Increasing number of construction projects and rising power requirement is expected to fuel the Middle East cable market, said a new report by Global Market Insights on the Middle East cable market.

The need to address the large requirement for electricity across the globe has resulted in an increased number of power generation projects. Favourable government initiatives, investments in smart city development in the Middle East, rapid urbanisation, tourism, and infrastructural development is also expected to catalyse the Middle East cable market growth, it said.

According to Global Market Insights, the Middle East cable industry is anticipated to register a revenue of more than $11.98 billion by 2023, growing at a CAGR of 8.4 per cent from 2016 to 2023.

The rising necessity for replacing old transmission lines for safe transportation is one of the crucial factors that will drive revenue. Furthermore, high power consumption across residential areas will lead to the implementation of more power generation projects, which will fuel product demand, it added.

Middle East cable market size for the UAE was worth $1.6 billion in 2015. Increasing industrial applications powered by a surging demand for technologically advanced automated systems is likely to fuel regional growth.

Middle East cable industry for Saudi Arabia is expected to register a revenue of $5 billion by 2023, growing at a healthy CAGR of 9 per cent over the period of 2016-2023. This growth can be primarily attributed to a slew of construction projects, technological innovations, and highly developed infrastructure across the region.

Based on the product trends, the Middle East cable market is segmented into low voltage, medium voltage, high voltage, and very high voltage cables. Low voltage cables find applications in low power transmission internal wiring and related electrical issues. Increased power requirement drives the need for automation, which in turn will fuel Middle East cable industry growth.

Low voltage Middle East cable market size was worth more than $1.84 billion in 2015, and is projected to be valued at approximately $3 billion by 2023. This growth can be primarily credited to the booming construction and real estate sectors.

Medium voltage Middle East cable industry contributed to the highest share in 2015, and is majorly driven by a huge consumer base and increased applications across the railway sector. The target market size is expected to grow at a substantial CAGR of 8 per cent over 2016-2023.

High voltage Middle East cable industry, having accounted for more than 20 per cent of the overall share in 2015, is estimated to record a CAGR of 10.5 per cent over 2016-2023. Growing number of offshore wind projects and rising penetrations across submarine use cases will complement market growth.

Middle East cable industry for industrial applications is slated to grow at a CAGR of 8.5 per cent over 2016 to 2023 and is a highly lucrative application segment.

Increased consumer spending and rapid infrastructural development will be the key factors driving Middle East cable market for commercial applications. Having generated a revenue of $3.81 billion in 2015, this industry is projected to witness a surging growth and will continue to be a major contributor in the years to come.