The wire and cables market consists of electrical wires and cables used primarily for transmission of electrical power and telecommunications signals. Cable provides an efficient means of electricity transmission owing to its ability to carry relatively large electric currents over long distances with low transmission losses. Insulated wires and cables are manufactured using non-conducting materials which allow transmission of power without leakage or short circuiting. They also provide mechanical and environmental protection to the conducting metal wires inside.
The global wire and cables market is estimated to be valued at US$ 198 billion in 2024 and is expected to exhibit a CAGR of 3.7% over the forecast period 2024 to 2031.
Key Takeaways
Key players operating in the Wire and Cables Market Share include Prysmian Group, Nexans, Sumitomo Electric Industries, Furukawa Electric, Leoni, LS Cable & System, Fujikura, South Wire, KEI Industries and Sterlite Power Transmission. There is growing demand for wires and cables from utilities sectors such as oil & gas, construction, energy & power and telecommunications industries due to rapid pace of infrastructural development projects taking place worldwide. Technological advancements such as development of energy efficient wires and low smoke zero halogen (LSZH) cables are further fueling the market growth.
Market Trends
Low voltage wires and cables segment currently dominates the market and is expected to continue its dominance owing to rising demand from construction industry for applications such as internal electrification of residential and commercial buildings. Another trend gaining traction in the market is increasing popularity of aluminum conductors which are corrosion resistant and lighter in weight compared to copper conductors. This is facilitating easier handling and installation of power cables.
Market Opportunities
Accelerated pace of renewable energy integration has opened opportunities for development of specialized solar and wind farm cables. Investments in development of smart grid infrastructure also present significant opportunities for market players through demand for low loss telecom cables. Rising populations and urbanization rates in developing economies have ramped up demand for efficient power transmission and distribution networks through underground and submarine cables.
Impact of COVID-19 on Wire And Cables Market Growth:
The COVID-19 pandemic has significantly impacted the growth of the wire and cables market. During the initial lockdown phases worldwide, the demand from the end-use industries such as construction, automotive, and electronics witnessed a major decline. Project delays and suspension of manufacturing activities disrupted the supply chain and logistics globally. This resulted in reduced demand for wires and cables from OEMs and integrators. However, with relaxation in lockdown restrictions and resuming of economic activities gradually, the demand is recovering steadily.
The pre-COVID scenario of the market was promising with growing demand from developing nations driving new infrastructure projects. Additionally, the reviving automotive industry and expanding electronics sector were fueling market growth. However, the pandemic outbreak halted most of the ongoing and planned projects temporarily. In the post-COVID era, the market is expected to pick up pace again with accelerated focus on connectivity infrastructure. Governments across regions are prioritizing investments in digital transformation of key industries. This will boost fiber optic cable adoption for 5G networks and smart grids significantly. Moreover, rapid industrial automation and rising focus on renewable energy are likely to drive special cables demand.
Manufacturers need to focus on adjusting product portfolios as per evolving end-use demand patterns. Strengthening online distribution channels and optimizing inventory management will help players to navigate supply chain disruptions efficiently. Emphasis on R&D for catering specialty cables for new-age industries can open growth avenues. Collaborating with raw material suppliers and forging strategic partnerships will aid in mitigating price volatility risks as well. Adopting innovative production techniques can improve efficiencies while ensuring workplace safety.
Geographical Regions with Highest Value concentration for Wire and Cables Market:
The Wire And Cables Market Regional Analysis witnesses high value concentration in the Asia Pacific region. Factors such as rapid industrialization, growing population, and urbanization are driving large scale investment in utility, telecommunication, and transportation infrastructure projects. Countries like China, India, Japan, and South Korea account for the major share of global demand. With government initiatives to expand electrification and strengthen smart cities programs, the Asia Pacific region continues to offer massive growth opportunities.
Fastest Growing Region for Wire and Cables Market:
The Middle East and Africa region is expected to emerge as the fastest growing regional market for wires and cables during the forecast period. This can be attributed to ongoing megaprojects, increasing investments in renewable energy infrastructure, and development of fiber optic networks across GCC nations and African countries. Project announcements like Neom City in Saudi Arabia and expanding railway projects are propelling demand. Additionally, focus on upgrading aging grids and improving connectivity in rural areas will further stimulate market expansion.
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Ravina Pandya, Content Writer, has a strong foothold in the market research industry. She specializes in writing well-researched articles from different industries, including food and beverages, information and technology, healthcare, chemical and materials, etc. (https://www.linkedin.com/in/ravina-pandya-1a3984191)