Industrial solar cable market size was valued at $2.6 billion in 2023 and is estimated to grow at a Compound annual growth rate (CAGR) of 8.6 per cent between 2024 and 2032, due to the increasing adoption of renewable energy sources, particularly solar power, necessitates efficient transmission infrastructure, boosting demand for various types of solar cables, according to a report about Global Market Insights.
Based on data from the International Renewable Energy Agency, there was a notable surge in global solar photovoltaics installed capacity, growing by over 22 per cent from 2021 to 2022, in stark contrast to the mere 2 per cent growth observed in concentrated solar power systems during the same period.
Furthermore, governments worldwide are implementing policies and incentives to promote renewable energy development, stimulating market growth.
INDUSTRIAL SOLAR CABLE MARKET TRENDS
The rapid expansion of solar energy installations, coupled with supportive government policies and incentives, is propelling the global industrial solar cable industry.
Government incentives such as tax credits and subsidies further stimulate investment in solar projects, amplifying demand for high-quality cables to transmit power efficiently and reliably, stated the report.
For instance, in Nov 2023, Australia has established an ambitious objective to derive over 80 per cent of its electricity from renewable sources including solar photovoltaic (PV) and wind power by 2030. This symbiotic relationship between solar growth and policy support fosters a robust market for industrial solar cables, meeting the escalating needs of the renewable energy sector.
INDUSTRIAL SOLAR CABLE MARKET ANALYSIS
Industrial solar cable industry is categorised into PW wire, USE-2 Wire, and THHN wire based on type. The PW wire segment is projected to reach $2.9 billion by 2032, as the product offer superior performance, durability, and reliability, making them ideal for industrial solar applications, reported Global Market Insights.
Increasing investments in renewable energy infrastructure, along with supportive government policies favoring solar projects, are further propelling the demand for PW wires.
For instance, in October 2023, the Solar Energy Corporation of India (SECI) initiated a tender aimed at developing approximately 1 GW of transmission grid-network connected solar projects between states entailing the execution of a 25-year power purchase contract between SECI and developers.
INDUSTRIAL SOLAR CABLE MARKET ANALYSIS
The copper industrial solar cable market is set to expand at over 8 per cent CAGR through 2032. Ongoing innovations including conductive polymers, composite materials, and hybrid alloys to offer improved conductivity and cost-effectiveness coupled with new initiatives by key industry players will positively stimulate the industry dynamics, revealed the report.
For instance, in March 2023, BELECTRIC Solar UK and NextEnergy Solar Fund have entered into a formal framework agreement for the operation and maintenance (O&M) of solar farms exceeding 150 MWp shaping the industry competition.
Asia Pacific industrial solar cable market is anticipated to surpass $3 billion by 2032. The region's rapidly expanding industrial sector, particularly in countries like China and India, demands extensive solar energy infrastructure, driving the need for specialised cabling. Additionally, supportive government policies and incentives aimed at promoting renewable energy adoption further boost market growth.
For example, in July 2022, the housing department of China, in conjunction with the National Development and Reform Commission, has unveiled a strategic initiative aimed at integrating solar panels into new public buildings and factories across urban and rural areas. The ambitious goal is to ensure that by 2025, 50 per cent of the construction in towns and cities will be equipped with solar panel technology.