|
Forecast Period
|
2024-2028
|
|
Market Size (2022)
|
USD 37.08 Billion
|
|
CAGR (2023-2028)
|
5.19%
|
|
Fastest Growing Segment
|
Medium
Voltage
|
|
Largest Market
|
Asia
Pacific
|
Market Overview
Global Overhead DC Electric Cable Market
was valued at USD 37.08 billion in 2022 and is anticipated to project robust
growth in the forecast period with a CAGR of 5.19% through 2028. The Overhead
DC Electric Cable market refers to the global industry segment focused on the
production, distribution, and utilization of high-voltage direct current (HVDC)
cables designed for above-ground, aerial transmission of electrical power.
These cables are an essential component of modern electrical infrastructure,
facilitating the efficient, long-distance transmission of electricity from
power generation sources to demand centers. Overhead DC Electric Cables are characterized
by their ability to transmit electricity in a unidirectional manner, minimizing
energy losses during transport compared to traditional alternating current (AC)
cables. This market encompasses a wide range of cable types, including overhead
transmission lines, conductors, insulators, and support structures. Key drivers of this market include the
integration of renewable energy sources, urbanization and infrastructure
development, energy efficiency initiatives, cross-border power trading,
electrification of transportation, and ongoing technological advancements.
Governments, utilities, and private sector players collaborate to meet the
increasing demand for electricity, enhance grid reliability, and reduce
environmental impacts. The Overhead DC
Electric Cable market plays a crucial role in modernizing power grids,
supporting renewable energy integration, and ensuring a stable and efficient
supply of electricity across local, regional, and international scales.
Key Market Drivers
Renewable
Energy Integration
The
integration of renewable energy sources, such as wind and solar power, into the
global energy mix is a significant driver of the Overhead DC Electric Cable
market. As nations strive to reduce greenhouse gas emissions and transition
away from fossil fuels, they are increasingly investing in renewable energy
infrastructure. Overhead DC Electric Cables are crucial in transmitting
electricity generated from remote renewable energy sites to urban centers where
the demand for power is highest.
One
of the primary reasons for the preference for DC cables in renewable energy
projects is their efficiency. DC transmission allows for long-distance
electricity transport with minimal energy losses compared to traditional AC
transmission. This efficiency is especially important for offshore wind farms
and solar installations in desolate regions.
Furthermore,
the modularity and scalability of Overhead DC Electric Cables make them
adaptable to various renewable energy projects. Whether it's connecting solar
arrays in the desert or offshore wind turbines in the open sea, DC cables can
be customized to suit the specific needs of each installation.
Urbanization
and Infrastructure Development
Rapid
urbanization and the development of new infrastructure are driving the demand
for Overhead DC Electric Cables. As more people migrate to cities, the demand
for electricity in urban areas increases significantly. To meet this demand,
power distribution networks must be expanded and modernized, often requiring
the installation of overhead DC cables.
Overhead
DC cables offer several advantages in urban settings. They are less invasive
during installation, require fewer rights-of-way, and can be suspended above
roads and buildings, minimizing disruption to densely populated areas.
Additionally, they are known for their reliability, ensuring a steady power
supply to urban residents and businesses.
The
growing need for electric vehicle (EV) charging infrastructure in cities is
another factor contributing to the demand for Overhead DC Electric Cables. As
EV adoption continues to rise, the installation of charging stations requires
efficient power distribution, which DC cables are well-suited to provide.
Energy
Efficiency and Grid Modernization
Energy
efficiency and grid modernization efforts are key drivers in the Overhead DC
Electric Cable market. Aging power grids in many regions are in dire need of
upgrading to meet the demands of the 21st century. DC cables play a vital role
in grid modernization projects due to their superior energy efficiency.
Compared
to AC transmission, DC transmission experiences fewer losses, especially over
long distances. This reduction in energy losses translates to cost savings and
a more sustainable power distribution network. Governments and utilities are
increasingly investing in grid modernization projects that involve the
replacement or augmentation of existing AC infrastructure with Overhead DC
Electric Cables.
