Posted On: 2020-04-17
Low voltage wires and cables are expected to hold the largest market share in revenue terms during the forecast period – 6W research.
The massive infrastructure development and growing population in Saudi Arabia are leading to a rise in infrastructural and power requirements. The government is focusing on renewable energy resources to meet the power demand gap and promote clean energy. Furthermore, Saudi Arabia announced a trillion-dollar pipeline of infrastructure projects which are aimed at realizing the goals of diversification of economy beyond the oil sector and developing the nation as an investment center in the Middle East region. These efforts would bode well for the overall growth of the cable and building wire in the forecast period. The market is expected to decline during the year 2020 due to the global economic slowdown caused due to the COVID-19 pandemic, however, the market is expected to recover post-2020.
According to 6Wresearch, Saudi Arabia Wires and Cables Market size is projected to grow at a CAGR of 6.2% during 2020-26. Wires and cables market in Saudi Arabia declined in recent years, in terms of volume, owing to a slump in the construction industry as a result of fall in oil prices. The market started recovering in mid-2018, with increasing government expenditure as a result of the rise in crude oil prices along with government decision to pump considerable investments in non-oil sectors. However, due to the slowdown in the global economy, the market is expected to showcase sluggish growth during the forecast period.
According to Prithu Chawla, Senior Research Analyst, 6Wresearch, “low voltage market portrays dominance in the Saudi Arabia cable market owing to rapid urbanization synergized by increasing demand for reliable power supply which will encourage the product growth in the aforementioned segment. The medium voltage segment is anticipated to grow significantly in terms of revenue share due to its application in the oil and gas industry.
“Saudi Arabia’s Ministry of Housing has launched several projects to increase the number of residential units across the country with the aim to increase the national homeownership rate by 60% in 2020 to 70% in 2030. These projects include the major housing project that aims to add 500,000 housing units to the country and the Al Wajiha project that includes the construction of 574 villas this would increase the requirement of the wires and cables even further in the Saudi Arabian Market.” Prithu further added.
According to Siddharth Saxena, Research Associate, 6Wresearch, “The overhead cables would show dominance in the Saudi Arabia wires and cables market although the underground cables would show the maximum growth owing to increase in the adaptability of underground systems along with maintenance cost benefits.”
“Saudi Arabia Wires and cables Market (2020-2026)" provides an in-depth analysis with 35 figures, covered in 75 pages. The report estimates and forecasts the overall Saudi Arabia wires and cables market by voltages, by installation, by-products, by material, end-user and by regions. The report provides an unbiased and detailed analysis of the on-going trends, opportunities/high growth areas and market drivers which would help the stakeholders to devise and align their market strategies according to the current and future market dynamics.