Wires And Cables Market Size, Share & Trend Analysis Report By Voltage (Low, Medium, High, Extra-High), By Installation (Overhead, Underground), By End-Use, And Regional Forecasts, 2022 - 2030

Report Overview

The global wires and cables market size was estimated at USD 192.48 billion in 2021 and is projected to grow at a compound annual growth rate (CAGR) of 4.2% from 2022 to 2030. Rising urbanization and growing infrastructure worldwide are some of the major factors driving the market. The said factors have impacted the power and energy demand in commercial, industrial, and residential sectors. Increased investments in smart upgrading the power transmission and distribution systems and development of smart grids are anticipated to drive the market's growth. Implementation of smart grid technology has met the increasing need for grid interconnections, thus resulting in rising investments in the new underground and submarine cables.

The smart grid is an electrical grid that includes controls, automation, computers, and innovative equipment & technologies that function together and offer efficient electricity transmission. The functioning of the entire globe depends on the timely delivery of electric supply. Further, the increasing population leads to a rise in demand for power. Technological advancement in grids is necessary to reduce the frequency and duration of storm impacts, power outages, and restore service quickly after outages. Smart grid helps generate efficient renewable power, reliable power, reducing carbon print, using a mix of energy sources, working with smart devices and smart homes, and encouraging the use of electric vehicles.

Increased energy demands in the Asia Pacific, Middle East, and South America have resulted in rising investments in smart grids in the regions. This will fuel the demand for low-voltage cables. The other factors that influence the growth of low voltage cables are the growth in the power generation, power distribution sector from renewable energy sources, and demand from automotive and non-automotive industries. Urbanization and industrialization are the major reasons for increasing overall market growth. The need for power grid interconnections in areas with dense population are creating a demand for underground and submarine cables. Regions such as North America and Europe are switching towards the adoption of underground cables instead of overhead cables. The underground cables reduce space required and offers reliable transmission of electricity.

The COVID - 19 outbreak has impacted the wires and cables market growth due to a few minor shifts that occurred in communication technologies. Online courses and classes conducted by universities and colleges due to the worldwide closure, introduction of telehealth in the healthcare industry to reduce in-person visits, and companies working remotely and abiding by the WFH (Work from Home) policies are some of the prominent examples that have been witnessed across the globe. Thus, connectivity and communication technologies have accelerated in the span of the pandemic. The telecommunications industry has highly benefitted from the situation as the pandemic has highlighted the true value of connectivity. 5G progress in connections and deployments has continued despite the pandemic and resulting economic downturn. 

Voltage Insights

The low voltage segment accounted for the largest revenue share in 2021, with over 43% market share. Owing to the high usage of low voltage cables in the building wires, LAN cables, appliance wires, distribution networks, and others. These wires and cables support the smart grids in delivering superior electric supplies and offer an improved provision of electric supply for end-use consumers. The energy and power sector across the world are experiencing a rapid alteration. Most of the developing and developed countries are experiencing a heavy demand for electricity and are moving towards incorporation of large-scale renewable resources.

The high voltage wires and cables are used for transmission of electricity from 1,000 volts. These cables are coated with paper & oil, to avoid direct contact of the cables with an individual or any other material. The quality of high voltage cables depends upon the insulation material type used. High demand of these cables from the end users such as power distribution oil & gas, telecom, aerospace and defense is the major factor responsible for the growth of the high voltage cable market over the forecast period.

Installation Insights

The overhead installation segment accounted for the largest revenue share in 2021, with more than 64% of the market share. Overhead installation technique is the most widely used approach across the world. The overhead approach of wires and cables are easiest and cheapest form of installation. Overhead installation techniques are mostly adopted in countries with lower population. However, countries with high risk of natural calamities such as earthquakes, floods prefer installation of overhead cables.

Underground installation segment is expected to expand at the highest rate in the forecast period. The underground cables installation lowers the maintenance costs, incurs less transmission losses, and hence, effortlessly sustains the power loads. The demand from various sectors such as commercial, residential, automotive, telecom, energy and power industries are leading to expansion and upgradation of infrastructure which in turn is anticipated to drive the demand for the wire & cables market. The developing countries such as India, China, Vietnam, amongst others are spending a significant portion of their GDP in infrastructure development.

End-use Insights

The energy and power segment accounted for the largest revenue share in 2021, with around 37% market share. Several technological upgrades such as shifting the old transmission lines to high/extra high voltage lines to avoid transmission losses are been made in the electricity T&D ecosystem. These changes aim at making ecosystems stable in contradiction to the alternating nature of renewable sources of energy. Moreover, the introduction of new methodologies such as synchronized charging of electric vehicles and net metering for solar homes have aggressively affected the utility sector. However, this growing renewable power capacity and energy generation have further augmented the need of countries to interrelate their transmission systems. This link-up is expected to balance the power generation and demand through the export and import of electricity. With the rise in generation of renewable energy, the electricity trade is anticipated to increase, thus resulting in the construction of high-capacity interconnection lines in turn driving the wires and cables market.

