Increasing investments in renewable energy projects boosting the global power cable market
The renewable energy generation capacity has grown due to encouraging policies of various governments, incentives and rebates and this has led to a significant increase in the share of renewables and alternative sources of energy in the global energy market. More than half of the projects are driven by an increase in the renewable energy capacity as national utility companies are connecting with offshore wind farms. For instance, the Thornton Bank and the Thanet offshore wind farms are linked to domestic power grids. Due to high prices of energy and targets regarding renewable energy generation, renewable energy sources such as wind power and hydro power have become popular wherever their geographical feasibility exists. There is a need to connect these sources of renewable energy with the main grids and this is likely to remain a significant factor for the growth of the power cable market in the coming years.
Implementation of smart grids benefiting the global power cable market
A smart grid consists of an automated, widely distributed network for energy delivery with responsive and organic capabilities. Smart grids are being increasingly preferred since they enable the monitoring, analysis, control and communication which results in a significant reduction in energy consumption. For instance, China, the world’s largest consumer of electricity, consumed around 5.550 billion kWh of power in 2015. It is believed that China’s consumption will double by the year 2025 and triple by 2035. To cope with the increasing demand for power and to bring billions of kWh of power to its consumers, China has planned to build an elaborate network of smart grids. This development is likely to positively impact the global power cable market.
Increasing demand for power presents a lucrative opportunity for global power cable market
Due to increasing demand for power all over the world, the power supply entities are trying to catch up with the supply. In the course of the demand supply catch-up, there is a lot of opportunity for the power cable market. The world is moving towards sustainable energy development and to create a sustainable energy architecture, the component which is most important and most used is the power cable, which ultimately carries electricity. This presents a huge and a lucrative opportunity for the global cable market.
Extensive government support facilitating growth of the global power cable market
There are various policies being rolled out for the generation and distribution of energy. The governing bodies of different countries are taking steps for the proper utilization of the renewable forms of energy and safeguarding the existing ones. In some countries like India which is encouraging the digital economy is generating more and more energy from solar plants and wind energy which need appropriate power cables for the distribution of electricity generated from such sources. Such policies of the government are driving the global power cable market.
Global Power Cable Market Analysis, By Voltage Handling
The medium voltage segment was valued at US$ 1,865.3 Mn in 2017 and is forecasted to reach a valuation of US$ 3,188.3 Mn in 2026, reflecting a CAGR of 6.9% during the period of assessment. The low voltage segment was valued at US$ 2,321.4 Mn in 2017 and is predicted to reach a valuation of US$ 4,110.4 Mn in 2026, displaying a CAGR of 7.4% during the period of forecast.