The Cable Accessories Market is expected to grow at a CAGR of over 4% during the forecast period.
The market was moderately impacted by COVID-19 in 2020. Currently. The market has reached pre-pandemic levels.
- Over the medium term, factors such as the growing electricity generation and consumption, along with changing power generation industry dynamics, are expected to drive the transmission and distribution network growth, which, in turn, is expected to drive the cable accessories market.
- On the other hand, challenges such as intricate project planning, delay in approval procedures, and funding constrictions for power projects at a global level are expected to hinder the growth of the cable accessories market.
- Nevertheless, with rising electrification projects in Africa, cables are used for power generation transmission and distribution from substations to the customer. The increasing rural electrification in African and Asian countries is expected to offer tremendous opportunities for cable accessories market players.
- Asia-Pacific is expected to be the largest and the fastest growing region during the forecast period, bolstered by a high urbanization growth rate and growing electricity demand, mainly from China and India.
Cable Accessories Market Trends
Underground Segment to be the Fastest Growing Market
- Deployment of underground cables instead of overhead ones has been one of the trends in regions, like Europe and North America, in recent times. In urban areas, underground cables are more favoured, as above-ground space is unavailable.
- With the increasing electricity generation, demand for power supply is expected to grow in the forecast period. In 2021, global electricity generation accounted for 28,466.3 TWh, with an annual growth rate of 6.2%. Thus, the demand for power supply is expected to create opportunities for the Cable Accessories Market through a grid electricity network.
- In recent years, across Europe, specifically Germany and Netherlands, there has been an increasing trend to replace the existing overhead distribution lines with underground cabling and give preference to underground cabling for new projects.
- Moreover, India is also witnessing the growing adoption of underground cables. Among the 100 smart city projects of the country, several projects include underground cables, which in turn is expected to drive the cable accessories market.
- Besides deploying underground cables in major roads, the exercise has extended to passages within the cities. The overhead cable replacements are expected to occur between 2022 and 2027, driving the market for an underground segment of the cable accessories market.
Asia-pacific to Dominate the Market
- Asia-Pacific has emerged as one of the cable markets in recent years, with the rise in energy demand associated with urbanization, economic modernization, and better living standards across the region has resulted in the growth of sustainable power systems, which in turn increased the demand for cable accessories in this region.
- Many countries in Asia-Pacific have inadequate Transmission and Distribution (T&D) networks; hence, electricity is unavailable in some remote and rural areas. To bring electricity to these areas, the countries in the region are investing heavily in building Transmission and Distribution line networks.
- In India, residential building construction is expected to witness significant growth in the near future, supported by the government’s housing for all plan and the Pradhan Mantri Awas Yojana (PMAY). Under PMAY, the government is expected to build 60 million houses (40 million in rural areas and 20 million in cities) by 2022.
- Moreover, China’s power transmission and distribution grid has been experiencing major upgrades and modifications to make it capable of transmitting higher electricity and coping with future demand.
- Therefore, factors like expansions and upgrades, especially in the Asia-Pacific region, are expected to positively impact the cable accessories market.
Cable Accessories Market Competitor Analysis
The Cable Accessories Market is moderately fragmented. Some of the key players (not in a particular order) are Eland Cables Ltd., ABB Limited, Prysmian SpA, NKT A/S, and Nexans SA, among others.
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