Americas Cables Market

[281 Pages Report] The Americas Cables Market is expected to grow from an estimated USD 10.9 billion by 2029 from an estimated USD 8.7 billion in 2024, at a CAGR of 4.5% during the forecast period. The demand for the Americas Cables Market is propelled by factors such as infrastructure expansion, urbanization, and industrialization. Additionally, the growing need for reliable power transmission and communication networks, particularly in sectors like energy, telecommunications, and transportation, further drives market demand. Technological advancements in cable manufacturing, such as the development of high-performance materials and smart cable systems, also contribute to the market's growth by meeting the evolving needs of various industries.

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Americas Cables market Dynamics

Driver: Integration of renewable energy sources into industrial facilities to reduce carbon footprint

Adoption of renewable sources of energy, either solar or wind power, by the industry players in the Americas, particularly in the US, for reducing carbon footprint and energy costs, continues to be a factor that will have a strong bearing on the market for cables across the region. Renewable sources of energy, either solar or wind farms, require extensive infrastructures which include solar farms and wind turbines across the US. This will require massive wiring to transport the power tapped from the renewable energy production facilities to the electrical grid and, consequently, the demand for power transmission and distribution cables. Solar and wind power generation facilities are also typically situated in remote areas where the renewable resources are abundant. High-capacity transmission lines have to be installed in order to carry the electricity produced in these remote areas to urban centers and industrial zones that have a high demand for energy. This long-distance power transmission infrastructure development need is thus expected to drive the demand within the United States for high-voltage cables, including 115 kV and 138 kV cables.

Over the past years, carbon emissions from electricity production are way down, with the US leading the data by unprecedented transformation from coal to natural gas, added to the increased renewables. This transition is not based on environmental concerns and climate policies but to a great extent with the economic viability of renewable energy technologies being competitive. It brings renewable sources into industrial facilities by introducing medium- and high-voltage cables to carry electricity from solar arrays, wind farms, or other renewable sources to power manufacturing processes.

Based on the data provided by the US Energy Information Administration in January 2024, wind and solar power are on pace to make major gains in US electricity generation over the next couple of years. This is expected to increase by 75% in the case of solar output due to new solar projects, from 163 billion kWh in 2023 to 286 billion kWh by 2025. The production of wind energy also is expected to increase by 11%, from 430 billion kWh in 2023 to 476 billion kWh in 2025. In 2023, the US electric power sector delivered 4,017 billion kWh of electricity; of the total amount, 22% or 874 billion kWh was produced by renewable energy sources like wind, solar, hydro, biomass, and geothermal energy. Electricity generated from renewables overtook nuclear for the first time in 2021 and coal in 2022. On the back of this surging demand for renewables, coal-based electricity will decline by 18% from 665 to 548 billion kWh between 2023 and 2025. With these changing mixes, natural gas would still be the leading source of electricity in the US. However, its output will level at 1700 billion kWh per annum for 2024 and 2025. Power from nuclear is forecast to stay flat at a low level of 776 billion kWh in 2023 and then crawl upwards to 797 billion kWh by 2025.

Restraints: Volatility in raw material prices

Fluctuations in the price of raw materials such as copper and aluminium may impact on costs and revenues of countries that manufacture cables. Some materials used by different cable manufacturing companies include copper, aluminum, plastics, rubber among others and the cost of these are bound to be influenced by factors such as changes in trade policies, geopolitical instabilities, shifting global trends and economic conditions. Higher cost of raw materials elevates production cost for the enterprises. This amplified cost may compel enterprises to raise its retail prices, hence the possibility of a dropping demand due to customers inability to afford cables at the new prices. Secondly, such unpredictable surges in the price of raw materials trigger problems of interrupted production schedules and supply systems. Such disruptions can cause time overruns of the completion of projects with possible penalties to suppliers and manufacturers. All this emerges such that the complete uncertainty hinders almost any firm to plan a budget and investment in business, which ultimately affects the process of innovation and growth.

