High Voltage Cable Market: Major End-Users Augment Demands
High voltage cables (HVCs) are the backbone of electrical infrastructure globally. From their use in commercial and residential infrastructures to industrial end uses in mining, oil & gas factories, power & utilities, etc., HVCs are crucial supplements to the growth of the power sector. Besides, urbanization and industrialization globally are increasing the demand for electric power. Therefore, the surging power demand is expected to result in more power generation and transmission, thereby propelling the requirement for high voltage cables. Inkwood Research predicts that the global high voltage cable market is set to surge with a 5.12% CAGR during the forecast period 2023-2032.
High Voltage Cable Market: Major End Uses
HVCs are extensively utilized for high voltage electric power transmission. Equipped with multiple conductors, structural elements of protective jackets, and insulators, they are designed to transmit electricity efficiently without long-range transmission power losses. The end-user segment of the global high voltage cable market includes renewable energy, industrial, and infrastructure. Infrastructure leads the end-user segment with an expected CAGR of 6.26% by 2032.
High voltage cables transmit power to and from offshore facilities like wind and solar farms. Aligning with this, they are ideal for delivering power to and from remote areas, including military operations, construction sites, offshore oil rigs, wind farms, solar farms, and distributed generating systems. Governments are adopting regulations and implementing various steps to electrify rural areas and generate renewable energy. Throughout the forecast period, these regulated energy sources are anticipated to substantially increase the demand for high voltage cables.
Furthermore, according to projections by the Global Wind Energy Council, wind farms will be able to produce 536 GW of power globally during the next five years. 114 offshore wind projects are slated for the next 5 years with a total value of $211 billion. A sizable number of high voltage cables are required to connect offshore projects, including floating wind and solar farms, to the main grid. Therefore, it is projected that these factors will increase the use of high voltage cables during the forecast period, providing a lucrative opportunity for market expansion.
Refurbishment and new construction in industrial as well as commercial are expected to stimulate market growth. For instance, various countries in Asia-Pacific, the Middle East and Africa, and South America have undertaken new construction activities, such as rail signaling, tunneling, and a corresponding expansion of power distribution and generation. In addition, several technological upgrades are availed in the electricity distribution & transmission ecosystem that aim to stabilize the ecosystem in contrast to the alternating nature of renewable energy sources.
However, the growing renewable energy and power capacity have further surged the need to interrelate a country’s transmission systems. The link is predicted to balance the power demand and generation through electricity import and export. Besides, the electricity trade is expected to increase with renewable energy generation, resulting in constructing of higher capacity interconnection lines and accelerating market growth.
Inkwood Research’s analysis of the global HVC market by industrial includes sub-segments, such as power utilities, oil & gas, mining, chemical & petroleum, and other industrial end-users. High voltage cables are mainly used in industrial transmission applications. With the increasing electricity demand, most world economies are upgrading/installing new renewable and non-renewable power generation plants. This has led to the demand for high voltage cables for the power utility industry.
Additionally, the floating oil & gas production platform is the second most attractive end-user for applying high voltage cables. Deepsea exploration of oil & gas is further expected to fuel the growth of the oil & gas end-user segment. The oil & gas and petrochemical industries face exceptional challenges in installing cables and equipment to process and access their final product. Whether it is floating production storage, mobile offshore drilling platforms, and onshore operations or offloading units, like processing and terminals and plants, hydrocarbon-laden muds or copper busbars, the high voltage cables used faces exposure to a range of chemicals, ultraviolet light, salt-water submersion, acids, oils, and thermal & mechanical stresses.
Building Constructions & Railway Infrastructure to augment HVC End Use
Building high-rise structures in the United States, United Arab Emirates, India, Brazil, China, Saudi Arabia, etc., have significantly impacted the global HVC market’s expansion. In the United States, the Central Park Tower, Steinway Tower, and 1 Manhattan West will be built between 2020 and 2022. Upon completion in December 2022, Jumeirah Village Circle, Barsha 1, Business Bay, and other projects in the United Arab Emirates are expected to be among the tallest in the world. High voltage cables are required during and post-construction processes for the building’s electrical wiring to function.
Additionally, several initiatives have been undertaken to improve the EU’s rail infrastructure, notably the 18 km long Fehmarn Belt tunnel, which will drastically reduce travel time between Germany and Denmark. Railways will become smarter, interoperable, and safer with more European Rail Traffic Management System rollout investments.
Further, these projects also encompass improvements in fundamental port infrastructure, including onshore power supply to reduce emissions from docked ships, better connections for cross-border inland waterways, and several Digital European Sky demonstrators for urban air mobility and green aviation. Such Developments are expected to increase demand for high voltage cables during the estimated period.
What is the global high voltage cable market valued at?
The global high voltage cable market was valued at $37549.43 million in 2022.
Which country is leading the global high voltage cable market?
Vietnam is leading the global high voltage cable market with a 7.45% CAGR by 2030.