Middle East cable market will witness an upward trend from 2023 to 2032, led by the growing electricity consumption across the region.
As per the Saudi Association of Energy Economics, electricity demand in the Middle East will grow substantially on account of large-scale reconstruction works in the region. The Dubai Electricity & Water Authority (DEWA) reported a 6.3% growth in the energy demand in Dubai from 21,729 GWh in the first half of 2021 to 23,096 GWh in the same period in 2022. The rising energy demand and consumption trends are encouraging governments across the Middle East to boost their power infrastructure, creating a strong growth outlook for the cable industry in the region.
The Middle East cable market share is classified based on voltage, application, rating, material, and country.
Based on voltage, the market is categorized into high, low, medium, and extra-high segments. The demand for high voltage cables ranging from 33kV and above is set to increase over the forecast years due to the rising demand for long-distance bulk electricity transmission. Hefty investments focused on clean energy transition and reducing the dependency on fossil fuels are further boosting the need for cables across new power plants. As per International Renewable Energy Agency, Middle East renewables capacity increased by 12.8% between 2021 and 2022.
In terms of application, the Middle East cable market size from the transportation sector will grow significantly through 2032 due to rapid industrial growth. The rising number of manufacturing and service units in the region is prompting regulators to strengthen and re-establish existing networks with more secure and reliable systems. The advent of sustainable mobility and the rising adoption of BEVs, HEVs, and PHEVs will spur the demand for cables across the transportation sector.
For instance, in 2022, the European Bank for Reconstruction & Development (EBRD) announced an investment of USD 1.7 billion to help Turkey build a green economy with sustainable transportation & infrastructure development.
Based on rating, the industry is segregated into 400kV, 66kV, 220kV, and 132kV cables. Among these, the 400 kV cable segment was valued at over USD 300 million in 2022. The demand for these cables is growing due to the rapid integration of renewable energy networks for the refurbishment of existing electrical infrastructure. Cables with a rating ranging from 220 kV to 400 kV are ideal across enhanced networks. The lack of effective grid infrastructure and growing concerns associated with transmission losses in Kuwait, Oman, and Iraq will propel product installation.
Regionally, the UAE cable market size was over USD 1 billion in 2022. UAE is set to witness a rise in product demand over the projected timeframe owing to massive infrastructure-related investments and expanding construction sector. The increasing number of real-estate activities and the growing emphasis on renewable energy projects will boost cable installation across an array of industrial facilities, thus, driving market growth.