Low Voltage Cables & Accessories Market Share

Low Voltage Cables & Accessories Market Share Analysis

The share of renewable energy in the electricity generation mix is expected to grow at a significant rate over the next few years. The rise in population, rapid development in urbanization, growing infrastructure activities, and increased access to electricity have severely impacted the environment. Several countries across the world, including India, the US, Germany, and Saudi Arabia, are trying to generate electricity through clean energy sources such as wind, solar, hydro and biomass energy and have set targets to increase the generation capacity of renewable energy generation sources to increase the share of renewable energy in the power generation mix. For instance, according to the International Renewable Energy Agency (IRENA), in the US, under the current policies and investment scenario, the share of renewable energy in the country’s total energy generation capacity is expected to reach 10% by 2030. In 2019, the Saudi Arabian government set a target to generate 60GW of energy from renewable by 2030. Additionally, according to the Federal Ministry for Economic Affairs and Energy, the German government set a target to have a 40–45% share of renewable energy in the country’s total electricity consumption by 2025. The increasing share of renewable energy sources is expected to fuel the demand for low voltage cables as they are used for the transmission and distribution of electricity.

Furthermore, the increasing production of oil and gas will also support the market's growth. The main reason behind the increasing exploration and production of oil & gas is the rising demand for oil and gas from end-use such as power generation and automobile fuel. The increasing oil exploration activities require a continuous and reliable power supply, which in turn will propel the demand for low voltage cables and accessories. For instance, in August 2019, Pemex (Mexico), an oil company operating in the Gulf of Mexico, announced its decision to invest USD 10 million for the onshore and offshore oil field development in the Gulf of Mexico.

Thus, the increasing share of renewable energy in the power generation mix and the increasing exploration and production of oil & gas are expected to drive the growth of the global low voltage cable & accessories market during the forecast period.