Medium Voltage Cable Accessories Market Size, Share & Trends Analysis Report By Product Type (Cable joints and Splice, Connectors, Separable, Terminations, Others), By Technology (Heat Shrink, Cold Shrink, Pre-molded Terminations), By Installation (Overhead, Underground, Submarine), By Industry Vertical (Railways, Construction, Private Utilities, Cement, Marine, Government Utilities, Oil and Gas, Healthcare, Fertilizer, Steel, Others) and By Region(North America, Europe, APAC, Middle East and Africa, LATAM) Forecasts, 2022-2030

Market Overview

The Total Addressable Market (TAM) for Medium Voltage Cable Accessories was valued at USD 16.43 billion in 2021. It is projected to reach USD 25.49 billion by 2030, growing at a CAGR of 5% during the forecast period (2022–2030).

Accessories for cables are made to connect cables and insulate conductors from earth contact. They aid in making cables more durable, stronger, and resistant to deterioration and erosion brought on by ultraviolet (UV) light, environmental stress, and other mediums. This contributes to the reliable operation of underground and overhead installations for longer operating life. Due to these advantages, cable accessories are frequently used in constructing transmission and distribution (T&D) networks for telephone, internet, and electrical systems.

The end-user industries include renewable energy, infrastructure, manufacturing, mining and metals, petrochemical, and other sectors, OEMs producing power cables and accessories, and distributors making up the market ecosystem. Raw material suppliers (copper, silver, aluminum, and insulation) are also included. This results in a horizontal market with upstream and downstream industry verticals.

Market Dynamics

Market Drivers

Increasing Investments by Governments to Upgrade the Existing Power Grid

The government of many nations, including the United States, China, Germany, and India, have made significant investments in power cables and accessories, particularly medium voltage, to upgrade the nation's infrastructure. Government agencies have made several improvements to the nation's power grid and consumer power supply, which has increased demand for medium-voltage cable accessories. Additionally, governments are concentrating on building power plants using renewable energy sources by the Paris Agreement, which fuels demand for the global market for medium voltage cable accessories. These accessories are used to connect new plants with existing electrical grids.

Growing Investments in Construction Sector

The construction industry is expanding quickly, especially in developing nations like India, China, and Brazil, where public and private market players are becoming more active. Some key factors driving the construction industry are industrial corridors, the creation of smart cities, and the rise in demand for commercial spaces like hotels, offices, retail stores, and entertainment venues. The growth of medium voltage cable accessories is directly correlated with growth in the construction industry. As a result, the market for medium voltage cable accessories is anticipated to experience strong demand during the forecast period.

Market Restraint

High Failure Rate in Medium Voltage Cable Accessories

The majority of medium voltage cable accessories are installed using heat shrink technology. Manufacturing facilities can pre-test it for quality because they need a hot gun. A survey by Kema Labs found that the failure rate of medium-voltage cable accessories is significantly higher than that of low-voltage and high-voltage cable accessories. The leading cause is improper material handling during the heat shrink process. Additionally, it is discovered that installation-related issues are the leading cause of medium voltage cable accessories. Due to the high failure rate of medium-voltage cable accessories, producers are under a lot of pressure to make low-voltage or high-voltage cable accessories. As a result, it restricts the market's expansion for medium voltage cable accessories in India.

Market Opportunities

Increasing Number of Data Centers

To enable quick data transmission, data centers house tens of thousands of computers with large storage capacities and powerful transmitting equipment. The unprecedented expansion of the IT industry has led to the construction of numerous new data centers worldwide. In the next three years, India is expected to have at least 28 more large hyper-scale data centers, according to a report published by Anarock-Mace. The capacity for handling data is also anticipated to increase by 100 by 2030. The demand for medium-voltage cables and their accessories is rising as the number of new data centers rises. This increase is anticipated to accelerate market growth in the upcoming years.

