Advancements in Material Sciences to Fuel Market Growth

Wire and cable materials have evolved at a rapid pace over the past couple of decades, due to advancements in material science, research & development activities, and introduction of new types of wires in accord with applications across various industrial domains. While electrical cables are growing in demand around the world, the uptake of mechanical cables is on the rise due to which, a steady growth of the global wire and cable materials market is projected during the forecast period. Modern day wiring systems are primarily made of different types of wiring materials to ensure optimum safety.

Wires and cables are extensively used across a host of industrial domains, including construction, telecommunication, packaging, industrial machinery, aerospace, defense, and information technology. The increasing application of wires and cables is anticipated to drive the global wire and cable materials market during the assessment period. The most prominent cables that are currently available across the global wire and cable materials market include non-metallic sheathed cables, armored cables, instrumentation cables, low-voltage cables, and communication cables. With the rising demand for high-speed Internet and growing emphasis on high-quality telecommunication infrastructure, the global wire and cable materials market is projected to grow at an impressive pace during the forecast period.

At the back of these factors, along with a surge in the number of new communication development projects and progress in the electrical engineering industry, the global wire and cable materials market is expected to surpass the US$ 209 Bn mark by the end of 2030. The booming construction sector in developing as well as underdeveloped regions is expected to fuel the growth of the global wire and cable materials market during the forecast period.

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High Demand for Wires and Cables from Construction Sector to Drive Market

The construction sector has witnessed considerable developments around the world over the past few decades. With increasing emphasis on sustainable development and entry of green construction techniques, innovations and new technologies are gradually gaining a solid presence in the modern day construction sector. The electrical industry that particularly operates across the construction sector has also progressed over the past few years due to which, new wire and cable materials have entered the market. The number of construction projects has witnessed a major spike in several pockets around the world. Hence, the demand for wire and cables has increased. This factor is set to impact the growth of the global wire and cable materials market during the assessment period.

Moreover, the onset of 3D printing has enabled the production of wires and cables of various materials without any major hurdles. Due to the manufacturing efficiency of 3D printers, construction cables are increasingly being produced using this technique following which its adoption is growing. Aluminum and copper are some of the most popular modern wiring materials and the trend is set to continue during the forecast period.

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Market Players Focus on Expanding Market Presence, Launch of New Products

The players operating in the current wire and cable materials market are expected to focus on both, organic as well as inorganic growth strategies to gain foothold in the current wire and cable materials market landscape. For instance, in July 2020, Emtelle, an optical cable manufacturer in Germany, announced that the company is set to unite with Incab– a move that will enable both companies to provide high-quality fiber optic cables to customers around the world.

A number of undersea as well as ground optical fiber projects that are either in the pipeline or in progress is also expected to fuel the demand for wire and cable materials during the assessment period. For instance, in August 2020, Prime Minister of India, Narendra Modi, launched the 2,300 Km undersea optical fiber cable for the Andaman– a step that will significantly improve the connectivity between the mainland and the island.

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Market Growth to Remain Sluggish amid COVID-19 Pandemic

The outbreak of the ongoing COVID-19 pandemic is expected to have a strong impact on the overall growth of the global wire and cable materials market in 2020. Analysts at Transparency Market Research are of the opinion that the global wire and cable materials market will grow at a sluggish rate due to minimum industrial activity in several regions of the world, supply chain barriers, and restrictions on cross-border trade and transportation. With closure of the automotive sector, delay in construction projects, and low demand from various end-use industries, the global wire and cable materials market is expected to grow at a slow pace.

Analysts’ Viewpoint

The global wire and cable materials market is expected to expand at a moderate CAGR of 4.5% during the assessment period. The market growth can be attributed to factors including increasing demand for wire and cables from the construction sector, high demand from the automotive sector, growing R&D activities, and advancements in material sciences. Market players should focus on the development of new wire and cable materials in line with evolving industrial applications, and focus on collaborations and partnerships with other players in the market to expand their market presence.

Wire and Cable Materials Market: Overview

  • Wire and cable materials are primarily of two types: conductor material and insulation material. Conductors such as copper, aluminum, zinc, pure silver, and gold can conduct electricity. Insulating materials commonly used to cover copper wire, aluminum, and other electrical conductors are classified into two broad categories: Thermoplastic and Thermoset. The major difference between wires and cables is that a wire is a single conductor, while a cable is a group of conductors covered with an insulating material.
  • Wire and cable materials include various types of insulation materials such as polyethylene, polyvinyl chloride, and polypropylene. Plastic in wire and cable serves as a jacketing and insulating material. It protects the underlying cable core against mechanical damage, moisture, and chemicals during installation and throughout the service life of the cable. It also protects people from accidental electrocution. Covering electrical wires in plastic ensures that the electrons flowing through the wires do not flow through the body when the wire is touched. These features of plastic insulated wires make them a lucrative option over alternate solutions.
  • Other wire and cable materials include Polychloroprene, Ethylene Propylene Rubber, Fluorinated Ethylene Propylene, Polyvinylidene Fluoride (PVDF), Ethylene Tetrafluoroethylene, Polytetrafluoroethylene, nylon, and CPE (chlorinated polyethylene)
  • Wire and cable materials is widely utilized in the production of coaxial cable/electronic wires, fiber optic cables, low voltage energy power cables, signal & control cables, and telecom & data cables

