Meteoric rise in demand of high-voltage cables in utility sector
The total primary energy consumption in the U.S. was recorded at 101.3 quadrillion Btu in 2018 and is expected to witness consistent growth over the years, owing to the surging penetration of data centers and large communication base stations across the region. High-voltage cables allow power transmission at high voltages to meet business demand and with proper insulation and conductors, are also suitable for deployment underground and underwater.
The rapid rate of infrastructural development in emerging nations across Asia-Pacific is driving the need to set up robust electrical connectivity and transmission solutions, propelling high voltage (HV) cables deployment. Global Market Insights, Inc., has projected that global HV cables market size will reach over USD 29 billion by 2025, driven by consistent demand from utility and industrial applications.
Increasing FDI inflow in countries like China, Japan, India and Singapore is supporting the expansion of industrial and commercial sectors. According to the United Nations Conference on Trade and Development (UNCTAD), in 2018 the FDI in Asia’s developing countries rose by 3.9% amounting to USD 512 billion.
Role of HV Cables in the Expanding Utility Sector
Utility sector is growing to meet the increasing demand for electricity from the constantly rising population across the world. Power is one of the most significant components of infrastructure which is crucial for the welfare and economic growth of a country. The power sector in emerging economies is undergoing a significant change due to the increasing establishment of manufacturing units, commercial establishments, retail brands and residential townships.
Due to the relatively cheaper cost of labor and raw materials, many foreign companies are establishing their base in countries like India, Malaysia and China. As of May 2019, the total installed capacity of power stations across India stood at 356.82 Gigawatt (GW).
Reportedly, earnings across the utility firms in South and Southeast Asian nations is estimated to witness a growth by 4% from 2018 to 2020 due to higher prices of commodities, economic growth and infrastructural development supported by the governments. The upsurge in utility revenue will complement high voltage cables industry trends in the near future.
Several players in the utility industry are adapting to the changing requirements of the customers. For instance, developing mobile apps to give consumers control over their use of energy, receive outage alerts and monitor their electricity bills. Growing need for inexpensive, reliable and continuous energy solutions is leading to the use of overhead, underground and submarine cable technologies to meet the power needs in the most suitable and effective manner.
Consistent Use of Overhead High Voltage Cables
Overhead transmission systems are preferred to facilitate electricity lines across vast distances….