Building and construction segment is expected to grow at the highest rate of 4.8% in the forecast period. However, refurbishment in aging commercial, residential, industrial buildings, and new construction worldwide supports the growth of the market. Developing countries in the Middle East and Africa, South America, and the Asia Pacific region are undertaking new construction infrastructures, including rail signaling, rail tunneling, and expansion in power generation and distribution. Further, owing to factors including infrastructure development, economic growth in developing countries, and increasing internet penetration, the wire and cable market is anticipated to grow in the forecast period. 

Regional Insights

Asia Pacific accounted for the largest revenue share of the wires and cables industry in 2021, with a 37.3% market share. The demand for wires and cables is observed to be stable in North America, however, Europe is expected to grow over the forecast period owing to the initiatives such as Digital Agendas for Europe 2025. In addition, North America region have seen a vast increase in the data consumption which have resulted in investments by the prominent telecommunication companies such as AT&T and Verizon in fibre networks. For instance, in April 2020, Belden Inc. developed new fiber solutions that allow data centers to create a reliable, robust, and high-performance infrastructure. These solutions include DCX Optical Distribution Frame, FiberExpress Flexible Ribbon Cable, 1.6 mm Multi-Fiber Trunks, and Fiber MPO Trunks. Thus, these significant investments in the IT & Telecommunications sector are expected to drive the overall market.

The market in Asia Pacific is anticipated to expand at the highest CAGR of 4.6% in the forecast period. The growing demand for light, power, and communication is anticipated to fuel the market over the forecast period. The government initiatives such as “Make in India”, and “Go Green” policy is expected to drive the market in India. According to Indian Electrical Equipment Industry Mission Plan 2012-2022, the government of India has planned to make the country one of the electrical equipment producers and obtain productivity of USD 100 billion by matching the exports and imports, hence, driving the demand for cables over the period 2012-2022. 

Key Companies & Market Share Insights

The market is highly competitive and concentrated, with the top three companies accounting for the majority revenue share in 2021. Belden Inc.; Nexans; and Fujikura Ltd. are some of the dominant market players. The vendors in the market focus on expanding their customer base to obtain a competitive edge. Therefore, key companies take various strategic initiatives, including partnerships, mergers & acquisitions, collaborations, and new product/ technology development. For instance, in September 2021, Nexans acquired Centelsa, a premium cable manufacturer in Latin America. This acquisition completes another milestone in Nexans' goal to become a pure electrification player and to expand the business in Latin America.

Strategic initiatives taken by prominent companies in the wires and cables parasol have positively impacted the market growth. For instance, in November 2021, AFL a subsidiary of Fujikura Ltd. in Japan, opened a new facility of fiber optic cable in Swindon, U.K. The expansion is aimed at fiber-to-the-home and access network application-specific outside plant cable called AB-WTC manufacturing. Within the Fujikura Group, this new facility is the first factory to manufacture this kind of fiber optic cable outside of Japan. In another instance, in October 2022, NKT A/S inaugurated a new high-voltage cable production tower in Karlskrona, Sweden. The company is prepared to begin making high-voltage cables in this new production tower. The structure is the foundation for the business's continued investments in the high-voltage sector. Some of the key players operating in the global wires and cables market are:

• Belden Inc.

• Fujikura Ltd.

• Furukawa Electric Co., Ltd.

• Leoni AG

• LS Cables & System Ltd.

• Nexans

• NKT A/S

• Prysmian S.p.A

• Sumitomo Corporation

Wires And Cables Market Report Scope 

Global Wires And Cables Market Segmentation

This report forecasts revenue growth at global, regional & country levels and provides an analysis of the industry trends in each of the sub-segments from 2017 to 2030. For this study, Grand View Research has segmented the wires and cables market report by voltage, installation, end-use, and region:

• Voltage Outlook (Revenue, USD Billion, 2017 - 2030)

  • Low Voltage

  • Medium Voltage

  • High Voltage

  • Extra High Voltage

• Installation Outlook (Revenue, USD Billion, 2017 - 2030)

  • Overhead

  • Underground

• End-use Outlook (Revenue, USD Billion, 2017 - 2030)

  • Aerospace & Defense

  • Building & Construction

  • Oil & Gas

  • Energy & Power

  • IT & Telecommunication

  • Others

• Regional Outlook (Revenue, USD Billion, 2017 - 2030)

  • North America

    • U.S.

    • Canada

    • Mexico

  • Europe

    • U.K.

    • Germany

  • Asia Pacific

    • China

    • India

    • Japan

  • South America

    • Brazil

  • Middle East & Africa