Furthermore,
the ability to integrate DC cables with advanced technologies such as
high-voltage direct current (HVDC) systems and smart grid solutions further
enhances the efficiency and reliability of power transmission and distribution.
Cross-Border
Power Trading
Cross-border
power trading has become a critical aspect of global energy markets, and
Overhead DC Electric Cables are instrumental in facilitating this exchange of
electricity resources. Neighboring countries often collaborate to balance their
energy supply and demand, harnessing surplus power from one region to meet
shortages in another.
Overhead
DC cables excel in cross-border power trading scenarios because of their
capacity for long-distance transmission without significant energy losses. This
enables nations to exchange electricity efficiently and economically,
contributing to grid stability and reducing reliance on local energy sources.
Moreover,
cross-border power trading encourages the diversification of energy sources,
which can enhance energy security and reduce the environmental impact of power
generation. As countries seek to optimize their energy resources and reduce
carbon emissions, the demand for Overhead DC Electric Cables in cross-border
transmission projects continues to grow.
Electrification
of Transportation
The
global shift toward electrification of transportation, including electric
vehicles (EVs) and electrified railways, is driving the demand for Overhead DC
Electric Cables. The widespread adoption of EVs requires the establishment of
robust charging infrastructure, which relies on efficient power distribution
systems.
Overhead
DC Electric Cables are essential for the installation of charging stations
along highways, in parking lots, and within urban centers. These cables enable
the rapid charging of EVs, supporting the growth of this environmentally
friendly mode of transportation.
In
addition to EVs, electric railways are gaining popularity for their efficiency
and reduced carbon footprint. Overhead DC Electric Cables provide the necessary
power supply for electrified rail networks, ensuring the smooth operation of
trains while minimizing emissions and noise pollution.
As
governments and transportation authorities invest in electrified transportation
options, the demand for Overhead DC Electric Cables in this sector is poised to
increase significantly.
Technological
Advancements
Technological
advancements in cable design and materials are driving innovation in the
Overhead DC Electric Cable market. These innovations are improving the
performance, efficiency, and reliability of overhead DC cables, making them
even more appealing for various applications.
One
notable advancement is the development of high-temperature superconductors,
which can significantly reduce energy losses during transmission. These
superconductors enable the creation of more efficient and compact DC cable
systems, especially for long-distance and high-capacity applications.
Furthermore,
ongoing research and development efforts are focused on improving cable
materials, insulation, and manufacturing techniques, leading to cables that can
operate under extreme conditions, such as high temperatures or harsh weather.
These advancements expand the range of environments where Overhead DC Electric
Cables can be deployed.
In
conclusion, the global Overhead DC Electric Cable market is influenced by
several significant drivers, including the integration of renewable energy,
urbanization, energy efficiency, cross-border power trading, electrification of
transportation, and ongoing technological advancements. These factors
collectively contribute to the increasing demand for Overhead DC Electric
Cables in various sectors and regions, making them a pivotal component of
modern electrical infrastructure.
Government Policies are Likely to
Propel the Market
Renewable
Energy Mandates and Incentives
Governments
around the world are implementing policies to promote renewable energy sources
as part of their efforts to combat climate change and reduce carbon emissions.
One of the most significant policies in this regard is the establishment of
renewable energy mandates and incentives.
Renewable
energy mandates require utilities and energy providers to obtain a certain
percentage of their electricity from renewable sources. To facilitate this
transition, governments often offer incentives such as tax credits, subsidies,
and feed-in tariffs to encourage the development of renewable energy projects.
These
policies have a direct impact on the Overhead DC Electric Cable market because
they drive the demand for cables that can efficiently transmit electricity
generated from renewable sources like wind and solar farms to urban centers. As
the renewable energy sector continues to grow, the need for high-capacity and
long-distance transmission using Overhead DC Electric Cables becomes
increasingly essential.