Regional Analysis

Asia-Pacific Dominates the Global Market

The global medium voltage cable accessories market is bifurcated into four regions, namely North America, Europe, Asia-Pacific, and LAMEA.

Asia-Pacific is the most significant shareholder in the global medium voltage cable accessories market and is expected to grow at a CAGR of 5.9% during the forecast period. Japan, India, China, and the rest of Asia-Pacific are all included in the analysis of the Asia-Pacific market. The increase in the use of electric vehicles and the demand for electric goods in India, China, and South Korea are the main drivers of the medium voltage cable accessories market in the Asia-Pacific region. Due to an increase in governmental initiatives, green energy is anticipated to grow in this area. This is expected to accelerate the market for medium-voltage cable accessories. According to market share estimates, Asia-Pacific is expected to hold a sizeable portion of the market for medium-voltage cable accessories.

North America is expected to grow at a CAGR of 5.0% during the forecast period. The major EV manufacturers in North America, including Tesla, Hyundai Motors, General Motors Company, Nissan, and Mercedes-Benz, have significantly invested in the rapidly expanding electric vehicle market. In addition, Tesla intends to use medium voltage cable accessories and other key EV technologies to connect with the urban environment. The demand for electric solutions has increased due to technological advancements in various industries, such as the cement and healthcare sectors, which has increased the need for medium-voltage cable accessories in the North American region. Large companies in the area are providing high-tech medium-voltage cable solutions, which is anticipated to drive market growth for medium-voltage cable accessories.

The availability of EVs and biofuels throughout the region contributes to the market's expansion. Europe is implementing renewable energy for both the public and private sectors, which supports the market growth for medium voltage cable accessories. Adopting other renewable energies like hydro, wind, and solar is a growing factor, and biofuel has established itself as a reliable source in Germany. As a result, the medium voltage accessories market is expanding quickly in Europe. For instance, a government agency of the European Commission works tirelessly to promote renewable energy development, which fuels the demand for medium voltage cable accessories.

Brazil, Argentina, and other major Middle Eastern nations dominate the LAMEA region's energy market. The demand for renewable energy in LAMEA has increased significantly in recent years. Accelerated industrialization and urbanization are additional factors driving the demand for medium-voltage cables. In LAMEA, the adoption of cutting-edge technologies like electric vehicles and smart homes is very slow. Therefore, it is regarded as an untapped area with enormous potential. Future growth in the medium voltage cable accessories market is predicted to be significantly influenced by the Middle Eastern countries' rising demand for renewable energy.

Segmental Analysis

The market is segmented by product type, technology, installation, and industry vertical.

Based on product type, the global market is bifurcated into cable joints and splices, connectors, separable, terminations, and others.

The cable joints and splice segment is the highest contributor to the market and is expected to grow at a CAGR of 6.1% during the forecast period. Electricity is transmitted over long distances using cable joints to maintain the continuity of the cables. They must fit perfectly and be sturdy to withstand various conditions, including bad weather, connection voltage drops, current capacities, and material compatibility. A splice joins two or more conductors to create a mechanical and permanent electrical bond and can be finished using either the crimping or soldering procedure. Cable joints are used to join cables of different voltages together. These provide mechanical protection, electrical insulation, and cable strength. For connecting cables over long distances, cable joints are therefore necessary.

Electro-mechanical connectors serve as an interface to connect electrical circuits. These are made up of plugs with male ends and female ends for jacks and can be used to temporarily and permanently join circuits. Connectors come in various forms, including NEMA connectors, multiphase power plugs/sockets, and DC connectors. These connectors' primary purpose is to shield users from unintentional electric shock. Connectors are used in many types of equipment, including consumer electronics, military, space, and medical devices.

Based on technology, the global market is bifurcated into heat shrink, cold shrink, and pre-molded terminations.

