that can replace the commonly used medium voltage cross-linked polyethylene insulated XLPE cables. These technological advancements ensure the attractiveness of this market and is expected to drive further innovations and the growth of this market.
Funding constraints, complex planning and authorization delays
Project planning for medium voltage cables requires significant complex discussions and huge capital investments for which it requires authorizations, hence it takes a lot of time. Delays in authorizations for these projects and delays in release of funding restrains the market growth to a certain extent.
Volatility in the price of metals
Copper and aluminum are metals which are used as conductors to manufacture cables. Volatility in the cost of these metals being traded on the exchange markets cause their prices to go up or down responding to the market forces. For example, the average price per ton of copper on the London Metal Exchange was $5,502 in 2015 representing a 19.8% decline on the prior year average price of $6,860 per ton. The average price of aluminum decreased by 10.9% during 2015. Fluctuations in these metal prices is expected to restrain the market of the medium voltage cables to a certain extent because of uncertainties of the market forces.
Increasing investments in renewables sector
Increasing demand for power has led to an increase in the requirement of medium voltage cables. There is increasing reliability on the renewable sources such as solar and wind energies for power generation over coal and significant investments are made in this sector which ensure the attractiveness of this segment. Continuous investments in this sector and the inclination towards renewable sources of power generation is expected to drive the market in the near future.
Key Players:
Medium voltage cable is an indispensable part of electric power distribution, widely used in industrial, renewable and infrastructure sectors. Asia-Pacific held the largest share in the medium voltage cables market in 2015, owing to extensive application of these cables in both the industrial and the infrastructure segment. In developing economies, such as APAC and LAMEA, rapid urbanization is expected for the next 20 years with increased demand for electric power, which would drive the medium voltage cable market. Increasing reliance on power generation by the renewable sector, in order to reduce greenhouse gas emissions has led to investments in wind farms and solar technologies, fueling the market growth across the globe.
Migration from rural to urban areas in developing economies has led to reduced space availability, driving the underground installation of medium voltage cables. Extensive wind capacity addition has propelled the demand for medium voltage cables in developed economies, such as Europe. Key players operating in this market have launched innovative products to strengthen their foothold. For example, Prysmian, a leading player in the cables market, introduced P-laser, which has high-performance insulating system technology (HPTE) that can replace the commonly used medium voltage cross-linked polyethylene insulated XLPE cables. Such technological advancements by leading players ensure the attractiveness of this market.
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