High Voltage Cables and Accessories Market

High Voltage Cables and Accessories Market Size, Share, Growth Report & Forecast

[248 Pages Report] The global high voltage cables and accessories market is estimated to grow from USD 40.0 billion in 2023 to USD 52.5 billion by 2028; it is expected to record a CAGR of 5.6% during the forecast period.

Power utilities is one of the major end user of high voltage cables and accessories. Power utilities utilize high voltage cables to transmit electricity over long distances while minimizing power losses during transmission. This is anticipated to enhance the high voltage cables and accessories market size.

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High Voltage Cables and Accessories Market Growth Dynamics

Driver: Rising Investments in Electricity Grids

Investments in electricity grids have been on the rise in recent years as governments and energy companies recognize the need to modernize and upgrade their infrastructure to meet the increasing demand for electricity and support the transition to cleaner energy sources. High voltage cables play a crucial role in the expansion and enhancement of electricity grids. These cables are responsible for transmitting electricity at high voltages over long distances, connecting power generation sources, substations, and distribution networks. They also facilitate the interconnection of regional and national power grids, enabling the exchange of electricity across borders. Interconnections enhance grid stability, support energy trading, and contribute to a more reliable and resilient electricity supply. Moreover, governments are providing fiscal support to bolster spending on electricity networks as part of their response to the economic crisis triggered by the pandemic. This additional support is further contributing to the increased investment in electricity grids.

Restraint: High Cost of Installation and Repair of Underground and Submarine Cables

The installation and repair of underground and submarine cables can be quite costly, posing financial challenges for power transmission projects. This is primarily due to the complex nature of the installation process, the specialized equipment required, and the need for skilled personnel. The installation of underground cables involves excavation, trenching, and cable laying, requiring significant manpower and machinery. Special care must be taken to ensure the cables are properly protected and insulated, which adds to the overall cost. Submarine cable installation is an even more intricate and expensive process. It involves specialized vessels and equipment capable of laying cables on the seabed, often in challenging marine conditions. The cables need to be carefully routed and secured, considering factors such as water depth, seabed conditions, and potential hazards like shipping routes or marine wildlife habitats. The high costs associated with underground and submarine cable installations and repairs are primarily driven by the need for advanced technology, specialized materials, and skilled labor. These factors contribute to the overall project budget and can pose financial constraints for power transmission initiatives, especially for long-distance or large-scale projects.

Opportunities: Increasing Adoption of HVDC Submarine Power Cables

The utilization of HVDC (High Voltage Direct Current) submarine power cables is witnessing a notable surge due to their multitude of advantages in transmitting electricity over long distances across bodies of water. HVDC submarine cables offer a dependable and efficient solution for large-scale power transmission, presenting several benefits when compared to traditional HVAC (High Voltage Alternating Current) cables.  HVDC systems exhibit lower electrical losses compared to HVAC systems, resulting in improved energy efficiency. By employing HVDC technology, transmission losses are reduced, leading to enhanced efficiency and cost savings. HVDC submarine power cables also boast an augmented power transmission capacity. They have the capability to handle higher power loads compared to HVAC cables, making them well-suited for efficiently transmitting large quantities of electricity over significant distances. Furthermore, HVDC submarine cables contribute to improved grid stability and control. In addition to their technical benefits, HVDC submarine power cables also exhibit a reduced environmental impact compared to HVAC cables. HVDC submarine cables have a smaller physical footprint as they are laid on the seabed. This reduces conflicts related to land use and preserves sensitive ecosystems.

Challenges: Requirement of Technical Expertise for Development and installation

The development of efficient transmission and distribution (T&D) infrastructure is crucial to address energy security concerns and the need to expand power generation capacity in developing nations. The specific types of cables and accessories used in the high voltage cables and accessories market present unique challenges for utilities, wire and cable manufacturers, and material suppliers. The cable industry demands continuous technical innovations to improve system performance, optimize costs, and enhance power delivery. Considering all these factors, the power cable sector aims to ensure long-lasting performance of high voltage cables. This places pressure on supply chain participants to meet the high-quality requirements of high voltage cables and accessories for power and utility applications. Therefore, suppliers must allocate more resources to in-house research and development (R&D) in order to meet customer demands. This presents a challenge for suppliers operating in the high voltage cables and accessories market.

High Voltage Cables And Accessories Market Ecosystem

Leading companies in this market include well-established, financially secure producers of high voltage cables and accessories. These corporations have been long operating in the market and have a differentiated product portfolio, modern manufacturing technologies, and robust sales and marketing networks. Major companies in this market include Prysmian Group (Italy), Sumitomo Electric Industries Ltd. (Japan), Nexans (France), LS Cable & System Ltd. (South Korea), and NKT A/S (Denmark).

