Crosslinked Cables Market Size, Share & Trends Growth [2031]

Report Description

Crosslinked Cables Market Outlook 2031

The Global Crosslinked Cables Market was valued at USD 18409.4 Million in 2022 and is projected to reach USD 30427.6 Million by 2031, expanding at a CAGR of 5.9% during the forecast period, 2023 to 2031.

Crosslinked cables are electrical cables that have been treated with crosslinking processes to improve their performance and durability. Crosslinking is done using a variety of different methods, including chemical cross-linking, radiation-crosslinking, and dry-chemical crosslinking. The common method is chemical-crosslinking, which involves using a chemical agent to create bonds between the polymer molecules.

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Crosslinked cables have a maximum temperature of 125°C and an emergency rating of 150°C. However, they are often rated for 90°C to 105°C, allowing them to be utilized in a wide range of applications. These sturdy cables, which come in a variety of constructions and sizes, have a number of advantages that make them one of the dependable hook-up and building wiring items.

Macro-Economic Factors

Technological Advancement

Technological advancements play a significant role in the crosslinked cables market. One such advancement is electron beam (E-beam) processing. E-beam irradiation provides enhanced cross-linking and polymer modification for wire, cable, and tubing products. This processing technique is energy-efficient. It does not require any additives and does not generate any hazardous chemical by-products.

In addition, the E-beam cross-linking does not require the hours of cure time that are required for other conventional chemical cross-linking methods. This technology is used to improve the thermal resistance, dielectric properties, chemical resistance properties, barrier, impact wear, and other mechanical properties of wires and cables.

Global Trade and Tariffs

Global trade and tariffs impact the crosslinked cables market in various ways. Tariffs are taxes imposed on imported goods by the government of the importing country. Tariffs increase the prices of imported goods, which leads to a decreased demand for crosslinked cables. For instance, if a country imposes restrictions on the import of raw materials used in the production of crosslinked cables, it leads to an increase in the cost of production, which further increases the price of finished goods.

Economic Growth

The overall economic growth of a country or region has a direct impact on the demand for crosslinked cables. Strong economic growth increases construction activities. Thus, the surge in construction activities drives the demand for crosslinked cables, which are essential for the electrical wiring of buildings and infrastructure projects.

Crosslinked Cables Market Dynamics

Market Driver- Rising Demand for Data Centers

The need for data centers has soared, fueled by remote work and the growth of high-speed streaming. This is driving the crosslinked cables market significantly. Data centers require large amounts of power, and crosslinked cables are well-suited for transmitting high currents of electricity. Crosslinked cables are also more durable and resistant to corrosion than traditional cables, which is important for data centers that operate 24/7.

Moreover, data centers need to be highly interconnected, and crosslinked cables are used to create high-speed networks that connect data centers to each other and to the internet. Crosslinked cables are also suitable for use in data center infrastructure such as power distribution systems and cooling systems. The rising in demand for data centers has attracted the attention of investors, which ultimately boost the demand for crosslinked cables.

For instance, Microsoft announced that it is building a new data center in the Netherlands. It plans to use crosslinked cables to connect the data center to the grid and to other data centers in Europe.

Market Driver- Government Regulations and Initiatives

Governments are implementing regulations to promote the use of energy-efficient and sustainable products, which are driving the demand for crosslinked cables. For instance, the Energy Performance of Buildings Directive (EPBD) requires all new buildings in the European Union to be nearly zero-energy buildings. Governments are also investing in renewable energy and smart technologies, which boost the demand for crosslinked cables.

These cables are used in a variety of renewable energy and smart grid applications. For instance, the US government has set a goal of generating 30% of its electricity from renewable sources by 2030. Governments across the globe are providing incentives to promote the adoption of electric vehicles (EVs). For instance, the US government offers a tax credit of up to USD 7,500 on the purchase of an EV.

In addition, China has also extended its tax exemption policy for new energy vehicles (NEVs) until 2027, showcasing its commitment to promoting the electric vehicle (EV) industry. Such initiatives are boosting the crosslinked cables market significantly.

Market Restraint- High Costs

Crosslinked cables are manufactured using specialized materials and processes. For instance, crosslinked polyethylene (XLPE) is commonly used in cable insulation, which requires precise crosslinking through radiation or chemical methods. These processes are capital-intensive and involve significant upfront costs for manufacturers. Moreover, the cost of raw materials, such as XLPE, fluctuate, due to the market conditions and availability.

