Wires and Cables Market Size, Share & COVID-19 Impact Analysis, By Voltage (Low Voltage, Medium Voltage, High Voltage, and Extra-High Voltage), By End-User (Aerospace & Defense, Construction, IT & Telecommunication, Power Transmission & Distribution, Oil & Gas, Consumer Electronics, Manufacturing, Automotive, and Others), and Regional Forecast, 2023– 2030

The global wires and cables market size valued at USD 202.57 billion in 2022 and is projected to grow from USD 213.01 billion in 2023 to USD 319.01 billion by 2030, exhibiting a CAGR of 5.94% during the forecast period.

The wire and cable industry constantly evolves, with new voltage development to improve performance and efficiency. This progress enables the creation of efficient, reliable, and cost-efficient products in the cable industry. Electrical cables and wires are considered the same thing. Wire & cable is the backbone of the much-hyped electrical and electronics industry. A wire is a single electrical conductor, while a cable is a group or bundle of multiple wires enclosed in a common sheathing. Both of them are used for carrying electrical current.

The wire and cable industry is constantly evolving with new voltage being developed to improve the performance and efficiency. With voltage development the cable industry is able to create products that are efficient, reliable, and cost efficient thus leading drive the global wires and cables market size.

COVID-19 IMPACT

Supply Chain Disruptions in Raw Materials and Closure of Mmanufacturing Units Led to a Negative Market Growth

COVID-19 virus rapidly over the entire world, impacting almost every country at different stages of the pandemic. Some countries, such as China, the U.S., and Germany, effectively contained the initial outbreak and introduced additional measures. Other countries faced a peak infection rates, necessitating urgent enforcement of healthcare systems. The pandemic’s moderate impact on the wire and cable market hampered the consumption growth in many end-use industries due to supply chain disruptions in raw materials and activities from social distancing norms.  In the cable sector, companies face several challenges due to a decrease in resources and manpower. Due to the closure of manufacturing facilities across the globe, the market's revenue also declined in the pandemic period. The strict lockdown caused the factories and warehouses to shut down. This caused yet another disturbance of the global supply chain due to China being accountable for 10-12% of global trade. Industries using cables, such as power plants and transmission lines, experienced reduced demand during the pandemic, reflecting abroader decline inproduction and sales.

Wires and Cables Market Trends

Rising Inclination Toward Renewable Energy Drives the Wires and Cables Market Development

Renewable energy plays a vital role in transitioning to clean energy. Using renewable energy for electricity generation, heat generation in buildings and industry, and transport is crucial to prevent the average global temperature from increasing beyond 1.5°C.

Modern bioenergy is the world's largest renewable energy source and will account for over 50% of global consumption in 2022. As the use of renewable energy in power generation continues to rise, there is an increasing demand for wire and cable manufacturers and distributors to cater to the growing needs of renewable energy markets.

The market has witnessed progress in recent years, with 2022 marking a notable year for renewable energy capacity additions, reaching approximately 340 GW annually. Countries and regions leading in advancing renewable energy are spearheading the expansion of renewable energy power capacity. In 2022, 160 GW was added, accounting for almost half of the total global expansion.

 The 14th Five-Year Renewable Energy Plan, published in 2022, sets ambitious targets for renewable energy use, expected to boost investment in the coming years. In response to the energy challenge, the European Union is accelerating the growth of photovoltaic and wind power systems, adding over 50 GW in 2022, marking an almost 45% increase compared to 2021. The growing reliance on renewable energy has led to massive development of renewable energy infrastructure worldwide,leading to a increased demand for wires and cables.

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Wires and Cables Market Growth Factors

Growth in Residential Projects And Commercial Structures is Propelling the Product demand 

Construction sites have unique electrical requirements and not all electrical companies offer services that adhere to these special standards and legal obligations. The building cabling segment including the wires and cables are required for residential and commercial structures, has witnessed growth due to changes in the housing sector.

 The majority of the demand in this sector comes from residential projects, followed by shops and offices. A reliable electrical system is essential for powering the advanced robust tools and machinery required during construction. The electrician must ensure the safety of everyone involved, even in temporary installation. The construction of cabling, regardless of its importance, should adhere to high Australian standards, covering construction, demolition, electrical panels, sheds, and lighting. In 2022, the U.S. engineering and construction industry had a positive start, with strong 8% growth in construction spending. The U.S. construction sector in 2022, it will be worth around USD 1.8 trillion. Nevertheless, it was expected to decline in the next few years. The total value of construction activity in the U.S., encompassing residential, non-residential, and non-building segments, is expected to resume growth in 2026. The emerging developments in power transmission and distribution sector and the evolving renewable sector have paved the way for new products and solutions in cables and wires also. Many leading players highlight their innovative sustainable products to meet the upcoming demand requirements from the industry. Since then, the energy consumption of U.S. from biofuels, geothermal energy, solar energy, and wind energy have increased.

