Low Voltage Cables and Accessories Market Size, Share & Trends Analysis Report By Installation (Underground, Submarine), By Component (Cable Joints, Cable Terminations, Connectors, Clamps, Conductors), By Applications (Residential, Commercial, Industrial, Utility) and By Region(North America, Europe, APAC, Middle East and Africa, LATAM) Forecasts, 2023-2031

Market Overview

The global low-voltage cables and accessories market size was valued at USD 103,447.5 million in 2022. It is expected to reach USD 179,730.7 million by 2031, growing at a CAGR of 6.33% during the forecast period (2023–2031).

The low-voltage cables and accessories refer to low-voltage electrical lines used for secondary power distribution at voltages below 1 kV. For digital and communication reasons, low-voltage cables and accessories are commonly utilized. The primary forms of low-voltage cables and accessories consist of overhead and underground items. Underground products refer to low-voltage wires and equipment, such as PVC cables, XLPE cables, cable termination, and cable joints, used to lay wires below the ground. Copper and aluminum are utilized to construct low-voltage cables and accessories. Low-voltage cables and accessories are available in various voltage ranges, including up to 240V, 241-440V, and 441V-1000V. Industrial, commercial, and residential users use them.

Highlights

• The underground segment is the highest contributor to the market by installation.
• The cable joints segment is the highest contributor to the market by component.
• The utility segment is the highest contributor to the market by application.
• Asia-Pacific is the most significant revenue contributor by region.

Market Dynamics

Global low voltage cables and accessories market drivers:

Rising exploration and production of oil and gas and the use of renewable energy

Over the next few years, a sizable increase in the proportion of renewable energy in the electricity generation mix is anticipated. Population growth, rapid urbanization, expanding infrastructure projects, and increased access to electricity have negatively impacted the environment. India, the US, Germany, Saudi Arabia, and others are attempting to produce electricity using clean energy sources like wind, solar, hydro, and biomass. These nations have set goals to increase the generation capacity of renewable energy sources to increase the share of renewable energy in the power generation mix.

Rise in electricity demand

According to the International Energy Agency (IEA), the global electricity demand will increase by 2.1% annually by 2040 under the stated policy scenario. Additionally, it is predicted that from 19% in 2018 to 24% in 2040, electricity will make up a more significant percentage of total energy consumption. A few factors anticipated to contribute to an increase in the global demand for electricity on a global scale include the expanding population, rapid urbanization and industrialization, and rising infrastructure development.

Additionally, according to the UN, by 2030 and 2050, the world's population will be about 8.5 billion and 9.7 billion, respectively. Population growth worldwide causes an increase in both demand for and consumption of electricity. The need for electricity infrastructure can therefore be interpreted as increasing along with the electricity demand. As a result, the rising electricity demand is anticipated to propel the growth of the global low-voltage cables and accessories market during the forecast period.

Global low voltage cables and accessories market restraints:

Raw material cost variability and unpredictable electricity loss

The primary factors limiting the growth of the global low-voltage cable and accessories market during the forecast period are the fluctuating price of raw materials and electricity losses between transmissions. As they are used to transmit electricity between transformers and end users, low-voltage cables require high conductivity. Low voltage cables' raw materials include aluminum and copper. Any change in the cost of the raw materials has an immediate effect on the cost of the cable per meter, which immediately impacts the total cost of the cable. Additionally, installing low-voltage cable necessitates significant capital expenditures to provide electricity at the desired location, which somewhat restrains the growth of the global low-voltage cable and accessories market over the forecast period. However, as more people move to cities and demand more electricity, this constraint may lower the need for low-voltage cables and accessories.

Global low voltage cables and accessories market opportunities:

Rising demand for inland and territorial power connections

Vendors and new entrants in the global low-voltage cable and accessories market will have lucrative opportunities due to the rising demand for inland and international power connections. Power companies worldwide are undertaking more transmission and distribution (T&D) projects due to the expanding global population, the rise in dense cities, and the rising domestic and industrial electricity demand. This will present opportunities for low-voltage cables and accessories suppliers. Several projects for power distribution between nations and on islands are planned in the coming years.

Consider the Euro-Asia Interconnector project, which aims to connect Asia and the Middle East. It is a component of a network of intra- and transnational electricity grids in Europe that are intended to be linked together by bi-directional cables to provide stable and uninterrupted electricity transmission through national transmission companies in the EMEA and Asia. The construction of the world's most extended submarine power cable between nations like Greece, Israel, and Cyprus is part of the Euro-Asia Interconnector project. The project will start in 2022 and will be completed in two stages. Such developments will offer players lucrative growth opportunities in the global low-voltage cables and accessories market.

Regional Analysis

North America Dominates the Global Market

The global low voltage cables and accessories market is segmented by region into North America, Europe, Asia-Pacific, the Middle East and Africa, and South America.

North America is the most significant revenue contributor and is expected to grow at a CAGR of 6.83% during the forecast period. The increased electricity use in the area is responsible for the regional market's expansion. Due to the rise in electricity demand from the industrial sector and data centers, North America is the world's largest electricity consumer. According to EIA 2019, North America's annual electricity consumption increased by 2.1% in 2018, going from 3,864 billion kWh in 2017 to 3,946 billion kWh in 2018, indicating an increase in the region's power demand throughout the forecast period. Additionally, significant businesses dealing in low-voltage cables and accessories in North America are assisting in the growth of the low-voltage cables and accessories market over the forecast period. Thus, during the forecast period, the North American market will expand due to the sharp rise in power demand and the rising number of major players in the low-voltage cables and accessories market.

