Wires And Cables Market Size, Share & Trend Analysis Report By Voltage (Low, Medium, High, Extra High), By Installation (Overhead, Underground), By End-use, By Region, And Segment Forecasts, 2021 - 2028

Report Overview

The global wires and cables market size was estimated at USD 183.14 billion in 2020. It is expected to expand at a compound annual growth rate (CAGR) of 4.4% from 2021 to 2028. 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 of the power transmission and distribution systems and the development of smart grids are anticipated to drive the market 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 electric grid that includes controls, automation, computers, and innovative equipment and 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 rising 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 these 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 the overall market growth. The need for power grid interconnections in areas with a dense population is 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 the space required and offer 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 WFH (Work from Home) policy 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 2020, with around 43% market share, owing to the high usage of low voltage cables in 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 sectors across the world are experiencing a rapid alteration. Most of the developing and developed countries are experiencing heavy demand for electricity and are moving towards the 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 and 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. The high demand for these cables from the end-users such as power distribution, oil and 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 2020, with around 64% market share. The overhead installation technique is the most widely used approach across the world. The overhead approach of wires and cables is the easiest and cheapest form of installation. The overhead installation technique is mostly adopted in countries with a lower population. However, countries with a high risk of natural calamities such as earthquakes and floods tend to have overhead cable installation.

The underground installation segment is expected to expand at the highest CAGR over the forecast period. The underground cable installation lowers the maintenance costs, incurs fewer transmission losses, and hence, effortlessly sustains the power loads. The demand from various sectors such as commercial, residential, automotive, telecom, and 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 on infrastructure development.

End-use Insights

The energy and power segment accounted for the largest revenue share in 2020, with around 37% market share. Several technological upgrades such as shifting the old transmission lines to high/extra high voltage lines to avoid the transmission losses are been made in the electricity T&D ecosystem. These changes aim at making the ecosystem stable in contradiction of 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 utilities sector. However, the 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 the 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 market.

Building and construction segment is expected to expand at the highest CAGR of 5.0% over 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 over the forecast period.

Regional Insights

Asia Pacific accounted for the largest revenue share in the wires and cables industry in 2020, with a 37.2% market share. The demand for wires and cables is observed to be stable in North America; however, the European region is expected to grow over the forecast period owing to initiatives such as Digital Agendas for Europe 2025. In addition, the North American region has seen a vast increase in data consumption, which has resulted in investments by prominent telecommunication companies such as AT&T and Verizon in fiber 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 and telecommunications sectors are expected to drive the overall market.

The market in Asia Pacific region is anticipated to expand at the highest CAGR of 4.7% over 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 the 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 2020. 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 October 2019, Audax Management Company, LLC., an American alternative investment management company, completed the acquisition of EIS Inc., a North American distributor of production supplies, process materials, connectivity, automation, specialty cable, and value-added fabricated parts. The said acquisition was anticipated to complement the former company’s product portfolio and strengthen its global customer base.

Strategic initiatives taken by prominent companies in the wires and cables market have positively impacted the market growth. For instance, in June 2020, Nexans announced that the company has completed the delivery of 1,700 km of signaling cable for the BSA project in Egypt. This initiative was aimed at expanding the company's position on the global level by providing reliable services to its customers. In another instance, in March 2020, Nexans announced the donation of 1.08 Mn Yuan valued cables to support the city of Suzhou. This donation was aimed at improving public health service, joining the fight against the coronavirus outbreak. Some of the prominent players operating in the wires and cables market include:

• Belden Inc.

• Fujikura Ltd.

• Furukawa Electric Co., Ltd.

• Leoni AG

• LS Cables & System Ltd.

• Nexans

• NKT A/S

• Prysmian SpA

• Sumitomo Corporation

Wires And Cables Market Report Scope

Segments Covered in the Report

This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2017 to 2028. For this study, Grand View Research has segmented the global wires and cables market report by voltage, installation, end-use, and region:

• Voltage Outlook (Revenue, USD Billion, 2017 - 2028)

  • Low Voltage

  • Medium Voltage

  • High Voltage

  • Extra High Voltage

• Installation Outlook (Revenue, USD Billion, 2017 - 2028)

  • Overhead

  • Underground

• End-use Outlook (Revenue, USD Billion, 2017 - 2028)

  • Aerospace & Defense

  • Building & Construction

  • Oil & Gas

  • Energy & Power

  • IT & Telecommunication

  • Others

• Regional Outlook (Revenue, USD Billion, 2017 - 2028)

  • North America

    • U.S.

    • Canada

    • Mexico

  • Europe

    • U.K.

    • Germany

  • Asia Pacific

    • China

    • India

    • Japan

  • South America

    • Brazil

  • Middle East & Africa