According to a new industry report from Transparency Market Research, the US$ 285.05 billion global wire and cable market is anticipated to record a CAGR of 5.3% during the period from 2021 to 2031.
The global market was valued at US$ 150.02 billion in 2020. The research finds that a rise in trend of digitalization as well as electrification across the world is propelling market growth, and is expected to do so in coming years. The analyst projects that rise in demand for electrified and efficient building heating solutions, and a rise in need for reliable cabling in the transportation sector, are some leading factors that are anticipated to bolster market growth.
Further, the research finds that an increase in demand for wires and cables from the transportation sector is also bolstering the global industry. The researcher concludes an increase in urbanization is driving the demand for new and efficient transportation systems. The market is estimated to grow at a consistent pace over the next decade, owing to the rising construction of new highways, railways, and metro rail projects across the world.
The research also concludes that proliferation of industries in developing economies is creating new revenue generation opportunities for market players. Other notable drivers propelling industry growth, per Transparency Market Research, include an increase in disposable income of consumers and consistent development and advancement in manufacturing and production technologies.
Thus, the analyst says the overall market outlook appears positive.
Research segmentation
The new report segments the global wire and cable market by type for: low voltage (LV); medium and high voltage (MV and HV); and optical fiber cable. By material, the report segments the market by: copper; aluminum; glass; and others.
By end-use industry, the research segments the wire and cable market by: aerospace and defense; construction; IT and telecommunication; energy and utilities; oil and gas; consumer electronics; and automotive.
By region, the new report segments the global wire and cable market for: North America; Europe; Asia Pacific Middle East and Africa; and South America.
Rise in preference for high quality metals
The research contends that manufacturers operating in the global wire and cable industry are focusing on expanding their product inventories by launching new and technologically advanced products. In line with this objective, companies are utilizing the best quality metals such as silver, aluminum, copper, and gold.
These precious and high-quality metals are used to design and manufacture specific components in various electronic equipment, solutions, and systems. The analyst asserts that companies assessed in the market report are adopting the latest data research and predictive analysis techniques to safeguard themselves against constant volatility in prices of these metals.
Increase in applications in diverse end-use industries
The new report notes that solutions offered by wire and cable market players are used in a diverse range of end-use industries, such as electronics and transportation, utilities, aerospace, consumer electronics, telecommunications, and oil and gas.
The research finds that manufacturers are focusing on diversifying their product portfolios according to changing needs of important stakeholders in these industries. This trend is anticipated to help them strengthen business growth in the near future.
Further, rise in demand for electrification of automotive vehicles as well as various complex industrial processes is anticipated to boost the market over the next decade.
A fragmented competitive landscape
According to Transparency Market Research, the competitive landscape of the global wire and cable market is highly fragmented, owing to the presence of a large number of players.
Leading companies evaluated in the report include: Hengtong Optic-Electric Co. Ltd., Sumitomo Electric Industries, Ltd., Jiagnan Group, LS Cabel & System Ltd., Southwire Company, LLC, Nexans S.A., Far East Cable Co., Ltd., Prysmian Group, Furukawa Electric Co. Ltd., General Cable Corporation, TPC Wire & Cable Corp., Polycab Wires Private Limited, Hitachi Metals Ltd., and Leoni AG.
The report finds key market players engaging in various growth and expansion strategies to increase their market share. These include launching new and technologically advanced products and solutions, as well as designing and developing next generation of affordable yet reliable wire and cable products.
Finally, the research finds that players from developed economies, including the U.S., are focusing on mergers and acquisitions in order to increase their production and regional footprint in the global industry.