The heat shrink segment owns the highest market share and is expected to grow at a CAGR of 5.9% during the forecast period. A material in the shape of a plastic tube that has been artificially expanded is used in heat shrink technology. When heat is applied, the tube contracts to protect cable junctions and terminations from moisture, dust, and other debris. Heat shrink technology is the insulation method that is most frequently used for medium-voltage cable accessories. With this technology, installing cable accessories takes much less time. However, it cannot be pre-tested in manufacturing facilities and requires a hot gun during installation. In addition, heat shrink cable accessories can be used for both protection and cosmetic changes. Heat shrink technology is anticipated to grow as a result of an increase in demand for cable accessories, dominating the market during the forecast period.

Materials with high elasticity at room temperatures, like silicone and rubber, are used in cold shrink technology. Except for the need for heat, this technology offers similar functionality to heat shrink technology. There are many uses for cold shrink technology, including in electrical installations and power systems. It is widely used when insulating wires, joints, connections, or terminals is necessary. It is also appropriate for operations with restricted installation space, particularly in industrial applications.

Based on the installation, the global market is bifurcated into overhead, underground, and submarine.

The overhead segment is the highest contributor to the market and is expected to grow at a CAGR of 3.5% during the forecast period. Electricity is transmitted and distributed over longer distances using overhead power lines. The use of overhead power transmission lines, primarily used by power plants to power remote outlying areas, has increased demand for overhead medium voltage cable accessories. Additionally, overhead lines are air-cooled and spaced widely, frequently circumvented for safety. Worldwide demand for power cable accessories has increased significantly due to industrialization. Overhead power lines are the most prevalent energy source in nations like India and other Asian countries, and electricity produced from fossil fuels is transmitted through overhead power lines.

In situations where installing overhead lines would be challenging, and their presence would be hazardous to people and the environment, underground cables are used instead. Additionally, there are times when cable joints or indoor terminations are situated in potentially wet environments. Underground cable accessories shield the cables from water, which can take many different forms and result in a severe power outage and cable failure. Heat- and cold-shrinkable terminations and joints are included with underground medium-voltage cable accessories. The underground medium voltage cable accessories market is also growing due to global industrialization.

Based on industry vertical, the global market is bifurcated into railways, construction, private utilities, cement, marine, government utilities, oil and gas, healthcare, fertilizer, steel, and others.

The government utility segment owns the highest market share and is expected to grow at a CAGR of 5.4% during the forecast period. Due to the government's primary goal of providing electricity to every consumer across various sectors, government utilities hold a sizeable share of the medium voltage cable accessories market. The government has implemented various initiatives and revised policies to improve the nation's overall infrastructure. For instance, Power for All and 100% FDI are two well-known programs the Indian government has adopted. Therefore, it is anticipated that the medium voltage cable accessories market will expand during the forecast period along with rising infrastructure investments. A rise in electricity demand, particularly from the industrial sector, is expected to fuel the growth of the market for medium-voltage cable accessories.

Electricity, telecom, and other private utilities are all included under private utilities. In the market for medium voltage cable accessories, private utilities dominate. With the rise in demand for an uninterrupted supply of electricity, the infrastructure needed for communication networks, and the increased need for electricity generation, private utilities are seeing lucrative opportunities in the market for medium-voltage cable accessories. The exponential population growth, increased industrialization, and business digitalization is some of the primary drivers of the development of the private utility segment during the forecast period. The emergence of 5G technology and digitalization are significant drivers of the telecom sector's expansion, putting pressure on key players to build the necessary infrastructure for spreading the internet and its services.

Impact of covid-19

Recent Developments

• August 2022- For Chuseok, LS C&S declared that it would perform "electrical safety inspections in traditional markets." Free remote cable management system installation is provided to prevent electrical accidents. Sharing with nearby communities and enhancing social safety on the internet.
• April 2022- The Konkan Railway Corporation, which recently finished electrifying its 741-kilometer route between Roha in Maharashtra and Thokur in Karnataka, received high and medium-voltage cables from KEI Wires & Cables for a total cost of Rs. 2,36,00,830.