Grid
Modernization Initiatives
Many
governments are recognizing the need to modernize their electrical grids to
enhance efficiency, reliability, and sustainability. Grid modernization
initiatives involve the upgrade or replacement of aging infrastructure with
advanced technologies, including high-voltage direct current (HVDC)
transmission systems that rely on Overhead DC Electric Cables.
To
support these initiatives, governments allocate funding, establish regulatory
frameworks, and incentivize utilities to invest in grid modernization projects.
They recognize that modernizing the grid can improve energy efficiency, reduce
transmission losses, and integrate renewable energy sources seamlessly.
The
demand for Overhead DC Electric Cables is directly linked to these policies, as
they are a fundamental component of HVDC systems used in grid modernization
efforts. Governments play a pivotal role in shaping the direction of these
projects, making it a crucial factor for cable manufacturers and the broader
electrical industry.
Environmental
Regulations and Emissions Reduction Targets
Governments
worldwide are implementing stringent environmental regulations and emissions
reduction targets to combat climate change and minimize air pollution. These
policies often focus on reducing greenhouse gas emissions and transitioning to
cleaner energy sources.
To
achieve these goals, governments may impose emissions caps on power plants,
promote the use of renewable energy, and encourage the electrification of
transportation. All these measures necessitate an efficient power distribution
system, which relies on Overhead DC Electric Cables for long-distance
transmission of clean electricity.
As
environmental regulations become more stringent, the demand for renewable
energy and efficient electrical infrastructure increases, directly impacting
the Overhead DC Electric Cable market. Cable manufacturers must comply with
environmental standards, and the adoption of cleaner energy sources accelerates
the deployment of DC transmission systems.
Trade
and Tariff Policies
Trade
and tariff policies can significantly influence the Overhead DC Electric Cable
market, especially for cable manufacturers that operate in a global market.
Government decisions on import/export tariffs, trade agreements, and trade
restrictions can impact the cost and availability of materials and components
used in cable manufacturing.
Trade
policies may also affect the competitive landscape by promoting or hindering
the entry of foreign cable manufacturers into domestic markets. Additionally,
government incentives for local production can influence sourcing decisions for
cable manufacturers.
Cable
manufacturers must stay informed about trade and tariff policies in various
regions to make informed business decisions, adapt to changing market dynamics,
and remain competitive in a global market.
Infrastructure
Investment and Economic Stimulus Packages
Government
policies related to infrastructure investment and economic stimulus packages
can have a direct impact on the Overhead DC Electric Cable market. During
periods of economic downturn or as part of long-term development plans,
governments often allocate substantial funds to infrastructure projects,
including the expansion and upgrade of electrical grids.
These
investments can lead to a surge in demand for Overhead DC Electric Cables, as
they are a critical component of modernizing and expanding electrical
infrastructure. As governments prioritize infrastructure development to create
jobs and stimulate economic growth, cable manufacturers may experience
increased orders and production.
For
cable manufacturers, it is essential to monitor government infrastructure
investment plans and engage with relevant authorities to secure contracts and
ensure their products align with government specifications and standards.
Energy
Security and Supply Reliability
Governments
recognize the importance of energy security and supply reliability as critical
components of national infrastructure. Policies aimed at ensuring a stable and
resilient energy supply can have a significant impact on the Overhead DC
Electric Cable market.
To
enhance energy security, governments may invest in interconnectors and backup
transmission infrastructure, which often rely on Overhead DC Electric Cables
for efficient power transfer. These policies prioritize the development of
redundant transmission networks to mitigate the risk of power disruptions
caused by natural disasters, cyberattacks, or other unforeseen events.
In
conclusion, government policies play a pivotal role in shaping the global
Overhead DC Electric Cable market. Policies related to renewable energy, grid
modernization, environmental regulations, trade, infrastructure investment, and
energy security can significantly influence the demand for and adoption of
Overhead DC Electric Cables. Cable manufacturers must closely monitor and adapt
to these policies to navigate the evolving landscape of the global electrical
infrastructure market successfully.
