Wire and Cable Market

Wire and Cable Market Outlook (2022-2031)

The global wire and cable market reached a valuation of US$ 150.02 billion in 2020. Sales of wires and cables are slated to rise at a healthy CAGR of 5.3% to reach US$ 285.05 billion by the end of 2031.

Report Attributes	Details
Wire and Cable Market Size (2020)	US$ 150.02 Billion
Projected Year Value (2031)	US$ 285.05 Billion
Global Market Growth Rate (2022-2031)	5.3% CAGR
Asia Pacific Market Share (2020)	37.2%
Key Companies Profiled	Prysmian Group Furukawa Electric Co., Ltd. Southwire Company, LLC General Cable Corporation Hengtong Optic-Electric Co Ltd. TPC Wire & Cable Corp LS Cable & System Ltd. Sumitomo Electric Industries, Ltd. Polycab Wires Private Limited

Demand for low voltage wires and cables is anticipated to rise at a higher CAGR of 8% through 2031. Due to the increasing rate of infrastructural development in emerging countries, demand for reliable electrical connectivity and transmission solutions is driving the deployment of low voltage wires and cables all over the world.

Demand Analysis of Wires and Cables from 2017-2021 Vs Market Outlook for 2022-2031

“Growing Investments in Transmission & Distribution of Electric Power to Boost Demand for Wires & Cables”

As per Fact.MR, a market research and competitive intelligence provider, the global wire and cable market was valued at US$ 150.02 billion in 2020.

A wire is a single conductor of electricity, but a cable is many wires bundled together in an assembly. Different cables, such as coaxial cables, transmission cables, and distribution cables are widely utilized throughout industrial verticals for transporting electric high-speed communication signals. Consumer preferences for adaptable and fire-resistant wires and cables to protect the environment, as well as their longer life expectancy, will drive market growth.

Demand for wires and cables is predicted to rise as a result of increased cash influx into smart grid projects and the upgrading of power transmission networks. Huge investments in smart grids have increased the need for grid interconnections; also, rising expenditures for subterranean cables and advancements in renewable energy have accelerated the use of wires and cables.

Increasing expenditures on transmission and distribution of electricity, as well as increased demand from data centers and the telecommunications industry, will propel the wires and cables market forward over the forecast period. The growing trend of upgrading and replacing existing electric infrastructure has created a positive growth scenario for the wire and cable market.

Demand for wires and cables is predicted to increase at a CAGR of 5.3% from 2022 to 2031.

Which Emerging Trend is Driving High Demand for Wires and Cables?

“Rising Need for Renewable Power Generation to Boost Industry Expansion”

Governments have set ambitious goals for the deployment of green energy technology to lessen reliance on fossil fuels. The market will most likely benefit from various countries' commitment to exceeding the required goals. Increased installation of wind turbines and solar farms has increased the need for wires and cables.

In recent years, solar PV has been deployed on water rather than on land, a process known as floating PV. The floating PV system is connected by power cables & subsea cables and is mounted on a floating platform with an anchoring mechanism in water bodies.

Growing use of renewable energy has resulted in a significant expansion of renewable energy infrastructure around the world, boosting demand for wires and cables.

Which Major Roadblock is Faced by Wire and Cable Manufacturers?

“Volatility in Raw Material Prices Restraining Market Growth”

Rubber and plastic-based substances, such as PVC grains, are the most common raw materials used in cable production. Fluorine plastic and silicone rubber are the most common organic polymer materials, whereas copper is required for wires.

High price of raw materials is limiting market expansion to a certain extent.

Which Region is Expected to Lead the Global Wire and Cable Market?

“Rapid Industrialization Stimulating Market Expansion in Asia Pacific”

With 37.2% share in 2020, Asia Pacific accounted for the highest revenue in the global wire and cable market. Increasing electricity demand due to population increase and fast industrialization will propel market growth in Asia Pacific.

Market revenue growth will be complemented by the robust development of manufacturing and service industries, as well as the availability of low-cost manpower.

Country-wise Insights

What is Driving Growth of the U.S. Wire and Cable Market?

“Continuous Development in High-capacity Transmission Lines Boosting Market Value”

The U.S. market is likely to develop rise significantly due to rising investments in extending grid infrastructure.

