Global Wire and Cable Market Size, Share, and COVID-19 Impact Analysis, By Material (Copper, Aluminum, Glass, and Others), By Voltage (Low Voltage, Medium Voltage, High Voltage, Extra-High Voltage), By End-User (Aerospace & Defense, Construction, IT & Telecommunication, Power Transmission and Distribution, Oil & Gas, Consumer Electronics, Manufacturing, Automotive, and Others), and by Region (North America, Europe, Asia-Pacific, Latin America, Middle East, and Africa), Analysis and Forecast 2022-2030
KEY MARKET INSIGHTS
The global Wire and Cable Market is projected to grow from USD 198 billion in 2021 to USD 415 billion by 2030 at a CAGR of 8 % during the forecast period.
Growing infrastructure and rising construction sector expenditure would boost demand for plastic insulated cables and wires, propelling the market forward over the anticipated period. The market for wire and cable is expected to grow in the future years due to rising demand in industries such as chemical, electric & electronics, cosmetics & personal care, and automotive.
Manufacturers in the wire and cable industry are expanding their production capacities in oil and gas, aerospace, and consumer electronics to produce income sources, in addition to the construction, telecommunications, and utility industries. Manufacturers of cables benefit from the growing building industry, which provides consistent revenue streams. Wire and cable producers can gain significant opportunities from the construction of industrial units, commercial buildings, office spaces, and residential townships. In addition, significant investments in underwater cables and advancements in renewable energy have increased the use of wires and cables.
COVID-19 ANALYSIS
COVID-19 has had a severe influence on businesses all across the world, including the automotive and aviation industries. Manufacturing activities are often regarded as crucial since they fuel the global industrialization of poor economies and hence have been primarily exempted from the lockdown restrictions. As a result, demand for wires and cables in this industry has remained consistent. COVID-19's spread poses a serious danger to the worldwide industry.
Emerging economies like China and India are leading the way in terms of creating new power plants, focusing on smart infrastructure, and introducing improved communication facilities, all of which are fueling the adoption of wires and cables.
LATEST TREND
Growing Demand for Renewable Energy Boost Market Growth
The power sector is a major user of wires and cables, contributing significantly to market growth. This is clear because governments in various locations are launching new forthcoming power projects to address the demand for electricity. Annual power demand in the United States is expected to rise to 5000 TWh in 2030, according to the World Nuclear Association, due to nuclear reactors producing 807 billion kWh in 2018. As a result, the government has announced intentions to build two reactors by the end of 2021. Furthermore, electricity companies are beginning to implement fiber-optic communication systems. For monitoring their power grid systems, most power utilities already have fiber-optic communication systems in place.
Utilities in fiber-optic networks produce a stable smart grid by improving communication between electricity providers and smart devices. As a result, some utilities are beginning to investigate fiber's potential. In addition, the Kerala Fiber Optic Network (KFON) project in India is a joint venture between Kerala State Electricity Board and Kerala State IT Infrastructure Ltd. The country's IT industry is projected to benefit from the fiber-optic network project, which will open up substantial opportunities in blockchain, artificial intelligence, and startups.
DRIVING FACTORS
Increasing Demand for It Facilities and Data Centers Are Propelling Market Growth
IT services and networking is relying on data centers. Data centers are extremely important for data storage and traffic routing. Data centers are in high demand as a result of the expansion of Big Data, and Big Data is contributing to the exponential growth of qualitative and trustworthy data centers. Cloud storage has become popular among businesses as a way to save money and avoid the burden of operating expensive data centers. The demand for wires and cables will increase as the number of data centers increases, resulting in increased availability, security, and economical connection of IT infrastructure.
RESTRAINTS
Raw Material Price Volatility to Limit Market Growth
The most common raw materials used in cable production are rubber and plastic-based substances, such as PVC grains. The most prevalent organic polymer materials are fluorine plastic and silicone rubber, while wires require copper. An increase in the price of raw materials, particularly copper, has a direct influence on the profit margin of wires and cable manufacturers, limiting market expansion.