Download Free Sample Report
Key Market Challenges
Technological Advancements and
Compatibility
One of the primary challenges in the
global Overhead DC Electric Cable market is keeping up with the rapid pace of technological
advancements and ensuring compatibility with existing infrastructure. As
technology evolves, newer and more efficient cable designs and materials are
continually being developed. While these innovations offer the promise of
improved performance, efficiency, and cost-effectiveness, they also present
challenges for cable manufacturers and grid operators.
Firstly, incorporating new technologies
into existing grid infrastructure can be complex and costly. Grids are
long-lived assets with decades-long lifecycles, and making changes to
accommodate new cable technologies often requires extensive planning and investment.
For example, upgrading an overhead AC transmission line to an HVDC line with
advanced materials and insulation can be a complex undertaking, involving not
only the cables themselves but also associated equipment and substations.
Secondly, ensuring compatibility between
different generations of cables and equipment is crucial. Older cables may need
to coexist with newer ones for years, necessitating standardization efforts and
careful integration. Grid operators must also ensure that maintenance and
repair protocols are consistent, regardless of cable age and technology.
Additionally, the global nature of the
market means that compatibility challenges can vary by region. Different
countries may adopt different cable technologies and standards, making it
necessary to develop adaptable solutions that can function seamlessly in
diverse environments.
Addressing these technological
advancement and compatibility challenges requires collaboration between cable
manufacturers, grid operators, and regulatory bodies. Industry standards must
evolve to accommodate new technologies and guidelines for retrofitting existing
infrastructure should be developed to minimize disruptions and costs.
Environmental and Regulatory Concerns
The global Overhead DC Electric Cable
market faces significant challenges related to environmental and regulatory
concerns. As governments and societies worldwide prioritize sustainability and
environmental protection, the cable industry must navigate a complex landscape
of regulations and expectations.
One of the key environmental challenges
is mitigating the impact of overhead DC cables on ecosystems and landscapes.
The installation of transmission lines, particularly in ecologically sensitive
areas, can raise concerns about habitat disruption, visual aesthetics, and
potential harm to wildlife, including birds and other fauna.
To address these concerns, cable
manufacturers and project developers often invest in environmental impact
assessments and mitigation measures. This may involve burying cables
underground to reduce visual impact, implementing bird-safe designs, and working
closely with environmental agencies to ensure compliance with regulations.
Regulatory challenges are another
critical issue. Governments worldwide enact regulations to ensure the safety,
reliability, and performance of electrical infrastructure. Compliance with
these regulations can be a complex and resource-intensive process, as different
regions may have unique standards and requirements.
Furthermore, regulatory changes can
impact the cost structure and competitiveness of cable manufacturers. For
instance, stricter environmental regulations may require the adoption of more
environmentally friendly materials or production processes, which can affect
production costs.
Navigating these environmental and
regulatory challenges requires a proactive and adaptive approach. Cable
manufacturers must engage with regulatory authorities, environmental
organizations, and local communities to address concerns and find solutions that
strike a balance between meeting energy needs and protecting the environment.
Developing and adhering to industry best practices for environmental impact
assessment and mitigation is essential to gaining public trust and regulatory
approval for new projects. Additionally, staying informed about evolving
regulations and proactively adapting production processes can help cable
manufacturers remain compliant and competitive in the global market.
