Wire and Cable Market

Wire and Cable Market Outlook (2024 to 2034)

The global wire and cable market is expected to be valued at US$ 193.7 billion in 2024 and is forecast to expand at a CAGR of 5.2% to end up at US$ 321.5 billion by the end of 2034.

A wire is a single conductor of electricity but a cable is many wires bundled together in an assembly. Various types of cables, such as coaxial, transmission, and distribution cables, are extensively used across industrial sectors to transmit high-speed communication signals and electricity. Demand for flexible and fire-resistant wires and cables that offer environmental protection and extended durability is spurring wire and cable market growth.

The wire and cable market size is expanding at a steady pace as new voltage levels are introduced to enhance performance and efficiency. These advancements are allowing the cable industry to produce more efficient, reliable, and cost-effective products. Electrical cables and wires are often used interchangeably. Wire and cable constitute the backbone of the highly acclaimed electrical and electronics industries.

Key Market Growth Drivers

• Increased funding for smart grid initiatives and upgrades to power transmission networks are anticipated to drive the product demand. The push towards smart grids has intensified the need for grid interconnections. Investments in underground cables and advancements in renewable energy technologies have further bolstered the demand for wires and cables.
• Rising investments in electricity transmission and distribution, coupled with escalating needs from data centers and the telecommunications sector, are poised to propel growth in the wire and cable market throughout the forecast period.
• The trend of modernizing and replacing existing electrical infrastructure has created a favorable environment for wire and cable sales, thereby shaping the market's trajectory.
• Governments worldwide have set ambitious targets for adopting green energy technologies to reduce dependence on fossil fuels. This commitment is likely to benefit the market, with increased installations of wind turbines and solar farms contributing to heightened demand for wires and cables.
• Renewable energy plays a pivotal role in achieving a sustainable energy future. Its application in electricity generation, building heating, industrial processes, and transportation is crucial for keeping global temperatures within safe limits.
• The European Union, in response to energy challenges, is accelerating the deployment of photovoltaic and wind power systems, with a notable capacity increase of over 50 GW in 2022-a nearly 45% rise from 2021. This global shift towards renewable energy sources is fueling substantial growth in the infrastructure for renewable energy, driving wire and cable market growth.

Report Attribute	Details
Wire and Cable Market Size (2024E)	US$ 193.7 Billion
Projected Market Value (2034F)	US$ 321.5 Billion
Global Market Growth Rate (2024 to 2034)	5.2% CAGR
East Asia Market Growth Rate (2024 to 2034)	6.6% CAGR
North America Market Growth Rate (2034F)	4.3% CAGR
Revenue from Energy & Utilities Segment (2024E)	US$ 63.9 Billion
Low Voltage Segment Value (2024E)	US$ 81.3 Billion
Key Companies Profiled	Prysmian Group; Furukawa Electric Co., Ltd.; Southwire Company, LLC; General Cable Corporation; Hengtong Optic-Electric Co Ltd.; TPC Wire & Cable Corp; LS Cable & System Ltd.; Sumitomo Electric Industries, Ltd.; Polycab Wires Private Limited.

Which Factors are Influencing Increasing Use of Wires and Cables?

“Floating PV Deployment and Focus on Installations of Electrical Systems in Construction Sector”

In recent years, there has been a shift toward deploying solar PV on water rather than on land, a concept known as floating PV. This system connects through power cables and subsea cables mounted on a floating platform with an anchoring mechanism in water bodies. The global increase in renewable energy adoption is contributing to the demand for wires and cables to develop the necessary infrastructure.

Construction sites have distinct electrical needs that are not always met by every electrical company due to specific standards and legal requirements. The building cabling sector, encompassing wires and cables for residential and commercial structures, is expanding in response to shifts in the housing market. These developments are expected to fuel growth in the electrical products market.

Manufacturers are expanding facilities and enhancing supply chains to capitalize on this expanding sector. The industry is witnessing advancements, with firms making substantial investments in research & development to stay competitive in the global market, transitioning from manufacturing technology-focused products to implementing Industry 4.0 solutions.

What Challenges are Wire and Cable Manufacturers Facing?

“High Cost of Essential Raw Materials and Vulnerability to Geopolitical Tensions”

Fluctuations in the prices of raw materials, notably copper, zinc, and aluminum, are exerting considerable pressure on profit margins. Wire and cable manufacturers heavily rely on imports from Russia, China, the United Arab Emirates, and Japan, making the market vulnerable to fluctuations in exchange rates. Regulatory hurdles and shortages in skilled labor are hindering project timelines, presenting significant obstacles to industry expansion.

Local and regional regulations play a pivotal role in shaping manufacturing practices, affecting material usage, waste management, and worker safety. Escalating costs of essential raw materials like copper and nickel are driving up prices for wire and cable assemblies crucial for various energy-related applications. These cost increases are anticipated to profoundly impact the sector.

Country-wise Insights

North America is poised to hold a substantial wire and cable market share of 38% in 2024. The market in India is influenced by regulatory efforts to supply dependable and continuous power to large consumer bases, as well as government measures to electrify rural areas.

