Low Voltage Cable Market

Market Overview:

The global low voltage cable market size reached US$ 116.4 Billion in 2023. Looking forward, IMARC Group expects the market to reach US$ 194.1 Billion by 2032, exhibiting a growth rate (CAGR) of 5.7% during 2024-2032. The considerable growth in the automotive industry, rising trend of modernization of aging infrastructure, rapid automation and adoption of smart grids, and the growing emphasis on renewable energy integration are some of the factors propelling the market.

A low voltage cable, often referred to as LV cable, is an electrical cable specifically designed to conduct electricity at a voltage level suitable for applications requiring less energy. This type of cable is generally employed in residential, commercial, and industrial environments for energy needs that do not exceed 1000 volts. The structure of LV cables includes insulation materials to protect against environmental factors, conductors made of copper or aluminum to transfer electricity, and sheathing to provide additional safety. Their working mechanism involves the transmission of electrical current between low voltage electrical appliances and the power source, enabling a wide range of applications in lighting, heating, and powering small to medium devices.

The global market for LV cables is primarily driven by rapid urbanization and industrialization, that necessitates reliable and efficient energy solutions. In line with this, the growing emphasis on renewable energy integration requiring connecting solar panels and wind turbines is providing an impetus to the market. Moreover, the augmenting demand for energy-efficient solutions in residential and commercial buildings is acting as a significant growth-inducing factor for the market. In addition to this, continuous development in infrastructure, especially in emerging economies, is resulting in higher investment in LV cable solutions. Besides this, the rising focus on safety in electrical installations is creating lucrative opportunities in the market. The market is further driven by the global shift towards automation and smart grids, as well as regulations and standards emphasizing energy conservation. Apart from this, the expansion of telecommunication networks requiring LV cables for data transfer is propelling the market.

Low Voltage Cable Market Trends/Drivers:

Considerable growth in the automotive industry

The automotive industry is currently experiencing substantial growth, leading to an increased demand for LV cables for various manufacturing and electrification processes. This is particularly evident in the production of electric vehicles (EVs), where low voltage cables are a critical component. They connect various electrical parts and enable charging functionalities, ensuring that the vehicles operate efficiently and safely. The ongoing global shift towards cleaner and more sustainable transportation options has resulted in increased government incentives for EV production and usage. These incentives are having a profound influence on the market trends for LV cables, as the automotive industry increasingly turns to these components to meet the unique requirements of electric vehicle production. Manufacturers are responding by developing specialized LV cables that can handle the specific demands of automotive applications. In addition, the broader adoption of energy efficiency standards and sustainability goals within the automotive industry has created a conducive environment for innovation and growth in the LV cables market.

Rising trend of modernization of aging infrastructure

An enhanced focus on improving and expanding existing electrical networks is contributing substantially to the growth of the global market. Low voltage cables are central to the goal of ensuring safe and efficient energy distribution, and their importance cannot be overstated in the context of upgrading older power systems. Aging infrastructure often struggles with inefficiencies and can pose safety risks, thus necessitating immediate modernization. The process of upgrading these systems to meet current standards and demands requires the integration of modern technology, including LV cables, to ensure stability, reliability, and compliance with regulatory requirements. Governments and private entities are investing in infrastructure development projects, recognizing the crucial role that LV cables play in these endeavors. By fostering innovation and implementing stringent quality standards, the industry is working to meet the diverse and complex needs arising from the modernization of various infrastructures.

Rapid automation and adoption of smart grids

The transition to automated systems and the widespread adoption of smart grids are factors that heavily depend on LV cables, and this dependence is contributing to the market growth. The role of low voltage cables in the creation of interconnected, intelligent energy networks is pivotal. These cables enable more precise control, monitoring, and distribution of electricity, allowing for the optimization of efficiency and reduction of waste. The deployment of smart grids is considered a significant advancement in energy management, requiring LV cables to ensure seamless functionality. Additionally, the trend towards automation in industrial processes across various sectors necessitates LV cables for reliable operations. The integration of these advanced technologies creates opportunities for the LV cable industry to innovate and expand. With the global drive towards digitization and the adoption of connected technologies, LV cables are emerging as an essential part of modern energy and industrial landscapes.

Low Voltage Cable Industry Segmentation:

IMARC Group provides an analysis of the key trends in each segment of the global low voltage cable market report, along with forecasts at the global and regional levels from 2024-2032. Our report has categorized the market based on installation type, material, overhead product, underground product and end-user.

