According to a report recently published by the international market research company Markets and Markets, the American market for MV cables is expected to (medium voltage cables) be of 11.100 million dollars in 2022. This figure is expected to rise to 14.200 million dollars in 2027, with a compound annual growth rate of 5,1% during this time.
Rapid industrialization and the increase in renewable energy generation are the main factors driving the growth in demand for medium voltage cables in the region. Nevertheless, the economic slowdown caused by the COVID-19 pandemic and the high prices of raw materials pose a challenge for the medium voltage cable market.
Due to delays in energy and infrastructure projects, Businesses in all regions have experienced supply chain disruptions and a drop in demand for medium voltage lines. This causes an increase in the acquisition costs of raw materials due to the shortage of supplies and, as a last resort, closure or postponement of orders.
Medium voltage cables are used to interconnect equipment in large renewable energy projects such as solar, offshore wind and hydroelectric dams. They are also used to connect these projects to create private distribution networks and to connect to the larger national grid..
The increase in solar and wind power capacity in the US. is due to the measures that the country is taking to decarbonize the electricity sector. This relates to the impact of climate change on the environment. As a result, Increasing wind and solar power generation in the United States is expected to drive growth of the medium voltage cable market. Because these cables will be used for integrate the electricity generated by solar and wind power on the grid.
Transmission and distribution network expansion projects are usually large-scale projects. In general, involve large budget allocations by government authorities. Due to budget shortage, these projects often get stuck in cumbersome approval processes or face funding issues.
For example, the COVID-19 pandemic has delayed renewable energy projects in Latin America. Projects being developed in the energy sector are experiencing delays due to the embargo and movement restrictions imposed to control the spread of the COVID-19 pandemic. Wind power projects in the United States are also expected to be delayed due to the embargo and supply chain disruptions..
Depending on the type of laying, the American market for medium voltage cables is segmented into underground cables, aerial and submarine. Aerial cables are expected to be a major component during the forecast period. They are relatively cheap compared to submarine cable systems and underground.
Besides, Renewables are expected to be the fastest growing market segment over the forecast period. The Americas are switching from conventional to renewable energy sources to reduce carbon emissions and environmental pollution.