SEGMENTATION
The Global Wire and Cable Market are segmented by Material, Voltage, End-user, and Region. Based on the Material, the market is categorized into Copper, Aluminum, Glass, and Others. Based on Voltage, the market is categorized into Low Voltage, Medium Voltage, High Voltage, and Extra-High Voltage. Based on End-user, the market is categorized into Aerospace & Defense, Construction, IT & telecommunications, Power Transmission and Distribution, Oil & Gas, Consumer Electronics, Manufacturing, Automotive, and Others. Based on the Region, the market is categorized into North America, Europe, Asia-Pacific, Latin America, Middle East and Africa.
REGIONAL INSIGHTS
The Global Wire and Cable Market are categorized into North America, Europe, Asia-Pacific, Latin America, the Middle East, and Africa. North America is predicted to increase significantly due to rising renewable energy generation and energy efficiency. According to the International Renewable Energy Agency (IRENA), total renewable energy capacity in North America will reach 392,262 megawatts (MW) in 2020, an increase of about 8% year over year.
Europe is the second-largest market for wires and cables due to the growing demand for renewable energy and increased investment in grid infrastructure. Italy, Spain, Estonia, Finland, Sweden, and Norway, according to smartEn, a European business organization integrating consumer-driven sustainable energy transition solutions, have approximately 100% smart meter coverage. Other nations, like as Denmark, have already crossed the 80% level with plans for future roll-outs, indicating that the market will have attractive growth potential in the following years.
Asia Pacific is expected to be the fastest-growing market for wires and cables due to China and India dramatically boosting their investment in transmission and distribution networks. Moreover, the growing demand for renewable energy-generated electricity is a big contributor to the market's expansion. The US Energy Information Administration predicted in September 2019 that by 2050, the Organization for Economic Cooperation and Development (OCED) Asian nations, led by China, will account for more than half of world energy consumption growth.
KEY INDUSTRY PLAYERS
The present market is highly fragmented, with many competitors across the value chain producing a diverse range of products at local and global levels. Cable manufacturers take an active role at the global, regional, and national levels. Prysmian Group, KEI Industries, Southwire Company, Sumitomo Corporation, and Nexans are the market's leading players, with diversified product offerings reshaping the competitive landscape. However, the number of local competitors entering the market has expanded as a result of supportive government measures for expanding transmission and distribution projects and growing investments in the telecom industry.
KEY INDUSTRY DEVELOPMENTS:
In May 2021, Prysmian Group announced the launch of its ECO CABLE label. It's the industry's first exclusive green product label, and it'll help utilities and distributors improve their green supply chain and value offer.
In April 2021, Nexans and Siemens Energy collaborated to complete an electrical Type Test of a 525 kV DC gas-insulated switchgear (GIS) sealing end in accordance with CIGRE TB 496. For a 525 kV DC XLPE cables system, Nexans designed a dedicated GIS cable sealing end.
LIST OF KEY COMPANIES PROFILED:
- Prysmian Group (Milan, Italy)
- Southwire Company, LLC. (Georgia, U.S.)
- Fujikura Ltd. (Tokyo, Japan)
- Sumitomo Electric Industries, Ltd. (Tokyo, Japan)
- Belden Inc. (Missouri, U.S.)
- KEI Industries Ltd (Delhi, India)
- NEXANS (Paris, France)
- FURUKAWA ELECTRIC CO., LTD. (Tokyo, Japan)
- LS Cable & System Ltd. (Anyang, South Korea)
- Cords Cable Industries Ltd. (Delhi, India)
SEGMENTATION
By Material
- Copper
- Aluminum
- Glass
- Others
By Voltage
- Low Voltage
- Medium Voltage
- High Voltage
- Extra-High Voltage
By End-user
- Aerospace & Defense
- Construction
- IT & Telecommunication
- Power Transmission and Distribution
- Oil & Gas
- Consumer Electronics
- Manufacturing
- Automotive
- Others
By Region
- North America- U.S., Mexico, Canada
- Europe- UK, France, Germany, Italy, Spain, Rest of Europe
- Asia-Pacific- China, Japan, India, South Korea, Rest of Asia Pacific
- South America- Brazil, Argentina, Colombia, Rest of South America
- The Middle East and Africa- GCC, South Africa, Rest of Middle East & Africa
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Global Wire and Cable Market Size
- June-2022
- 140
- Global
- semiconductor-electronics
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