The MEA medium voltage cable market is expected to grow from US$ 2,365.3 million in 2019 to US$ 3,300.1 million by 2027; it is estimated to grow at a CAGR of 5.51 % from 2020 to 2027.
Identifying new oil & gas reserves in MEA region is expected to escalate the growth of the MEA medium voltage cable market. The discoveries of new oil & gas reserves have been witnessing exponential growth across MEA region. In 2019, the total recorded discoveries with over million barrels of oil, with offshore countries leading the new oil & gas deposits. Some of the recent discoveries include the discovery of two oil & gas fields by Saudi Aramco in the northern parts of Saudi Arabia in August 2020. Further, in October 2020, Total and its partners announced to evaluate several development options for commercializing a new gas and condensate discovery in South Africa. Gazprom announced the discovery of a new gas deposit—Yamal shelf. By October 2020, over 70 new oil & gas discoveries were announced. Such discoveries of new offshore oil & gas reserves across MEA region are expected to boost the construction of new plants and electricity requirements for new offshore plants, thereby boosting the MEA medium voltage cable market.
Furthermore, in case of COVID-19, MEA is highly affected specially the South Africa. To reduce the impact of COVID–19, the governments in the MEA region have adopted contingency plans, such as complete lockdown and a 24-hour sterilization program. The introduction of lockdowns has resulted in a halt of construction activities in the region. The slowdown in construction activities in the region has directly impacted the sales of medium voltage cables in the region. Also, most businesses in the region have come to a halt and are expected to continue slower than the usual pace. The countries are taking significant containment measures to reduce the number of infected patients. COVID-19 pandemic outbreak, which has severely affected the construction industry and oil & gas industry projects, resulted in the declining sales of the medium voltage cable in the MEA region. Several giants in the African oil & gas industry, such as ExxonMobil, Total SE, BP, and Royal Dutch, reduced their CAPEX by more than 20% in 2020. It has resulted in getting upcoming projects delayed or stalled. The decline in FDI flows across the region. However, positive demand has been noticed from ongoing renewable energy projects in the MEA region.
Based on end-users, the transportation segment is expected to be the fastest growing segment during forecast period for MEA region. With the growth of urbanization and tourism sector, significant investments have been noticed across the MEA transportation industry. These include development of new airports, ports, railway station, bus stations, and metros. Also, constructions of new highways, international roadways, and investments for the development of rural transportation systems, have bolstered the demand for medium voltage cables. Also, several economies are investing in green transport infrastructure, such as electric vehicles, raid transports, as well as mass rapid transit. Additionally, many of the developing economies are facing challenges owing to their ageing transportation infrastructure. The investments in renovation of the ageing transportation infrastructure would further create the demand for medium voltage cables in MEA region. Therefore, the growing transportation and investment for development of rural transportation across MEA region is expected to increase the demand of medium voltage cables, which will drive the growth of the MEA medium voltage cable market.
The overall MEA 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 MEA medium voltage cable market. The process also serves the purpose of obtaining overview and forecast for the MEA 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 MEA medium voltage cable market. Alpha Wire; Cleveland Cable Company; 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 MEA medium voltage cable market.