Segmental Insights
High voltage Insights
The High voltage segment held the
largest market share in 2022 & expected to maintain it in the forecast
period. HVDC (High Voltage Direct Current) cables are exceptionally efficient
at transmitting electricity over extended distances. They experience lower
resistive losses compared to medium and low voltage cables. This efficiency is
crucial for transmitting electricity from remote power generation sources, such
as offshore wind farms and remote solar installations, to urban centers where
the demand is high. Capacity for Bulk Power Transfer: HVDC cables have a higher
power-carrying capacity compared to medium and low voltage cables. This makes
them well-suited for projects involving the transfer of large volumes of
electricity, such as cross-border power trading, interconnections between
regions or countries, and the integration of massive renewable energy
installations. Many governments and utilities are investing in grid
modernization efforts, which often involve the deployment of HVDC transmission
systems. These systems enhance grid stability, reduce energy losses, and allow
for the efficient integration of renewable energy sources, which are typically
located far from urban demand centers. HVDC cables are typically more
cost-effective on a per-unit basis when considering the power capacity they can
carry over long distances. This cost advantage becomes more pronounced for
large-scale transmission projects, encouraging their use in mega-projects like
transcontinental power links. The reduced energy losses associated with HVDC
transmission contribute to a lower environmental footprint. Less wasted energy
means fewer emissions and a more sustainable energy transmission system,
aligning with global efforts to combat climate change. Ongoing advancements in
HVDC cable technology, including the development of high-temperature
superconductors and improved materials, continue to enhance their efficiency
and performance. HVDC cables are essential for the integration of renewable
energy into the grid, facilitating the transfer of clean energy from areas with
abundant resources to regions with high electricity demand.
Conductor Insights
The Conductor segment held the largest
market share in 2022 and is projected to experience rapid growth during the
forecast period. Conductors are at the core of any electric cable system,
serving as the pathway for the flow of electrical current. In the case of
Overhead DC Electric Cables, they are specifically designed to efficiently
transmit direct current (DC) over long distances. Their primary function is to
carry electricity from the power generation source to end-users or substations.
The conductor's material and design directly impact the efficiency of power
transmission. High-quality conductors are engineered to minimize energy losses
during transmission, ensuring that a significant portion of the electricity
generated reaches its intended destination. The efficiency of conductors is
particularly crucial for long-distance power transmission projects, such as
those involving renewable energy sources located far from urban centers. Overhead
DC Electric Cables come in various configurations, and the choice of conductor
material and design can be tailored to meet specific project requirements. The
flexibility in conductor selection allows for the optimization of performance,
capacity, and efficiency based on factors like voltage requirements, distance,
and environmental conditions. Ongoing research and development efforts continue
to enhance conductor materials and designs, further improving their efficiency
and performance. Innovations in conductor technology, such as the use of
high-temperature superconductors, contribute to reducing energy losses during
transmission, making them even more crucial in modern power infrastructure. Overhead
DC Electric Cables are often used for high-voltage, long-distance transmission
projects. High-voltage transmission lines require specialized conductors
capable of withstanding high electrical stress and environmental conditions.
This further underscores the importance of conductors in the overall system. Conductors are engineered for durability and
reliability, ensuring consistent and safe power transmission. This reliability
is critical for the stability of electrical grids and the delivery of
electricity to homes, businesses, and industries. While conductors are a
significant investment in any overhead DC electric cable project, they offer
cost-effectiveness over the long term due to their efficiency in reducing
energy losses. The economic advantages of using high-quality conductors align
with the financial goals of power utilities and project developers.
Download Free Sample Report
Regional Insights
Asia Pacific
Asia Pacific was the largest market for
overhead DC electric cables, accounting for over 40% of the global market in
2022. The growth of the market in the region is driven by the increasing demand
for renewable energy and the growing investment in new power infrastructure.
Some of the key markets in the Asia Pacific region include China, India, Japan,
and South Korea.
China
is the largest market for overhead DC electric cables in the world. The growth
of the market in China is driven by the increasing demand for renewable energy
and the growing investment in new power infrastructure. Some of the major
players in the Chinese market include ABB, Prysmian Group, and NKT.
India
is the second-largest market for overhead DC electric cables in the Asia
Pacific region. The growth of the market in India is driven by the increasing
demand for renewable energy and the growing investment in new power
infrastructure. Some of the major players in the Indian market include ABB,
Prysmian Group, and LS Cable & System.
