Wire and Cable Industry Overview And Trends To Look Forward To in 2023
Curious about what the 2020s hold for the wire and cable market? Our guide looks into the most popular industry trends, including the rise of renewable energy, growth of automation, growing investment in transmission networks, and others.
Industry Overview in 2023
The estimated size of the wire and industry market in December 2022 was $200 billion worldwide. The market is expected to grow and reach between $280 billion and $300 billion by 2030, with an annual anticipated growth of 4 to 5 percent. Asia Pacific is the fastest growing wire and cable market thanks to rapid urbanization that occurs in previously rural regions.
Based on the voltage of electrical cables, the market of wire and cable is divided into low-voltage, medium-voltage, high-voltage, and very high voltage. Low-voltage is by far the most significant segment of the market (56,5%) due to the widespread use of low-voltage cables across markets and industries. A medium-voltage market segment follows this segment.
Based on the industry where the cables are applied, the most significant segments of the wire and cable market are aerospace and defense, building and construction, power transmission, oil and gas, and IT and communications. All of these segments are currently experiencing growth, especially in the IT and communications sectors. Other segments to watch for are consumer electronics, the automotive sector, and manufacturing.
According to the type of cable installation, the largest market share worldwide continues to belong to overhead power installation, which still is responsible for 2/3 of the market's share because it still, to this date, is the easiest and cheapest type of installation on the market. Despite this, underground installations continue to expand all over the world.
In terms of products, the biggest market share belongs to power cables because of their widespread use in new transmission networks.
Trends In the Wire and Cable Industry to Watch For
The wire and cable industry is constantly evolving to meet the changing demands of various industries and applications. Here are a few trends that are shaping the future of the wire and cable industry:
Increased use of renewable energy
As the demand for renewable energy continues to expand, so does the need for specialized cables and wires that can handle the unique challenges associated with transmitting renewable energy, such as from solar panels and wind turbines. Although Covid-19 has slowed down the wire and cable market, the renewable energy trend will not slow down any time soon as it is driven both by governments and a growing number of businesses that excel at renewable energy. The renewable energy market is estimated to have a CAGR of 8.8% by the year 2028.
Governments of key industrial states, such as the US, China, and the EU, have set the objectives that fuel the demand for green energy. On the consumer level, installing solar panels for businesses and private homes has been a growth opportunity for the wire and cable business. Another exciting development is the growth of the offshore wind farms.
Smart Grid, Transmission, and Distribution Networks Continue To Expand
Governments worldwide increase power and distribution networks and increase the efficiency of the existing networks. These projects are on the rise in Asia (India, China, Philippines) and South America (Peru, Brazil). As a result, the worldwide demand for power cables is on the rise. In 2035, the global demand for infrastructure projects will reach 7 trillion USD.
Growing Use of Automation And the Rise of Robotics
Automation and robotics are increasingly being used in manufacturing processes, which is driving demand for specialized cables and wires that can handle the requirements of these technologies. Automation and robotics fuel the demand for innovative power, control, and communication cables, but it's not just the cables. Robotics also calls for smart cable management solutions, including cable harnesses, cable glands, cable assemblies, and smart accessories. New technologies related to these products will likely pop up in the upcoming years, and we will also observe improved cable trays.
Increased emphasis on safety and sustainability
Manufacturers are placing greater emphasis on safety and sustainability, which is leading to the development of new materials and manufacturing processes that reduce environmental impact and improve safety.
When it comes to the safety and sustainability of electrical cables, the challenge that manufacturers face is the importance of finding the balance between sustainability and functionality. For example, straight-up biodegradable materials are not always the best solution for wire and cable, as these materials have short life cycles and are not perfectly functional.
However, there are some environmentally-friendly initiatives that have already hit mainstream audiences, such as low-smoke zero halogen cables. The manufacturers in the 2020s will likely focus on realistic goals, such as improving manufacturing technologies towards an increased environmental friendliness and cleaning up the manufacturing cycle. We will likely see the emergence of new materials when it comes to insulation, jacket, braiding, and other components of the cable.
All things considered, the 2020s are gearing up to be an exciting decade for wire and cable despite some uncertainties, like fluctuating prices of raw metals and recession. NNC promises to keep you updated on all the latest trends involving wire and cable.
