Global Overhead Cable Market Share Expected to Increase to $17.67 Billion by 2022-26
According to a recent announcement by international market research firm Technavio, the global overhead cable market share is expected to increase by USD 17.67 billion from 2022-26, growing at a compound annual growth rate of 5.1% during the period.
One of the key factors driving the growth of the overhead cable market is the increase in renewable energy generation. Overhead power cables are widely used to transmit electricity generated by power plants. The increasing demand for shifting to renewable energy sources has led to an increase in the generation of electricity from wind turbines, solar energy, etc. This has led to a demand for new installations of overhead cables.
From the current perspective, renewable energy is the fastest-growing source of power generation.
Countries across the globe are focusing on establishing clean energy projects such as solar and wind power generation and reducing the use of fossil fuels, which is stimulating the growth of the overhead cable market.
In terms of trends, the Gulf countries are expected to have a positive impact on this market during the forecast period. The region’s good economic growth and strong development in sectors such as manufacturing, entertainment, tourism, and education are contributing to the increased demand for electricity in the region, leading to an increase in the application of overhead cables. Over the years, mega-city projects, modern infrastructure, increasing migration, and economic development have been on the rise. These developments are expected to create demand for overhead cables, which will drive the growth of the global overhead cable market.
During the forecast period, 34% of the market growth will come from the Asia Pacific.
China, Japan, and India are the major markets for overhead cables in the Asia-Pacific region. The market growth in this region will be faster than the market growth in other regions. Growing population, rapid industrialization, urbanization, and higher living standards have led to increased demand for electricity in the Asia Pacific region. This will contribute to the growth of the Asia-Pacific overhead cable market over the forecast period.
On the other hand, volatility in raw material prices is a major challenge for this market.
The major raw materials used for manufacturing overhead power line are aluminum and copper. All power cable suppliers bear most of the manufacturing costs of acquiring these raw materials. Fluctuations in the prices of copper and aluminum, as well as other necessary raw materials, including fuel and energy, cause significant fluctuations in the cost of sales or revenue for cable manufacturers. Suppliers attempt to recover from the instability of metal costs through negotiated price changes in the final product. As a result, volatile raw material prices may impede market growth.