Wires and Cables Market Size, Share & Industry Analysis, By Installation (Overhead, Underground, and Submarine), By Voltage (Low Voltage, Medium Voltage, High Voltage, and Extra-High Voltage), By End-User (Aerospace & Defense, Construction, IT & Telecommunication, Power Transmission & Distribution, Oil & Gas, Consumer Electronics, Manufacturing, Automotive, and Others), and Regional Forecast, 2024-2032

The global wires and cables market size was valued at USD 208.89 billion in 2023 and is projected to grow from USD 220.28 billion in 2024 and reach USD 357.34 billion by 2032, exhibiting a CAGR of 6.23% during the forecast period. The wires and cables market in the U.S. is projected to grow significantly, reaching an estimated value of USD 49.76 billion by 2032, driven by the expansion of renewable energy projects and grid modernization and resilience.

The wire and cable industry constantly evolves, with new voltage development to improve performance and efficiency. This progress enables the creation of efficient, reliable, and cost-efficient products in the cable industry. Electrical cables and wires are considered the same thing. Wire & cable are the backbone of the much-hyped electrical and electronics industry. A wire is a single electrical conductor, while a cable is a group or bundle of multiple wires enclosed in a common sheathing. Both of them are used for carrying electrical current.

The wire and cable industry constantly evolves, with new voltage development to improve performance and efficiency. With voltage development, the cable industry can create efficient, reliable, and cost-efficient products, thus leading the global wires and cables market size.

The COVID-19 pandemic had a moderate impact on the wire and cable market. It hampered consumption growth in many end-use industries due to supply chain disruptions in raw materials and activities. A shutdown of manufacturing facilities across the globe caused a decline in the market's revenue. The lockdown in Asia Pacific caused yet another disturbance in the global supply chain due to China being accountable for 10-12% of international trade. Industries using cables, such as power plants and transmission lines, experienced reduced demand during the pandemic, reflecting a broader decline in production and sales.

Wires and Cables Market Trends

Rising Inclination toward Renewable Energy Drives the Wires and Cables Market Development

Renewable energy plays a vital role in transitioning to clean energy. Using renewable energy for electricity generation, heat generation in buildings and industry, and transport is crucial to prevent the average global temperature from increasing beyond 1.5°C.

Modern bioenergy is the world's largest renewable energy source and will account for over 50% of global consumption in 2022. As the use of renewable energy in power generation continues to rise, there is an increasing demand for wire and cable manufacturers and distributors to cater to the growing needs of renewable energy markets.

The market has witnessed progress in recent years, with 2022 marking a notable year for renewable energy capacity additions, reaching approximately 340 GW annually. Countries and regions leading in advancing renewable energy are spearheading the expansion of renewable energy power capacity. In 2022, 160 GW was added, accounting for almost half of the global expansion.

 The 14th Five-Year Renewable Energy Plan, published in 2022, sets ambitious targets for renewable energy use and is expected to boost investment in the coming years. In response to the energy challenge, the European Union is accelerating the growth of photovoltaic and wind power systems, adding over 50 GW in 2022, marking an almost 45% increase compared to 2021. The growing reliance on renewable energy has led to the massive development of renewable energy infrastructure worldwide, increasing the demand for wires and cables.

Wires and Cables Market Growth Factors

Growth in Residential Projects and Commercial Structures is Propelling the Product demand

Construction sites have unique electrical requirements; not all electrical companies offer services that adhere to these special standards and legal obligations. The building cabling segment, including the wires and cables required for residential and commercial structures, has grown due to changes in the housing sector.

 The majority of the demand in this sector comes from residential projects, followed by shops and offices. A reliable electrical system is essential for powering the advanced, robust tools and machinery required during construction. The electrician must ensure the safety of everyone involved, even in a temporary installation. The construction of cabling, regardless of its importance, should adhere to high Australian standards, covering construction, demolition, electrical panels, sheds, and lighting. In 2022, the U.S. engineering and construction industry had a positive start, with a strong 8% growth in construction spending. In the U.S. construction sector, 2022 will be worth around USD 1.8 trillion.