Europe is expected to grow at a CAGR of 6.32% during the forecast period. One of the biggest markets for low-voltage cables and accessories is in Europe. The demand for power supply is increasing, and there is a growing trend to replace existing overhead distribution lines with underground cabling and favor underground cabling for new projects, fueling the demand for low-voltage cables and accessories in this area. By 2020, the MDPI Journal, published in 2017, predicts that Europe will consume 104 terawatt-hours (TWh) of electricity. This demonstrates how the increased power supply has increased the demand for low-voltage cables and accessories. Most European Union (EU) nations intend to install underground cables instead of the current overhead distribution lines. For instance, constructing power and transmission infrastructure for electricity supply from Primorye in Russia to the special economic zone in Rason, North Korea, would be part of the Russia-North Korea Power Bridge construction project.

Asia-Pacific is one of the world's most extensive low-voltage cable and accessories markets. Due to the region's expanding population and rising per capita disposable income, there is greater energy demand. The US State Department estimates that 387 million people in Asia and the Pacific lack access to electricity. The region's expanding need for electricity requires constant mounting and upgrading the current T&D infrastructure. Due to these developments, low-voltage cables and accessories are now required to safeguard and improve the electrical transmission and distribution system. Manufacturers of low-voltage cables and accessories are working together and signing contracts with other businesses to rehabilitate the electrical infrastructure in Asia-Pacific and supply the region with electrical components.

Most nations in the Middle East and Africa are oil and gas producers and have long used these resources to power their national grids. To gradually lessen their reliance on conventional fuels, countries in the region have been attempting to shift toward renewable resources over the past ten years. The increase in electricity production from renewable sources is the main factor propelling the area's low-voltage cables and accessories market. Due to the Middle East's importance as a commercial hub, more and more data centers exist. There are currently 137 data centers from 16 different countries in the area. Furthermore, significant investments have been attracted to nations like Saudi Arabia, the UAE, Jordan, Turkey, Bahrain, and Qatar in recent years.

Most of the energy used in South American countries is by consumers in the residential and industrial sectors. Additionally, the region is seeing increased investment in renewable energy production to mitigate the effects of climate change. South America is putting more of an emphasis on producing energy from sources like wind, solar, geothermal, and hydropower. Several nations, including Argentina, Brazil, Chile, and Colombia, have passed laws encouraging clean energy development. The region's increased emphasis on renewable energy is anticipated to lead to the installation of numerous substations and T&D lines, increasing the demand for low-voltage cables and accessories. These elements are expected to fuel the market for low-voltage cables and accessories during the forecast period.

Segmental Analysis

The global low-voltage cables and accessories market is segmented by installation, component, and application.

Based on the installation, the global low-voltage cables and accessories market is bifurcated into underground and submarine.

The underground segment is the highest contributor to the market and is expected to grow at a CAGR of 6.6% during the forecast period. The cables are inserted into or laid beneath the ground in an underground installation. Underground cable networks' dependability heavily depends on elements like legal cable laying, good cable joints, and branch connections. As the cables will only be touched or used when necessary, the underground installation is very effective at extending the life of the cables and minimizing damage to the cables from both human and mechanical digging. In this procedure, the cables are occasionally laid on the ground, in ducts, and in cable tunnels.

Cables are installed on poles as part of an overhead installation. The primary benefits of this installation method are its low initial cost and straightforward fault detection and repair. However, this installation is insecure because the wires are easily exposed to lightning. The risk is increased when using cranes or boom trucks is possible. These are preferred to bridge the gap between different regions and nations.

Based on the component, the global low-voltage cables and accessories market is bifurcated into cable joints, cable terminations, connectors, clamps, and conductors.

The cable joints segment is the highest contributor to the market and is expected to grow at a CAGR of 7.49% during the forecast period. In marine, offshore, oil and gas, substation, rail, and electrical development areas where top-caliber and execution joints ensure the continued power supply distribution to critical circuits, cold shrink, heat shrink, and resin-type cable joints are suitable.

An electrical course called termination is available in both metal and plastic. Cable terminators interface the link with other links or devices to connect a wire or fiber to a device, such as panels or a wall outlet. This defensive product securely protects the entire length between the wire endpoint and contact, and cable terminations are sealed using natural materials.

Based on the application, the global low-voltage cables and accessories market is bifurcated into residential, commercial, industrial, and utility.

The utility segment is the highest contributor to the market and is expected to grow at a CAGR of 7.25% during the forecast period. Low-voltage cables are used in utilities for overhead and underground urban network systems, duct installations, and direct burial applications. The installation and upkeep of these cables are simple. They are primarily used to distribute electricity to the utilities.

Low-voltage wiring is frequently used in the residential sector for LED or low-voltage lighting, audio-visual wiring, telephones, alarm system sensors and controls, landscape lighting, smart doorbells, heating and cooling thermostats, and telephones. These are also utilized in single-family homes, apartments, and row housing.

Recent Developments

• December 2022- Utilizing low-carbon materials, NKT created low-voltage power cables.
• January 2023- Oman Cables Industry, a leading company in the energy cable systems industry, part of Prysmian Group, launched the Global Sustainability Academy, involving 29,000 employees in over 50 countries.