XLPE Cable Market Overview: According to a comprehensive research report by Market Research Future (MRFR), “XLPE Cable Market Research Report, Installation, Voltage, End User and Region – Forecast till 2028” the market to grow at a rate of 6.75% during the forecast period 2021-2028.
The XLPE cable market witnesses several strategic approaches, such as mergers & acquisitions, collaborations, expansions, and product launches. Market players are also making strategic investments to drive their research & development activities and expansion plans.
For instance, recently, on July 28, 2021, Prysmian Group announced receiving a contract from Orsted for the designating, supply, termination, and testing of inter-array submarine cable systems for the Gode Wind and Borkum Riffgrund offshore wind farms. The deal worth €60 MN would enable Prysmian to provide inter-array cable systems for over 150km of 66 kV XLPE–insulated cables connecting the wind turbines of Gode Wind to an offshore substation platform.
Rising XLPE Cable Uses for Power Transmission & Distribution Drive Market Growth
Besides, rapid and excessive growth in marine trades acts as a major driving force. Rising demand for XLPE cables in the power generation segment drives the growth of the market. Burgeoning offshore wind power generation, wave & tidal power generation, island connection, and oil & gas sectors escalate the market demand. Moreover, huge R&D investments made by industry players in product development influence the market growth.
Substantial funding in submarine modernization and upgrades create vast market demand. Augmenting demand for advanced submarine power cables has undoubtedly spurred the XLPE cable market growth. Emerging regions worldwide are expected to present untapped opportunities for XLPE cable uses. With their favorable government policies for cable production, emerging countries offer significant opportunities to international players.
Price Volatility & Demand-Supply Gap in Key Raw Materials Affect Market Growth
Fluctuating prices and the demand-supply gap in raw materials required to produce XLPE cables are major factors impeding market growth. Nevertheless, the high demand for medium voltage and developments in transmission & distribution networks would support the market during the assessment period. Also, the increasing demand for electricity and integration of the sustainable electrical network would accelerate the growth of the market.
COVID 19 Impacts
Like most industries, the XLPE cable industry was too hit by the COVID 19 pandemic severely. With industrial operations and maritime trades coming to a standstill, the market demand was affected. However, as various business and industrial activities rapidly return to normalcy, marine trades are increasing rapidly.
Considering growing opportunities in the market, industry players are forming strategic partnerships with financing partners involved in the refinancing and the shareholders. Key market players are making substantial investments in product developments and improving their existing products. These factors are cumulatively boosting the XLPE cable market size, and the demand is gradually picking up.
The market is segmented into installation, voltage, end-users, and regions. The installation segment is sub-segmented into overhead, submarine, and underground. The voltage segment is sub-segmented into low voltage, medium voltage, and high voltage. The end-user segment is sub-segmented into infrastructure & transportation, chemical, manufacturing, power, oil & gas, metals & mining, and others.
The Asia Pacific region dominates the global XLPE cable market. Key players across the region put up their collective efforts to meet increased consumer demands. Besides, increasing investments in developing technologically advanced cables and the growing demand for steady & reliable power supply in various cargo and cruise ships drive the XLPE cable market growth.
The strong presence of major manufacturers and the massive availability of raw materials increase the region’s XLPE cable market share. The spurring rise in oil & gas activities and relaxed approach & lenient government regulations for production influence the XLPE cable market size in the region. Moreover, the development of existing oil fields and increasing investments in the oil & gas industry substantiate the XLPE cable market value.
Segmentation of Market covered in the research:
XLPE Cable Market Research Report: Information by Installation (Overhead, Underground and Submarine), Voltage (High Voltage, Medium Voltage and Low Voltage), End User (Power, Oil & Gas, Chemical, Manufacturing, Metals & Mining, Infrastructure & Transportation and others) and Region (Americas, Europe, Asia-Pacific and the Middle East & Africa) – Forecast till 2028
The XLPE cable market outlook appears promising, witnessing the continually growing demand for uninterrupted and reliable power supply for submarine applications. XLPE cables are extensively used in marine infrastructures. Offshore cable operations consume a vast amount of XDPE cables commissioning cable laying vessels. With rising installations of cross-linked polyethylene (XLPE) cables in oil-filled transition joints connecting oil-filled cables, the market is estimated to witness significant traction in the next few years. Globe Newswire