The power and control cable market was valued at approximately US$ 126.78 billion in 2022 and is projected to grow to around US$ 226.32 billion by 2030, reflecting an estimated compound annual growth rate (CAGR) of 7.5% from 2022 to 2030.
In Europe, the power and control cable market is divided into several key countries, including Germany, France, Italy, the UK, Russia, and other European nations. The electricity transmission networks across Europe have become increasingly interconnected, resulting in one of the largest transmission and distribution (T&D) systems globally. The region has made substantial investments in enhancing its T&D infrastructure. These advancements facilitate improved revenue sharing and energy distribution among member states, creating opportunities that drive the demand for various cables necessary for upgrading the grid.
The rising electricity demand in countries such as China, Japan, India, South Korea, and Australia is significantly boosting the power and control cable market in the Asia Pacific region. Additionally, industries in Asia Pacific are focusing on enhancing operational efficiencies and expanding existing power capacities and infrastructure, leading to a higher adoption of power and control cables across various sectors. The robust electrification rates and increasing power requirements are anticipated to further accelerate market growth in the upcoming years.
In the Middle East and Africa (MEA), the infrastructure sector is experiencing notable growth. Many Middle Eastern nations are diversifying their income sources and prioritizing infrastructure development across various sectors. The energy sector stands out as a particularly promising area, contributing to the expansion of the power and control cable market in the MEA region. Similarly, South America is concentrating on enhancing its energy production capabilities to meet the growing electricity demand, which further stimulates the growth of the power and control cable market in that region.
North America Power and Control Cable Market
North America includes major economies such as the United States, Canada, and Mexico. According to the World Bank, the region has a population of approximately 500 million, with a continually rising demand for electricity. This increasing demand necessitates the upgrading and expansion of the region's T&D grids, thereby enhancing the market share for power and control cables. Moreover, smart grid technologies are being rapidly adopted in Canada and Mexico to modernize the secure and efficient delivery of electricity.
The electric grid in the United States comprises over 9,200 generating units, producing more than 1 million megawatts of capacity, interconnected by approximately 965,600 kilometers of transmission lines. Despite this extensive infrastructure, the demand for electricity remains unmet. Consequently, the U.S. Department of Energy (DoE) is actively working to enhance the electricity supply infrastructure through initiatives like the Grid Modernization Initiative (GMI). In August 2023, the DoE announced an investment of up to US$ 39 million for projects at its National Laboratories aimed at modernizing the electricity grid. This includes the Medium Voltage Resource Integration Technologies (MERIT) project, spearheaded by Oak Ridge National Laboratory (ORNL), which focuses on developing cost-effective, modular, and scalable medium voltage technologies to integrate various distributed energy resources, such as solar and wind, into the grid. Additionally, in April 2023, the DoE announced another funding opportunity of US$ 38 million for the Power and Controls Electronics (PACE) project, which aims to address gaps in smart medium voltage electrical interfaces essential for a modernized grid. Such government initiatives are significantly driving the demand for various cables in the U.S., thereby propelling the power and control cable market.
The Canadian government asserts that electricity systems will be fundamental to the country?s transition to a net-zero economy and is committed to meeting its emissions reduction targets under the Paris Agreement. To this end, the government is encouraging the adoption of electric vehicles (EVs) and consumer electronics among industry stakeholders. In May 2022, Stellantis announced a US$ 2.8 billion investment in two Canadian EV manufacturing plants to enhance production capacity. The governments of Canada and Ontario supported this initiative with investments of up to US$ 410.7 million and US$ 398 million, respectively, aimed at bolstering domestic EV production and alleviating supply chain issues. As EV adoption rises, the infrastructure for EV charging is also expanding. Furthermore, there is a growing preference among consumers for electric heat pumps over traditional gas-powered options, which is increasing electricity consumption. These factors collectively drive the demand for various power and control cables, thereby fostering market growth in the region.
Mexico's electricity T&D infrastructure is undergoing development, which directly impacts the country's clean energy transition strategy. The government is focused on modernizing and expanding its electrical infrastructure to satisfy the energy needs of various industries. In April 2023, the Mexican government agreed to acquire 13 power plants from the Spanish energy company Iberdrola in a deal valued at approximately US$ 6 billion. Following the COVID-19 pandemic, which disrupted supply chains, Mexico has been working on providing a "nearshoring" solution for corporations. According to estimates from the Inter-American Development Bank (IDB) in 2022, Mexico's nearshoring potential could reach US$ 35.3 billion annually. U.S.-based companies in critical industries, such as batteries, minerals, medical devices, and semiconductors, are looking to mitigate future supply chain challenges by favoring manufacturing in neighboring countries.
Additionally, the Inflation Reduction Act of 2022, enacted in the U.S., allocated US$ 369 billion for investments in sustainable energy and electric battery technology, which also supports nearshoring initiatives. These opportunities are expected to enhance the growth of Mexico's industrial sector in the coming years, leading to increased demand for various power and control cables and further stimulating the market.
Key players in the power and control cable market include Encore Wire Corporation, Furukawa Electric Co Ltd, Hengtong Group, Leoni AG, LS Cable and System Ltd, Nexans SA, Prysmian Group, Riyadh Cables Group, Southwire Company LLC, and Sumitomo Electric Industries Ltd. Numerous other significant market participants were also analyzed during this market research study.