There are many types of construction wiring, ranging from the main distribution list of the existing telephone exchange to other components. In April 2023, Chinese state-owned telecommunications companies initiated a USD 500 million project to develop an undersea fibre optic internet cable network linking Asia, the Middle East, and Europe. This project competes with a similar U.S.-backed initiative, four people involved in the deal.  The cable, which would cost approximately USD 500 million to complete, would be manufactured and laid by China’s HMN Technologies Co Ltd, a fast-growing cable firm whose predecessor company was majority-owned by Chinese telecom giant Huawei Technologies Co Ltd.

Technological Advancements and Innovation to Drive growth of the Wires and Cables Market

Wires and cables are the backbone of the electrical and electronics industry. Government initiatives to promote domestic manufacturing and infrastructure have paved the way for the wire and cable sector. Developments, such as ambitious renewable energy targets, expansion in power transmission and distribution, and increasing investments in real estate and transportation (roads, subways, railways, and airways), indicate a promising future for the wire and cable industry.

All these emerging trends are poised to increase the demand for electrical goods. Manufacturers must gear up by expanding their facilities and strengthening supply chain structures to actively participate in this mega-expansion. The industry is witnessing innovations, with companies investing heavily in research and development. From manufacturing technology-oriented products to implementing Industry 4.0, companies are advancing to stay competitive in the international market.

RESTRAINING FACTORS

Fluctuation in the Raw Material Price May Hinder the Market Progress

Fluctuations in raw material prices, especially copper, zinc, and aluminum, presents a decisive impact on profit margins. Additionally, the wire and cable industry relies solely on imports from Russia, China, the United Arab Emirates, and Japan. Therefore, the exchange rate fluctuations have a significant impact on the industry. Interruptions in the execution of projects due to a number of required permits and approvals, as well as the lack of human resources, are major obstacles to the growth of the industry.

Manufacturing serves as a vital component for growing economies and is fundamental to national security. Manufacturing is not only the foundation of growing economies, but it is also the mainstay of national security. Manufacturing is believed to be a harsh environment. Local and regional regulations affect varied aspects of the manufacturing process, such as using certain materials, disposing of waste, and exposure of workers. High prices for key raw materials such as copper and nickel have led to increased prices for wire and cable assemblies. The increased prices of these assemblies, which are crucial for various devices in the energy sector, are expected to significantly impact on the energy sector. The fluctuation in raw material prices can influence investment decisions in the industry. During times marked by high raw material costs, manufacturers may delay or reconsider expansion plans, resulting in a potential slowdown in market growth.

Wires and Cables Market Segmentation Analysis

By Voltage Analysis

Low Voltage Segment Dominates the Market Owing to Feasibility and Enormous Benefits 

Based on voltage type, the market is divided into low voltage, medium voltage, high voltage, and extra-high voltage. 

The low segment voltage is dominating the market share due to its extensive benefits across various applications which is feasible for infrastructure, automation, lighting, security, and many more. These systems require less power to operate, leading to energy costs savings. They are also smaller and more flexible than traditional cables, making them easier to install and route through a building. Low-voltage cables are also less likely to cause interference with other electronic equipment.

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By End User Analysis

Increasing Residential and Commercial Sectors are impacting the Growth of the Construction Segment 

Based on the end-user, the market is segmented into aerospace & defense, construction, it & telecommunication, power transmission & distribution, oil & gas, consumer electronics, manufacturing, automotive, and others.

The construction segment holds the majority of the market share. The construction segment is of two types: residential and commercial. The demand for the construction sector is increasing due to the surging demand for electrical applications in residential and commercial establishments. The increased power demands in commercial structures, with higher voltage requirements, presents significant opportunities for the market growth. The wires used in these settings usually have additional levels of insulation.

REGIONAL INSIGHTS

Based on geography, the market is studied across North America, Europe, Asia Pacific, Latin America, and Middle East & Africa.

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Asia Pacific accounts for the dominating market share and is expected to maintain a steady growth rate, particularly fueled by significant urbanization and infrastructure development in emerging economies such as China and India. This development is essential for powering buildings, transportation systems, and industries. There has been a growing focus on renewable energy sources in the region. This has increased the demand for specialized cables used in solar and wind energy projects. Countries such as China and India have invested heavily in renewable energy, driving the demand for high-quality cables. The development of smart cities and the increasing adoption of the Internet of Things (IoT) have created opportunities for advanced cables and wiring solutions. These technologies require reliable and efficient communication and power infrastructure, driving innovation in the wires and cables industry.

