The APAC medium voltage cable market is expected to grow from US$ 6,517.4 million in 2019 to US$ 7,608.5 million by 2027; it is estimated to grow at a CAGR of 3.19 % from 2020 to 2027.
Improvements in the cable technology across APAC region is expected to accelerate the APAC medium voltage cable market. With growing popularity and adoption of underground cable systems, noteworthy technological advancements have been introduced to overcome the various limitations of these cables. Most of these innovations are focused on advancements of insulation and voltage grade. The progress in the area of material science has helped in the development of better-quality polymers capable of achieving required mechanical and electrical properties of the cable. For instance, the introduction of Teflon cables, which are capable to withstand up to 250°C temperatures, has become an alternative solution to conventional polymer cables that can usually withstand temperature up to 70°C. Further, alternative conductors have already been discovered, which can replace high-cost copper. Such developments would further increase the deployment of new cable technologies in various end-use industries for APAC region, which, in turn drives the growth of the APAC medium voltage cable market.
APAC is one of the highly affected regions due to the outbreak of COVID-19. Various developing economies in the region have announced lockdowns by ceasing the construction and manufacturing activities. The governments of various countries in APAC have taken necessary steps to reduce the spread of virus. The introduction of lockdowns has resulted in the halt of construction projects in the region, which has negatively impacted the growth of APAC medium voltage cable market. However, after a prolonged lockdown, various countries have started easing the restrictions. For instance, India's government started the unlock phase, in which it allowed the construction activities to resume. However, Australia is still under lockdown. Several cable manufacturing facilities are based in China, which was highly impacted in Q1 2020. The production and demand for medium voltage cables in the country dropped during Q1 2020, followed by recovery in Q2 2020. The china is one of the biggest markets for medium voltage cables in the world. Also, India is one of the significant markets for medium voltage cables. As per Polycab, an Indian cable manufacturing company, no significant impact was witnessed due to the outbreak of the COVID-19 pandemic in India. The company witnessed a slowdown in demand for cables in metropolitan cities, although demand for cables was positive in Tier II and Tier III cities. The company also stated that no noteworthy pickup in the CAPEX cycle in 2020.
Based on end-users, the oil and gas segment is expected to be fastest growing segment during forecast period in APAC. The deep water as well as ultra-deep water oil & gas projects is anticipated to notice a remarkable growth during the forecast period. This can be attributed to the forthcoming exploration and production projects in APAC economies, such as Indonesia. Additionally, technological advancements, rise in feasibility of offshore oil & gas projects, and numerous new markets across APAC region are vigorously encouraging the development of offshore reserves, particularly the deep water and ultra-deep water reserves. The above mentioned factors are projected to create substantial opportunities for the medium voltage cable companies in the APAC region, thereby driving the growth of the APAC medium voltage cable market.
The overall APAC medium voltage cable market size has been derived using both primary and secondary sources. To begin the research process, exhaustive secondary research has been conducted using internal and external sources to obtain qualitative and quantitative information related to the APAC medium voltage cable market. The process also serves the purpose of obtaining overview and forecast for the APAC medium voltage cable market with respects to all the segments pertaining to the region. Also, multiple primary interviews have been conducted with industry participants and commentators to validate the data, as well as to gain more analytical insights into the topic. The participants who typically take part in such a process include industry experts such as VPs, business development managers, medium voltage cable market intelligence managers, and national sales managers along with external consultants such as valuation experts, research analysts, and key opinion leaders specializing in the APAC medium voltage cable market. Alpha Wire; Furukawa Electric Co. Ltd.; General Cable Technologies Corporation; LEONI AG; LS Cable & System Ltd.; Nexans; and Sumitomo Electric Industries, Ltd. are among a few players operating in the APAC medium voltage cable market.