Nevertheless, it was expected to decline in the next few years. The total value of construction activity in the U.S., encompassing residential, non-residential, and non-building segments, is expected to resume growth in 2026. The emerging developments in power transmission and distribution and the evolving renewable sector have paved the way for new products and solutions in cables and wires. Many leading players highlight their innovative sustainable products to meet the upcoming demand requirements from the industry. Since then, the energy consumption of the U.S. from biofuels, geothermal energy, solar energy, and wind energy has increased.

There are many types of construction wiring, ranging from the main distribution list of the existing telephone exchange to other components. In April 2023, Chinese state-owned telecommunications companies initiated a USD 500 million project to develop an undersea fibre optic internet cable network linking Asia, the Middle East, and Europe. This project competes with a similar U.S.-backed initiative, with four people involved in the deal.  The cable, which would cost approximately USD 500 million to complete, would be manufactured and laid by China’s HMN Technologies Co Ltd, a fast-growing cable firm whose predecessor company was majority-owned by Chinese telecom giant Huawei Technologies Co Ltd.

Technological Advancements and Innovation to Drive Growth of the Wires and Cables Market

Wires and cables are the backbone of the electrical and electronics industry. Government initiatives to promote domestic manufacturing and infrastructure have paved the way for the wire and cable sector. Developments, such as ambitious renewable energy targets, expansion in power transmission and distribution, and increasing investments in real estate and transportation (roads, subways, railways, and airways), indicate a promising future for the wire and cable industry.

All these emerging trends are poised to increase the demand for electrical goods. Manufacturers must grow by expanding their facilities and strengthening supply chain structures to participate actively in this mega-expansion. The industry is witnessing innovations, with companies investing heavily in research and development. From manufacturing technology-oriented products to implementing Industry 4.0, companies are advancing to stay competitive in the international market. For instance, Delta Tecnic, a leading company in the manufacturing masterbatches, attended the International Wire and Cable Fair-2022 held in Germany, where it displayed its newest developed technologies. Delta Tecnic company has been studying the pigments used for PV cables under the effects of weathering for over 30 years. The cable tests have successfully passed with mechanical resistance values above the 70% required by the standards. Moreover, it has manufactured conductive PVC compounds based on conductive carbon black technology. In the last decade, the company introduced new raw materials called Carbon Nanotubes, a new family of superconducting carbon blacks and highly conductive graphenes.

RESTRAINING FACTORS

Fluctuations in the Raw Material Price May Hinder the Market Progress

Fluctuations in raw material prices, especially copper, zinc, and aluminium, significantly impact profit margins. The wire and cable industry also relies solely on imports from Russia, China, the United Arab Emirates, and Japan. Therefore, the exchange rate fluctuations have a significant impact on the industry. Interruptions in the execution of projects due to some required permits and approvals, as well as the lack of human resources, are major obstacles to the industry's growth.

Manufacturing is a vital component of growing economies and is fundamental to national security. Manufacturing is not only the foundation of growing economies but also the mainstay of national security. Manufacturing is believed to be a harsh environment. Local and regional regulations affect the manufacturing process, such as using certain materials, disposing of waste, and exposure of workers. High prices for key raw materials such as copper and nickel have increased for wire and cable assemblies. The increased prices of these assemblies, which are crucial for various devices in the energy sector, are expected to impact the energy sector significantly. The fluctuation in raw material prices can influence investment decisions in the industry. During times marked by high raw material costs, manufacturers may delay or reconsider expansion plans, resulting in a potential slowdown in market growth. For instance, in the Chinese domestic market, copper prices surged at the start of 2023, with spot prices at around 10112 USD/MT, but dipped as the Lunar New Year holidays reduced the factory operation days. But for the second quarter of 2023, prices increased and then again decreased, with the average spot prices at around 9555 USD/MT. Russia's Ukraine war disrupted the supply chain and trade in Europe and North America. In Europe, Copper prices fluctuated within a narrow range, with spot prices averaging around 8395 USD/MT in June 2023. On March 22, 2018, copper prices fell to a 3-month low owing to concerns that the U.S. imposed duties on Chinese imports. Meanwhile, in 2021, copper prices rose by nearly 80%.

