Product Overview and Scope of Medium Voltage Wire Cable Market
Medium Voltage (MV) cables, used to transmit electrical power at voltages from 1 kV to 33 kV, are essential for efficient power distribution and transmission. They connect power sources to distribution networks and end-users, ensuring stable and safe energy delivery. Made from materials like aluminum and copper, MV cables are critical for sectors such as construction, commercial, residential, and industrial applications, providing reliable performance across various environment
The medium voltage wire cable market can be categorized by construction materials and insulation types. Aluminum cables are lightweight and cost-effective, suitable for overhead lines despite lower conductivity. Copper cables offer superior conductivity and durability, making them ideal for high-performance and high-density applications where reliability and minimal energy loss are crucial.
Insulation materials are essential for cable protection and performance. XLPE (Cross-Linked Polyethylene) provides excellent electrical properties and durability, while EPR (Ethylene Propylene Rubber) offers flexibility and temperature resistance. Other materials include PVC (cost-effective and easy to install), HEPR (High-Efficiency Polyethylene Rubber), and XLPO (Cross-Linked Polyolefin), each catering to specific operational needs. Installation methods include underground for protection and aesthetics, overhead for long-distance transmission, and submarine cables for underwater connection
The rapid growth of the renewable energy sector is one driving factors of the global medium voltage (MV) cable market, as these cables are crucial for linking renewable sources such as solar panels and wind turbines to power grids. The expansion of renewable energy, supported by favorable regulatory and financial conditions, boosts the MV cable market by necessitating robust infrastructure for this transition. For example, in the first half of 2024, the EU achieved 50% of its public electricity generation from renewables, up from 48% in 2023, underscoring a strong shift towards sustainable energy. Germany’s progress, with renewables making up 58% of electricity consumption, highlights the growing demand for MV cables to integrate this energy into the grid. In response, manufacturers like NKT are investing EUR 100 million to expand their MV cable production facilities in Denmark, Sweden, and the Czech Republic, aiming to support the evolving energy market and grid infrastructure by 2025 and 2026. This growth is driven by the need for durable, high-resistance cables to support efficient energy distribution and meet global decarbonization goals.
North America Medium Voltage Wire Cable Market Revenue Market by Region (2019-2031)
|
Region |
2019 |
2024 |
2031 |
Market Share (%) 2031 |
CAGR (%) (2024-2031) |
|
United States |
xx |
9.68 |
xx |
xx% |
5.30% |
|
Canada |
xx |
xx |
xx |
xx% |
xx% |
|
Mexico |
xx |
xx |
xx |
xx% |
xx% |
|
Total |
xx |
XX |
xx |
xx% |
XX% |
Global Medium Voltage Wire Cable Market By Segmentation Analysis
By Material
• Aluminum
• Copper
• Others
By Insulation
• XLPE
• EPR
• Others (PVC, HEPR, XLPO)
By End-users
• Construction and Infrastructure
• Commercial
• Residential
• Telecom
• Industrial
• Energy and Power
• Defense Industry
By Installation/Distribution
• Underground
• Overhead
• Submarine
By Installation/Distribution:
Based on Installation/Distribution, the market is segmented into underground, overhead, and submarine. Overhead installation held the highest market share of the medium voltage wire cable market globally. Overhead cables are widely used for transmitting and distributing electrical power over long distances due to their relatively lower installation costs and easier maintenance compared to underground or submarine cables. Their popularity among power utilities is further driven by the push for rural electrification, particularly in developing nations. The efficiency of overhead cables in power delivery and their lower total cost of ownership contribute to their leading position in the market.
On the other hand, underground installations are expected to experience the fastest growth during the forecast period. As urban areas become more densely populated, the availability of space for overhead power lines diminishes. Installing medium voltage cables underground provides a solution to space limitations, particularly in urban settings where land is both valuable and limited. Additionally, underground cables are less vulnerable to disruptions caused by adverse weather conditions, such as strong winds, ice, or lightning, and are less likely to be damaged by falling trees, wildlife, or accidental contact. This increased reliability is particularly important for critical infrastructure, including hospitals, data centers, and transportation networks.
Market Drivers
Growing investment and expansion of solar and renewable energy plants, drives the growth of medium voltage wire cable market:
The rapid investment for the construction and expansion of solar energy plants is driven by advancements in technology, economic benefits, and supportive policies. Technological improvements have led to more efficient solar panels and better energy storage solutions, enhancing the effectiveness of solar power. Government incentives and renewable energy targets further promote solar energy expansion. The environmental and social advantages, such as reduced carbon emissions and job creation, add to the appeal. The investment for large-scale projects and community-based solutions gaining traction expands the solar and renewable facilities.
The expansion of solar and renewable energy plants, results in rising funding for solar energy plants. The government focuses on offering funding for the solar PV manufacturing projects. In 2023, the European Government funded USD 439.77 for expansion of solar PV manufacturing projects. The rising expansion of solar manufacturing projects, boosts usage of medium voltage wire cable. The European Union plans a major increase in solar PV capacity from 263 GW today to almost 600 GW by 2030. The European Commission (EU) installed on solar plants and invested USD 637 Billion on this solar plant.
