Wires and Cables Market

Market Overview:

The global wires and cables market size reached US$ 214.7 Billion in 2023. Looking forward, IMARC Group expects the market to reach US$ 366.7 Billion by 2032, exhibiting a growth rate (CAGR) of 6.13% during 2024-2032. The escalating demand for electricity among the masses, considerable rise in the infrastructure development activities, particularly in developing economies, and rapid expansion of EV and hybrid vehicle manufacturing are some of the major factors propelling the market.

Wires and cables refer to the electrical conductors that are used to transmit electrical signals or power from one point to another. They consist of flexible or rigid conductive structures made of materials such as copper, aluminum, or other metals that are typically covered with insulating materials to prevent short circuits and protect against electrical shocks. They function by facilitating electrical conduction via conductive materials, while maintaining insulation through the surrounding insulating materials simultaneously. This helps to mitigate current leakage and contact with other objects. Wires and cables are critical components of electrical and electronic systems and find extensive applications ranging from power transmission to telecommunications.

The global wires and cables market is primarily driven by the rapid expansion of data centers, telecommunication networks, and broadband connectivity. This can be attributed to continual advancements in communication technologies, such as 5G, the Internet of Things (IoT), and smart devices. Moreover, the rising implementation of robotics in various manufacturing processes requiring sophisticated wiring systems to transmit power and signals is also creating lucrative opportunities in the market. In addition to this, an enhanced focus on energy efficiency and integration of renewable energy sources is resulting in an augmented demand for specialized wires and cables, thereby fueling the market growth. Some of the other factors contributing to the market include continual upgradation of aging power infrastructure, considerable growth in the telecommunications industry and extensive research and development (R&D) activities.

Wires and Cables Market Trends/Drivers:

Escalating demand for electricity

The demand for uninterrupted electricity is growing as a result of various factors, such as rapid urbanization, rapid industrialization, and the rising aging population. The increasing need for power transmission and distribution networks has led to the augmenting demand for wires and cables that play a crucial role in the transmission and distribution of power. For power plants to deliver electricity efficiently to homes, businesses, and industries, wires and cables are crucial components. Furthermore, wires and cables are required to connect renewable energy systems like solar and wind to the grid due to the increasing adoption of renewable energy sources.

Rise in infrastructure development activities

The wires and cables market is largely driven by infrastructure development. In order to support lighting, power distribution, communication systems, and other electrical installations, many new buildings, airports, railways, roads, and smart cities require electrical wiring. The demand for infrastructure development projects is increasing, which, in turn, is fueling the need for extensive wiring and cabling. Furthermore, the implementation of numerous strict safety standards and requirements with advanced electrical systems is resulting in the retrofitting and upgradation of existing infrastructure. As a result, upgradation of electrical infrastructure, such as electrical grids and transportation networks, contributes to the increased uptake of wires and cables. 

The rapid expansion of EV and hybrid vehicle manufacturing

The market growth for wires and cables is driven largely by the increasing automobile production. With the transition towards electric vehicles (EVs) and hybrid vehicles, specialized wiring harnesses and charging cables are becoming increasingly popular. Hybrid and electric vehicles rely on complicated electrical systems, including high-voltage wiring. In addition to this, the electrification of automotive components, such as powertrains, battery systems, and advanced driver-assistance systems (ADAS), increases the demand for reliable, high-performance wires. Wires and cables in the automotive sector continue to grow as automakers strive to meet environmental regulations and consumer demand for sustainable transportation.

Wires and Cables Industry Segmentation:

IMARC Group provides an analysis of the key trends in each segment of the global wires and cables market report, along with forecasts at the global, regional, and country levels for 2024-2032. Our report has categorized the market based on voltage, installation, and end user.

Breakup by Voltage:

• Low Voltage
• Medium and High Voltage
• Extra High Voltage
   

Low voltage dominates the wires and cables market

The report has provided a detailed breakup and analysis of the wires and cables market based on the voltage. This includes low voltage, medium and high voltage and extra high voltage.  According to the report, low voltage represented the largest segment.

