In 2024, the wire and cable industry experienced significant developments across market growth, mergers and acquisitions, technological advancements, and challenges. Here is a wrap up on everything significant that occurred:

Market Growth

The global wire and cable market continued its expansion, driven by infrastructure development, renewable energy projects, and the rise of electric vehicles (EVs). Estimates suggest the market was valued at approximately $240.3 billion in 2023, with projections indicating a compound annual growth rate (CAGR) of 8.1% from 2024 to 2032, potentially reaching $500.7 billion by 2032 (GmInsights).

Mergers and Acquisitions

• Prysmian Group: In August 2024, Prysmian finalized the acquisition of U.S.-based Encore Wire for $4.2 billion, enhancing its presence in the North American market. This strategic move led Prysmian to raise its full-year core profit and cash forecasts (Reuters).
• Volex: In October 2024, Volex, a cable manufacturing company, attempted to acquire its smaller rival, TT Electronics, through a proposed £249 million bid. After two unsuccessful attempts, Volex's executive chairman, Nat Rothschild, appealed directly to investors with a 139.6p-a-share bid, consisting of cash and new Volex shares, representing a 76.7% premium. Despite the attractive offer, TT's board believed Volex undervalued the company (The Times).

Challenges

Fluctuating raw material prices, especially copper, posed challenges for manufacturers. For instance, India's RR Kabel reported a 33% drop in second-quarter profit due to increased copper costs and subdued demand for electrical goods (Reuters).

Regional Developments

• Asia-Pacific: This region remained a significant market, expected to grow from $104.2 billion in 2024 to $170.7 billion by 2029, driven by rapid urbanization and extensive infrastructure projects (GlobeNewswire).
• North America: Investments in renewable energy and grid modernization continued to drive demand for advanced cable solutions, including high-voltage direct current (HVDC) cables and smart grid-compatible cables (GmInsights).

Notable Projects

• Champlain Hudson Power Express (CHPE) in the United States progressed, with companies like Southwire awarded contracts to supply underground power cables (WireTech).

The CHPE is a transmission project designed to deliver 1,250 megawatts of renewable hydropower from the U.S.-Canadian border to Queens, New York. This capacity is sufficient to power over one million homes. Southwire has been awarded a contract to supply some of the underground power cables for this project, collaborating with NKT, the project's turnkey cable supplier and system technology owner.

• SunZia Transmission Project is a 550-mile HVDC transmission line carrying 3,000 MW of wind energy from New Mexico to markets in Arizona and California. It is one of the largest renewable energy transmission projects in the U.S. that aims to decarbonize the Southwestern energy grid by integrating large-scale wind power. In 2024, production has started, and the project is expected to wrap up in 2026.

Geopolitical Tensions

Escalating geopolitical conflicts, particularly between major economies like the U.S. and China, have led to increased trade protectionism and export controls. The U.S. and China compete for dominance in strategic sectors like renewable energy, 5G infrastructure, and artificial intelligence. These measures have disrupted traditional supply routes and prompted companies to reassess their sourcing strategies, often seeking to diversify suppliers to mitigate risks (Financial Times).

Labor Disputes

The latter half of 2024 has seen significant labor actions, including strikes at major ports and manufacturing hubs. These disruptions have caused delays in production and distribution, highlighting the need for companies to build more resilient and flexible supply chain strategies (KPMG).

Environmental Concerns

Climate change-induced events, such as extreme weather and natural disasters, have increasingly impacted supply chains. For instance, droughts affecting key waterways have hindered transportation, while floods have damaged infrastructure, leading to delays and increased costs (The Times).

Strategic Shifts

In response to these challenges, companies are adopting strategies such as nearshoring and friendshoring, moving production closer to end markets or politically stable regions. For example, Southeast Asian investments have increased as companies seek to diversify their manufacturing bases away from China (Time).

Material Prices

As of the end of 2024, the prices of key industrial metals such as copper and aluminum have experienced notable fluctuations due to various market dynamics.

Copper

• Current Price: Approximately $4.08 per pound.
• Market Dynamics: Throughout 2024, copper prices have been influenced by global industrial activity, supply constraints, and demand from green technologies. In the first quarter, prices were around $8,500 per metric ton, rising to $9,000 per metric ton in the second quarter due to supply constraints and strong demand (Stellar Technical).
• Supply and Demand: Analysts have noted a slight supply deficit in the copper market, with a projected shortage of 73,000 metric tons in 2024. This deficit is expected to support prices driven by demand from energy transition sectors and constrained supply dynamics (Metal News).

Aluminum

• Current Price: Approximately $2,541.50 per metric ton.
• Market Dynamics: Aluminum prices have shown a tendency toward shortages, which could push prices higher later in 2024. In the first quarter, prices were around $2,250 per metric ton, increasing to $2,300 in the second quarter, with expectations of reaching $2,450 by the fourth quarter(Metal News).
• Supply and Demand: The global refined aluminum supply is expected to expand by 2.7% in 2024, with the market anticipated to be broadly balanced, tending toward shortages that may elevate prices (Metal News).

Market Influences

• Industrial Activity: A projected slump in global industrial activity, particularly in China, the U.S., and Europe, is expected to impact metal prices. Analysts predict that this downturn may lead to lower prices for metals like copper and aluminum, affecting the profits of major mining firms in 2024 and 2025 (MarketWatch).
• Energy Transition: The global drive toward electrification and renewable energy continues to bolster demand for metals like copper, which is essential for energy infrastructure. This sustained demand is anticipated to support copper prices, potentially pushing them to record highs (The Times).

Cross-Industry Trends

• Electrification of Transportation: The growing adoption of electric vehicles (EVs) is influencing multiple sectors, including electrical equipment manufacturing and construction. There is an increasing need for the development of EV charging infrastructure, which relies heavily on advanced cabling solutions (Kedbrooke).
• Energy Storage Solutions: Advancements in energy storage technologies, such as batteries and supercapacitors, are critical for the integration of renewable energy sources and the stability of smart grids. This progression is driving demand for specialized electrical components and systems (Global Sources).