Increasing initiatives in the development of high-capacity transmission lines will have a profound influence on the market over the forecast period. In the United States, several sub-national government organizations are acquiring a substantial foothold in renewable energy and efficiency innovations.

How is India Contributing to the Sales of Wires and Cables?

“Government Initiatives for Electrification of Remote & Rural Areas to Propel Sales of Wires and Cables”

The market in India will be boosted by regulatory efforts to supply dependable and continuous power to large consumer bases, as well as government measures to electrify rural areas. The market in India is likely to be driven by government programs such as "Make in India" and the "Go Green" program.

Furthermore, rising disposable incomes in line with rising living standards will boost demand for a variety of consumer electronics, boosting wire and cable applications. The market is expected to be fueled by rising demand for light, electricity, and communication.

Category-wise Insights

Why are Low Voltage Wires and Cables Gaining More Traction?

“Low Voltage Wires and Cables Enjoy Wide Applicability across Several End-user Industries”

The low voltage (LV) segment accounted for the highest share of 43% of the global market in 2020. Sales of low voltage wires and cables are expected to increase at a CAGR of 8% over the forecast period due to the widespread use of low voltage cables in automation, lighting, sound and security, construction wires, appliance wires, distribution networks, LAN cables, and other applications.

Low voltage wires and cables assist smart grids in providing best electric supplies and provide a better electrical connection to end-use customers.

Energy and power industries are undergoing fast transformations all across the world. The majority of developing and developed countries are facing high electricity demand and are looking to incorporate large-scale renewable resources.

Which End User Holds a Dominant Stance in the Demand for Wire and Cable Products?

“Energy & Utilities Expected to Witness Significant Growth Due to Increasing Investments in Grid Expansion Projects”

The energy & utilities segment is predicted to account for the highest share owing to increased spending on grid expansion projects over the forecast period. In the electricity T&D ecosystem, many technological advances have been undertaken, such as switching outdated transmission lines to high/extra high voltage lines to prevent transmission losses.

In contrast to the alternating nature of renewable energy sources, these adjustments aim to stabilize the ecosystem.

By enhancing the communication between smart devices and power providers, utilities using fiber-optic networks create a stable smart grid. As a result, some utilities are starting to look into fiber's potential.

Demand for countries to interconnect their transmission systems has grown as renewable power capacity and energy generation have increased. Through the export and purchase of electricity, this link is designed to balance power generation and consumption.

COVID-19 Impact on Consumption of Wires and Cables

The COVID-19 pandemic had a minor impact on the wire and cable market revenue. The outbreak of the COVID-19 pandemic decreased demand for wire and cables around the world. Lockdown impositions and supply chain interruptions caused a slight delay in the establishment of utility-scale projects and sustainable energy.

However, during the COVID-19 pandemic, the electricity and communications sectors were functioning for the upkeep of electrical infrastructure. In addition, the market outlook will be bolstered by rising demand for replacing and upgrading existing grid infrastructure, as well as ongoing building infrastructure constructions.

Rising investments in new power generation plants, a greater focus on smart infrastructure, and the introduction of modern communication services are driving the demand for wires and cables.

Competitive Landscape

Wire and cable system suppliers are reshaping the competitive landscape with a variety of product offerings. The number of local competitors entering the market has increased as a result of supportive government measures for expanding transmission and distribution projects.

For instance :

• In 2021, The Prysmian Group introduced its new ECO CABLE label. It's the industry's first exclusive green product label, and meant to help utilities and distributors improve their green supply chain and value offer.

Key Segments Covered in Wire and Cable Industry Research

• Wire and Cable Market by Type :

  • Low Voltage (LV) Wires and Cables
  • Medium and High Voltage (MV & HV) Wires and Cables
  • Optical Fiber Cables

• Wire and Cable Market by Material :

  • Copper Wires and Cables
  • Aluminum Wires and Cables
  • Glass Wires and Cables
  • Others

• Wire and Cable Market by End User :

  • Aerospace & Defense
  • Construction
  • IT & Telecommunications
  • Energy & Utilities
  • Oil & Gas
  • Consumer Electronics
  • Automotive

• Wire and Cable Market by Region :

  • North America Wire and Cable Market
  • Europe Wire and Cable Market
  • Asia Pacific Wire and Cable Market
  • Latin America Wire and Cable Market
  • Middle East & Africa Wire and Cable Market