The growing urban population and infrastructure development is driving the demand for low voltage wires and cables for numerous residential applications. Additionally, the augmenting demand for electrical appliances and equipment in households and businesses necessitates the installation of low voltage electrical systems, thereby leading to the widespread adoption of low voltage wires and cables. Furthermore, the shifting preference toward renewable energy sources requiring the installation of low voltage cables to connect decentralized power generation systems to the grid is propelling the segment growth.

On the other hand, medium and high voltage cables find widespread utilization in the upgradation and retrofitting of aging power infrastructure in many regions. Medium, high and extra-high wires and cables facilitate improved transmission efficiency, reliability, and capacity of the power structures, thereby resulting in segment growth.

Breakup by Installation:

• Overhead
• Underground
   

Overhead installation dominate the wires and cables market

The report has provided a detailed breakup and analysis of the wires and cables market based on the installation. This includes overhead and underground. According to the report, overhead represented the largest segment.

Overhead installation of wires and cables are mostly preferred due to their cost-effectiveness compared to underground installation, particularly in regions with challenging terrain. In addition to this, the easier access and maintenance of the cables provided by overhead installations facilitating quick repairs and replacements is also acting as a significant growth-inducing factor for the segment. Furthermore, this also allows the addition of new cables and expansion of the electrical network as per the growing demand, which is resulting in higher uptake of this type of installation.

On the other hand, underground installation of cables is preferred in densely populated areas where space is limited, which helps in improving the visual appeal of urban areas by eliminating overhead lines and poles. Also, since underground cables are less susceptible to weather-related damage, underground installations are increasingly adopted in critical infrastructure, such as hospitals, data centers, and transportation systems.

Breakup by End User:

• Building and Construction
• Aerospace and Defense
• Oil and Gas
• IT and Telecommunication
• Energy and Power
• Others
   

Energy and power hold a larger share in wires and cables market

A detailed breakup and analysis of the wires and cables market based on the end user has also been provided in the report. This includes building and construction, aerospace and defense, oil and gas, it and telecommunication, energy and power, and others. According to the report, energy and power accounted for the largest market share.

The main factors that are driving the growth of the energy and power segment are the rising global energy consumption, driven by population growth and rapid industrialization. In line with this, continual modernization and expansion of the existing power grid infrastructure to meet the growing energy needs is fueling the demand for installation of new wires and cables. The integration of renewable energy sources into the power grid requires the deployment of cables to transmit electricity from solar, wind, and other renewable sources, which, in turn, is propelling the segment growth.

On the other hand, considerable growth in the construction industry, including residential, commercial, and infrastructure projects, drives the demand for wires and cables for power distribution, lighting, communication, and data transmission. Additionally, the aerospace and defense industries are utilizing advanced wiring and cabling solutions for aircraft, spacecraft, and defense systems. In line with this, specialized cables designed to withstand extreme temperatures are increasingly preferred for drilling platforms and pipeline installations. Furthermore, the increasing demand for high-speed data transmission and communication cables is resulting in a higher product uptake in the IT and telecommunications industry.

Breakup by Region:

• North America
  • United States
  • Canada
• Europe
  • Germany
  • France
  • United Kingdom
  • Italy
  • Spain
  • Others
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Australia
  • Indonesia
  • Others
• Latin America
  • Brazil
  • Mexico
  • Others
• Middle East and Africa
   

Asia Pacific exhibits a clear dominance, accounting for the largest wires and cables market share

The report has also provided a comprehensive analysis of all the major regional markets, which include North America (the United States and Canada); Europe (Germany, France, the United Kingdom, Italy, Spain, and others); Asia Pacific (China, Japan, India, South Korea, Australia, Indonesia, and others); Latin America (Brazil, Mexico, and others); and the Middle East and Africa. 

Asia pacific held the biggest market share since the region is witnessing substantial industrial growth, leading to increased demand for electricity and subsequent installations of wires and cables. In addition to this, various urbanization initiatives as well as the development of numerous smart city projects are resulting in a higher demand for wires and cables for facilitating connectivity. Apart from this, the rapid expansion of numerous manufacturing facilities is also leading to an augmented demand for wires and cables in this region.

