Gloabal Cable Lugs Market - Segmented by Type of Material (Copper, Aluminium, Plastic, Stainless Steel, Others), End-User Vertical (Automotive, Construction, Manufacturing and Processing, Power and Utilities, Aerospace), and Region - Growth, Trends, and Forecast (2018 - 2023)
The global cable lugs market is projected to register a CAGR of 6.25% during the forecast period (2018 - 2023).The scope of the report is limited to solutions offered by major players including providers of ring, fork, pin and tubular type. While the regions considered in the scope of the report include North America, Europe, Asia Pacific, Latin America, and Middle East & Africa.
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. 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. However, fluctuating material costs and increased competition may affect suppliers and vendors.
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 growing population. For instance, the Indian Government has been making concerted attempts to ensure that all villages have access to electricity by 2017. Also, a recent study revealed that more than USD 8 trillion is expected to be spent on infrastructure projects in Asia-Pacific, over the coming decade and more than two-thirds of expenditure on infrastructure development in Asia will be expended on energy and transport projects. This includes construction of mass transit systems and power generation projects, which are expected to be needed for supporting the needs of local population. The development of smart cities in India and China is also expected to contribute to the growing demand for cable accessories, such as cable lugs and tools.
Copper Lugs held the Largest Share
Copper cable lugs are mainly used for terminating cable ends in automotive batteries, switchboards, solenoids, distribution blocks and starters owing to their significantly-lower co-efficient of thermal, which makes them more safer option as they do not create fire hazards on their own, unlike other materials. Moreover, copper cable lugs are capable of handling high currents in distribution systems and are also known to be highly conductive. Although copper is relatively more expensive than other materials owing to their lower availability in nature, they are still considered to be a preferred choice in several applications, such as power and utilities and large-scale construction projects. But, their growth during the forecast period is expected to slow down as copper reserves, across the globe, are becoming scarce gradually and hence, cable lug manufacturers are exploring for other feasible alternatives to account for the cost and availability issues.
North America Dominated the Market
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. In the last decade, the demand for electricity in the United States has grown by more than 10%, partly due to the increased volume of home appliance systems, such as air conditioners and heaters. 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, North American region witnessed an increased demand for electrical products and cable lugs.
Key Developments in the Market