Power Cable Market in China 2016-2020

Overview of the power cable market in China

The power cable market in China is anticipated to grow steadily and will post a CAGR of more than 6% over the forecast period. For several years now, China’s power distribution and transmission have been controlled by two large companies - The State Grid Corporation of China (SGCC) and China Southern Power Grid Corporation Limited (CSPG). In 2015, SGCC controlled over 88% of China’s land area and retailing nearly 66% of the total electricity consumed in China. On the other hand, CSPG controlled around 10% of China’s land area and sold an estimated 15% of the total power consumed. The monopoly of these two state-owned utility companies in power distribution prevented competition, thereby, stalling innovation and development of new products. However, in 2015, China ended its monopoly over electricity sales, which gave end users a chance to negotiate prices directly with the power generators who will be able to sell power to customers through regional power trading platforms. Moreover, this reform will also allow generators to bypass grid operators to penetrate the retail market and expand income sources. The end of this monopoly will lead to an increase in competition and power distribution, which, in turn, will impel the power cable in the China during the estimated period.

According to the market research analysts at Technavio, the introduction of renewable cable protection systems is one of the significant trends spurring this market’s growth in the coming years. With the increasing demand for electricity, governments around the world are emphasizing on renewable and clean energy, and China is no exception. China has been making significant investments in renewable power and fuels, solar PV capacity, wind power capacity, hydropower capacity, and solar water heating capacity. However, connecting these renewable sources to the distribution network requires massive amounts of power cables. This has led several vendors to develop renewable cables protection systems, which enhance the durability of cables and thus, ensures longer life. Moreover, these cable protection systems can be installed, removed, and reused without the use of remotely operated vehicles or driver involvement, thus, improving safety and reducing installation cost and complexity. Such systems ensure that the wires do not get worn out easily when subjected to stress. 

Competitive landscape and key vendors

Due to the presence of many international and regional players in the market, the power cables market in China is highly fragmented. These power cable manufacturers pose tough competition to the foreign players present in the market. The extent of competition in the power cables market in China varies according to the operating segment and product line offered by market vendors. However,it has been observed by the analysts that the power cable manufacturing industry is mature and cost driven.

Key vendors in this market are -

• Far East Cable Company
• Jiangnan Group
• Nexans
• Prysmian
• Shandong Wanda Cable

Other prominent vendors in the market include Anhui Hualing Cable Group, Baosheng, General Cable, Havells, Henan Huadong Cable, Henan Jinshui Cable Group, Henan Tano Cable, Jiangsu Shangshang Cable Group, Jiangyang Cable, Luoyang Da Yuan Cable Factory, Shanghai Shenghua Cable Group, Suli Group, TBEA Shandong Luneng Taishan Cable, Wanma Cable, and Zhengzhou Yifang Cable.

Segmentation by technology and analysis of the power cable market in China

• UHV (ultra-high voltage)
• Others

The country's UHV lines are designed and installed to transfer surplus power to remote, interior regions, and the coastal centers in the east that face frequent smog due to severe air pollution. The new power projects on UHV lines are predicted to reduce coal consumption by 150 million tons every year. China is building an extensive network of ultra-high voltage lines, which are 800 kV and can even reach 1,000 kV. With aggressive intervention from the government, the network of UHV lines is expected to reach over 178,000 Ckm by 2020. UHV power cables are ideal for transmitting large amounts of electricity over long distances with high efficiency and have many advantages over conventional high-voltage lines.

Product segmentation and analysis of the power cable market in China

• Distribution
• Transmission

The distribution line product segment led the power cable market in China and is expected to expand to over 5 million Ckm by 2020. China has been the largest consumer of electricity globally since 2015, and the considering the increasing need for electricity over the forecast period, it is essential for the country to establish a reliable and robust distribution network. Under the National Energy Administration's action plan, an estimated USD 300 billion will be invested in the construction and transformation of the distribution network, which wil, in turn, impel this segment’s growth in the estimated period.

Key questions answered in the report include

• What will the market size and the growth rate be in 2020?
• What are the key factors driving the power cables market in China?
• What are the key market trends impacting the growth of the power cables market in China?
• What are the challenges to market growth?
• Who are the key vendors in the power cables market in China?
• What are the market opportunities and threats faced by the vendors in the power cables market in China?
• What are the trending factors influencing the market shares of China?
• What are the key outcomes of the five forces analysis of the power cables market in China?

Technavio also offers customization on reports based on specific client requirement.

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