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Global Overhead Cable Market to Grow at a CAGR of 5.1% during 2022-26

According to a recent announcement by international market research firm Technavio, the global overhead cable market share is expected to increase by US$17.67 billion from 2022-26, growing at a compound annual growth rate of 5.1% during the period.



Driving Factors for Market Growth


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 (uso de transmitir electricidad) generated from power plants. The demand for renewable energy sources is increasing due to energy crisis and carbon neutrality targets. This has led to an increase in the generation of electricity from wind turbines, solar energy, and others.


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 to reduce the use of fossil fuels. This will significantly stimulate the growth of the overhead cable market.


Development of Regional Market


In terms of development trends, the Gulf countries are expected to have a positive impact on this market during the forecast period. The region is witnessing good economic growth with strong growth in sectors such as manufacturing, entertainment, tourism, and education. These are contributing to the increased demand for electricity in the region, which in turn is influencing the increased application of overhead cables.


With many mega-city projects, modern infrastructure increases, population movement and economic development are expanding in scale. These developments are expected to create a strong demand for conductors, driving the growth of the global overhead cable market.


During the forecast period, 34% of the market growth will come from the Asia Pacific region. China, Japan, and India are the major markets for overhead cables in Asia Pacific. 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.



Challenges Faced by the Market


The volatility of raw material prices is the major challenge for this market. The main raw metal materials used to manufacture overhead power cable conductors are aluminum and copper. 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 raw materials necessary for production (including fuel and energy), will cause cable manufacturers to experience significant fluctuations in their cost of sales or revenues.


Many plants are under greater production pressure due to the energy crisis. Cable suppliers try to mitigate the impact of metal cost instability through negotiated price changes in the final product. As a result, volatile raw material prices may hinder market growth.


We hope the information can help you. We offer reliable and economical cables with technical assistance for your installation. If you have any questions, please contact us.