Cable Accessories Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

The global cable accessories market is expected to grow at a CAGR of over 4% during the forecast period. 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. Moreover, with the growing penetration of renewable energy for power generation, demand is expected to increase for new grids and distribution lines, further promulgating the market during the forecast period. The challenge, however, such as intricate project planning, delay in approval procedures, and funding constrictions for power projects at a global level is expected to hinder the growth of the cable accessories market.

Key Highlights

• The underground cable segment is expected to be the fastest-growing segment for the cable accessories market during the forecast period, owing to its several advantages in comparison to overhead installations plus increasing adoption of underground cable deployment by several developing countries.
• With rising electrification projects in Africa, cables are used from power generation to transmission and distribution from substations to the customer. The increasing rural electrification in African and Asian countries is expected to offer a tremendous opportunity for cables accessories market players.
• Asia-Pacific is expected to the largest and the fastest growing region during the forecast period, bolstered by high urbanization growth rate and growing electricity demand, mainly from China and India.

Key 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 favored, as above-ground space is not available.
• Underground cables are also more reliable due to the lesser number of annual faults, compared to overhead ones. Despite the higher expenses in underground cables, utilities are now investing more in underground cables, and are encouraged by regulators in developing regions such as Asia-Pacific and Africa.
• In recent years, across Europe, specifically Germany and Netherlands, there is 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 increasing 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.
• As of 2019, Vietnam is also replacing the power cables from overhead to underground in two of its major cities, HCMC and Hanoi. Besides deploying underground cables in major roads, the exercise has also been extended to passages within the cities. The overhead cable replacements are expected to take place between 2020 and 2025, in turn, driving the market for underground segment for cables accessories market.

Asia-pacific to Dominate the Market

• Asia-Pacific has emerged as one of the cable markets in the 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) network and hence, electricity is not available in some of the remote and rural areas. To bring electricity to these areas, the countries in the region are investing heavily in building transmission and distribution line network.
• 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), slated to be completed by 2020. Under PMAY, the government is expected to build 60 million houses (40 million in rural areas and 20 million in cities) by 2022.
• Moreover, the power transmission and distribution grid of China has been experiencing major up gradations and modifications for making it capable to transmit higher electricity and cope up the future demand.
• Therefore, based on the factors like expansions and upgradations, especially in Asia-Pacific region, is expected to have a positive impact on cables accessories market.

Competitive Landscape

The cable accessories market is moderately fragmented. Some of the key players are Eland Cables Ltd., ABB Limited, Prysmian SpA, NKT A/S, and Nexans SA.

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• The market estimate (ME) sheet in Excel format
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