High upfront costs for crosslinked cables also deter potential customers. Therefore, the overall cost of production is higher as compared to standard cables with simpler insulation, which restrain the adoption of these cables. Additionally, crosslinked cables are used in critical application such as power transmission and distribution, wherein any failure or malfunction has serious consequences.

Manufacturers invest in quality assurance processes and testing to maintain quality and reliability, which adds to the overall costs, restraining the market growth.

Market Opportunity- Growing Trend toward Renewable Energy

Crosslinked cables play a crucial role in renewable energy and growing trend toward renewable energy is projected to create lucrative opportunities for crosslinked cables market in the coming years. Crosslinked cables are vital in photovoltaic (PV) solar power systems. These cables are used to connect solar panels to inverters and other electrical components.

The demand for crosslinked cables is projected to increase, as the demand for solar energy installations is rising. For instance, crosslinked cables are necessary in large solar farms for efficiently transmitting electricity generated by the panels to the grid connection point.

Additionally, crosslinked cables are increasingly being preferred in wind farms for extensive cabling networks to interconnect turbines, manage power distribution, and transmit electricity to the grid. The expansion of wind energy projects globally further opens up opportunities for crosslinked cables market.

Scope of The Crosslinked Cables Market Report

The report on the global Crosslinked Cables Market includes an assessment of the market, trends, segments, and regional markets. Overview and dynamics have also been included in the report.

Crosslinked Cables Market Segment Insight

The global Crosslinked Cables Market is segmented on the basis of voltage, insulation material type, process type, end-use, and region.

In terms of Voltage, the Crosslinked Cables Market is segmented into low voltage, medium voltage, and high voltage. The Medium Voltage segment is expected to dominate the market in 2022. The growing urbanization and industrialization in emerging economies, such as China, India, Brazil, and South Africa, is expected to create a high demand for medium voltage crosslinked cables. These cables are used to distribute electricity from the substations to the end-users in residential, commercial, and industrial sectors.

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On the basis of insulation material type, the Crosslinked Cables market is segmented into XLPE ( Cross-Linked Polyethylene ), XLPVC (Cross-linked poly vinyl chloride), and Others. The XLPE (Cross-Linked Polyethylene) segment is expected to dominate the market in 2022 The low cost, flexibility, and easy installation of XLPE are major factors driving the market. The surge in demand for XLPE from the pipes and tubing applications is contributing to the segmental growth.

Based on process-type, the Crosslinked Cables market is segmented into Chemical Crosslinking, E-beam Processing, and Others. The Chemical Crosslinking segment is expected to hold a substantial share of the market, owing to the increasing demand for chemical crosslinking processes in a wide range of industries such as construction, automotive, aerospace, and marine are boosting the segment.

Moreover, new crosslinking chemical agents are being developed that are increasingly efficient, eco-friendly, and easy to use. This is making chemical crosslinking attractive to a wide range of manufacturers, propelling the segment.

In terms of end-use, the Crosslinked Cables Market is segmented into Power, Oil and Gas, Chemical, Manufacturing, Metals & Mining, and Others. The Power segment is expected to dominate the market in 2022, due to increasing global demand for electricity drives the need for efficient power transmission and distribution systems, leading to a higher demand for crosslinked cables

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Regional Outlook

Based on regions, the Crosslinked Cables Market is segmented into North America, Europe, Asia Pacific, Latin America, and Middle East & Africa. The market in Asia Pacific is growing at a rapid pace during the forecast period, dur to rapid urbanization and industrialization in emerging countries, such as China and India, provide substantial growth opportunities in the market. Furthermore, the rapid expansion of the renewable energy sector in the region is contributing to the growth of the market.

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Key Benefits for Industry Participants & Stakeholders

• In-depth Analysis of the global Crosslinked Cables Market

• Historical, Current, and Projected Market Size in terms of Value and Volume

• Potential & Niche Segments and Regions Exhibiting Promising Growth Covered

• Industry Drivers, Restraints, and Opportunities Covered in the Study

• Recent Industry Trends and Developments

• Competitive Landscape & Strategies of Key Players

• Neutral Perspective on Global Crosslinked Cables Market