According to GMI Research, low-voltage cable market share is expected to reach $265.6 billion in 2029. It will grow at a CAGR of 5.1% during the period 2022-2029.
Low-Voltage Cable Market Trends
The key trends in the global low-voltage cables market include the increasing expansion of businesses, industrial units, manufacturing facilities, and commercial operations structured to achieve power conservation and efficient distribution.
Increasing focus on cost-efficiency of electricity savings in industries such as oil & gas, mining and utilities is likely to bridge the supply and demand chain in the coming years. Rapid construction of large private and public sector buildings is expected to generate high demand for low-voltage cables.
Meanwhile, the growing popularity of OTT platforms is driving the trend of video streaming. This will boost the demand for PVC and XLPE cables. In addition, the growth of solar panels on building rooftops is likely to be another key market driver. The increase in the number of solar panels is expected to accelerate the demand for copper-core low-voltage cables.
In addition, technological advancements in industrial equipment are further boosting the demand for low-voltage cables to improve operational efficiency and enhance smoothness of power supply.
Growing research and development activities in the automotive industry and increased sales of electric vehicles will also be the major trends in the market. Automotive manufacturing plants in countries such as Germany, South Korea, and Japan are driving the demand for low-voltage cables for autos.
Regional Market for Low-Voltage Cables
In terms of market region, Asia Pacific is expected to hold a considerable market share during the forecast period. Increasing focus on the use of renewable energy sources, government regulations to reduce CO2 emissions, rapid industrialization, increasing disposable income, advancement in smart grid infrastructure, and high population growth rate are the key factors contributing to the market growth in Asia Pacific.
Low-Voltage Cable Market Driving Factors
Factors driving the growth of the low-voltage cables market include rising renewable energy production, expansion of smart grids, and accelerated infrastructure construction. These have led to a growing demand for efficient transmission systems for electricity.
According to IRENA, the global installed renewable energy capacity is estimated to be 3,064 GW by the end of 2021, accounting for 38% of the total installed global power generation capacity. This is expected to drive the continued expansion of the low-voltage cables market size in the coming years. Government initiatives to strengthen transmission and distribution networks, increase in construction of residential buildings, and increase in the number of smart cities are also the major driving factors for market growth.
In addition the adoption of advanced technologies such as artificial intelligence (AI) and Internet of Things (IoT), increased exploration for oil and gas, rising standard of living and growing population growth rate are further contributing to the growth of the market.
The demand for low-voltage cables in large buildings such as shopping malls, theaters and hotels is expected to increase. Underground low-voltage cables have higher insulation and their chances of damage are less. The use of low-voltage cables can improve commercial profitability, which may lead to an increase in the production of low-voltage cables over the forecast period.