Another contributing factor for the market growth in this region is the implementation of supportive government policies and initiatives to enhance power generation and distribution infrastructure. Furthermore, growing investments by various private agencies as well as foreign investments in renewable energy projects are creating lucrative opportunities in the wires and cables market in this region.

Competitive Landscape:

The top players in the global wires and cables market are focusing on research and development (R&D) activities to introduce innovative products with advanced features, such as higher conductivity, improved insulation, and durability. The major companies are heavily investing in new materials, technologies, and manufacturing processes to gain a competitive edge. In addition to this, the key players are establishing local manufacturing facilities, distribution networks, and sales channels on the global level, particularly in emerging economies with high growth potential. The top players are top players are also entering into strategic partnerships and collaborations with other companies to create joint ventures, distribution agreements, and technology sharing arrangements. Furthermore, the key players are increasingly adopting sustainable practices in their manufacturing processes, such as using eco-friendly materials, reducing waste and emissions, and implementing energy-efficient technologies.

The report has provided a comprehensive analysis of the competitive landscape in the global wires and cables market. Detailed profiles of all major companies have also been provided. Some of the key players in the global wires and cables market include:

• Belden Inc.
• Finolex Cables Ltd.
• Fujikura Ltd.
• Furukawa Electric Co. Ltd.
• Hengtong Group Co. Ltd
• Hitachi Ltd.
• Leoni AG
• Nexans S.A.
• NKT A/S
• Polycab India Limited
• Prysmian Group
• Southwire Company LLC
• Sumitomo Electric Industries Ltd.

Recent Developments:

• In May 2022, Belden Inc. announced the launch of six innovative products from their cable and networking portfolio, which include Hirschmann BXS Gigabit Switches, Hirschmann GREYHOUND 105/106 Ethernet Switches, Lumberg Automation LioN-X IO-Link, Masters Belden’s Digital Electricity (DE) Class 4 Cables, Belden OSP Dry Loose Tube Cables, and Belden RS-485 Cables.
• In April 2023, Finolex Cables announced their business expansion across Pune, Goa and Roorkee in India. The company also launched new products in their communication cables, solar cables, wire harnessing cable and optic fibre portfolio.
• In June 2023, Fujikura Ltd. Launched their One-ClickTM Cleaner for optical connectors, which cleans the grime accumulated in the ferrule※1 end-face of optical connectors with a single click. The cleaner is designed to achieve more than 775 clicks and the cleaner tip is embedded with guide cap.

Wires and Cables Market Report Scope:

Key Questions Answered in This Report:

• How has the global wires and cables market performed so far, and how will it perform in the coming years?
• What are the drivers, restraints, and opportunities in the global wires and cables market?
• What is the impact of each driver, restraint, and opportunity on the global wires and cables market?
• What are the key regional markets?
• Which countries represent the most attractive wires and cables market?
• What is the breakup of the market based on the voltage?
• Which is the most attractive voltage in the wires and cables market?
• What is the breakup of the market based on the installation?
• Which is the most attractive installation in the wires and cables market?
• What is the breakup of the market based on the end user?
• Which is the most attractive end user in the wires and cables market?
• What is the competitive structure of the global wires and cables market?
• Who are the key players/companies in the global wires and cables market?

Key Benefits for Stakeholders:

• IMARC’s report offers a comprehensive quantitative analysis of various market segments, historical and current market trends, market forecasts, and dynamics of the orthodontic consumables market from 2018-2032.
• The research study provides the latest information on the market drivers, challenges, and opportunities in the global wires and cables market.
• The study maps the leading, as well as the fastest-growing, regional markets. It further enables stakeholders to identify the key country-level markets within each region.
• Porter's five forces analysis assist stakeholders in assessing the impact of new entrants, competitive rivalry, supplier power, buyer power, and the threat of substitution. It helps stakeholders to analyze the level of competition within the wires and cables industry and its attractiveness.
• Competitive landscape allows stakeholders to understand their competitive environment and provides an insight into the current positions of key players in the market.