Breakup by Installation Type:

• Overhead 
• Underground
   

Overhead represents the largest market segment

The report has provided a detailed breakup and analysis of the market based on the installation type. This includes overhead and underground. According to the report, overhead represented the largest segment.

The overhead LV cable market is influenced by factors such as cost-effectiveness, ease of installation, and adaptability to various terrains. Overhead cables are often used in rural electrification, urban settings, and utility applications due to their visibility and ease of maintenance. Infrastructure development and the expansion of power networks further support this segment's growth.

On the other hand, the underground LV cable segment is growing due to the need for safety, aesthetics, and resilience against weather conditions. Rapid urbanization, stringent regulations on overhead cabling in city centers, and a focus on reducing exposure to electrical hazards are key factors creating a positive outlook for the market in this segment. Technological advancements in insulation and protection technologies also contribute to the segment growth.

Breakup by Material:

• Copper
• Aluminum
   

Aluminum accounts for the majority of the market share

The report has provided a detailed breakup and analysis of the market based on the material. This includes copper and aluminum. According to the report, aluminum represented the largest segment.

Aluminum is preferred for its lightweight and cost-efficiency, especially in long-distance transmission. This segment benefits from growth in sectors where weight and cost are major considerations, such as in renewable energy installations. As the world increasingly turns towards sustainable energy sources, the demand for renewable energy installations continues to rise. In such projects, weight and cost considerations become crucial, and aluminum cables are preferred over other materials.

On the other hand, copper LV cables are favored for their high conductivity, durability, and efficiency. The growing demands in industrial applications, renewable energy projects, and telecommunications are driving the copper segment. Copper's recyclability also aligns with sustainability goals.

Breakup by Overhead Product:

• Conductors
• Fittings and Fixtures
• Others
   

Conductors represent the largest market segment

The report has provided a detailed breakup and analysis of the market based on the overhead product. This includes conductors, fittings and fixtures, and others. According to the report, conductors represented the largest segment.

The conductors segment is vital for transmitting electrical energy. Driven by demands in various industries, including utilities, manufacturing, and construction, advancements in conductor materials and technologies also support this segment. Continual innovations in conductor technologies allow for higher current-carrying capacity, reduced resistive losses, and enhanced overall efficiency.

On the other hand, the fittings and fixtures segment is influenced by the significant growth in the construction and industrial sectors. Innovation in fittings and fixtures, alignment with safety standards, and demands for energy-efficient solutions are driving factors.

Breakup by Underground Product:

• PVC Cables
• XLPE Cables
• Cable Terminations
• Cable Joints
• Others
   

XLPE cables account for the majority of the market share

The report has provided a detailed breakup and analysis of the market based on the underground product. This includes PVC cables, XLPE cables, cable terminations, cable joints, and others. According to the report, XLPE cables represented the largest segment.

XLPE cables offer high-temperature resistance and excellent electrical properties. Their adoption in high-stress environments like utilities and industrial applications supports their market growth.

On the other hand, PVC cables are known for flexibility and resistance to environmental factors. Their use across multiple industries, such as automotive and construction, along with technological enhancements in PVC materials, propels this segment.

Additionally, increased electrification, the modernization of grid infrastructure, and growth in renewable energy projects drive the cable terminations segment. Reliability and efficiency are key considerations here.

Moreover, the cable joints segment benefits from expanding power networks, industrial growth, and the need for secure and reliable connections. Innovations in jointing technologies also influence this segment.

Breakup by End-User:

• Infrastructure
  • Commercial and Residential
  • Transportation
  • Others
• Industrial
  • Utilities
  • Oil and Gas
  • Mining
  • Chemicals and Petrochemicals
  • Others
• Renewables
  • Wind
  • Solar
     

Industrial represents the largest market segment

The report has provided a detailed breakup and analysis of the market based on the end-user. This includes infrastructure (commercial and residential, transportation, and others), industrial (utilities, oil and gas, mining, chemicals and petrochemicals, and others), and renewables (wind, solar). According to the report, industrial represented the largest segment.

In the industrial segment, automation, digitization, and the adoption of energy-efficient practices are the key driving factors. Industries ranging from manufacturing to healthcare are integrating advanced electrical systems that rely on LV cables for their operations. The growing emphasis on minimizing energy waste and improving overall efficiency is leading industries to invest in LV cable systems that meet specific needs and standards.

