Market Trends of Cable Lugs Industry
This section covers the major market trends shaping the Cable Lugs Market according to our research experts:
Large-Scale Infrastructure Development Projects will Drive the Market Growth
- Infrastructure development and access to basic utilities remain the core area of concern in the world. In order to address the substantial infrastructure gap, local governments have undertaken several large-scale development projects to accommodate the needs of the growing population.
- For instance, in June 2020, National Highways Infrastructure Development and Construction Limited (NHIDCL) of India invited bids for the Zojila tunnel project, pegging its cost at Rs 4,430 crore. Such construction projects would demand more of cable lugs and other accessories for powering the projects.
- Based on findings from the Asian Development Bank, the total infrastructure investment in Asian countries is expected to be USD 26 trillion over the next 15 years, and it is estimated that China’s investment in Belt and Road countries will increase by 14% annually over the next two years and that the total investment amount could double to USD 1.2-USD 1.3 trillion by 2027.
- The Global Infrastructure Hub–EDHEC indicates some 90% plan to expand infrastructure investment, in addition to the potential source of infrastructure financing of approximately USD 80 trillion in assets held by institutional investors, particularly pension funds. And yet, according to OECD data, just 1% of institutional investors’ assets are presently invested in infrastructure.
- The development of smart cities globally is also expected to contribute to the increasing demand for cable accessories, such as cable lugs and tools. For instance, according to Consumer Technology Association, the global smart city spending reached USD 14.85 billion 2015, as against USD 34.35 billion in 2020. According to World Economic Forum, Singapore is the global leader in overall infrastructure with a value of 95.4 on a scale of 0 to 100.
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North America to Account for the Largest Share
- Remodeling and restoration of the energy infrastructure being associated with the massive attendance of the cable accessories merchants have been pushing the market of cable lugs in North America. Development of the smart cities in the United States and Canada is also expected to add to the rising demand for cable accessories, like cable lugs and tools in the North American region.
- The North American government has commissioned several studies to explore methods for upgrading the existing infrastructure to comply with contemporary requirements. It has become imperative for the energy board to divert its focus on renewable sources of energy, to compensate for the steady rise in demand for energy across the region.
- According to U.S. Energy Information Administration, electricity use in the United States has increased 13 fold since 1950, as the End-use of electricity in the United States totaled 3.99 trillion kilowatt-hours in 2019, and consumption is expected to continue to increase in the next decades. A recent study by an energy consultancy in the United States revealed that around USD 2 trillion needs to be spent on energy infrastructure to upgrade the system to comply with European standards.
- The United States Environmental Protection Agency (EPA) and ARPA have taken cognizance of the growing need for upgrading of energy infrastructure, to meet renewable energy targets. Some of the initiatives introduced by the government include smart wires and Green Electricity Network Integration programs, which focus on the use of advanced systems for modernizing the existing infrastructure.
- In the last three years, more than 15 projects have been undertaken by ARPA to revamp the power distribution systems on a war footing. Owing to these steps, the North American region witnessed an increased demand for electrical products and cable lugs.
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