Impact Analysis of Covid-19
The complete version of the Report will include the impact of the COVID-19, and anticipated change on the future outlook of the industry, by taking into the account the political, economic, social, and technological parameters.
Cable conduits are wiring systems that use hollow tubing to enclose electrical power wiring and cables. These conduits are manufactured with the help of PVC, aluminum, steel, and fiberglass. Cable conduits can be used for underground and overhead wiring systems. Some of the common types of cable conduits are rigid metal conduits, intermediate metal conduits, electrical metal conduits, PVC conduits, flexible metallic conduits, and flexible non-metallic conduits. Cable conduits offer superior protection and durability advantages over other wiring methods such as casing and capping and batten wiring, thereby fueling the demand for these wiring systems.
The global Cable Conduit System Market was accounted for US$ 5,585.3 Mn in terms of value in 2019 and is expected to grow at CAGR of 11.0% for the period 2020-2027.
Market Dynamics- Drivers
- Accelerating bandwidth requirements is expected to drive growth of the global conduit systems market during the forecast period
There is rising demand for higher bandwidth, which in turn, is leading to high infrastructure requirements. According to Emulex’s study in 2012, in North America and Europe, the demand for higher bandwidth is currently huge and is expected to grow further in the near future. Furthermore, rising number of subscribers leads to a higher number of devices that are connected to the networks, and more data-dense services that can ride over the networks. These factors give rise to the need for higher bandwidths. Furthermore, the requirement for higher bandwidth is expected to increase globally. The Africa region is expected to witness the highest demand for bandwidth at a CAGR of over 50% during the period from 2012 to 2019. The bandwidth demand in Asia is expected to rise at a CAGR of over 30% during the period from 2012 to 2019. Hence, these factors are expected to drive growth of the global cable conduit systems market during the forecast period.
- Wide availability of cable conduit systems is expected to propel the global cable conduit systems market growth over the forecast period
Cable conduit systems are manufactured from various materials including galvanized steel, steel, PVC, and aluminum. PVC and aluminum conduit systems offer a number of advantages such as lightweight, low cost, high durability, and easy installation as compared to conduit systems made from steel. As a result of this, consumers are preferring low-cost PVC and aluminum cable conduit systems over other wiring methods. Furthermore, the introduction of flexible cable conduit systems is another factor responsible for the continued growth of the cable conduit systems market. Flexible cable conduit systems are the most suitable type of conduit systems for industrial and commercial applications. These conduit systems offer easy installation as they require no bending depending upon the construction design. Hence, these factors are expected to propel the global cable conduit systems market growth in the near future.
North America held dominant position in the global Cable Conduit System market in 2019, accounting for 31.1% share in terms of value, followed by Asia Pacific and Europe respectively
Figure 1: Global Cable Conduit System Market Share (%) in terms of Value, By Region, 2019
Cable Conduit System Market - Impact of Coronavirus (Covid-19) Pandemic
Cable Conduits are used to enclose electrical power wiring and cables. These cable conduits are manufactured from materials such as aluminum and steel. The COVID-19 pandemic have adversely impacted the cable conduits systems market. Owing to the COVID-19, many countries such as India and Spain have imposed nationwide lockdown. Due to the Lockdown, there is a shortage of the workers at the cable conduit manufacturing facilities. Due to the less manpower, the manufacturing facilities are struggling to move the products. In addition to this, due to the shortage of transportation facilities such as Trains and Heavy-duty Vehicles, manufactures are unable to ship their cargoes. Owing to the above mentioned factors, the COVID-19 pandemic is expected to restrain the cable conduit systems market growth in upcoming years.
- High installation and alteration cost of cable conduit systems is expected to restrain growth of the global cable conduit systems market during the forecast period
The installation of a cable conduit system is significantly high. Cable conduit systems installation requires significantly large amounts of material as compared to other types of wiring systems. Furthermore, the installation of cable conduit systems requires highly skilled labor, which is usually not required for installing cleat, casing, and capping and batten wiring. Although conduit systems are manufactured using materials such as composites and PVC which are less costly, the installation costs for these systems are high. Moreover, there are several challenges associated with altering wiring systems. Thus, these factors are expected to restrain growth of the market during the forecast period.
- The volatility of raw material prices is expected to hamper the global cable conduit systems market growth over the forecast period
Steel, plastics, and aluminum are some of the major materials used in the manufacturing of conduit systems. However, prices of these materials change frequently and are unpredictable in nature. Furthermore, prices of carbon steel and composite steel change rapidly, which in turn, is expected to hamper the global cable conduit systems market growth over the forecast period.
