The global wires and cables market size was estimated at USD 186.09 billion in 2017 and is estimated to witness a CAGR of 6.4% over the forecast period. Increasing reserves in smart grid technology, growing renewable energy production, and government initiatives for upgrading the transmission and distribution systems are expected to drive this market. Adoption of smart grid technology has fulfilled the rising need for grid interconnections, significantly resulting in increased investments in new submarine and underground cables. In addition, the market growth is attributed to the growing offshore windfarms and high voltage direct current links.
Smart grids reduce the overall costs including operational and the cost incurred due to loss of power, thereby reducing energy prices and customer bills. The U.S. government encourages the smart grid implementation through The Energy Independence and Security Act, NIST Smart Grid Framework and Roadmap, National Science & Technology Council Smart Grid IAWG & Smart Grid Task Force, and Federal Energy Regulatory Commission.
Increased energy demands in Asia Pacific, Middle East, and South America have resulted in heavy investments in smart grids in these regions. This will fuel the demand for low voltage cables. Growth in the power distribution sector and applications in automotive and non-automotive industries will also drive their demand. Urbanization and industrialization are also among the major factors responsible for market growth. Need for power grid interconnections in areas that are densely populated is creating a demand for submarine and underground cables.
Regions, such as North America and Europe, are adopting underground cables as they reduce space required and offer reliable transmission of electricity. Environmental regulations regarding the safety of electrical installations have led to the development of various innovative products, such as halogen-free flame retardant compounds. These regulations have also encouraged the implementation of new processes with efficient use of raw materials and low energy consumption.
The low voltage segment accounted for the largest market share in 2017 and is expected to register the fastest CAGR over the forecast period. These cables have high tensile strength and superior conductivity; thus, are used in industrial and domestic home appliances wiring, internal wiring for lighting circuits, power supply, automotive applications, telecommunication lines, and power generation cables.
Many private companies, cable service providers, and accessories manufacturers are focusing on integrating the existing and new technologies together. This will increase the capacity of the high voltage and extra high voltage transmission lines, thereby augmenting the growth of these two segments.
On the basis of installation, the market has been bifurcated into overhead and underground. The overhead segment accounted for the largest share of the global market in 2017. However, the underground segment is anticipated to expand at the fastest CAGR of 6.7% over the forecast period. Underground cables are used for power applications, where space constraints occur.
Most of the densely populated areas generally involve underground installation of wires. This reduces the mishaps and allows a secure transmission of electricity. Moreover, they require low maintenance and offer advantages, such as lowered voltage drops. All these factors will contribute to the growth of the underground segment.
The energy and power segment held the largest share of the overall market in 2017. With a rising awareness, the manufacturers are actively seeking chances to invest in renewable energy generation, such as solar and wind power. According to IBEF, approximately 293 companies have committed to produce 266 GW of solar, wind, mini-hydel, and biomass-based power in India in coming years.
The building and construction segment also accounted for a significant share of the market in 2017. The building segment includes the residential and commercial complexes. Increasing number of residential and commercial construction activities along with rapid urbanization has positively impacted the overall market growth. The residential segment contributes to a major portion of the demand, followed by shops and offices.
Asia Pacific wires and cables market is expected to register the fastest CAGR over the forecast period. Rapid infrastructure development and growth in the construction sector in developing countries, such as India, Japan, and China, are the major drivers of the regional market. These countries are spending a significant portion of their GDP in infrastructure development.
Moreover, governments in these regions are concentrating more on urbanization through regulations and budget allocations to improve the infrastructure. A lot of manufacturing companies are considering India as a potential market for high voltage and Extra High Voltage (EHV) cables. Hence, many international manufacturing giants have entered the market through joint ventures with the local companies. These factors will propel the market growth in APAC region over the coming years.
Key companies in the market are Prysmian Group; GE Cables; Nexans S.A.; Southwire Company, LLC; Belden, Inc.; LS Cable & System; The Furukawa Electric Co., Ltd.; Fujikura Ltd; Sumitomo Electric Industries, Ltd.; Leoni AG; and NKT Holding. Most of these firms have invested in R&D to remain competitive in the market. Moreover, investments in smart grid transmission have led companies to aggressively receive contracts and agreements. For instance, in November 2017, LS Cable & System Ltd received a contract from Power Grid Company of Bangladesh (PGCB), an overhead cable project worth $60 Billion. LS Cable & System Ltd. will manufacture and supply all the products and construct the transmission towers for the project.
Partnerships and M&A have impacted the market and are significantly driving the overall market share of the key companies. For instance, in August 2016, Nexans and American Superconductor Corporation (AMSC) entered into a partnership that involves AMSC and Nexans to collaborate and deliver products and solution to electric utility customers in U.S. and Canada. Also, in June 2016, Nexans signed a framework agreement with Energinet.dk, a Danish Transmission System Operator (TSO).
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Attribute |
Details |
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Base year for estimation |
2017 |
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Actual estimates/Historical data |
2015 - 2016 |
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Forecast period |
2018 - 2025 |
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Market representation |
Revenue in USD Billion and CAGR from 2018 to 2025 |
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Regional scope |
North America, Europe, Asia Pacific, South America, and Middle East & Africa |
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Country scope |
U.S., Canada, Mexico, U.K., Germany, China, India, Japan, and Brazil |
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Report coverage |
Revenue forecast, company share, competitive landscape, growth factors and trends |
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15% free customization scope (equivalent to 5 analyst working days) |
If you need specific information, which is not currently within the scope of the report, we will provide it to you as a part of the customization |
This report forecasts revenue and volume growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2015 to 2025. For the purpose of this study, Grand View Research has segmented the global wires and cables market report on the basis of voltage, installation, end use, and region:
Voltage Outlook (Revenue, USD Billion, 2015 - 2025)
Low
Medium
High
Extra High
Installation Outlook (Revenue, USD Billion, 2015 - 2025)
Overhead
Underground
End-use Outlook (Revenue, USD Billion, 2015 - 2025)
Aerospace & Defense
Automotive
Building & Construction
Oil & Gas
Energy & Power
IT & Telecommunication
Others
Regional Outlook (Revenue, USD Billion, 2015 - 2025)
North America
U.S.
Canada
Mexico
Europe
U.K.
Germany
Asia Pacific
China
India
Japan
South America
Brazil
Middle East & Africa
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