The power and control cable market size exceeded 100 billion USD in 2019 according to a report released by the Global Market Insights last January.
They found out that investments in electricity infrastructure, including revamping existing transmission and distribution systems, will drive global industry growth. In addition, the push towards energy-efficient grid systems and renewable energy sources will complement the already increasing demand.
By 2026, GMI is expecting the power and control cable market share to have risen by 8.3 per cent, reaching upwards of USD 190 billion.
The study found that growth in Northern America and Europe was driven by refurbishments to existing grid infrastructure and stringent energy efficiency regulations.
In the Asia Pacific, growth was driven by rising peak load demand, the expansion of micro-grid networks and improvements to grid stability and supply.
Lastly, in the Middle East, Africa and Latin America, growth was driven by increasing electricity demand and the push for more sustainable electricity networks.
On the other hand, they found that developing nations are struggling to keep up with the technological evolution.
Other key findings include:
- The demand for power and control cables is surging across the transmission and distribution industry, because of qualities like high heat and corrosion resistance.
- Increased ventures in research and development will result in more reliable and efficient power and control cables.
- Increased investments across telecommunications and the industrial sector will drive business growth.
- The heavy metal and mining industries, together with the expansion of railway networks, will drive growth as well.
Rising demand for low-voltage power cables
Reliable electricity supply has been a major concern for both industries and utility companies. The GMI report saw that the demand for low voltage power cables will grow over 7 per cent leading to 2026. The increasing preference of manufacturers towards secondary power distribution and internal wiring applications will fuel this demand. By 2026, the demand for low voltage cables will be greater than the demand for medium voltage and high voltage cables.
Lastly, the report said the expansion of distribution networks, along with the increasing demand for renewable energy, will propel the power and control cable market to greater heights.
What region is set to dominate the market?
In 2019, North America, Europe and the Asia Pacific collectively held over 80 per cent of the power and control cable market share. The GMI said the Asia Pacific region is set to dominate the power and control cable market in 2026.
China’s control cable market in the Asia Pacific is set to exceed USD 3 billion in 2026. Ongoing expansions across railways, energy and communication sectors will drive the growth. Between 2016 and 2020, the State Grid Corporation of China has spent USD 350 billion in expanding and upgrading its country’s grid infrastructure. Furthermore, refurbishing existing transmission and distribution networks, along with high investment in smart infrastructure, will complement the product demand.
The future of power and control cables certainly looks bright, especially in the Asia Pacific. If you’re looking to upgrade or expand your business, you can count on Cable Source for your power cable needs. We are a power cable distributor based in Singapore who partners with the industrial, oil & gas, petrochemical, offshore and marine industries. Learn about how we can help your business by talking to our experts today.