Overhead Cables Market to Grow by USD 17.8 Billion from 2024-2028, Boosted by Renewable Power Growth and AI-Driven Market Transformation - Technavio

NEW YORK, Oct. 17, 2024 /PRNewswire/ -- Report with the AI impact on market trends - The Global Overhead Cables Market  size is estimated to grow by USD 17.8 billion from 2024-2028, according to Technavio. The market is estimated to grow at a CAGR of almost 5.15%  during the forecast period. Increased renewable power generation is driving market growth, with a trend towards increased demand from gulf cooperation council (GCC) countries. However, fluctuating raw material prices  poses a challenge - Key market players include 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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Key Market Trends Fueling Growth

The economies of GCC countries, including Bahrain, Kuwait, Oman, Qatar, Saudi Arabia, and the UAE, have experienced significant growth in sectors such as manufacturing, entertainment, tourism, and education. This growth has led to an increase in electricity demand, particularly in countries like Saudi Arabia, which plans to invest USD80 billion in constructing 16 nuclear power plants with a total capacity of 17 GW by 2040. These projects aim to meet 15% of the country's power demand and will create demand for overhead cables, contributing to the growth of the global overhead cables market. Other factors, such as megacity projects, modern infrastructure, and rising immigration, also contribute to the market's expansion during the forecast period. 

The Overhead Cables market is witnessing significant growth due to various trends. IoT connectivity and electrification of vehicles are driving the demand for charging infrastructure and advanced insulation capabilities. Grid modernization and urbanization require high-performance materials for power transmission, with a focus on energy efficiency and emissions reduction. Sustainability is a key consideration, leading to the use of energy-efficient solutions and recycling transmission lines. Low, medium, and high voltage cables are in demand for residential, commercial, and industrial applications. Smart grid technologies, including HVDC technology for long-distance power transmission, are essential for energy management and energy security. Retrofitting aging infrastructure and implementing energy distribution systems are also major trends. Embedded sensors and energy management systems help optimize power carrying capabilities and reduce power losses. 

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Market Challenges

• Overhead power cables are primarily manufactured using aluminum and copper as key raw materials. The procurement of these materials accounts for a substantial portion of cable manufacturers' production costs. Fluctuating prices of copper and aluminum, along with other essential raw materials such as fuel and energy, introduce significant volatility in the cost of sales or revenue for cable vendors. To mitigate the impact of raw material price instability, vendors negotiate price adjustments in their final products. When metal prices rise, cable manufacturers can increase their gross profit margins by passing on these costs to consumers, assuming there is sufficient demand. However, if competition among market players prevents price hikes, gross revenue decreases, potentially hindering market growth during the forecast period.
• The Overhead Cables Market faces several challenges in the areas of electricity distribution and power carrying capabilities. With the push for electrification and the integration of renewable energy sources like solar power and wind turbines, retrofitting existing transmission lines and implementing smart grid technologies become essential. Energy management and emissions reduction are key concerns, requiring the adoption of advanced technologies such as HVDC and embedded sensors. Recycling transmission lines and complying with environmental regulations are also important factors. In a competitive market climate, utility companies must ensure energy security and sustainability, while meeting the needs of commercial and industrial consumers. Local manufacturing and the integration of clean energy sources into smart cities are also critical considerations for the future of the Overhead Power Cables Market.

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Segment Overview 

This overhead cables market report extensively covers market segmentation by

1. Type 
• 1.1 High voltage
• 1.2 Medium voltage
• 1.3 Low voltage
2. Geography 
• 2.1 APAC
• 2.2 Europe
• 2.3 North America
• 2.4 South America
• 2.5 Middle East and Africa

1.1 High voltage-  The global high voltage overhead cables market is experiencing significant growth due to the transmission and distribution infrastructure upgrade, increasing power generation capacity, and the rise in renewable energy sources. These cables are primarily used for electricity transmission from power plants to substations and end-users, with voltage requirements exceeding 33 kV. The power sector is undergoing expansion, with countries like China, Russia, the UAE, and the US setting up new power plants. India, the world's third-largest electricity consumer, faces unreliable electrical infrastructure, leading to power cuts and transmission losses. To address this, USD35 billion is planned for investment in India's power transmission sector, with USD19 billion coming from PGCIL and the remaining USD16 billion from private players or STUs. These factors collectively contribute to the anticipated growth of the high voltage overhead cables market.

