Cable Lugs Market Size

Cable Lugs Market Analysis

The Cable Lugs Market is expected to register a CAGR of 6.75% over the forecast period 2021 to 2026. The growth of the cable lugs market is extremely reliant on the growing need for low voltage and medium voltage electrical systems in the construction and automotive business. According to the International Energy Agency (IEA), though the global energy demand declined by 3.8% in the first quarter of 2020, the biggest shock in seven decades, the demand is expected to rise by 1.3% each year to 2040, with increasing demand for energy services, driven by the strong global economy and other factors. The rising energy demand across regions had led to major energy transmission and distribution infrastructure, thus driving the demand for cable lugs.

• 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.