The Global Wire and Cable Market is expected to be valued at an estimated $297.4 billion US dollars by the year 2020. The demand for the telecom cable segment is projected to lead the growth of this market, with a predicted compound annual growth rate of 8.5 percent. The power cable segment is expected to be the second largest contributor to the growth of this market, with a projected compound annual growth rate of 7.5 percent. Wires and cables are a crucial part of the digitally drive 21st century. These materials are used extensively in several industries and across several applications. The increasing rise of applications of wires and cables in the power, telecommunication, automotive and construction industries are expected to see increased growth in regard to the Global Wire and Cable Market over the span of the next few years. As such, it is estimated that this market will experience significant growth worldwide.
Factors Expected to Fuel the Growth of the Global Wire and Cable Market
There are a variety of factors that are expected to fuel the growth of the Wire and Cable Market on a global scale. Most notably, a surge in demand across several application areas will boost the growth of this market. The most prominent applications that are expected to dominate the demand for wires and cables globally over the next few years include:
- Seat warmers
- Air conditioners
Additionally, the increased demand for in-vehicle wiring applications is expected to fuel the growth of this market considerably. It is also believed that increased used of wires and cables in the power transmission and distribution sectors in the coming years.
Rabid urbanization and development of infrastructure, as well as the increasing size of the capacity of the transmission grid are also projected to act as driving forces for the growth of this market. Moreover, favorable initiatives made by several governments in regard to the housing sector also appear to provide opportunities for growth in this market. A spike in the demand for wires and cables in the telecommunication sector is also thought to have a favorable impact on the Global Wire and Cable Market in the span of the next few years.
Factors Inhibiting Growth of the Global Wire and Cable Market
Though the Global Wire and Cable Market is expected to experience significant growth in the coming years, there are factors that could inhibit the augmentation of this market to its fullest potential.
The primary factor that could prevent maximum growth of this market is increased concerns pertaining to the recycling and disposal of wires and cables that are used in the automotive sector. Moreover, an increase in the use of wireless devices could also pose challenges for the demand of wires and cables, thus hindering the growth of the market. Additionally, the growing popularity of fiber-optic cables could also potentially be a threat to the growth of this market over the span of the next few years.
Global Wire and Cable Market – User Segmentation
Wires and cables are used by a variety of industries across the globe. The largest end-users are comprised of the following industries:
- Utility managers
- The automotive industry
- Power supply companies
- Telecommunications operators
- Large scale enterprises
- Wholesale purchasers
- Retail users
The automotive industry currently leads the Global Wire and Cable Market. Over the space of the next few years, this segment is expected to experience steady growth, further contributing to the overall augmentation of this market. The power supply industry also largely contributes to this market and is projected to continue fueling the growth of the Wire and Cable Market on a global scale in the span of the next few years. In developing countries, telecommunications and retail users will fuel the growth of this market.
Global Wire and Cable Market – Regional Segmentation
Many regions are expected to contribute to the growth of the wire and cable market on a global scale. The Asia Pacific market, in particular, is projected to dominate the market growth during the forecasted period. This can be attributed to the increased use of wires and cables in developing countries in this region, such as India and China. Additionally, there are several large manufacturers of the products that are used in the market that are located in this region that are predicted to continue driving the growth of the wire and cable market.
The economies of developed regions, such as North America and Europe are also expected to fuel the growth of this market. The main driving force for the wire and cable market in these regions is expected to be the increased research and development of vehicles. Wires and cables are used largely in the production of vehicles in these areas. Applications in this sector include transmissions, engines, heated seats, air conditioners, brakes and lighting.
Global Wire and Cable Market – Key Players and Competitive Landscape
The increased demand for cables and wires across several applications and the desire to find more ecologically-friendly and cost-effective solutions is driving the competitive landscape of the Global Wire and Cable Market. These factors are leading key vendors to invest in the research and development of more innovative solutions so that they can gain a competitive edge over other vendors.
There are several companies that serve as key players in the Global Wire and Cable Market. These vendors include the likes of Cords Cable Industries, Belden Inc, Limited, Torrent Cables, Chongqing Yuneng, Taishan Electric Wire, Enfield Cables, Hitachi Cable, LS Cable and System, and Marlin Wire. Those who are interested in investing in the Global Wire and Cable Market can expect to experience gains in their investment, but should also be aware of the factors that could potential hinder the growth of the market.