Vietnam High Voltage Cable Market Forecast 2024-2032

Vietnam High Voltage Cable Market Forecast 2024-2032

The Vietnam high voltage cable market is estimated to rise with a 6.56% CAGR by 2032, and is predicted to reach a revenue of $1564.95 million during the forecasting years 2024 and 2032.

MARKET INSIGHTS

Vietnam’s high voltage cable (HVC) market is experiencing robust demand driven by the country’s escalating energy needs. With the country’s economy expanding steadily, there has been a notable surge in electricity consumption, as well. According to Vietnam Energy Information, from 2010 to 2020, Vietnam experienced a rapid annual increase in total energy consumption, averaging 5.2%. However, in 2021, due to the impact of the COVID-19 pandemic, energy consumption decreased by 2%, and by 2022, there was a rebound with a 4.5% increase. This growth underscores a sustained demand for reliable infrastructure, including high voltage cables, to support the nation’s burgeoning industrial and residential sectors.

Private equity investors are increasingly engaging with Vietnam’s renewable energy landscape, seeking opportunities beyond traditional coal and hydropower sources. In recent years, renewable energy has emerged as a pivotal sector for investment, ranking third after fintech and education in terms of investor interest. This shift is part of the nation’s broader strategy to diversify its energy mix and attract private capital to develop alternative energy sources such as wind and solar power. The involvement of entities like the World Bank Group, which has invested $75 million in green bonds aimed at funding renewable projects in Vietnam, highlights the growing momentum toward sustainable energy solutions in the country.

Despite these positive developments, challenges persist in Vietnam’s renewable energy sector, particularly concerning the bankability of power purchase agreements (PPAs). Current PPA terms present significant risks to project developers, limiting their ability to secure financing, especially from international sources. This approach complicates the financial viability of renewable energy projects, highlighting the need for regulatory reforms and improved framework conditions to foster a more conducive investment environment. As Vietnam continues to navigate its energy transition, these factors will remain crucial in influencing the country’s HVC market growth during the forecast period.

SEGMENTATION ANALYSIS

The Vietnam high voltage cable market evaluation includes segmentation by end-user and installation. The installation segment includes industrial, renewable energy, and infrastructure.

High voltage cables play a critical role in industrial settings where large machines require substantial voltage and current for operation. These cables facilitate electric power transmission and distribution from main grids to substations within industries. Typically, underground and overhead cables are deployed across sectors like mining & metals, power utilities, manufacturing, and others such as paper & pulp, wastewater treatment, and cement industries. In contrast, submarine cables are utilized in oil & gas industries, essential for operations within oceanic or river basin environments.

The industrialization surge in developing regions significantly propels the high voltage cable market. This growth is further bolstered by government initiatives, particularly investments in power utilities, which stimulate demand. As electrification needs escalate, the establishment of more power utilities becomes pivotal, acting as a driving force for market expansion. This trend not only addresses current demand but also sets the stage for increased opportunities in the high voltage cable sector across these rapidly industrializing regions.

COMPETITIVE INSIGHTS

Key players operating in the Vietnam high voltage cable market are Furukawa Electric Co Ltd, Siemens AG, Hitachi Ltd, etc.

Furukawa Electric Co Ltd manufactures and sells automobiles, electronics, construction, telecommunication, and energy products. Its key solutions include electricals, electronics parts materials, power cables, wiring materials, conductors, optical components, connectors, fluorescent lamps, and LED reflectors. The company is headquartered in Tokyo, Japan, and operates across the Asia-Pacific, Europe, and North America.