Global wires and cables market is valued at USD 186.1 Billion in 2021, and it is anticipated to attain a value of USD 285.46 Billion by 2028, at a CAGR of 5.1% over the prediction period (2022–2028).
Westford, USA, Dec. 08, 2022 (GLOBE NEWSWIRE) -- The study, which covers the forecast period from 2022 to 2028, provides an in-depth analysis of the wires and cables market, segmented by product type, application, and geography. According to the report, the increase in infrastructure spending is one of the major drivers for the growth of the market. As per World Bank, the countries across the globe are likely to spend over $94 trillion on infrastructure development projects by 2040. Infrastructure projects such as roadways, railways, seaports, and airports require a large amount of wiring and cabling. These projects are expected to drive the demand for wires and cables over the forecast period.
In addition, the rising demand for renewable energy is another factor driving the growth of the wires and cables market. Solar and wind power plants require specialized wiring and cabling for interconnection purposes. The increasing installations of solar and wind power plants are expected to boost the demand for wires and cables over the forecast period. In August 2022, the global solar power production capacity has surpassed over 1 TW and it is expected to grow at a CAGR of over 23% during the forecast period. China is one of the major contributors to the major demand for cables and wire in the renewable energy as the country has reached to meet 40% of its demand through renewable energy.
However, the report states that the fluctuating prices of raw materials is a challenge faced by manufacturers of wires and cables. Copper, aluminum, lead, tin, and zinc are some of the key raw materials used in the manufacture of wires and cables. The prices of these commodities are highly volatile, which can have a negative impact on manufacturers' margins. The report provides an in-depth analysis of the competitive landscape of the global wires and cables market.
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The power transmission and distribution sector is expected to be the largest applications segments for wires and cables, followed by the construction and industrial sectors. The segment is projected to attract over 37% market revenue in the years to come.
In terms of geography, Asia-Pacific is projected to be the fastest-growing market for wires and cables, due to the rapid economic growth in the region. The North American and European markets are also expected to witness healthy growth over the forecast period. Some of the key players operating in the global wires and cables market include ABB Ltd., General Cable Corporation, Leoni AG, Nexans SA, Prysmian Group, Sumitomo Electric Industries Ltd., and Southwire Company LLC.
SkyQuest Recommendation to Players Operating in the Global Wires and Cables Market
First, the market is growing at a steady pace, with global sales expected to reach $285.46 billion by 2028. This growth is being driven by increases in construction activity and infrastructure spending, as well as by the adoption of new technologies such as 5G.
Second, there is a strong trend towards the use of alternative materials such as copper and aluminum in wires and cables. This is driven by the need for lighter and more environmentally friendly products.
Third, the report on the global wires and cables market suggests that companies should focus on developing innovative products that meet the needs of emerging markets such as India and China. In particular, there is a growing demand for high-speed data cables that can support the rollout of 5G networks.
Fourth, companies should invest in research and development to create new products that address the challenges of the future. This includes developing wires and cables that are more resistant to fire and electromagnetic interference.
Finally, the report advises companies to focus on expanding their customer base by targeting new geographies and end-markets. In particular, there is significant potential for growth in Asia-Pacific and Africa.
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Oversupply of Wires and Cables Putting Pressure Profit Margin of Manufacturers
SkyQuest analysis of the global wires and cables market shows that the oversupply of wires and cables is putting pressure on the profit margins of companies in the sector. The report states that this is due to a combination of factors, including excess capacity in the industry, declining demand from key markets such as construction and automotive especially in North America and Europe, and increased competition from low-cost producers. The report goes on to say that the situation is likely to continue in the short term, with margins expected to remain under pressure. However, it adds that some companies are better positioned than others to weather the current conditions.
So, what does this mean for the wires and cables market and its players? we believe that consolidation is likely to continue, with stronger players acquiring weaker ones. The report also recommends that companies focus on cost reduction and operational efficiency in order to remain competitive.
The report, titled "Global Cables and Wires Market Outlook 2028," said that the glut is being driven by a slowdown in estimation market demand, increased competition from suppliers in lower-cost geographies, and new capacity coming onstream in China and elsewhere. The result is that prices for copper, aluminum, and other metals are under pressure, while manufacturers are struggling to reduce costs. SkyQuest expects the situation to continue into 2028 and beyond, with the oversupply only expected to increase. This will put even more pressure on margins and could lead to consolidation in the industry.
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Major End-users of Wires and Cables Market: Rapid Growth in Digital Economy to Boost the Demand
The global market is pegged to grow at a CAGR of 5.1%. This growth will be driven by continued investment in 5G and fiber-to-the-home (FTTH) deployments. Enterprise network upgrades are also expected to drive demand for higher-bandwidth optical fiber cables. The main application areas for wires and cables are data centers, enterprise networks, and telecommunications infrastructure. Data center applications are expected to grow at a compound annual rate of 8.9% from 2022 to 2028, driven by the continued build-out of cloud data centers.
Enterprise network applications are forecast to grow at a compound annual rate of 6.2%during the same period in the global wires and cables market, as businesses invest in upgrading their network infrastructure to support higher data speeds and capacity requirements. Telecommunications infrastructure applications are expected to grow
Major Players in Global Wires and Cables Market
Prysmian Group (Italy)
Southwire Company (US)
Furukawa Electric Co., Ltd. (Japan)
Fujikura Ltd. (Japan)
Sumitomo Corporation (Japan)
Belden Inc. (US)
LS Cable & System (South Korea)
KEI Industries Ltd (India)
Cords Cable Industries Ltd. (India)
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