Wires and Cables Market Segmentation Analysis

By Installation Analysis

Overhead Segment Dominated the Market Owing to Low Cost and Easy Installation

Based on installation, the market is segmented into overhead, underground, and submarine cables. The overhead segment accounted for the largest market share due to its easy application and low-cost installation. Overhead wires and cables are also less expensive to repair and upgrade, which makes it preferable over the underground cable system.

The underground installation segment is also expected to grow at the highest rate over the forecast period. This cable system is not suitable for extremely rocky and difficult terrain. Underground connections incur lower transmission losses, less vulnerable to damage by natural calamities, which is why they sustain the power loads. The demand for underground cables is increasing in various sectors, such as automotive, telecom, energy and power industries, thus driving the demand for this in the market.

By Voltage Analysis

Low Voltage Segment Dominates the Market Owing to Feasibility and Enormous Benefits 

Based on voltage type, the market is divided into low, medium, high, and extra-high voltage. 

Low segment voltage dominates the market share due to its extensive benefits across various applications, which are feasible for infrastructure, automation, lighting, security, and many more. These systems require less power to operate, leading to energy cost savings. They are also smaller and more flexible than traditional cables, making them easier to install and route through a building. Low-voltage cables are also less likely to cause interference with other electronic equipment.

By End User Analysis

Increasing Residential and Commercial Sectors are impacting the Growth of the Construction Segment

Based on the end-user, the market is segmented into aerospace & defence, construction, it & telecommunication, power transmission & distribution, oil & gas, consumer electronics, manufacturing, automotive, and others.

The construction segment holds the majority of the market share. The construction segment is of two types: residential and commercial. The demand for the construction sector is increasing due to the surging demand for electrical applications in residential and commercial establishments. The increased power demands in commercial structures, with higher voltage requirements, present significant opportunities for market growth. The wires used in these settings usually have additional levels of insulation.

REGIONAL INSIGHTS

Based on geography, the market is studied across North America, Europe, Asia Pacific, Latin America, and the Middle East & Africa.

Asia Pacific accounts for the dominating market share and is expected to maintain a steady growth rate, particularly fueled by significant urbanization and infrastructure development in emerging economies such as China and India. This development is essential for powering buildings, transportation systems, and industries. There has been a growing focus on renewable energy sources in the region. This has increased the demand for specialized cables used in solar and wind energy projects. Countries like China and India have invested heavily in renewable energy, driving the demand for high-quality cables. The development of smart cities and the increasing adoption of the Internet of Things (IoT) have created opportunities for advanced cables and wiring solutions. These technologies require reliable and efficient communication and power infrastructure, driving the wires and cables industry innovation.

Major manufacturers such as Asia Pacific Wire and Cable Corp Ltd. are mostly engaged in distributing and manufacturing telecommunications (copper and fibre optic) and power cables, with a strong presence in the Asia Pacific region, majorly in China, Thailand, Australia, and Singapore. India's increasing population and urbanization drive the demand for wires and cables in residential and commercial buildings and industrial applications. With infrastructure development, such as urban and rural roads, the demand for optic fibre cables, telecom, and power may grow in the coming years. China’s wire and cable manufacturers are self-sustained in a flourishing domestic market and have emerged as the world's largest wire and cable exporter.

North America and Europe are the fastest-growing global wires and cables market regions.

