Competition Has Increased Among Cable Manufacturers
The increased focus on renewable energy, grid interconnections, and economic development are expected to drive the demand for transmission and distribution cables across the world...
Due to the impact of the economic slowdown, the market witnessed a decline in the growth rate from 2009. However, the market is set to achieve strong growth rate from 2012 onwards. Capital spending and investments in industries worldwide is expected to boost growth of the market.
The economic recession had its effect on the transmission and distribution sector, and due to the ongoing financial crisis in many countries, the pricing of the cable has become a competitive parameter. Moreover, the electric utilities are expecting the cable manufacturers to reduce the prices. Furthermore, due to the cancellation of transmission expansion plans and delays in orders, the competition between existing players has also increased.
Companies are adopting various strategies to counter the competition and survive in the market. Some of them include merger and acquisitions, focus on custom and high end products, increased emphasis on research and development, plant closures, exploring new markets and so on.
Major corporations involved in the competition are Southwire Company, Prysmian, General Cable, Okonite Company, Alcan Cable, and many others. High emphasis on the commercialisation of renewable energy throughout the world is expected to drive the growth of transmission and distribution cables. Renewable energy resources are often at far off places where the transmission network is not available. In the future, lot of expansion in the transmission network is expected to transfer the electricity from the far off power plants to the load centres.
Many countries are integrating their regional grids to form a nationwide grid. The idea is to have seamless flow of electricity across the nation. The development of renewable energy is further supporting the grid interconnection. In European countries, work is going on to form a single European grid amongst all EU nations. Moreover, as the Asian countries develop, energy trade between them is expected to rise. Furthermore, in many countries, the transmission networks are not reliable enough to transfer the electricity from the growing number of power plants. The increased focus on renewable energy, grid interconnections, and economic development are expected to drive the demand for transmission and distribution cables across the world.