The global wire and cable market was valued at USD 169.27 billion in 2019 and expected to reach USD 237.06 billion by 2027 and poised to grow at a compound annual growth rate (CAGR) of 4.3% during the forecast period 2020 to 2027.
Rapid increase in the building infrastructure coupled with rise in urbanization is the major factor that propels the market growth. This has impacted the overall demand of energy and power in the commercial, residential, and industrial sectors. Further, increased investment for the upgradation of power distribution and transmission system along with smart city initiatives expected to fuel the demand of wires and cables in the coming years. Rising adoption of smart grid technology has substantially increased the demand for submarine and underground cables to cater the rising requirement of grid interconnection.
Presently, skyrocketing demand for advanced and reliable technology has spurred the need for more efficient power system. In developed regions such as North America and Europe were power system is nearly 99.99% reliable, yet allows for blackouts and interruptions that cost around USD 150 billion every year in North America. In the wake of same, the region invests significantly to upgrade its energy distribution and transmission network to overcome these losses.
Besides the above fact, high fluctuation in the prices of raw materials such as aluminum, rubber, and glass that are prominently used for the manufacturing of wires and cables anticipated to hinder the overall market growth. Price fluctuation in the raw material affects the value chain of the industry including procurement and operational costs. Nonetheless, escalating demand for advanced technologies including Internet of Things (IoT), Big Data, machine learning, artificial intelligence, and many others have significantly boosted the demand for wire and cable in the Information Technology (IT) industry.
Based on type, optical fiber cable expected to have profound demand owing to its advantages that include low security risk, resistance to electromagnetic interference, high bandwidth, and low power loss in long distance communication. Prominent development in the communication technology has spurred the need for high performance data and communication applications. This has resulted in the advancement and development of new products to cater the rising need of consumers. Furthermore, rising implementation of high-end technologies such as Big Data, machine learning, IoT, and many others have significantly boosted the need for advanced cable technology that offer negligible data loss.
Power transmission led the global wire and cable market with nearly half of the revenue share in 2019. Upgradation of older networks into more reliable and advanced energy transmission & distribution (T&D) ecosystem along with integration of renewable energy generation technology accounted for the key factors behind the profound growth of the segment. Apart from this, smart grid technology has also contributed significantly for the upgradation of older T&D ecosystem as it requires minimum power and transmission loss.
On the other hand, building segment expected to witness the highest growth rate over the analysis period. Rising population and high rate of construction and development in the developing regions such as Asia Pacific, Middle East & Africa, and South America are the prime factors behind the flourishing growth of the market. In addition, rapid urbanization along with rising application of smart home appliances triggers the need for reliable cable technology.
North America and Europe accounted as the matured regions in the wire and cable market, yet register profound growth over the forecast period. This is mainly due to the government initiatives such as Digital Agendas for Europe 2025. Further, vast increase in the data consumption in the North America resulted in significant investment by communication technology giants such as Verizon Communications and AT&T in the fiber optics network technology. For instance, in May 2017, Verizon Communications entered into a partnership with the Prysmian Group to upgrade its network architecture with fiber optic cables to expand the 4G coverage and establish a platform for IoT and 5G technologies.
Moreover, the Asia Pacific witnesses the fastest growth during the forecast period owing to increasing demand for power, light, and communication network. Further, attractive government policies such as ‘Go Green’ and ‘Make in India’ are anticipated to drive the market growth in India. The government of India has planned to increase the productivity of electrical equipment by USD 100 Billion by the end of the year 2022 through import and export, thereby drives the demand for wire and cable in the region.
Key Companies & Market Share Insights
The global wire and cable market is concentrated with the presence of major industry players. These players adopt various inorganic and organic growth strategies to retain their market position. Further, the industry players are aggressively receiving contracts for advanced and more reliable cables owing to the extensive investment in smart grid technology.
Noteworthy market participants competing in the industry are as follows:
Report Scope of the Wire and Cable Market
|Market Size||USD 237.06 Billion by 2027|
|Growth Rate||CAGR of 4.3% from 2021 to 2027|
|Fastest Growing Market||Asia Pacific|
|Largest Market||North America|
|Forecast Period||2021 to 2027|
|Segments Covered||Type, Materail, Application, Region|
|Companies Mentioned||Hengtong Optic-Electric Co Ltd., Prysmian Group, Sumitomo Electric Industries, Ltd., Furukawa Electric Co., Ltd., Leoni AG, Jiagnan Group, General Cable Corporation, LS Cable & System Ltd, TPC Wire & Cable Corp, Southwire Company, LLC|
Segments Covered in the Report
This research study encompasses comprehensive assessment of the marketplace revenue with the help of prevalent quantitative and qualitative intelligences, and prognoses of the market. This report presents breakdown of market into major and niche segments. Furthermore, this research study gauges market revenue growth and its drift at global, regional, and country from 2016 to 2027. This report comprises market division and its revenue valuation by categorizing it depending on type, material, application, and region:
By Regional Outlook
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