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Research Analysis

The Overhead Power Cables market is witnessing significant growth due to the increasing adoption of renewable energy and sustainable energy sources such as solar power and wind energy. The integration of these sources into the electricity grid requires the installation of new transmission lines and upgrades to existing infrastructure. The transition to clean energy is also driving the demand for smart cities, IoT connectivity, and electric vehicles, all of which require advanced energy distribution systems and charging infrastructure. Grid modernization is a key focus area to address aging infrastructure and improve energy efficiency. Emissions reduction targets and environmental regulations are also driving the market, as utilities seek to reduce their carbon footprint and transition to cleaner sources of energy. Recycling transmission lines and implementing smart grid technologies, such as embedded sensors and HVDC technology, are crucial for optimizing energy distribution and managing energy demand. Urbanization and retrofitting existing buildings for energy efficiency are also contributing to the growth of the market. The use of energy management systems and smart grids can help reduce energy consumption and improve overall energy efficiency. In rural areas, overhead power cables are essential for electrification and improving access to electricity. Overall, the Overhead Power Cables market is poised for continued growth as the world transitions to a cleaner, more efficient energy future.

Market Research Overview

The Overhead Power Cables market encompasses the production and distribution of cables used for transmitting electricity through overhead transmission lines. Renewable energy sources, such as solar power and wind turbines, are driving the growth of this market as they require extensive electricity transmission through overhead cables for electricity generation and distribution. Sustainable energy initiatives, including utility-scale wind farms and solar power plants, are major consumers of overhead power cables. Transmission lines are essential for electricity generation and distribution to both urban and rural areas, making this market crucial for sustainable energy and electrification efforts. Environmental regulations and local manufacturing are key considerations in the competitive market climate for overhead power cables. High-performance materials and advanced insulation capabilities are important factors in the development of low, medium, and high voltage cables for power transmission. The market is also influenced by trends such as smart cities, IoT connectivity, electric vehicles, and charging infrastructure, as well as grid modernization, aging infrastructure, urbanization, and emissions reduction. Recycling transmission lines and implementing smart grid technologies, such as embedded sensors and HVDC technology, are important for reducing power losses and improving energy security. The market caters to various sectors, including residential, commercial, and industrial, and offers energy efficient solutions for electricity distribution and power carrying capabilities. Retrofitting existing infrastructure and energy management are also key areas of focus for the overhead power cables market.

Table of Contents:

1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation

• Type
• High Voltage
• Medium Voltage
• Low Voltage
• Geography
• APAC
• Europe
• North America
• South America
• Middle East And Africa

7 Customer Landscape
8 Geographic Landscape
9 Drivers, Challenges, and Trends
10 Company Landscape
11 Company Analysis
12 Appendix

About Technavio

Technavio is a leading global technology research and advisory company. Their research and analysis focuses on emerging market trends and provides actionable insights to help businesses identify market opportunities and develop effective strategies to optimize their market positions.

With over 500 specialized analysts, Technavio's report library consists of more than 17,000 reports and counting, covering 800 technologies, spanning across 50 countries. Their client base consists of enterprises of all sizes, including more than 100 Fortune 500 companies. This growing client base relies on Technavio's comprehensive coverage, extensive research, and actionable market insights to identify opportunities in existing and potential markets and assess their competitive positions within changing market scenarios.

Contacts

Technavio Research
Jesse Maida
Media & Marketing Executive
US: +1 844 364 1100
UK: +44 203 893 3200
Email: [email protected]
Website: www.technavio.com/

SOURCE Technavio

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