Electric power is transmitted and distributed either by overhead system or by underground cables. A cable is an insulated conductor and is used for underground transmission and distribution of electricity. Cable is an assembly consisting of one or more conductors with their own insulations, individual coverings, assembly protection, and protective coverings. Insulation is used to cover the conductor and provides isolation from the surroundings. Underground cables are generally used in densely populated areas such as cities and metros, where there is high density of automobiles. Underground cables are also preferred in industries, sub-stations, railways and road crossings, servicing of residential installations and other similar locations. UG cables help in ensuring uninterrupted power supply, which are uncommon in the overhead (OH) system. Underground cables are employed for transmission and distribution of electric power where it becomes impracticable to make use of overhead construction. Underground cables help in ensuring uninterrupted power supply that are uncommon in the overhead systems.
Market Scope and Structure Analysis
Rise in urbanization and increase in infrastructure are some of the major factors driving the market growth. The said factors have impacted the power and energy demand in commercial, industrial, and residential sectors. Increased investments in smart upgrading of the power transmission and distribution systems and the development of smart grids are anticipated to drive the market growth. Implementation of smart grid technology has met the rise in need for grid interconnections, thus resulting in surge in investments in the new underground and submarine cables. Further, new conductors are being deployed for carrying higher currents while allowing higher temperature ratings. However, initial heavy cost is the only factor which limits the growth of the underground cable market.
COVID-19 Impact analysis
- COVID-19 pandemic has shut down the production of various products in underground cable market attributed to the lockdown in countries worldwide. This has hampered the growth of underground cable market from the last few months and is likely to continue during 2021.
- COVID-19 has already affected the sales of underground cable market in the first quarter of 2021 and is anticipated to cause a negative impact on the market growth throughout the year.
- The major demand for underground cable was previously noticed from giant manufacturing countries including the U.S., Germany, Italy, UK, and China, which are negatively affected by the spread of the coronavirus, thereby declining the demand for underground cable products.
- Further, potential impact of the lockdown is currently vague and financial recovery of companies is totally based on its cash reserves. Underground cable market manufacturers can afford a full lockdown only for a few months, after which the players have to modify their investment plans. For instance, various players in the market halted their production activities for several weeks to reduce the expenses. Whereas few players also adopted employee lay-offs to sustain during the COVID-19 health crisis
- Underground cable market are expected to focus on protecting their workforce, operations, and supply chains to respond toward immediate crises and find new ways of working after COVID-19. For instance, provision of sanitizers, maintaining social distancing, as well as ensuring the vaccination of every employee in the company can assist in promoting the health & safety of the workforce.
Top Impacting Factors
Several technologies have been introduced to enable utilities to augment their capacities without battling right-of-way (RoW) clearances. An emerging technology trend has been the adoption of underground cables. Cross-linked polyethylene (XLPE) and Gas Insulated Cables (GILs) have been developed for high voltage transmission network. The development and strengthening of the country’s transmission and distribution network has always been a key focus area. Another key driver for the growth of the cable segment is the shift toward high voltage transmission lines. This demand is essentially driven by the creation of high voltage long distance corridors to deliver electricity to high demand regions and the development of green energy corridors for integrating the increase in share of renewable energy into the grid.
- With the growth of smart grid technologies and the increase in renewable energy capacity, specialized cables are being designed. For instance, medium voltage smart cables, which integrate optical fiber cable with power cables, are preferred for smart grid applications. Similarly, specialized DC cables in which installation is crossed linked through electron beam irradiation are being deployed for solar power projects. These cables are required to work in a harsh environment and withstand direct sunlight, humidity, and rodent attack.
- Number of government initiatives and programmes have been undertaken such as the Deendayal Upadhyay Gram Jyoti Yojana (DDUGJY), the Integrated Power Development Scheme (IPDS) and the recently launched Sahaj Bijli Har Ghar Yojana (Saubhagya). All these schemes have created a market for cables and conductors in the country.
- Key companies take various strategic initiatives, including partnerships, mergers & acquisitions, collaborations, and new product/technology development. For instance, in October 2019, Audax Management Company, LLC., an American alternative investment management company, completed the acquisition of EIS Inc., a North American distributor of production supplies, process materials, connectivity, automation, specialty cable, and value-added fabricated parts. The said acquisition was anticipated to complement the former company’s product portfolio and strengthen its global customer base.
- Moreover, business expansion strategies also assist in enhancing the geographic footprint of the company and help in gaining significant market share for underground cables. For instance, in June 2020, Nexans announced that the company has completed the delivery of 1,700 km of signaling cable for the BSA project in Egypt. This initiative was aimed at expanding the company's position on the global level by providing reliable services to its customers.
Key Benefits of the Report
- This study presents the analytical depiction of the underground cable market along with the current trends and future estimations to determine the imminent investment pockets.
- The report presents information related to key drivers, restraints, and opportunities along with detailed analysis of the underground cable market share.
- The current market is quantitatively analysed to highlight the underground cable market industry growth scenario.
- Porter’s five forces analysis illustrates the potency of buyers & suppliers in the market.
- The report provides a detailed underground cable market analysis based on competitive intensity and how the competition will take shape in coming years.
Questions answered in the Underground Cable Market Report
- Who are the leading global players in the underground cable market?
- What are the current trends and predicted trends?
- What is underground cable?
- What is underground cable market prediction in the future?
- What are the challenges faced in the underground cable market?
- What are the driving factors and opportunities in the market?
- What are the key benefits of the underground cable market report?
Underground Cable Market Report Highlights
Key Market Players
Southwire, LS Cable & System Ltd., Riyadh Cable, Paraflex, NKT Cables, SEI, Jiangnan Cable, J-Power Systems Corporation, Furukawa, Nexans, General Cable