On the other hand, the infrastructure segment's growth is driven by urbanization, increased demand for safe and efficient energy distribution, and the continuous need for modernizing existing systems. Investments in both residential and commercial construction projects are escalating, leading to the growth of smart buildings that require advanced LV cable systems.

Furthermore, the renewables segment is propelled by a global shift towards clean and sustainable energy sources. Governments are implementing policies and providing incentives to encourage renewable energy production, which in turn stimulates the demand for specialized LV cables.

Breakup by Region:

• Asia Pacific
• Europe
• North America
• Middle East and Africa
• Latin America

Asia Pacific exhibits a clear dominance, accounting for the largest low voltage cable market share

The report has also provided a comprehensive analysis of all the major regional markets, which includes Asia Pacific; North America; Europe; Middle East and Africa; and Latin America. According to the report, Asia Pacific represented the largest market.

The Asia Pacific region is witnessing significant growth in the LV cable market due to several factors. Rapid urbanization and industrialization in countries such as China, India, and Japan are leading to increased demand for LV cables in both infrastructure and industrial applications.

Investments in renewable energy projects are on the rise in the region, supported by governmental policies aiming to reduce carbon emissions and dependence on non-renewable energy sources. Additionally, the modernization of aging infrastructure in many countries within the region necessitates the adoption of advanced LV cables to ensure safety and efficiency.

The region's focus on technological innovation and adoption of smart grid technologies further fuels the demand for LV cables. There is also a growing trend towards the electrification of transportation, particularly in emerging economies, contributing to the growth of the automotive segment of the LV cable market.

Competitive Landscape:

The top market players are heavily investing in research and development (R&D) activities to create innovative and more efficient LV cable products. They are developing cables with enhanced insulation, better conductivity, and increased reliability, adapting to the ever-changing needs of various industrial, infrastructure, and renewable energy sectors. By tailoring products to the specific needs and regulations of different regions, the major companies are capturing new customer bases and fostering growth. With an increasing global focus on sustainability and environmental responsibility, leading LV cable manufacturers are developing eco-friendly and recyclable materials for their products. The major players are also investing in new manufacturing facilities and modernizing existing ones helps top players increase production capacities.

The report has provided a comprehensive analysis of the competitive landscape in the market. Detailed profiles of all major companies have also been provided. Some of the key players in the market include:

• Prysmian Group
• Nexans S.A
• General Cable
• ABB Group
• Sumitomo Electric Industries
• NK Communications
• Encore Wire Corporation
• Finolex Cables
• TE Connectivity
• Caledonian Cables
• Polycab Wires
• Leoni AG
• Southwire Company LLC
• Wanda Group
• Hangzhou Cable

Recent Developments:

• On February 2023, Prysmian Group launched Prysmian Prysolar, an innovative cable solution for solar power generation, that is fully compliant with the applicable global standards EN 50618 and IEC 62930, and enhanced with long term resistance in water up to 1800 V DC.
• On June 2023, Nexans S.A launched a new high-voltage cable range for electrical and hybrid aircraft, and E-VTOL (Electrical Vertical Take-Off and Landing Vehicules) that fit assist in reducing the overall carbon footprint.
• On May 2023, ABB completed its acquisition of the Siemens low voltage NEMA motor business. The acquisition of this business is part of the Motion business area’s profitable growth strategy. The line of horizontal and vertical induction severe duty and general-purpose motors will be re-branded as ABB and reintroduced to the market during the second quarter of 2023.

Low Voltage Cable Market Report Scope:

Key Benefits for Stakeholders:

• IMARC’s report offers a comprehensive quantitative analysis of various market segments, historical and current market trends, market forecasts, and dynamics of the low voltage cable market from 2018-2032.
• The research study provides the latest information on the market drivers, challenges, and opportunities in the global low voltage cable market.
• The study maps the leading, as well as the fastest-growing, regional markets.
• Porter's five forces analysis assist stakeholders in assessing the impact of new entrants, competitive rivalry, supplier power, buyer power, and the threat of substitution. It helps stakeholders to analyze the level of competition within the low voltage cable industry and its attractiveness.
• Competitive landscape allows stakeholders to understand their competitive environment and provides an insight into the current positions of key players in the market.