Wire and Cable Industry Market Segmentation, Trends, and Forecasts
Wire and Cable Industry Market Segmentation, Trends, and Forecasts
For a domestic consumer, power cables and electrical wires seem to be a timely purchase or one-time bulk purchase interaction. However, the wire and cable industry is vast and has a way intrinsic effect on our lives than we can think. Starting from laying electric lines, industrial set up, connectivity cabling, and even in special-purpose machinery, different types and grades of wires, as well as cables, are used. And so, the versatile is the cable industry based on the cable types, product types, material used, and even the user base.
As of 2021, the global wires and cable market stands at 181. 30 Bn USD. And the factual data says – the industry is far from saturation and growing at a fast pace of CAGR 6.45%. With over two decades of industry presence, according to Gloster Cables, the Indian cable market is swelling at an even faster rate considering the rapid urbanization and the infrastructure developments in the tier-2 and tier-3 cities as the post-pandemic effect.
Wires and Cable Market Segmentation
A lot has changed in the wire and cable industry since its inception in 1882. With technological advancement, the products have gone through both technological as well as cosmetic changes. Apart from this, over the years, industrialization and urbanization have paved the way for further innovation in the direction of different purpose products – such as power cables and communication wire & cables.
When it had started with just domestic purpose connections and thereafter industrial purpose products, the broad segment of the cable industry in today’s context are as follows –If the usage categories are bucketed in terms of core industries, the following are the further sub-segments of the cable industry –
As the electric power cables market size is evaluated at more than USD 120 Bn of the global market, the segmentation of the wires and cables industry is also based on the voltage –
The Overall Market Size and Growth – Global & Indian Context
Projecting to reach over USD 270 Bn, the wire and cable industry is growing aligned to the demand-supply graph. Even though because of the pandemic, it has been a bit slower during 2020 and 2021; still, the industry’s growth still reflects a steep curve. The Indian power consumption rate has increased over the years, and so does the demand for electrical wires and components.
Even during the pandemic, the domestic power consumption in India has increased close to 18%. New business ideas getting implemented in small towns is the reason behind new ways of wealth distribution, which has indirectly influenced the power consumption rate.
Though the per capita usage of power is much higher in the US and many of the European countries, the African and Asian content are leading the chart in the power consumption rate. Also, the kind of new industrial expansion and living-in-the-city movements in both south and north Asian countries like India and China have contributed towards the global market share increase of the wire and cable industry.
Industry Trends and Opportunities Ahead
The trend is shifting towards IoT devices and special-purpose wire and cable manufacturing – especially the hubs in India, China, and Malaysia. However, as the major category of the global power cable market, the LV cables sub-segment still has a market share of 50%. This percentage is still going upward due to the increase in the usage in the buildings and power distribution.
Not only the Asian countries, but also in the US, the UK, and Germany, the demand for LV cables is rising. Data also shows that – a significant number of developed countries are not focusing on renewable energy sources and balanced use of fossil and non-fossil fuel-based energy sources. Considering the social technology adaption and growing urban population, the developed countries are witnessing a rise in LV cable demand for domestic purposes, HVDC cables in electrical distribution, and fiber optic cables in the Telcom sector.
However, amid all these, there is a new type of demand – safe and environment-friendly wires and cables such as flame retardant and limited circuity integrity wires. Over the years, the awareness of safety standards and norms in the case of wires, electrical switches, and cables has increased many folds. Even though manufacturers have always been consciously putting efforts in the form of R&D in this field, probably the rising demand in the domestic segment has made manufacturers distinguish and showcase products with respect to their safety standards as well.
How the Wire and Cable Industry Seems to Shape Up?
When the surge in the industrial investment and rising urbanization pump the growth, volatility in raw material pricing and supply chain issue to hinder the wire and cable manufacturers/suppliers in the coming years. Gloster Cables being one of the pioneers in the industry has been observing the industry demand holistically and plans its products and inventory, keeping the interest of all categories of stakeholders (distributors/retailers/individuals). Moreover, with constant innovation and technology integration, not only Gloster has been contributing its bit towards the supply chain but also safeguarding customers’ lives with safe and fire-resistant product lines.
To understand our engagement models and how Gloster can help you plan your demand line with a vast and reliable product portfolio, contact us.
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