Cable Conduit System Market Report Coverage
||Market Size in 2019:
||USD 5,585.3 Mn
|Historical Data for:
||2016 to 2019
||2020 to 2027
|Forecast Period 2020 to 2027 CAGR:
||2027 Value Projection:
||USD 12,635.2 Mn
- North America: U.S., Canada
- Latin America: Brazil, Argentina, Mexico, Rest of Latin America
- Europe: Germany, U.K., Spain, France, Italy, Russia, Rest of Europe
- Asia Pacific: China, India, Japan, Australia, South Korea, ASEAN, Rest of Asia Pacific
- Middle East and Africa: South Africa, North Africa, Central Africa
- By Product Type -(Rigid Cable Conduit Systems and Flexible Cable Conduit Systems)
- By Type of Material -(Rigid Cable Conduit Systems (Aluminum, Electrical, Fiberglass, Galvanized Steel, Intermediate Metallic, PVC, PVC-coated, Stainless Steel), Flexible Cable Conduit System (Aluminum, Galvanized Steel, Non-metallic, Stainless Steel))
- By End-use Industry -(Energy & Utility, Industrial Manufacturing, Transportation, IT & Telecommunication, Healthcare, Residential Construction, Commercial Construction and Other Industries)
Atkore International, Inc., Calpipe Industries, Inc., Appleton Group (Emerson Electric Co.), Hubbell, Inc., Legrand S.A., Robroy Industries, Inc., Schneider Electric SE, ANAMET Electrical, Inc., Electric-Flex Company, Flexa GmbH, Schlemmer GmbH, Southwire Company, LLC, Teaflex Spa, Dura-Line Corporation (Mexichem SAB de CV), Flexicon Limited, FRÄNKISCHE ROHRWERKE Gebr. Kirchner GmbH & Co. KG, Eaton Corporation plc, Arlington Industries, Inc., Bimed AS, Bridgeport Fittings, Inc., and PFLITSCH GmbH Co. & KG.
- Accelerating bandwidth requirements
- Wide availability of cable conduit systems
|Restraints & Challenges:
- High installation and alteration cost of cable conduit systems
- Development of advanced materials for conduit system manufacturing can present lucrative growth opportunities
The most popular materials used for manufacturing cable conduit systems include steel, PVC, aluminum, fiberglass, nylon, and others. Among these, composite materials such as fiberglass offer numerous advantages as compared to the conventional aforementioned materials. Composites are materials that are made up of two or more constituents with different properties. The most common example of composites is fiberglass, which is manufactured by embedding glass into epoxy or polyester resin. Due to their high tensile strength, low conductivity, chemical resistance, and other conduit favorable properties, composites are among the most suitable materials for manufacturing conduit systems.
- Gradual shift from rigid to flexible cable conduit systems can provide major business opportunities
Rigid conduit systems are among the most traditional conduit systems used for wiring system installations. The most important reason for the dominance of rigid conduit systems is their high capacity for protection and availability in different types of materials. The availability of rigid conduit systems made of various materials has made the rigid conduits market highly versatile in terms of cost and application. However, some of the major limitations of rigid conduit systems are the costly and difficult installation of wiring systems, their challenging alteration, and other handling issues. Instead, flexible conduits are used in applications where installation space is critical and frequent changes in the wiring system may be required.
Figure 2: Global Cable Conduit System Market Value (US$ Mn), 2017 - 2027
The global Cable Conduit System market was valued at US$ 5,585.3 Mn in 2019 and is forecast to reach a value of US$ 12,635.2 Mn by 2027 at a CAGR of 11.0% between 2020 and 2027.
- Merger and acquisition activities among major market players
Key players in the market are focused on mergers and acquisitions, in order to enhance the market presence. For instance, in November 2014, Atkore International Inc. acquired Steel Components, Inc. (SCI) in order to enhance its electrical raceway solution offering. Furthermore, in October 2014, Atkore International Inc. acquired American Pipe and Plastics, Inc. in order to strengthen its position in the PVC market further.
- Research and development activities is another major trend
Major market players are focused on research and development activities, in order to expand the product portfolio. For instance, in June 2015, Hubble Inc. Emerson Electric Co. launched the Appleton ATX range of products, by partnering with Pacific Automation Pty. Ltd. In June 2014, Electric-Flex Company introduced its new Underwriters Laboratories (UL) listed jacketed metallic liquid-tight flexible conduit known as LAFG (LA-Food Grade) into its ‘Liquatite’ family.
Value Chain Analysis
The primary raw materials required for manufacturing cable conduit systems are steel (galvanized steel and stainless steel), aluminum, polyvinyl chloride (PVC) and composite materials such as fiberglass. Cable conduit system manufacturers procure these raw materials from established suppliers and usually focus on maintaining good relationship with more than one raw material supplier. This helps manufacturers in achieving consistent in-flow of raw materials despite minor disruptions. However, major threat for cable conduit system manufacturers is the frequent fluctuations in the prices of materials such as steel, aluminum and PVC. This significantly affects the gross profitability of these companies in conduit system manufacturing. Major suppliers of steel for cable conduit system manufacturing include ArcelorMittal SA, and AK Steel Holding Corporation among others.
Key companies operating in the global cable conduit systems market are Atkore International, Inc., Calpipe Industries, Inc., Appleton Group (Emerson Electric Co.), Hubbell, Inc., Legrand S.A., Robroy Industries, Inc., Schneider Electric SE, ANAMET Electrical, Inc., Electric-Flex Company, Flexa GmbH, Schlemmer GmbH, Southwire Company, LLC, Teaflex Spa, Dura-Line Corporation (Mexichem SAB de CV), Flexicon Limited, FRÄNKISCHE ROHRWERKE Gebr. Kirchner GmbH & Co. KG, Eaton Corporation plc, Arlington Industries, Inc., Bimed AS, Bridgeport Fittings, Inc., and PFLITSCH GmbH Co. & KG.
- Major companies in the market are focused on mergers and acquisitions, in order to enhance the market presence. For instance, in August 2019, Atkore International, Inc. acquired Rocky Mountain Colby Pipe Company, a manufacturer of PVC conduit products.
- Key companies are involved in product launches, in order to expand the product portfolio. For instance, in January 2017, Legrand India, a subsidiary of Legrand S.A., launched, cable management and structured cabling solutions.