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The overhead cables market size is forecast to increase by USD 17.8 billion at a CAGR of 5.15% between 2023 and 2028. The market is experiencing significant growth due to several driving factors. One key trend is the increasing focus on rural electrification, particularly in developing countries, where access to reliable electricity is limited. Additionally, environmental regulations are pushing the adoption of clean energy sources, such as wind farms, which require extensive overhead cable infrastructure. The growing emphasis on renewable energy further accelerates this trend, as governments and companies invest in sustainable power solutions. The shift towards smart cities and IoT connectivity is also fueling demand for overhead cables. Local manufacturing is becoming increasingly important in this competitive market climate to reduce costs and ensure timely delivery. However, fluctuations in raw material prices pose a challenge to market growth. Overall, the market is expected to continue expanding, driven by these trends and the need for reliable power transmission infrastructure.
Overhead Power Cables play a crucial role in the transmission of electricity from power plants to consumers, particularly in the context of renewable energy and sustainable energy sources like distributed solar power and Wind Turbines. The global market for overhead power cables is witnessing significant growth due to the increasing demand for electricity generation from these sources. Transmission lines, a vital component of the power grid, are essential for the distribution of electricity from Utility companies to consumers, both in urban and rural areas. Environmental regulations and the push for clean energy have led to an increase in the construction of Wind farms and the expansion of smart cities. IoT connectivity, Electric vehicles, and charging infrastructure are driving the need for grid modernization and the retrofitting of existing aging Infrastructure. Smart grid technologies, including HVDC technology, energy management, and emissions reduction, are key trends in the market. Recycling transmission lines and the use of smart grid technologies, such as embedded sensors, are also gaining importance in the market. Overall, the market is poised for growth, driven by the need for energy distribution and the transition to a low-carbon economy.
The market research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in "USD billion" for the period 2024-2028, as well as historical data from 2018-2022 for the following segments.
The high voltage segment is estimated to witness significant growth during the forecast period. High voltage overhead cables play a crucial role in the transmission of electricity from power plants to substations and end-users. The power sector is undergoing significant transformation with the upgrading of transmission and distribution infrastructure, increasing power generation capacity, and the growing adoption of renewable energy sources. These cables are primarily utilized for voltage requirements exceeding 33 kV. The global power industry is witnessing an expansion, with countries such as China, Russia, the UAE, and the US commissioning new power plants, which are projected to become operational by the end of the forecast period. India, which is the world's third-largest consumer of electricity, is also undergoing a power sector transformation.
Environmental regulations are driving the demand for clean energy, leading to the proliferation of wind farms and solar power installations. Smart cities and IoT connectivity are also creating new opportunities for high voltage overhead cables. Local manufacturing is gaining momentum due to the competitive market climate and the need for cost-effective solutions. The power sector's shift towards renewable energy sources and grid expansion is expected to fuel the demand for high voltage overhead cables in the coming years.
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The high voltage segment accounted for USD 21.30 billion in 2018 and showed a gradual increase during the forecast period.
APAC is estimated to contribute 31% to the growth of the global market during the forecast period. Technavio's analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period.
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The Asia Pacific region is experiencing significant growth due to increasing population, industrialization, and rising living standards, leading to increased demand for electricity. Government initiatives to improve power transmission efficiency and attract private investment in the electricity distribution sector are expected to boost investments in transmission and distribution networks, particularly in countries such as China, India, Pakistan, Australia, and Thailand. The urban population expansion has driven the demand for overhead cables in APAC. Overhead cables are essential for electricity distribution and come in various voltage levels, including low, medium, and high voltage. Sustainability and energy efficiency are crucial considerations in the electricity sector, making the use of overhead cables an attractive solution due to their power carrying capabilities and minimal environmental impact.
Overhead cables are a vital component of the electricity infrastructure in the Asia Pacific region, and their demand is expected to grow as the region continues to urbanize and industrialize. Companies specializing in the production and installation of overhead cables are well-positioned to benefit from this trend, as they provide essential solutions for electricity distribution that are both efficient and sustainable. In conclusion, the increasing demand for electricity in the Asia Pacific region, coupled with government initiatives to improve power transmission efficiency and attract private investment, presents a significant opportunity for the market. The use of overhead cables, which come in various voltage levels and are energy efficient and sustainable, is expected to be a key driver of growth in this market.
Our researchers analyzed the data with 2023 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
Increased renewable power generation is the key driver of the market. Overhead power cables play a significant role in transmitting electricity from power generation sources to various end-users. With the rising emphasis on electrification and the shift towards renewable energy, the demand for new installations of overhead cables is increasing. Renewable energy sources, such as wind turbines and solar power, are the fastest-growing sector in electricity generation, expanding by over 2.5% annually. The US Clean Power Plan aims to boost renewable power generation in the country to over 350 billion kWh. Among renewable energy sources, solar power and wind power are experiencing the most significant growth. Moreover, the integration of energy management systems and smart grid technologies into the power infrastructure is driving the need for advanced overhead cables.
Embedded sensors and other smart grid technologies enable efficient energy management and reduce emissions. Recycling transmission lines is another trend gaining traction in the industry to minimize environmental impact and reduce costs. Overall, the demand for overhead cables is expected to remain strong due to the growing renewable energy sector and the integration of advanced technologies into the power grid.
