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Wires And Cables Market To Grow Substantially At A CAGR Of 4.4% By 2028

Wires And Cables Industry Overview

The global wires and cables market size is expected to reach USD 260.16 billion by 2028, according to a new report by Grand View Research, Inc. The market is anticipated to expand at a CAGR of 4.4% from 2021 to 2028. Wires and cables are one of the essential components of infrastructure development across the world. The growing emphasis on investments and government initiatives to generate power from renewable sources has enforced the adoption of wires and cables across the globe. Increasing funds in the upgradation of infrastructure and the demand for refined power transmission and distribution systems are the key factors driving the market over the forecast period. 

Wires And Cables Market Segmentation

Grand View Research has segmented the global wires and cables market report by voltage, installation, end-use, and region: 

Based on the Voltage Insights, the market is segmented into low voltage, medium voltage, high voltage and extra high voltage

  • 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. 

Based on the Installation Insights, the market is segmented into overhead and underground

  • 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. 

Based on the End-use Insights, the market is segmented into aerospace & defense, building & construction, oil & gas, energy & power, IT & telecommunication and others

  • 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. 
  • Introduction of new methodologies such as synchronized charging of electric vehicles and net metering for solar homes have aggressively affected the utilities sector. 
  • 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. 
  • 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. 

Wires And Cables Regional Outlook 

  • North America
  • Europe
  • Asia Pacific
  • South America
  • Middle East & Africa (MEA) 

Key Companies Profile & 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.  

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 

Market Industry Development 

  • June 2020Nexans announced that the company has completed the delivery of 1,700 km of signaling cable for the BSA project in Egypt.
  • October 2019Audax 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.  

Order a free sample PDF of the Wires And Cables Market Intelligence Study, published by Grand View Research.  

About Grand View Research

Grand View Research, U.S.-based market research and consulting company, provides syndicated as well as customized research reports and consulting services. Registered in California and headquartered in San Francisco, the company comprises over 425 analysts and consultants, adding more than 1200 market research reports to its vast database each year. These reports offer in-depth analysis on 46 industries across 25 major countries worldwide. With the help of an interactive market intelligence platform, Grand View Research Helps Fortune 500 companies and renowned academic institutes understand the global and regional business environment and gauge the opportunities that lie ahead. 

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