Opportunity: Strong focus on increasing power generation capacity

Electrification capacities have greatly increased in the last decades, touching economies and increasing energy demand, economic growth, and measures of access to electricity. The trend reflects only the global competitive need for cheap and reliable sources of energy that can power devices and systems applied within residential, commercial, and industrial sectors, as well as in transportation. Most of the countries in the world have been actively investing in adding to their generation capacity by building new plants and renovating existing ones, hence increasing the overall installed capacity.

Additional power generation capacities include all ranges of fuel sources, from conventional to renewable. The use of coal, natural gas, and oil as conventional sources of power generation has been dominant all this while as a sure means of ensuring that electricity supply is stable and consistent. However, with the growing environmental concern over the technologies dependent on fossil fuels, there has been a migration to cleaner and more environmental technology. Indeed, the incredible recent growth in the renewable sources of energy-solar, wind, hydro, geothermal, and biomass-is the result of advances in technology and related cost reductions, and government policies supporting these new technologies and renewable energy efforts. Wind and solar energy: The growth of these two sources has been at a significant scale; scalability, increase in efficiency, and reduction in cost contribute to this growth. Most of the countries have set targets to generate renewable energy and implemented policies by providing incentives to reach the target provided. Along with the renewable energy, more capacity comes from nuclear power generation. Nuclear power plants are a source of dependable electricity production that comes with large baseload and low-carbon electricity production. However, the nuclear energy sector has been troubled by long-standing safety issues and the management of spent fuel, very important issues nowadays.

Challenges: Requirement of technical know-how to develop and install advanced cable products

Generation capacities have increased manifold over the years in the face of increasing demand, economic development, and pursuits of better access to electricity. This upward trajectory mirrors the global requirement for a source of energy which shall be available with continuity on account of affordability and to energize gadgets and systems engaged in service delivery in residential, commercial, industrial, and transport applications. Increased construction of new and modernization of the existing power plants facilities have seen countries across the world invest actively in the expansion of their power generation capacities. This has seen the overall installed capacity of the power generation plants go up.
Efficient T&D infrastructure development has acquired an added urgency in recent times as countries in the Americas have risen to address energy security concerns and expand their power generation capacity. Cable and accessories manufacturers and suppliers will be called upon to deliver high-quality material and products, meeting the customers' reliability expectations. Specialized knowledge and skill in material selection, conductor design, insulation techniques, and shielding technologies will be required. In this context, customers' needs often include the provision of application-specific cables that must meet requirements on voltage rating, temperature, and environmental conditions. Addressing these needs for customization involves an in-depth level of technical understanding and engineering competence. In parallel, making sure that cables are of quality and reliable across the manufacturing process is very important. This will call for adherence to industry standards, rigorous testing procedures, and quality control measures accordingly. These emerging technologies require a continuing learning process with technical competence by professionals to master and incorporate them in the design and manufacturing processes of the cables. Without technical competencies, one will end up with low-quality products and product failures. Therefore, one critical issue relating to cables is the shortage of skilled manpower in designing, installing, and maintaining cables. Companies active in the cables market face serious problems in recruiting and maintaining qualified personnel in this very specialized sector. The technical training and research and development needed to keep companies at the cutting edge of cable technologies are extremely expensive. Linking this technical ability with cost-related factors, therefore, represents a particular challenge for smaller firms with restricted resources.

Americas Cables Market Ecosystem

Notable players in this industry comprise long-standing, financially robust manufacturers of Americas Cables Market and related components. These companies have a significant track record in the market, offering a wide range of products, employing cutting-edge technologies, and maintaining robust global sales and marketing networks. Prominent companies in this market include Prysmian Group (Italy),  Southwire Company, LLC (US), Nexans (France), LS Cable & System Ltd (South Korea) and NKT a/s (Denmark).

Low Voltage Cables, is expected to be the fastest growing market, based on polymer and insulation type.

The demand for dependable energy distribution in residential and commercial structures is driven by growing urbanization and infrastructure development. Additionally, low voltage cables are now more durable and perform better, which appeals to end users due to scientific breakthroughs in insulating materials. Last but not least, as the region's energy landscape changes, the increased adoption of smart home devices and renewable energy systems increases demand for low voltage cables.

