Cable Lugs Industry

Cable Lugs Market Analysis

The Cable Lugs Market is expected to register a CAGR of 6.75% during the forecast period.

• Cable lugs enable easy removal of terminals in case of repairs, which is the major advantage associated with their usage. They have gained significance due to an increased demand for power transmission across industries and commercial establishments. In the present day, advancements in electronics have also increased the need for providing proper safety to electrical gadgets and cable installations.
• The growth drivers in the cable lugs market include large-scale infrastructure development schemes, increased investments in power generation projects, energy infrastructure overhaul in mature markets and technological developments in cabling applications. For instance, according to ETEnergyworld.com, US growth was largely due to a short-term extension of a production tax credit for wind projects and plans to invest USD 57 billion to install up to 30 gigawatts (GW) of offshore wind by 2030.
• Rapid urbanization and increased emphasis on renewable energy projects are expected to open up growth opportunities in the cable lugs market during the forecast period. For instance, according to Population Reference Bureau, in 2019, the degree of urbanization worldwide was at around 54%. Meanwhile, as of 2010, the global share of people living in urban areas was estimated at 51%. This share is projected to increase to 70% of the global population by 2050 as per the same source.
• Moreover, according to the United Nations Environment Programme (UNEP), Since 2009 the cumulative renewable energy capacity has risen from 1.14 terawatts to 2.36 terawatts in 2018. In addition, shares of renewable energy have more than doubled during this period to almost 13%. However, fluctuating material costs and increased competition may affect suppliers and vendors.
• Owing to the COVID-19 pandemic, as a consequence of the efforts to slow the spread of the virus, the share of energy use that was exposed to containment measures jumped from 5% in mid-March to 50% in mid-April. Countries in full lockdown are experiencing an average 25% decline in energy demand per week and countries in partial lockdown an average 18% decline. As the energy and power sector has customers for the Cable Lugs Market, the growth of the market being studied might get impacted.

Cable Lugs Market Trends

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.

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.

Cable Lugs Industry Overview

The cable lugs market is fragmented. Many players are catering the cable lugs to large industrial and commercial needs. Moreover, with major players, many local manufacturers are also competing in price which makes the market competitive and fragmented. Some of the key players include Schneider Electric SE, Legrand SEICO, ABB Ltd, Chatsworth Products Inc., Helukabel, 3M Corporation, Amphenol Corporation, Klauke (Emerson), Hubbel Incorporated, Cooper Industries (Eaton Corporation), among others.

• June 2019 - The Weidmüller Group, acquired a minority stake in ORing Industrial Networking Corporation (abbr: ORing). With the minority interest, Weidmüller strengthens its strategic partnership with ORing and enables a deepening of technological cooperation.
• Apr 2019 - US-based Carlyle Group and Schneider announced the enhancement of its partnership to develop innovative infrastructure projects. Apart from creating new investment and energy-as-a-service opportunities, this collaboration will apply Schneider's capabilities in advanced connectivity and real-time insights to Carlyle infrastructure and microgrid investments.

Cable Lugs Market Leaders