North America
North America was the second-largest
market for overhead DC electric cables, accounting for over 30% of the global
market in 2022. The growth of the market in the region is driven by the
increasing demand for the interconnection of power grids and the growing
investment in offshore wind power. Some of the key markets in the North America
region include the United States and Canada.
The
United States is the largest market for overhead DC electric cables in the
North America region. The growth of the market in the United States is driven
by the increasing demand for interconnection of power grids and the growing
investment in offshore wind power. Some of the major players in the US market
include ABB, Prysmian Group, and NKT.
Europe
Europe was the third-largest market for
overhead DC electric cables, accounting for over 20% of the global market in
2022. The growth of the market in the region is driven by the increasing demand
for renewable energy and the growing investment in the interconnection of power
grids. Some of the key markets in the Europe region include Germany, the United
Kingdom, France, and Italy.
Germany
is the largest market for overhead DC electric cables in the Europe region. The
growth of the market in Germany is driven by the increasing demand for
renewable energy and the growing investment in the interconnection of power
grids. Some of the major players in the German market include ABB, Prysmian
Group, and Siemens.
Recent Developments
- ABB
announced an investment of USD 100 million in its HVDC cable manufacturing
facility in Karlskrona, Sweden. This investment will expand the company's
production capacity for HVDC cables and create new jobs.
- Prysmian
Group acquired General Cable for USD 3.1 billion. This acquisition will make
Prysmian Group the world's largest cable manufacturer and strengthen its
position in the overhead DC electric cable market.
- NKT
announced the construction of a new HVDC cable manufacturing facility in
Cologne, Germany. This facility will be one of the largest HVDC cable
manufacturing facilities in the world and is expected to start production in
2025.
- Nexans
announced the construction of a new HVDC cable manufacturing facility in
Charleston, South Carolina. This facility is expected to start production in
2023.
Key Market Players
- ABB Ltd
- Prysmian
Group
- NKT A/S
- Nexans S.A.
- Siemens AG
- Hitachi,
Ltd.
- LS Cable
& System Ltd.
- Southwire
Company
- Sumitomo
Electric Industries, Ltd.
- Mitsubishi
Electric Corporation
|
By Voltage Rating
|
By Component
|
By End User
|
By Region
|
- High voltage
- Medium voltage
- Low voltage
|
- Conductor
- Insulators
- Fittings & Accessories
|
- Utilities & Power Grids
- IT & Telecom
- Automotive & Transportation
- Electronics
|
- North America
- Europe
- Asia Pacific
- South America
- Middle East & Africa
|
Report Scope:
In this report, the Global Overhead DC Electric
Cable Market has been segmented into the following categories, in addition to
the industry trends which have also been detailed below:
- Overhead DC Electric Cable
Market, By Voltage Rating:
o High voltage
o Medium voltage
o Low voltage
- Overhead DC Electric Cable
Market, By Component:
o Conductor
o Insulators
o Fittings & Accessories
- Overhead DC Electric Cable
Market, By End User:
o Utilities & Power Grids
o IT & Telecom
o Automotive & Transportation
o Electronics
- Overhead DC Electric Cable
Market, By Region:
o North America
§ United States
§ Canada
§ Mexico
o Europe
§ France
§ United Kingdom
§ Italy
§ Germany
§ Spain
o Asia-Pacific
§ China
§ India
§ Japan
§ Australia
§ South Korea
o South America
§ Brazil
§ Argentina
§ Colombia
o Middle East & Africa
§ South Africa
§ Saudi Arabia
§ UAE
§ Kuwait
§ Turkey
Competitive Landscape
Company Profiles: Detailed analysis of the major companies present in the Global Overhead
DC Electric Cable Market.
Available Customizations:
Global Overhead DC Electric Cable market report
with the given market data, Tech Sci Research offers customizations according
to a company's specific needs. The following customization options are
available for the report:
Company Information
- Detailed analysis and
profiling of additional market players (up to five).
Global Overhead DC Electric Cable Market is an
upcoming report to be released soon. If you wish an early delivery of this
report or want to confirm the date of release, please contact us at [email protected]