According to a new industry report from Transparency Market Research, the global wire and cable market size is expected to be US$285.05 billion from 2021 to 2031, with a compound annual growth rate of 5.3%.
The global market value in 2020 was US$150.02 billion. The study finds that the rise of global digitalization and electrification trends is driving market growth and is expected to be so in the coming years. The study found that increasing demand for electrification and efficient building heating solutions, along with increasing demand for reliable wiring in the transportation sector, are some of the major factors expected to drive market growth.
Additionally, the study found that increased demand for wires and cables from the transportation industry has also boosted the global industry. The researchers concluded that increased urbanization is driving the need for new and efficient transportation systems. The market is expected to grow at a steady pace over the next decade owing to increasing construction of new highways, railways, and metro projects across the globe.
The study also concluded that industrial proliferation in developing economies is creating new revenue-generating opportunities for market players. According to Transparency Market Research, other notable drivers driving industry growth include rising consumer disposable income and continued development and advancement in manufacturing and production technology.
Therefore, the overall market outlook is optimistic.
The new report segments the global wire and cable market by type into: low voltage power cable (LV); medium and high voltage (MV and HV); and optical cables. By material, the report segments the market on the following categories: Copper, Aluminum, Fiber Optic, and Others.
On the basis of end-use industry, the study segments the wire and cable market into: aerospace and defense; construction; information technology and telecommunications; energy and utilities; oil and gas; consumer electronics; and automotive.
Rising preference for premium metals
The study believes that manufacturers in the global wire and cable industry are focusing on expanding product inventories by launching technologically advanced new products. To achieve this, the company is using the best quality metals such as silver, aluminum, copper and gold.
These precious, high-quality metals are used in the design and manufacture of specific components in a variety of electronic devices, solutions and systems. Therefore, the companies evaluated in the market report are employing the latest data research and predictive analytics techniques to protect themselves against these metal prices.
Additionally, increasing demand for vehicle electrification and various complex industrial processes are expected to drive the market over the next decade.
Fragmented competitive landscape
According to Transparency Market Research, the competitive landscape of the global wire and cable market is highly fragmented due to the presence of a large number of players.
Leading companies evaluated in the report include: Hengtong, Sumitomo Electric Industries, Jiangnan Group, LS Cabel & System Ltd., Southwire Company, LLC, Nexans SA, 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 that major market players engage 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 the next generation of affordable yet reliable wire and cable products.
Finally, the study found that players in developed economies, including the United States, are focusing on mergers and acquisitions to increase their production and regional footprint in global industries.