Major manufacturers such as Asia Pacific Wire and Cable Corp Ltd. are mostly engaged in distributing and manufacturing telecommunications (copper and fiber optic) and power cable, with a strong preence in the Asia Pacific region, majorly in China, Thailand, Australia, and Singapore. The increasing population and urbanization in India drives the demand for wires and cables in residential and commercial buildings and industrial applications. With infrastructure development such as roads in urban and even rural areas, the demand for optic fiber cables, telecom, and power may grow in the coming years. China’s wire and cable manufacturers are self-sustained in a flourishing domestic market and have emerged as the world's largest wire and cable exporter.

North America and Europe are fastest growing regions in the global wires and cables market.

Renewable energy can play an important role in U.S. energy security and in reducing greenhouse gas emissions. Using renewable energy can help to reduce energy imports and reduce fossil fuel use, which is the largest source of U.S. carbon dioxide emissions. In 2022, hydroelectricity accounted for about 6.2% of total U.S. utility-scale electricity generation and 28.7% of total utility-scale renewable ewlectricity generation. Hydroelectricity's percentage share of total annual U.S. electricity generation in 2001 through 2022 averaged about 6.7%. The growing preference for hydroelectricity percentage is impacting the market growth through the transmission of electricity. Growing investments in renewable energy development coupled with rising commercial and manufacturing development activities across the U.S. and Canada majorly contribute to regional growth. For instance, the Canadian energy sector is a top market with significant opportunities for U.S. companies driven by existing assets and plans for further development.

Europe has an abundance of renewable energy sources, and its countries in recent years have become leaders in driving the deployment of renewable technologies. Efforts to increase the sustainability of energy systems in Europe are ongoing, with renewable energy targets set for all European countries and the goal. The European Union (EU) installed 15 gigawatts (GW) of new wind farms in 2022 which is one third more than 2021. In terms of new capacity installed Germany, Sweden, and Finland are leading the way, followed by Spain and France.

List of Key Companies in Wires and Cables Market

Companies are Coming Forward And Establishing Installation Plants Due to Rising Demand For Product

Companies are currently focusing the development of new wires and cables projects globally. This shift in focus is driven by the increasing demand for green energy solutions and advancements in wire technology. Ongoing infrastructure development, comprising the construction of residential and commercial buildings, transportation networks, and energy infrastructure has stimulated the demand for various wires and cables for power transmission and distribution, communication, and construction.

In April 2023, Sumitomo Electric Industries, Ltd. plans to establish a new plant in Scotland, U.K., in response to the significantly demand for wires and cables in the European market. This move aligns with the U.K. vision to lead power cables and planning several offshore wind power projects to achieve the Scottish government’s net zero by 2045.

List of Key Companies Profiled:

• Prysmian Group (Italy)


• Furukawa Electric Co., Ltd. (Japan)


• Southwire Company (U.S.)


• Nexans (France)


• Fujikura Ltd. (Japan)


• Sumitomo Corporation (Japan)


• Belden Inc. (U.S.) 


• LS Cable & System (South Korea)


• KEI Industries Ltd. (India)


• Cords Cable Industries Ltd. (India)


• NKT A/S (Denmark)


• Amphenol (U.S.)


• Finolex Cables Ltd (India)


• Polycab (India)


• Encore Wire Corp (U.S.)


• Habia Cable (Sweden)

KEY INDUSTRY DEVELOPMENTS:

• August 2023 - Fujikura Ltd. reduced the weight and diameter of the wiring harnesses for automobile side airbags, offering new patterns that are 30% lighter weight and 10% smaller in diameter while maintaining the same trauma resistance as PVC tubing. This innovation increases flexibility in cable routing and contributes to reducing the weight of the side airbag system.


• July 2023 - Prysmian Group launched Prysmian PRYSOLAR, the most innovative cable solution for solar power generation. Solar cables, also called solar photovoltaic cables, play a crucial role in photovoltaic systems by transmitting electrical energy generated by solar modules and ensuring efficient and safe flow of electricity throughout the circuit.


• July 2023 - Sumitomo Electric Industries, Ltd. Improved the transmission loss of terrestrial fiber optic cables using PureAdvanceTM-110, a low-loss, wide effective area (Arms) fiber with a pure silicon core. These cables were selected for a DCI (Data Center Interconnect) project and delivery was recently completed.


• June 2023 - Nexans led technological advances with next-generation high-voltage cables for the decarbonization of aerospace, achieving higher efficiency than the previous generation. This marks a crucial step toward the aerospace industry's carbon neutrality target by 2050.


• February 2023 - Southwire, a leading wire and cable manufacturer, celebrated the expansion and opening of its new hub at Battery Atlanta in Cobb County next to Truest Park.

REPORT COVERAGE

The report provides a detailed analysis of the market and focuses on key aspects such as leading companies, product/service voltage types, cables market trends and leading end users of the product. Besides, the report offers insights into the cable market trends and highlights key industry developments. In addition to the factors above, the report encompasses several factors that contributed to the growth of the market in recent years.

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