Wire and cable materials market to expand at CAGR of 4.5%
The global wire and cable materials market was valued more than US$ 124.2 Bn in 2019. The global market is anticipated to rise at a CAGR of 4.5% during the forecast period, from 2020 to 2030. The increasing need for wire and cable materials in automotive, building & construction, and telecommunications industry is likely to drive the global wire and cable materials market in the years to come. While electrical cables are in high demand globally, mechanical cables are becoming more popular, resulting in increasing sales opportunities for participants in the global market. In order to achieve greater security, modern wiring systems are mainly made from several types of wiring materials.
Construction, communications, aerospace, packaging, defense, industrial machinery, and information technology are some of the industries that employ wires and cables extensively. The global wire and cable materials market is expected to be driven by rising use of wires and cables. Non-metallic encased cables, instrumentation cables, low-voltage cables, armored cables, and communication cables are among the most popular cables that are available in the wire and cable materials market. Increasing demand for high-speed Internet and focus on high-quality telecommunication systems is expected to boost revenue generation opportunities in the global market in the near future.
Rise in the number of new information and communication development projects as well as improvements in the electrical engineering sector are likely to propel global wire and cable materials market to US$ 209 Bn by the end of 2030. The market is predicted to expand during the forecast period due to the booming construction industry in developing and underdeveloped countries.
Key Findings of Market Report
- Introduction of 3D printing has made it possible to manufacture wires and cables from a variety of materials with minimal effort. Construction cables are increasingly being made utilizing this technology due to the production efficiency of 3D printers, and its usage is expanding. Modern wire materials such as aluminum and copper are among the most popular, and this trend is expected to continue over the projected period.
- In order to develop a stronghold in the current wire and cable materials market, firms in the global market are likely to concentrate on both inorganic and organic growth approaches. For instance, a Germany-based optical cable producer declared in July 2020 that it would merge with Incab, allowing both firms to deliver high-quality fiber optic cables to clients all over the world.
- Insulation materials for wire and cable comprise polyvinyl chloride, polyethylene, and polypropylene, among many others. Plastic is used as a jacketing and insulating material in wires and cables. When electrical wires are covered with plastic, the electrons that travel through them do not go through the body when they are touched. These characteristics make plastic insulated wires a more profitable solution in the global market than other options.
- Increasing family income, electrification of transportation, heat, and demand for digital connected gadgets and air conditioning are expected to drive the demand for power. The wire and cable materials market is fueled by increase in power consumption from commercial, industrial, and residential sectors.
Wire and Cable Materials Market: Growth Drivers
- Growing need for wire and cables in the construction industry, rising demand in the automotive sector, expanding R&D activities, and breakthroughs in material sciences are contributing to market growth. Industry participants are concentrating on the development of novel wire and cable materials in response to changing industrial uses, as well as collaborations and partnerships with other market players to boost their market position.
- Asia Pacific accounted for a considerable share of the global wire and cable materials market in terms of volume in 2019. Energy consumption in Asia Pacific is expected to climb rapidly, with increase in energy utilization in transportation and home, as well as in newly electrified rural areas of the region.
- North America has seen a significant rise in data usage, prompting businesses such as Verizon and AT&T to invest in fiber optic networks in the region. The demand for wire and cable materials in North America is increasing as a result of this issue. The wire and cable materials industry is booming in Latin America, the Middle East, and Africa, due to rising energy availability. Electricity is transmitted using power wires.
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