Industrial, by end user, to hold the second-fastest market share during the forecast period.

Demand in the Americas cable market is largely driven by demand from industries, where most processes demand high performance and robust cable solutions to satisfy the power transmission, control, and communication needs. In fact, with increased efforts toward industrialization, automation, and modernization, the need for advanced cable systems that answer the call of emerging manufacturing processes and infrastructural development is increased.

North America is expected to account for the largest and the fastest market during the forecast period.

The renewables and commercial industries buoy the Cables market in North America. In this geographical landscape, growth within the renewables segment is noted because of on-going projects in solar and wind energy that are basically in dire need of cables with XLPE insulation to efficiently carry such power. In addition, modernization programs in the commercial sector will further increase the demand for high-performance cables with EPR insulation to allow for distribution of power and communication networks reliably. Overall, these factors drive the need for advanced cabling solutions in the region.

Key Market Players

The Americas Cables market is dominated by a few major players that have a wide regional presence. The major players in the market are Prysmian Group (Italy),  Southwire Company, LLC (US), Nexans (France), LS Cable & System Ltd. (South Korea) and NKT A/S (Denmark). Between 2019 and 2023, Strategies such as product launches, contracts, agreements, partnerships, collaborations, alliances, acquisitions, and expansions are followed by these companies to capture a larger share of the Americas Cables market.

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Scope of the Report

This research report categorizes the Americas Cables Market by polymer and insulation type, semiconducting layer, voltage, application, end user, and region

On the basis of polymer and insulation type:

• Semiconducting Polymer
• Cross-Linked Polyethylene (XLPE)
• Ethylene-Propylene Rubber (EPR)/ Ethylene Propylene Diene Monomer (EPDM)
• Low Voltage Cables

On the basis of Semiconducting Later:

• Inner
• Outer

On the basis of Voltage Rating:

• Upto 5 kV
• 5-8 kV
• 8-15 kV
• 15-35 kV
• 35-46 kV
• 69 kV
• 115 kV
• 138 kV

On the basis of Application:

• Underground
• Submarine

On the basis of End User:

• Industrial
• Renewable Energy Sector
• Commercial

On the basis of region:

• North America
• Central America
• South America

Recent Developments

• In December 2023, NKT was awarded the contract by Icelandic TSO Landsnet to supply more than 200 km of 66 kV power cables for the upgrade of the Iceland grid, powered by renewable energy. This will contribute to maintaining a reliable electricity supply throughout the year, something particularly important when winters are harsh. NKT had been selected due to its demonstrated ability to handle the demanding conditions during the installation that this particular country so often experiences. This contract firms up the relationship between NKT and Landsnet, furthering efficiency and reliability in Iceland's grid. The agreement is in line with the investments of European TSOs and DSOs in strengthening the grid for the growing demands for electricity. With this, NKT supports the transition toward renewable energy while strengthening its position in the market.
• In September 2023,  Southwire Company, LLC and Resideo Technologies, Inc. underwent an agreement for the supply of Resideo’s Genesis Cable business, a provider of low-voltage wire and cable manufacturers based in Pleasant Prairie, WI.
• In June 2023, Prysmina Group entered into a 3 year agreement with National Grid for medium voltage cable framework. With this agreement Prysmian will support UK’s electricity grid in becoming capable of distributing more electricity in the future, as a key enabler for the energy transition. Medium voltage cables will be supplied primarily from the Group’s manufacturing plant in Wrexham, North Wales, and will assist National Grid to expand and modernize the network supporting the increase in demand.
• In April 2023, Nexans finalized the acquisition of the Finnish company Reka Cables, a high, medium, and low voltage cable manufacturer, in line with their ambition to further consolidate its position in Nordic markets. This kind of acquisition goes hand-in-hand with the Group's ambition to become a pure electrification player by 2030. REKA's premium cables and manufacturing plants complement Nexans' operations, further expanding its reach and capabilities in the Electrification value chain. The transaction cements Nexans' position in the Nordics and further underpins its carbon-neutrality ambition.

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