Key Growth Drivers of Wire and Cable Materials Market

  • Demand for electricity is estimated to increase, owing to rising household income, electrification of transport, heat, and demand for digital connected devices and air conditioning. According to the International Energy Agency, global electricity demand rose by 4% in 2018 as compared to that in 2010. Renewable and nuclear power primarily contributed to rise in the demand for electricity. Global electricity demand in 2018 increased by 4%, or 900 TWh. Half of the rise in demand for energy, globally, was from the power sector in response to higher electricity consumption. According to Sustainable Development Goal, the global electrification rate rose from 83% in 2010 to 89% in 2017. Rise in demand for electricity from the residential, industrial, and commercial sectors fuels the wire and cable materials market.
  • Wires and cables play a pivotal role in residential, commercial, and industrial establishments, as these are used to safely deliver power, data, and voice communication to electrical devices. Wire and cable materials offer safe, flexible, and cost-efficient options for power distribution. Rise in global population and increase in disposable income of consumers are key factors boosting the demand for residential homes and various other construction projects. This is estimated to propel the demand for wire and cable materials over the next few years.
  • The global automobile industry witnessed a temporary slowdown in demand in 2019, owing to increasing prices of petrol and diesel. However, governments of France, Norway, and the Netherlands are providing subsidies to boost the sales of electric vehicles, which, in turn, is estimated to further increase the demand for automotive wires and cables in the long-term. Under the Paris Agreement, all countries are joining hands to reduce carbon emission and keep the increase in average global temperature to below 2°C. In line with this objective, France and the Netherlands aim to ban petrol and diesel vehicles by 2025. Majority of countries under this agreement is shifting toward the production of electric vehicles. This is anticipated to boost the demand for electrical wire and cable materials for the automotive industry in the near future.

Key Challenges for Wire and Cable Materials Market

  • Copper, aluminum, and polymer resins for insulation are key raw materials that are used in the manufacture of wire and cable materials. However, most raw materials utilized for wire and cable insulation such as polyethylene, polypropylene, polyvinyl chloride etc. are made from petrochemical derivatives. Extensive usage of petrochemicals, such as vinyl chloride monomers, in the production of PVC wire and cables affects their overall market price. Depletion of crude oil sources is a key factor leading to price volatility in the global market.
  • Prices of copper have also increased sharply from US$ 6,147.6 per ton in 2019 to US$ 7,846.2 per ton in 2020, owing to an imbalance in demand-supply created by the COVID-19 pandemic
  • These factors have caused substantial volatility in prices of primary petrochemical derivatives over the past few years. This scenario is projected to hinder supply and demand of raw materials required in the production of wire and cable materials. Hence, volatility in raw materials prices is likely to hamper the wire and cable materials market during the forecast period.

Lucrative Opportunities for Players in Wire and Cable Materials Market

  • Key players such as Celanese Corporation, BASF SE, and 3M, Dow can focus on expanding their global footprint through strategic capital allocation and increase in production capacity
  • Companies need to focus on product improvements in order to create new interest in existing products. This can help draw customers and improve the perception of the quality of products.

Domination of Asia Pacific in Wire and Cable Materials Market

  • In terms of volume, Asia Pacific holds a major share of the global wire and cable materials market in 2019. Energy demand in Asia Pacific is projected to rise at a rapid pace during the forecast period with simultaneous increase in energy usage in sectors such as industry, transport, and household, and in newly electrified rural areas in countries of the region. The construction sector in China is expanding rapidly, due to rise in population, growth in industrialization, and increase in foreign investments. China accounts for almost 25% of the global primary energy consumption. Moreover, demand for housing among the middle-income group in India is expected to increase over the next few years. The Government of India is taking active steps to bridge the gap between demand and supply. As per an estimate, every year, 2 million new housing units are built in urban areas, while 4.5 million units are built in rural areas of the country. These factors are likely to drive the wire and cable materials market in Asia Pacific during the forecast period.
  • The wire & cable industry in Europe is expected to expand significantly in the near future, owing to initiatives such as Digital Agendas for Europe 2025. These measures would help people as well as businesses in Europe reap benefits of digitization. Thus, growing use of wires and cables in the IT & telecommunication sector in the region is anticipated to drive the wire and cable materials market in Europe in the near future. However, the market share held by Europe is estimated to decline due to the rapid expansion of the market in Asia Pacific.
  • North America witnessed rapid increase in data consumption, which has resulted in investments by companies such as AT&T and Verizon in fiber optic network in the region. This factor is boosting the demand for wire and cable materials in the region. Increasing access to electricity in Latin America and Middle East & Africa is fueling the wire and cable materials market in these regions. Power cables are used for transmission of electricity.

