The global energy cable market to be $164 billion by 2027

The global energy cable market is being driven by rising electricity consumption from industrialisation and construction activities. Vinay Rathi, Director of Gloster Cables Limited, discusses how domestic gear manufacturers are developing new strategies to capitalise on the rising demand for renewable energy.
How much is the global energy cable market? What are the growth drivers?
The global energy cable market is expected to reach an estimated $164 billion by 2027, with a CAGR of 5.7 per cent from 2021 to 2027. The major growth drivers for this market are growth in electricity consumption due to industrialisation, urbanisation, electrification of rural areas, and increasing construction activities.
How does the energy equipment business respond to India’s ever-increasing demand for uninterrupted power?
Domestic power gear manufacturers are developing strategies to take advantage of power generators’ rising renewable energy portfolio in response to the increased emphasis on green energy. The key suppliers to India’s thermal power companies, Bharat Heavy Electricals (BHEL), Thermax, and Larsen & Toubro (L&T), are all adjusting to the shift to green energy in their unique ways. The damage climate change and growing pollution can do now are more well-recognised. Every nation, including India, must reduce its carbon output levels. Therefore, renewable energy will become a clear choice in the future. India must change its energy mix and ensure that renewable energy sources generate the majority of the new capacity. Renewable energy is expected to very shortly become more affordable than the energy obtained from fossil sources, increasing its significance for a developing economy where affordability and last-mile availability are critical challenges.
What are the market’s concerns, particularly in cost and sourcing raw materials?
The fluctuation in raw material prices is a typical issue. Profit margins are significantly impacted by the increased cost of raw materials (copper, zinc, aluminium, and copper). Aside from this, the wire and cable sector relies on imports from the UAE, Japan, China, and Russia. So, the industry is significantly impacted by changes in exchange rates. Lack of labour and delays in project execution caused by various required approvals and certifications are also significant barriers to the industry’s expansion.
What policies assist the industry in increasing localisation and domestic manufacturing in this sector?
Various industries have been focusing on and embracing the ‘Make in India’ programme for a while now. The government’s ‘Atmanirbhar Bharat’ (Self-Reliant India) initiative is again at the forefront as multinationals diversify their supply chains. Localisation can pay off when industry and the government work together to keep pushing this agenda forward. The government’s numerous initiatives, including the skill India programme, the ease of making business rules, the production-linked incentive scheme, and the emphasis on foreign direct investment, are all positive moves. Everyone will benefit if the government and industry work together.
What kind of efficient equipment is expected when the global energy sector becomes green in the following years?
Biomass, geothermal resources, sunlight, and water are the primary renewable energy sources. All these can be converted to usable energy, i.e., bioenergy. Photovoltaic panels act as the most cost-effective renewable energy source in large buildings.