Power cable in China: Key market research findings
- Implementation of smart grids fuels market growth
- The distribution segment accounts for a majority of the market’s revenue
- Key vendors – Far East Cable Company, Jiangnan Group, Nexans, Prysmian, and Shandong Wanda Cable
Technavio’s market research analysts predict the power cable market in China to grow at a CAGR of over 6% between 2016 and 2020. The growth of the market is augmented by the implementation of smart grids in the country. Smart grids enable effective monitoring, analysis, control, and communication, which results in a significant reduction in energy consumption. The ongoing urbanization and distributed power potential in China have created immense opportunities for smart grids. Growing urban population coupled with the Chinese government’s push toward the adoption of new energy vehicles will also add to the already rising demand for electricity, subsequently fueling the demand for power cables.
The new market research report from Technavio presents a breakdown and analysis of the power cable segments based on the product.
“Vendors in the Chinese power cable market are developing renewable cables protection systems that can enhance the durability of cables and ensure their longer life. One such innovation is Njordguard, which is a protection system developed by Trelleborg for the renewables market. This innovative protection system can be installed, removed, and reused without the use of remotely operated vehicles or driver involvement, thus, improving safety and reducing installation complexity,” says Rakesh Panda, Lead Analyst, ICT, Technavio Research.
By 2020, the distribution segment will continue its dominance over the power cable market in China by accounting for around 76% of the overall market share. In September 2015, China’s National Energy Administration issued the Distribution Network Construction and Transformation Action Plan 2015-2020. The plan is aimed at providing a more reliable, cleaner, and more intelligent distribution network, which can benefit related industries as well as all other power consumers. Increasing focus on strengthening the construction and transformation of EV charging facilities to meet the demand for 12,000 charging stations and almost five million charging poles will also positively influence the growth of this market segment.
The key vendors in the power cable market in China include Far East Cable Company, Jiangnan Group, Nexans, Prysmian, and Shandong Wanda Cable. The extent of competition within the power cables market in China varies according to the operating segment and product line offered by market vendors. However, in general, the power cable manufacturing industry is mature and cost driven. Although the primary competitive factors for the products vary across the different product categories, the major aspects manipulating competition include price, quality, the range of products, inventories, delivery time, customer service, the environmental impact of the products, and the ability to meet customers’ requirements.
A more detailed analysis is available in the Technavio report, Power Cable Market in China 2016-2020.
We can customize reports by other regions and specific segments upon request.
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