Increased demand from gulf cooperation council (GCC) countries is the upcoming trend in the market. In recent years, the economies of GCC countries, including Bahrain, Kuwait, Oman, Qatar, Saudi Arabia, and the UAE, have experienced significant growth. Sectors such as manufacturing, entertainment, tourism, and education have experienced notable expansion, contributing to the overall economic development. Consequently, there has been a corresponding rise in electricity demand. To meet this demand, the application of overhead power cables has become increasingly prevalent. Megaprojects, modern infrastructure, immigration, and economic advancements have been on the rise. For instance, Saudi Arabia is making substantial investments in renewable energy, aiming to meet the escalating electricity requirements in the country. These initiatives are expected to generate sustainable energy through solar power and wind turbines, further reducing reliance on traditional energy sources.
The transmission lines required for these projects necessitate the use of overhead cables. The energy sector's transformation, driven by the shift towards renewable energy, presents a lucrative opportunity for the overhead power cables market. As the demand for electricity continues to increase, the need for reliable and efficient power transmission solutions will remain paramount. By providing a cost-effective and versatile solution, overhead power cables are expected to play a pivotal role in the energy sector's evolution.
Fluctuating raw material prices is a key challenge affecting the market growth. Overhead power cables are essential components of energy distribution systems, enabling long-distance power transmission using both AC and HVDC technology. The manufacturing cost of these cables is significantly influenced by the price volatility of raw materials, particularly aluminum and copper. companies face challenges in managing their profit margins due to the fluctuating prices of these metals and other necessary resources, such as fuel and energy. To mitigate these risks, cable manufacturers negotiate price adjustments in their final products. When raw material prices increase, companies can potentially boost their gross profit margins by raising the selling price of their cables, assuming there is sufficient demand for the product.
The energy sector's focus on energy security and industrial applications drives the demand for overhead power cables. As energy distribution networks expand, the need for reliable and efficient power transmission solutions becomes increasingly important. In the US market, the adoption of advanced technologies like HVDC is expected to further fuel the demand for overhead power cables.
The market forecasting report includes the adoption lifecycle of the market, covering from the innovator's stage to the laggard's stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their market growth analysis strategies.
Customer Landscape
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
ABB Ltd. - The company offers overhead cable solutions to support construction, design, and maintenance requirements.
The market research and growth report includes detailed analyses of the competitive landscape of the market and information about key companies, including:
Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
Overhead power cables play a crucial role in the transmission of electricity generated from various sources, including renewable energy and sustainable energy solutions like solar power and wind turbines. The global market for overhead power cables is witnessing significant growth due to the increasing demand for electricity generation and distribution, especially in the utility sector. Renewable energy sources are becoming increasingly popular as countries strive to reduce their carbon footprint and promote clean energy. Wind farms and solar power installations require extensive transmission lines to transport the generated electricity to the grid for distribution. The competitive market climate for overhead power cables is driven by various factors, including the need for grid modernization, aging infrastructure, urbanization, and the increasing adoption of smart cities, IoT connectivity, electric vehicles, and charging infrastructure.
Further, environmental regulations are also playing a significant role in the growth of the overhead power cables market, as there is a growing emphasis on reducing emissions and promoting sustainability. Local manufacturing of high-performance materials and insulation capabilities is also gaining popularity to meet the demands of the market. Power transmission over long distances using high voltage direct current (HVDC) technology is another trend that is expected to drive the growth of the overhead power cables market. The need for energy efficient solutions, energy management, and smart grid technologies is also creating opportunities for the market. Recycling transmission lines and retrofitting existing infrastructure are also key areas of focus to reduce power losses and ensure energy security for commercial and industrial applications.
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Market Scope |
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Report Coverage |
Details |
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Page number |
153 |
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Base year |
2023 |
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Historic period |
2018-2022 |
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Forecast period |
2024-2028 |
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Growth momentum & CAGR |
Accelerate at a CAGR of 5.15% |
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Market growth 2024-2028 |
USD 17.8 billion |
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Market structure |
Fragmented |
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YoY growth 2023-2024(%) |
4.81 |
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Regional analysis |
APAC, Europe, North America, South America, and Middle East and Africa |
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Performing market contribution |
APAC at 31% |
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Key countries |
China, US, India, Japan, and UK |
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Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
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Key companies profiled |
ABB Ltd., Brugg Kabel AG, Dubai Cable Co Pvt, Encore Wire Corp., Furukawa Electric Co. Ltd., Jiangsu Zhongtian Technology Co Ltd, KEC International Ltd., KEI Industries Ltd., LS Cable and System Ltd., Nexans SA, NKT AS, Prysmian Spa, Riyadh Cables Group of Companies, Schneider Electric SE, Southwire Co. LLC, Sumitomo Electric Industries Ltd., Synergy Cables Ltd., and Tratos Cavi S.p.A. |
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Market dynamics |
Parent market analysis, market growth inducers and obstacles, market forecast, fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, market condition analysis for the forecast period |
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Customization purview |
If our market report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
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1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Type
7 Customer Landscape
8 Geographic Landscape
9 Drivers, Challenges, and Opportunity/Restraints
10 Competitive Landscape
11 Competitive Analysis
12 Appendix
Research Framework
Technavio presents a detailed picture of the market by way of study, synthesis, and summation of data from multiple sources. The analysts have presented the various facets of the market with a particular focus on identifying the key industry influencers. The data thus presented is comprehensive, reliable, and the result of extensive research, both primary and secondary.
INFORMATION SOURCES
Primary sources
Secondary sources
DATA ANALYSIS
Data Synthesis
Data Validation
REPORT WRITING
Qualitative
Quantitative
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