Renewable energy can play an important role in U.S. energy security and reducing greenhouse gas emissions. Using renewable energy can help reduce energy imports and fossil fuel use, the largest U.S. carbon dioxide emissions source. In 2022, hydroelectricity accounted for about 6.2% of total U.S. electricity generation and 28.7% of entire utility all renewable electricity electricity. Hydroelectricity's percentage share of annual U.S. electricity generation in 2001 through 2022 averaged about 6.7%. The growing preference for hydroelectricity percentage impacts the market growth through electricity transmission. Growing investments in renewable energy development and rising commercial and manufacturing development activities across the U.S. and Canada contribute to regional growth. For instance, the Canadian energy sector is a top market with significant opportunities for U.S. companies driven by existing assets and plans for further development.

Europe has abundant renewable energy sources, and its countries, in recent years, have become leaders in driving the deployment of renewable technologies. Efforts to increase the sustainability of energy systems in Europe are ongoing, with renewable energy targets set for all European countries and the goal. The European Union (EU) installed 15 gigawatts (GW) of new wind farms in 2022, one-third more than in 2021. Germany, Sweden, and Finland are leading the way in terms of new capacity installed, followed by Spain and France.

List of Key Companies in Wires and Cables Market

Companies are Coming Forward and Establishing Installation Plants Due to Rising Demand For Product

Companies are currently focusing on developing new wires and cable projects globally. This shift in focus is driven by the increasing demand for green energy solutions and advancements in wire technology. Ongoing infrastructure development, including residential and commercial buildings, transportation networks, and energy infrastructure, has stimulated the demand for various wires and cables for power transmission, distribution, communication, and construction.

In April 2023, Sumitomo Electric Industries, Ltd. plans to establish a new plant in Scotland, U.K., in response to the European market's significant demand for wires and cables. This move aligns with the U.K. vision to lead power cables and plans several offshore wind power projects to achieve the Scottish government’s net zero by 2045.

List of Key Companies Profiled:

• Prysmian Group (Italy)


• Furukawa Electric Co., Ltd. (Japan)


• Southwire Company (U.S.)


• Nexans (France)


• Fujikura Ltd. (Japan)


• Sumitomo Corporation (Japan)


• Belden Inc. (U.S.) 


• LS Cable & System (South Korea)


• KEI Industries Ltd. (India)


• Cords Cable Industries Ltd. (India)


• NKT A/S (Denmark)


• Amphenol (U.S.)


• Finolex Cables Ltd (India)


• Polycab (India)


• Encore Wire Corp (U.S.)


• Habia Cable (Sweden)

KEY INDUSTRY DEVELOPMENTS:

• August 2023 - Fujikura Ltd. reduced the weight and diameter of the wiring harnesses for automobile side airbags, offering new patterns that are 30% lighter weight and 10% smaller in diameter while maintaining the same trauma resistance as PVC tubing. This innovation increases flexibility in cable routing and contributes to reducing the weight of the side airbag system.


• July 2023 - Prysmian Group launched Prysmian PRYSOLAR, the most innovative cable solution for solar power generation. Solar cables, also called solar photovoltaic cables, play a crucial role in photovoltaic systems by transmitting electrical energy generated by solar modules and ensuring efficient and safe flow of electricity throughout the circuit.


• July 2023 - Sumitomo Electric Industries, Ltd. Improved the transmission loss of terrestrial fibre optic cables using PureAdvanceTM-110, a low-loss, wide effective area (Arms) fibre with a pure silicon core. These cables were selected for a DCI (Data Center Interconnect) project, and delivery was recently completed.


• June 2023 - Nexans led technological advances with next-generation high-voltage cables for the decarbonization of aerospace, achieving higher efficiency than the previous generation. This marks a crucial step toward the aerospace industry's carbon neutrality target by 2050.


• February 2023 - Southwire, a leading wire and cable manufacturer celebrated the expansion and opening of its new hub at Battery Atlanta in Cobb County next to Truest Park.

REPORT COVERAGE

The report provides a detailed analysis of the market and focuses on key aspects such as leading companies, product/service voltage types, cable market trends and leading end users of the product. Besides, the report offers insights into the cable market trends and highlights key industry developments. In addition to the factors above, the report encompasses several factors that contributed to the growth of the market in recent years.

Report Scope & Segmentation