The rising investment and expansion of solar plants, boosts demand for medium voltage wire cable. Solar PV photovoltaic cables are installed specifically with solar panels in mind, so their design always reflects the latest trends and innovations in the solar industry. Tratos Group offers medium voltage cables specifically designed for the final connection from solar farms to the electrical grid. These MV cables are engineered to meet the rigorous requirements of utility-scale solar installations, offering high voltage ratings, robust insulation, and exceptional reliability. With Tratos MV cables, solar developers and operators can ensure safe and efficient grid interconnection, enabling seamless integration of solar power into the electrical infrastructure. The rising expansion of solar power plant and solar PV installations, boosts demand for medium voltage wire cable market.
Sumitomo Electric Industries, Ltd. Basic Information, Manufacturing Base, Sales Area, and Competitors
|
Sr. No. |
Item |
Description |
|
1 |
Company Name |
Sumitomo Electric Industries, Ltd. |
|
2 |
Website |
sumitomoelectric.com |
|
3 |
Established Date |
1897 |
|
4 |
Headquartered |
Japan |
|
5 |
Market Position/ History |
Sumitomo Electric Industries, Ltd. was founded in 1897 as a Sumitomo Copper Rolling Works. In 1911, Sumitomo Electric Wire and Cable Works was established. In 1922, the company manufactured and installed 21 km of submarine power cable, the world’s longest at that time. In 1948, it started production and sales of sintered powder metal products. In 1964, the company started production of Sumitube. In 1974, it completed the Tokyo Traffic Control Center, one of the world's largest. In 1974, the company started production of optical fiber cables. In 1998, it completed the installation of submarine cables in Tachibana Bay, Tokushima In 2016, the company started sales of the world's highest fiber count optical cables In 2017, it completed a 400kV XLPE cable installation project in the UK and Belgium. |
|
6 |
Sales Area |
Worldwide |
|
7 |
Manufacturing Location |
Japan, Indonesia, Malaysia, Philippines, Thailand, Vietnam, China, Taiwan, Albania, Germany, Hungary, Italy, Poland, UK, Morocco, Brazil, Mexico, the US, and other countries |
|
8 |
Ticker |
TYO: 5802 |
|
9 |
No. of Employees |
289,191 employees |
|
10 |
Competitors |
|
|
11 |
CEO |
Masayoshi Matsumoto |
|
12 |
Ownership Type |
Public |
|
13 |
Contact Information |
4-5-33 Kitahama, Chuo-ku, Osaka, Japan Tel: +81-(0)3-6737-2657 |
Business Segment/ Overview:
Sumitomo Electric Industries, Ltd. manufactures electric wire and optical fiber cables. The company offers a wide range of products from optical fibers, cables, and components to electronic devices and automotive parts. The company operates through several business segments such as environment & energy business, information & communications business, automotive business, electronics business, industrial materials business & others. The automotive segment offers wire harnesses, rubber cushions, hoses for automobiles, automobile electrical parts, and others. Sumitomo's Information Communications-related segment offers fiber-optic cables, electrical cables and equipment for communications use, optical communications-related parts, and others. The electronic and industrial business offers medium and high voltage cable wires used across construction, and other sectors.
Medium Voltage Wire Cables Product Types Specification
|
Product |
Product Description |
|
Medium/ Voltage Electric Wires/Cables |
Sumitomo Electric Industries Ltd. offers medium voltage wire cables for construction sites and other applications. The medium voltage wire cable used for installation at different sector. Sumitomo Electric Industries medium voltage wire cable designed for reliable power distribution in industrial and utility applications. These cables are typically designed for voltages ranging from 1 kV to 36 kV and feature high-quality insulation materials such as XLPE (cross-linked polyethylene) or EPR (ethylene propylene rubber) to ensure durability and excellent electrical performance. Sumitomo's medium voltage cables are constructed with multiple layers of insulation, shielding, and protective jackets to enhance their reliability and safety. |
Business Strategy
Sumitomo Electric Industries, Ltd. engaged in R&D investment for the development of medium voltage cables. The company has a focus on inorganic development such as strategic acquisitions and partnerships to enhance its business portfolio. In March 2023, the company entered into a partnership agreement with Hanwa Co., Ltd. to expand overseas operations and exploring new product opportunities both domestically and internationally. The company focus was to enhance the production and research capabilities to offer quality medium voltage cables and other product in the portfolio to customers. The company implemented CAE technology in the wires and cables to increase its service life of the electric wires and cables. The company invested its resources for the development of copper alloy wires for automotive application utilizing xEV technologies. The focus on quality wires and cables, accelerate several growth opportunities for the company. The company established its offices across emerging location, which increases the penetration of product in international location, which offers an opportunity for the company to enter in new locations.
S.W.O.T Analysis
Strength
- Diverse geographic presence across all the continents
- Business diversification and operates business in various segments such as environment & energy business, information & communications business, automotive business, electronics business, industrial materials business & others.
- Strong focus on research and development and heavily invested in R&D
Weakness
- Substantial debt, affects the profitability of business operations
Opportunity
- Increasing demand for high-speed data transmission
- Growth of end use sectors such as Telecommunications, Private Enterprise Networks, Cable TV and Military/Aerospace
Threats
- Stringent rules and regulations, impacts the product demand, which impacts the business operation of the company