Leading Players in Wire and Cable Materials Market

  • Key players operating in the global wire and cable materials market include Celanese Corporation, BASF SE, 3M, Dow and Alphagary
  • In January, 2019, Celanese Corporation completed the acquisition of Next Polymers Ltd., which is engaged in the manufacture of engineering thermoplastic compounds. The acquisition is expected to consolidate the company’s position in the market in India.
  • In 2019, BASF SE announced its plan to produce wire and cable materials such as thermoplastic polyurethanes with an additional capacity of 60,000 metric tons per year at its new facility situated at Zhanjiang, China. This new plant is expected to push production capacity in Asia Pacific of these products to 290,000 metric tons per year.

Wire and Cable Materials Market – Scope of the Report

The latest study collated and published by Transparency Market Research (TMR) analyzes the historical and present-day scenario of the global wire and cable materials market to gauge its growth potential. The study presents detailed information about important growth factors, restraints, and key trends that are creating a landscape for the growth of the global wire and cable materials market. The study also identifies growth avenues for stakeholders. The report provides insightful information about how the global wire and cable materials market is likely to expand during the forecast period of 2020 to 2030.

The report offers intricate dynamics about different aspects of the global wire and cable materials market that aid companies operating in the market in making strategic decisions. TMR’s study also elaborates on significant changes that are highly anticipated to configure the growth of the building & construction industry with respect to the global wire and cable materials market during the forecast period. It also includes a key indicator assessment to highlight growth prospects of the global wire and cable materials market and estimates statistics related to growth of the market in terms of volume (Kilo Tons) and value (US$ Mn).

This study covers a detailed segmentation of the global wire and cable materials market, along with key information and a competition landscape. The report mentions company profiles of key players operating in the global wire and cable materials market, wherein various developments and expansion, and winning strategies practiced and executed by leading players have been presented in detail.

Key Questions Answered in TMR’s Report on Wire and Cable Materials Market

The report provides detailed information about the global wire and cable materials market on the basis of comprehensive research on various factors that are playing a key role in accelerating the growth of the market. Information mentioned in the report answers path-breaking questions for companies that are currently operating in the market and are looking for innovative methods to create a unique benchmark in the global wire and cable materials market that would help them design successful strategies and make target-driven decisions.

  • Which material segment of the global wire and cable materials market would emerge as a leading revenue generator during the forecast period?
  • What would be the Y-o-Y growth rate of the global wire and cable materials market between 2020 and 2030?
  • What are winning imperatives of frontrunners in the global wire and cable materials market?
  • Which application segment is expected to generate maximum revenue in the global market for wire and cable materials during the forecast period?

Research Methodology – Wire and Cable Materials Market

The research methodology adopted by analysts for compiling the report on the global wire and cable materials market is based on detailed primary as well as secondary research. With the help of in-depth insights of the market-affiliated information that is obtained and legitimated by market-admissible resources, analysts have offered riveting observations and authentic forecasts of the global wire and cable materials market.

For primary research, analysts have interviewed market stakeholders, investors, brand managers, vice presidents, and sales and marketing managers. Based on data obtained through interviews of genuine resources, analysts have emphasized the changing scenario of the global wire and cable materials market.

For secondary research, analysts have scrutinized numerous annual report publications, white papers, market association publications, and company websites to obtain the necessary understanding of the global wire and cable materials market.

Wire and Cable Materials Market – Segmentation

TMR’s research study segments the global wire and cable materials market in terms of material, application, and region. This report presents extensive market dynamics and growth trends associated with different segments and explains how they are influencing the growth of the global wire and cable materials market.

Material

  • Insulation Material
    • Polyvinyl Chloride (PVC)
    • Cross Linked Polyethylene (XLPE)
    • Thermoplastic Polyurethane (TPU)
    • Polyphenylene Ether (PPE)
    • Polypropylene (PP)
    • Polyethylene (PE)
    • Others
  • Conductor Material
    • Copper
    • Aluminum
    • Others

Application

  • Coaxial Cable/Electronic Wire
  • Fiber Optic Cable
  • Low Voltage Energy
  • Power Cable
  • Signal & Control Cable
  • Telecom & Data Cable

Region

  • North America
  • Europe
  • Asia Pacific
  • Latin America
  • Middle East & Africa

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Wire Cable Materials Market

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