HVAC Cables Market to Reach $34.0 Billion, Globally, by 2033 at 6.7% CAGR: Allied Market Research

Allied Analytics LLP

The HVAC cables market is experiencing significant growth, fueled by several key factors. The rise of smart grids, which leverage advanced digital technology for two-way communication and enhanced grid management, is a major driver. HVAC cables are essential for supporting these smart grid systems by providing high-voltage transmission capabilities necessary for integrating renewable energy sources and ensuring reliable power delivery. Additionally, the increasing demand for efficient energy infrastructure in urban areas, coupled with the expansion of renewable energy projects, is further accelerating market growth.

Introduction

Allied Market Research published a report titled “HVAC Cables Market by Voltage (110 kV – 220 kV and Above 220 kV), Category (Overhead, Submarine and Underground): Global Opportunity Analysis and Industry Forecast, 2024-2033”. According to the report, the HVAC cables market was valued at $18.3 billion in 2023 and is estimated to reach $34.0 billion by 2033, growing at a CAGR of 6.7% from 2024 to 2033.

Prime Determinants of Growth

• HVAC cables market is widely used for replacing traditional overhead lines, allowing for installations in challenging environments.
• These systems enhance the integration of renewable energy into existing grids, supporting the development, extension, and upgrading of power grids to meet both current and future electricity demands in urban areas.
• However, one of the significant challenges facing the HVAC cable market is the volatility in raw material prices.
• The production of HVAC cables depends heavily on materials such as copper, aluminum, and various polymers, whose prices fluctuate due to global supply and demand dynamics.
• A key opportunity in the market lies in the growing adoption of smart and connected HVAC systems.
• The integration of advanced technologies like the Internet of Things (IoT), artificial intelligence (AI), and machine learning (ML) is driving the need for specialized cables that support data transmission and connectivity between various system components.

Report Coverage & Details

1. Forecast Period: 2024-2033
2. Base Year: 2023
3. Market Size in 2023: $18.3 billion
4. Market Size in 2033: $34.0 billion
5. CAGR: 6.70%
6. No. of Pages in Report: 320
7. Segments Covered: Voltage, Category, and Region
8. Drivers:
   • Improvements in insulation materials and manufacturing processes enhance HVAC cable performance and reliability
   • Increasing energy needs, particularly in developing regions, spur demand for high-capacity transmission solutions
   • The growth of smart grids requires robust HVAC cables for efficient power distribution and management
9. Restraint: The installation of HVAC cables in sensitive environmental areas can face regulatory and environmental challenges
10. Opportunities:
    • Supportive policies and incentives for infrastructure development and energy efficiency can drive HVAC cable adoption
    • Modernization of outdated power grids and infrastructure provides opportunities for replacing old cables with new HVAC solutions

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Market Analysis

Based on voltage, the 110 kV-220 kV sub-segment accounted for a dominant market share in 2023. Cables in this voltage range are well-suited for medium-distance electricity transmission for residential and commercial purposes. They ensure reliable power delivery while keeping distribution costs low. The surge in urbanization and the growth of existing urban areas have significantly increased infrastructure investment in commercial buildings, residential projects, and public utilities. This heightened focus on infrastructure development drives the demand for HVAC cables, which are essential for meeting the power needs of expanding cities and facilities.

Based on category, the overheads sub-segment generated the maximum revenue in 2023. Overhead cables have fewer limitations regarding maximum voltage capacity and environmental impact, allowing them to efficiently transmit large quantities of electricity over long distances. They are capable of handling substantial load requirements, making them ideal for forming the backbone of national power grids. This broad usage will maintain the segment’s dominant position in the market. In addition to expanding rural electrification, overhead lines are crucial for integrating renewable energy sources and facilitating inter-state and inter-grid connectivity projects.

Based on region, North America had the highest CAGR in 2023. North America hosts numerous leading HVAC cable manufacturers and a wide range of construction and installation firms. The region’s robust economic environment and significant consumer investment in both commercial and residential infrastructure projects drive substantial demand for HVAC cables. Moreover, increasing awareness of energy efficiency and stringent regulations on building energy performance further bolster the need for these cables.

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Major Key Players

The report provides a detailed analysis of key players in the global HVAC cables market. These players have adopted different strategies such as new product launches, collaborations, expansion, joint ventures, agreements, and others to increase their market share and maintain dominant shares in different regions.

Recent Developments

• In December 2023, Prysmian, an Italian cable manufacturer, finalized the installation of cables for the 806MW Vineyard Wind 1 offshore project located off the coast of Massachusetts, USA.
• On April 11, 2024, Amphenol TPC Wire & Cable introduced its new ATPC Medium Voltage Cables, specifically engineered for high-performance applications in demanding industrial environments.

The report is valuable in highlighting business performance, operating segments, product portfolio, and strategic moves of market players to showcase the competitive scenario.

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About Us

Allied Market Research (AMR) is a full-service market research and business-consulting wing of Allied Analytics LLP based in Wilmington, Delaware. Allied Market Research provides global enterprises as well as medium and small businesses with unmatched quality of “Market Research Reports Insights” and “Business Intelligence Solutions.” AMR has a targeted view to provide business insights and consulting to assist its clients to make strategic business decisions and achieve sustainable growth in their respective market domain.

We are in professional corporate relations with various companies, and this helps us in digging out market data that helps us generate accurate research data tables and confirms utmost accuracy in our market forecasting. Allied Market Research CEO Pawan Kumar is instrumental in inspiring and encouraging everyone associated with the company to maintain high quality of data and help clients in every way possible to achieve success. Each and every data presented in the reports published by us is extracted through primary interviews with top officials from leading companies of domain concerned. Our secondary data procurement methodology includes deep online and offline research and discussion with knowledgeable professionals and analysts in the industry.

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SDGs, Targets, and Indicators

1. Which SDGs are addressed or connected to the issues highlighted in the article?

• SDG 7: Affordable and Clean Energy
• SDG 9: Industry, Innovation, and Infrastructure
• SDG 11: Sustainable Cities and Communities

2. What specific targets under those SDGs can be identified based on the article’s content?

• SDG 7.2: Increase the share of renewable energy in the global energy mix
• SDG 9.1: Develop quality, reliable, sustainable, and resilient infrastructure
• SDG 9.4: Upgrade infrastructure and retrofit industries to make them sustainable
• SDG 11.6: Enhance inclusive and sustainable urbanization and capacity for participatory, integrated, and sustainable human settlement planning and management

3. Are there any indicators mentioned or implied in the article that can be used to measure progress towards the identified targets?

• Share of renewable energy in the global energy mix
• Investment in infrastructure development
• Adoption of sustainable and resilient infrastructure practices
• Number of cities implementing sustainable urbanization practices

Table: SDGs, Targets, and Indicators

Source: finance.yahoo.com