The earthing and cable accessories market was valued at USD 4 billion in 2020 and is expected to grow with a CAGR of 5.62% during the forecast period, 2020–2029.
The increasing number of investments and government initiatives for power grids, rapid developments in construction across developing economies, surging cross-border electricity trading, and rising adoption of galvanized iron pipe in the residential sector drive the market growth. On the contrary, the rising cost of copper is reducing its adoption across the residential sector, further hampering the market growth.
Rapid urbanization and the need to complement the infrastructure drives the earthing and cable accessories market as there is a tremendous need for good electrical power systems to protect the buildings from unpredictable electric shocks. The emergence of smart city projects such as the ‘Toyota Woven City’ in Japan, ‘ReGen Villages’ in Amsterdam, ‘Smart Nation’ initiatives in Singapore, and ‘City Brain’ project in China provides an impetus to the market growth. Approximately 60% of the infrastructure investment is expected from the emerging economies, mostly from Asia. As per the ‘Global Powers of Construction Report, ’ China is the largest market in the construction sector and holds about 41% of the global construction company sales value.
The Asian Infrastructure Investment Bank (AIIB) and China’s Belt and Road Initiative (BRI), an infrastructure financing initiative launched in 2013, is projected to offer umpteen opportunities to Central and Southwest Asia countries. In North America, the International Monetary Fund anticipates a rise in Canada’s GDP; thus opening new opportunities for the expansion of the total workforce. Additionally, the favorable global scenarios of the construction industry will upswing the market. The total spending in the construction industry was accounted for USD 11.4 trillion and is expected to reach USD 14 trillion by 2025, further driving the market growth.
The earthing conductor segment accounts for more than 32% of shares in the earthing and cable accessories market. The earthing conductors comprise copper, aluminum, and galvanized steel (GI Wire), among others. Copper clads are widely used as grounding conductors in some applications such as data centers, head ends, and central offices, among others. Furthermore, a combination of higher resistance of steel and higher melting temperature allows copper-clad steel to fuse equivalent current as aluminum and copper. However, the low conductivity of copper-clad steel compared to copper hinders the segment growth.
Apart from this, government initiatives to adopt greener options of electricity transmission hinders market growth. As per the World Health Organization (WHO), in 2016, approximately 240 million people globally were overexposed to lead poisoning that was used in power cables for earthing and anti-corrosion purposes.
The cable lugs include different materials such as copper, aluminum, and bi-metallic lugs. Copper cable lugs are devices used for connecting cables to electrical appliances, other cables, surfaces, or other mechanisms. They are widely used to connect the wires to an automotive battery, and is considered as an ideal choice for large gauge applications for power drawing or grounding. Furthermore, copper lugs are generally used when permanent, direct-fastening methods are not feasible or necessary. Rising popularity of electric vehicles and their increasing adoption rate, along with the ongoing innovation of batteries, drive the segment growth. For instance, in 2019, the government of India (GOI) implemented the National Electric Mobility Mission Plan 2020 scheme for faster adoption and manufacturing of hybrid and electric vehicles.
The commercial segment to hold over 50% of the market shares and is projected to grow with a significant CAGR during the forecast period. The commercial sector includes office blocks, conventional and exhibition centers, commercial centers, showrooms, and retail units, among others. The commercial sector has witnessed significant growth in the earthing and cable accessories market over the past years owing to increasing investment by leading companies to provide high-quality infrastructure.
Asia-Pacific held the largest share in the earthing and cable accessories market in 2019 and is projected to dominate the market during the forecast period. Increasing government initiatives in emerging economies such as China and India to encourage development across all industrial verticals drives the regional market growth. For instance, in 2016, the government of India (GOI) announced the smart city project, which includes 100 smart cities across the country. Moreover, the growing popularity of renewable energy alternatives to address the rising environmental concern provides an impetus to the market growth. For instance, in 2019, the National Thermal Power Corporation (NTPC) of India announced plans to invest approximately USD 7.26 billion to increase solar energy capacity by the end of 2022.
North America holds the second-largest shares in the earthing and cable accessories market on account of increasing mining activities in the region. For instance, in 2018, the U.S. government approved the construction of a mining project located in Nevada (the U.S.), which was commercialized in 2019. Furthermore, the presence of robust residential, industrial, and commercial sectors provides an impetus to the regional market growth. As per the study of NASA 2016, Florida (the U.S.) is the 14th most lighting prone area across the globe. Thus, significant fluctuation in the weather is rising the demand for earthing equipment to ensure the safety of the people and critical equipment.
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