The 400 kV and above segment, is expected to be the fastest market by voltage during the forecast period.

By voltage, the high voltage cables and accessories market is divided into 72.5 kV, 123 kV, 145 kV, 170 kV, 245 kV, 400 kV and above. Bag filter is the fastest segment in the high voltage cables and accessories market. The adoption of 400kV and higher voltage cables is on the rise due to their ability to cater to the demands of major transmission projects and large-scale power generation initiatives. Additionally, the use of these high voltage cables proves cost-effective and allows for future scalability, accommodating expansions and upgrades in power infrastructure.

By industrial end user, the oil & gas segment is expected to be the largest segment during the forecast period

This report segments the high voltage cables and accessories market based on industrial end user into four segments: oil & gas, petrochemicals and chemicals, metals and mining, and others. The oil & gas segment is expected to be the largest segment during the forecast period. The adoption of high voltage cables has witnessed a significant increase in the oil and gas due to the industry's growing power demand requires efficient and reliable transmission of electricity over long distances. Subsea operations have increased the demand for high voltage cables that can withstand harsh underwater environments.

“Middle East & Africa”: The second-fastest in the high voltage cables and accessories market”

Middle East & Africa is expected to be the second-fastest high voltage cables and accessories market during the forecast period. As nations in this region are undergoing massive urbanization, there is a greater demand for reliable power transmission, which is enhancing the investment in development of high voltage transmission grids, further driving the high voltage cables and accessories market in Middle East & Africa.

Key Market Players

The high voltage cables and accessories market is dominated by a few major players that have a wide regional presence. The major players in the high voltage cables and accessories market are Prysmian Group (Italy), Sumitomo Electric Industries Ltd. (Japan), Nexans (France), LS Cable & System Ltd. (South Korea), and NKT A/S (Denmark). Between 2019 and 2023, strategies such as product launches, contracts, agreements, partnerships, collaborations, alliances, acquisitions, and expansions are followed by these companies to capture a larger share of the high voltage cables and accessories market.

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Scope of the Report

This research report categorizes the high voltage cables and accessories market by component, power source, application, and region.

On the basis of by product type:

• Cables
  • XLPE Cables (Cross-linked Polyethylene)
  • EPR Cables (Ethylene-Propylene Rubber)
  • HEPR Cables (High Modulus Ethylene-Propylene)
  • MI Cables (Mass Impregnated)
• Accessories
  • Cable Joints
  • Cable Terminations
  • Fittings & Fixtures
  • Others

On the basis of voltage:

• 72.5 kV
• 123 kV
• 145 kV
• 170 kV
• 245 kV
• 400 kV and above

On the basis of installation:

• Overhead
• Underground
• Submarine

On the basis of conductor type:

• Copper
• Aluminum

On the basis of end user:

• Power Utilities  
• Renewables      
• Industrial
  • Oil & Gas
  • Chemicals & Petrochemicals
  • Metals & Mining
  • Others

On the basis of region:

• Asia Pacific
• Europe
• North America
• Middle East & Africa
• South America

Recent Developments

• In May 2023, Prysmian Group made an announcement regarding the successful acquisition of a contract valued at over USD 864.9 million. This contract pertains to the development of a new power interconnection project between France and Spain, which will be executed for INELFE. INELFE is a joint venture equally owned by Red Electrica, the Spanish grid operator, and Réseau de Transport d’Électricité (RTE), the French grid operator.
• In April 2023, Nexans finalized the purchase of Reka Kaapeli Oy, for a total of USD 57.29 million. The integration of Reka Cables into Nexans' Distribution & Usage business group was included in the acquisition. Being a part of Nexans presents Reka Cables with the chance to enhance its growth and development, while also enabling increased investments in renewable energy solutions.
• In April 2023, Sumitomo Electric Industries, Ltd. revealed its plans to construct a fresh Power Cable facility in the Scottish Highlands, UK. This initiative aims to make a substantial impact on fostering local supply chains and advancing technologies in the UK within the renewable energy sector.
• In March 2023, Prysmian Group made an announcement regarding the acquisition of contracts from the Dutch transmission system operator TenneT. These contracts, with a total value of around USD 1.94 billion, are for two grid connection projects that aim to connect two upcoming offshore wind farms situated in the Dutch North Sea to the province of Zeeland in the Netherlands. The scope of the project includes various tasks such as design, engineering, manufacturing, installation, testing, and commissioning of two 525 kV HVDC submarine and land cable systems, along with all associated accessories.

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