In 2023, market players might incur losses due to huge gap in currency translation followed by contracting revenues, shrinking profit margins & cost pressure on logistics and supply chain.
Controlling Inflation has become the first priority for global economies from last quarter of 2022 and to be followed in 2023. With skewed economic situations, rise in interest rate by governments to control spending and inflation, spiked oil and gas prices, high inflation, geo-political issues including U.S. & China trade war, Russia-Ukraine conflict to intensify the global economic issues.
The interest rates in the U.S. may be less sensitive in 2023 as compared to 2022; sigh of relief for businesses. Positive business sentiments, healthy business balance sheets, growth in construction spending (private construction value in 2022 stood at $1,429.2 billion, 11.7 percent (±1.0 percent) above the $1,279.5 billion spent in 2021, Residential construction in 2022 was $899.1 billion, up by 13.3 percent (±2.1 percent) from $793.7 billion in 2021, non-residential construction touched $530.1 billion, 9.1 percent (±1.0 percent) above the $485.8 billion in 2021.) showcases minimal impact of recession in the country.
Similarly, spiked spending in the European and major Asia economics including, India, China & Japan to showcase less impact on the global demand.
The high voltage cable market is estimated to garner a large amount of revenue by growing at a notable CAGR over the forecast period, i.e., 2021 – 2029. The growth of the market can be attributed to increasing consumption of energy globally, rapid growth of renewable energy sector, and growing investments in electricity transmission and distribution systems. The total energy supply globally witnessed a notable hike from 2010 to 2018. The quantity amounted to more than 12.5 million ktoe in the latter and approximately 15 million ktoe in the former year. Furthermore, increasing adoption of smart grids in developed and developing nations is also estimated to drive market growth in the coming years. Apart from these, rising investments in replacement of old grid infrastructure is expected to offer lucrative opportunities to the market during the forecasted time.
The market is segmented by installation into underground, overhead and submarine, out of which, the overhead segment is anticipated to hold the largest share in the high voltage cable market on account of the wide usage of this form of installation as a result of its cost effectiveness and ease of installation. However, the segment for underground installation is projected to gain traction in the near future owing to its fewer transmission losses, discharge of no electric fields and reduction of maintenance costs. Growing demand for underground installation from commercial, residential and automotive industries is also estimated to boost growth of this segment. Additionally, on the basis of application, the energy & power segment is evaluated to gather the largest market share during the forecast period ascribing to the growing number of rural energy plans and rapid urbanization.
In 2018, the world’s total energy supply was 14282 Mtoe, wherein the highest share in terms of source was captured by oil, accounting for 31.6%, followed by coal (26.9%), natural gas (22.8%), biofuels and waste (9.3%), nuclear (4.9%), hydro (2.5%), and other (2.0%). Where there was an increase in energy demand in 2018, the year 2019 witnessed slow growth as the energy efficiency improved owing to decline in the demand for cooling and heating. However, in 2020, the electricity demand decreased by 2.5% in the first quarter of 2020 due to the outbreak of Coronavirus resulting in government imposed shutdowns in order to limit the spread of the virus, which was further followed by shutdown of numerous business operations impacting their growth. This also resulted in decline of 5.8% in the worldwide CO2 emissions which was recorded to be five times larger than the one recorded during the global financial crisis in 2009. However, in 2021, the demand for oil, gas and coal is estimated to witness growth, which is further projected to create opportunities for market growth. Moreover, rising environment degradation and awareness related to climate change is motivating many key players to employ sustainable energy strategies and invest significantly in environment-friendly power generation technologies with an aim to promote sustainable development among various nations around the world. Such factors are anticipated to promote the growth of the market in upcoming years.
Ans: Increasing energy consumption around the world and robust growth of renewable energy sector are the major market growth drivers.
Ans: The market is anticipated to attain a notable CAGR over the forecast period, i.e., 2021 – 2029.
Ans: Delay in electricity project approval in under-developed and developing countries is estimated to hamper the market growth.
Ans: Asia Pacific will provide more business growth opportunities on the back of increasing population and power requirement in the region.
Ans: The major players in the market are ABB Ltd, Finolex Cables Ltd, Nexans SA, Prysmian SpA, NKT A/S, and others.
Ans: The company profiles are selected based on the revenues generated from the product segment, geographical presence of the company which determine the revenue generating capacity as well as the new products being launched into the market by the company.
Ans: The market is segmented by voltage, installation, application, and by region.
Ans: The energy & power segment is anticipated to hold largest market size in value and is estimated to grow at a noteworthy CAGR over the forecast period and display significant growth opportunities.