HVC Market: An Explainer on Widening Applications

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HVC Market An Explainer on Widening Applications
Given the infrastructure space, the budgetary
allocation, industry CAPEX, and policy reforms
have spearheaded investments in various projects
in the past few years. The European Commission
declared grants for 135 transport projects under
the Connecting Europe Facility. Such projects
will guarantee an increase in demand for all
types of high voltage cables to meet energy
demands among the growing population. As per
Tritons analysis, the global high voltage cable
market is expected to garner revenue worth 59.80
billion by 2030, growing at a CAGR of 5.52
during the forecast period 2023-2030. Equipped
with various conductors and insulators, HVCs are
designed to transmit electricity over long
distances without power losses. This benefit has
elevated their adoption in various sectors,
including infrastructure and renewable energy.
Rising Applications Bridging the Growth Gap We
know that HVCs are expansively employed for high
voltage energy transmission however, their
application is not limited to infrastructure. The
vertical sector in the studied market includes
renewable energy, infrastructure, and industrial.
Lets dive into each category to understand their
role in the markets expansion.
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• Renewable Energy While there are several
  renewable energy sources, investments in solar
  and wind energy are by far at their peak. As per
  the Global Wind Energy Council, wind farms are
  estimated to generate around 536 GW of global
  power over the next 5 years. A sizable number of
  HVCs will be required to connect offshore
  projects to the main grid line. In this regard,
  submarine cables will be employed for offshore
  projects, while overhead cables will find
  application in onshore projects.
• Regional Focus Several European governments are
  supporting clean energy projects, with Germany
  leading over other nations. By 2050, the nations
  energy transition plan aims to generate 80 of
  electricity via renewable sources. To achieve
  this target, the nation is set to upgrade its
  high voltage power transmission networks.
  Further, in the Asia-Pacific, China leads in
  renewable energy installations, attaining a
  capacity of approximately 1020 GW in 2021. These
  factors are thus expected to offer lucrative
  opportunities for market development.
• Industrial Tritons analysis of the given market
  by industrial vertical includes categories like
  mining, oil gas, power utilities, chemical
  petroleum, and others. Estimates indicate the
  power utility subsegment holds the largest
  share at a CAGR of 4.23 in the category.
  Underground and overhead cables have gained
  prominence in power utility, manufacturing, and
  mining, while the submarine is used in the oil
  gas industry. The robust demand for HVCs is
  supported by the rising focus on installing power
  generation plants to support growing operations.
• Regional Focus Industrialization and government
  initiatives across the UK, Germany, France, and
  Spain have elevated the adoption of high voltage
  cables. Large-scale HVCs are employed for
  excavation projects for powering on-site
  machines. As per our analysis, the natural gas
  sector is anticipated to expand greatly. In South
  East Europe, the Gas Corridor pipeline
  infrastructure has delivered the first 10 billion
  cubic meters of gas as of March 2022. The Baltic
  Pipe Project is another project that connects gas
  reservoirs in Israel and Cyprus to Greece. These
  mega projects have widened the scope of the
  Europe HVC market.
• Infrastructure The HVC market is supported by
  various commercial and residential construction
  projects. The commercial category captures a
  majority of shares in the infrastructure segment.
  Several nations in Asia-Pacific, the Middle East,
  and Latin America have undertaken upgradation
  projects from rail signaling to network
  infrastructure. Overhead and underground cables
  are widely deployed in big commercial spaces with
  the capacity to have their substations.
  Additionally, the rising demand to upgrade
  broadband services and the advent of the 5G
  network has influenced network providers to
  upgrade infrastructure, ultimately driving the
  high voltage cable market.
• Regional Focus Canada declared its plan to
  phase out coal-fired electricity by 2030, with
  the provinces of Alberta, Saskatchewan, and
  British Columbia, setting ambitious energy
  targets. The government aims to invest around
  350 billion in electricity infrastructure by
  2030, soaring demand for various power equipment,
  including high voltage cables. Such developments
  are projected to open avenues for HVC
  manufacturers in North America.

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• Growth Outlook Competitive Analysis
• Given the rising applications of high voltage
  cables, there is intense competition among
  contenders. In recent years, urbanization, high
  power consumption, and investment in emerging
  nations have influenced players to acquire more
  contracts or engage in product launches to gain a
  higher market share.
• NKT Cable, in January 2022, acquired Ventcroft
  Ltd to add its fire-resistant cable technology to
  the product line and expand in the European power
  cable market.
• In September 2022, NKT Cable introduced
  low-carbon copper for the 320 kV HVDC cables to
  lower carbon footprint, delivered to Dogger Bank
  C in the North Sea.
• Tratos partnered with Enertechnos in 2019 to
  develop an innovative cable to tackle the UK's
  energy loss.
• In retrospect, population growth and
  industrialization have elevated the demand and
  production of HVCs across sectors. However, the
  rising efforts to limit global temperature below
  2 C under the Paris Agreement are expected
  to fuel the deployment of HVCs for clean
  energy development projects, ultimately driving
  the high voltage cable market on an additional
  growth trajectory.

FAQs Q1) What are the different types of high
voltage cables? Submarine, underground, and
overhead are different HV cable types. Q2) What
factors are fueling high voltage cable
adoption? The growing infrastructure activities,
high power demand, and development in emerging
nations fuel the adoption of high voltage cables
globally.