Why are Sales of Wires and Cables Showing an Upward Trend in the United States?

“Increasing Investments in Grid Infrastructure”

Attribute	United States
Market Value (2024E)	US$ 53 Billion
Growth Rate (2024 to 2034)	4% CAGR
Projected Value (2034F)	US$ 78.8 Billion

Rising investments in grid infrastructure expansion are a key wire and cable market trend in the United States. The country is set to account for a 72% share of the North American market in 2024. Increasing initiatives to develop high-capacity transmission lines are projected to have a significant influence on the market during the forecast period. In the United States, several sub-national government organizations are gaining a strong foothold in renewable energy and efficiency innovations.

Which Government Initiatives are Fostering Market Growth in Japan?

“Supportive Policies Incentivizing Infrastructure Development and Technological Adoption”

Attribute	Japan
Market Value (2024E)	US$ 12.3 Billion
Growth Rate (2024 to 2034)	6.7% CAGR
Projected Value (2034F)	US$ 23.6 Billion

Japan is set to account for 28.9% of the market share in East Asia in 2024. The market in Japan is growing at a steady pace due to rising demand in sectors such as construction, automotive, and telecommunications. Japan has a thriving manufacturing sector, and technological advancements frequently lead to innovations in wire and cable products. Government regulations, technological advancements, and shifts in consumer preferences are all driving market expansion in the country.

Category-wise Insights

By type, the market is categorized into low voltage (LV), medium and high voltage (MV & HV), and optical fiber cables, of which the LV segment is expected to hold a key share of 42% in 2024. Based on end user, the market is segmented into aerospace & defense, construction, IT & telecommunication, power transmission & distribution, oil & gas, consumer electronics, manufacturing, automotive, and energy & utilities. The energy & utilities segment is expected to hold a 33% share of the market in 2024.

Why is Demand for Low-Voltage Wires and Cables Gaining Traction in the Market?

“Transformation of Energy and Power Industries Worldwide”

Attribute	Low Voltage (LV)
Segment Value (2024E)	US$ 81.3 Billion
Growth Rate (2024 to 2034)	4.3% CAGR
Projected Value (2034F)	US$ 123.8 Billion

Sales of low-voltage wires and cables are projected to grow at a steady rate over the forecast period due to their widespread use in automation, lighting, sound and security, construction wires, appliance wires, distribution networks, LAN cables, and other applications.

Low voltage wires and cables play a crucial role in establishing smart grids, ensuring efficient electricity supply and enhanced connectivity for end-users. Globally, the energy and power sectors are swiftly evolving. Both developed and developing countries are facing soaring electricity demands and seek to integrate extensive renewable energy sources.

Which End User Accounts for Substantial Revenue Streams?

“Energy & Utilities Hold Substantial Share Due to High Investments in Grid Expansion”

Attribute	Energy & Utilities
Segment Value (2024E)	US$ 63.9 Billion
Growth Rate (2024 to 2034)	4.9% CAGR
Projected Value (2034F)	US$ 102.9 Billion

The energy and utilities segment is projected to secure a significant market share, driven by increased investment in grid expansion projects over the next decade. Within the electricity transmission and distribution (T&D) ecosystem, substantial technological advancements include upgrading outdated transmission lines to high or extra high voltage to mitigate transmission losses. These adaptations aim to stabilize the grid amid the intermittent nature of renewable energy sources.

Utilities are enhancing smart grid stability by leveraging fiber-optic networks to improve communication between smart devices and power providers. Consequently, some utilities are exploring the potential of fiber optics. As renewable energy capacity and generation rise, there is a growing demand for countries to interconnect their transmission systems. This interconnectedness facilitates the balancing of electricity generation and consumption through cross-border electricity trading.

Competitive Landscape

Key players in the wire and cable industry are reshaping the competitive landscape with a diverse product portfolio. The number of local competitors entering the wire and cable market is rising as a result of government incentives for expanding transmission and distribution projects.

• Polycab India is the market leader in the cables and wires sector in the country, accounting for approximately 26% of the organized market and 18% of the total market. The company's priorities include increasing exports, expanding capacity, in-house manufacturing, and developing distribution channels.
• In 2021, The Prysmian Group started its new ECO CABLE label. It is the industry's first exclusive green product label, designed to assist utilities and distributors in improving their green supply chain and value proposition.

Fact.MR provides detailed information about the price points of key providers of wires and cables positioned across the world, sales growth, production capacity, and speculative technological expansion, in this updated market report.

Segmentation of Wire and Cable Market Research

• By Type :

  • Low Voltage
  • Medium and High Voltage
  • Optical Fiber Cables

• By Material :

  • Copper
  • Aluminum
  • Glass

• By End User :

  • Energy & Utilities
  • Construction
  • IT & Telecommunications
  • Oil & Gas
  • Aerospace & Defense

• By Region :

  • North America
  • Latin America
  • Middle East & Africa
  • Western Europe
  • Eastern Europe
  • East Asia
  • South Asia & Pacific