Power cable market to reach $108bn by 2020
A new report estimates the global power cable market will increase at a rate of around 8% between 2016 and 2020 with the power utility sector being the major end user in the Asia–Pacific region driving the growth.
Asia–Pacific dominates the global power cable market, accounting for 57% of the overall market share with increased private participation in the power transmission and distribution sector boosting demand for power cables in the region.
The research report by Technavio details the key drivers and trends responsible for the growth of this market and its subsegments.
“High-voltage direct current (HVDC) underground power cables have become viable options for long-distance and high-voltage safe power transfer. HVDC cables are getting extensive usage in those areas which require high loads of electricity, especially in renewable power projects,” said Technavio Research Lead Analyst, Heavy Industry Anju Ajaykumar.
“Moreover, due to their light weight and dimensions, HVDC light cables are preferred over their AC counterparts, especially in submarine power transmission.”
Owing to the growing adoption of smart grids, the report explains vendors are focusing on the development of power cables that can serve the smart grid network.
Vendors[1] are also focusing on other parameters such as elasticity, efficiency and ease of usage while producing ecofriendly power cables. Ecofriendly power cables are fire-resistant, have lower emissions of poisonous fumes and are non-corrosive with the absence of halogens such as chlorine and fluorine that are widely used in insulating power cables.
The report suggests that other prospects for growth in this market will be prompted by the rising demand for high-temperature, superconducting cables from the power utility sector, since a superconducting high-power transmission and distribution cable is capable of transmitting and distributing about 5–10 times the electrical current carried by a conventional copper or aluminium cable.
The ability of such cables to bolster efficiency and to act as a medium for electricity transmission and distribution with voltage levels ranging from 60 to 765 kV for transmission and 5 to 46 kV for distribution will lead to this market’s steady CAGR of almost 8% by 2020. Technavio estimates the value of the power cable market will reach around $108 billion by this time.
A more detailed analysis is available in the Technavio report, Global Power Cable Market 2016-2020.
[1] The major vendors in the global power cable market, and featured in the analysis, are General Cable, Nexans, Prysmian and Sumitomo Electric.
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