Mirror of the Markets: news from the wires & cables industry

Expometals.net is glad to introduce a brand-new column, "Mirror of the Markets," designed to provide essential insights into significant market trends. This column aims to support professionals and interested readers in understanding current developments and emerging opportunities across various industries. The inaugural issue delves into the wires & cables industry, exploring its critical role in modern infrastructure and technology.

The author is Dipl.-Ing. Konrad Dengler, a seasoned engineer and technical journalist with a rich background in materials science and industrial topics. Published bimonthly, "Mirror of the Markets" will cover a wide range of subjects, including market size and growth, application areas, geographical trends, and technological advancements. Each edition will offer a comprehensive overview, ensuring you stay informed about the latest trends and insights in your fields.

Definition of wires and cables in this context

Wires and cables are indispensable media for the transmission of electrical energy and electronic data. In this context, a wire—often made from metals like copper, copper alloys, or aluminum—is a single conductor, while a cable is a bundle of several insulated single or multiwire conductors wrapped in a common sheathing.

Wire & cable market size 

As the demand for electricity and the processing volume of electronic data are growing in all industrialized countries, the demand for wires and cables is rapidly increasing worldwide. Market research companies provide insight into the scale of the global wires & cables market: According to Research and Markets, the market was valued at more than US$243 billion in 2023, is expected to reach US$258 billion in 2024, and is projected to grow to approximately US$322 billion by 2028, with a compound annual growth rate (CAGR) of 5.6%. Mordor Intelligence estimates the market size to be around US$228 billion in 2024 and forecasts growth to over US$298 billion by 2029, with a CAGR of 5.5%.

Application areas

Virtually all technical systems run on electricity. Consequently, wires and cables are essential in many sectors of daily life, starting with the generation, transmission, and distribution of electricity, and extending to transportation, building and construction, lighting, heating, ventilation, and air conditioning (HVAC), the Internet of Things (IoT), telecommunications, and data centers. According to the International Energy Agency (IEA), electricity consumption from data centers, artificial intelligence (AI), and the cryptocurrency sector could double by 2026. Data centers alone consumed an estimated 460 TWh of electrical power in 2022 and could reach over 1,000 TWh by 2026. This demand would nearly match the total electricity consumption of France, the UK, and Italy combined in 2022 (1,011 TWh).

Additional sectors relying on wires and cables include industrial manufacturing, robotics, healthcare facilities and medical equipment, electrical household appliances, and consumer electronics.

One of the most significant markets for wires & cables is the automotive sector. Vehicles of all kinds are equipped with complex wiring systems. In a modern passenger car, such a system can consist of around 1,000 individual wires with a total length of up to 3 km and a weight of up to 60 kg.

Geographic regions

The largest region in the global wires & cables market is Asia-Pacific, followed by North America. Asia-Pacific includes populous countries like the People’s Republic of China and India, each with over 1.4 billion inhabitants. These and other countries in the region, as well as in other parts of the world, are experiencing rapid urbanization and industrialization. The migration of people to urban areas and the expansion of industrial sectors drive the need for infrastructure development, such as new roads, railway lines, and the construction of residential and commercial buildings.

Additionally, many parts of the world are seeing government initiatives aimed at modernizing and upgrading electricity transmission and distribution systems.

Market trends

Regardless of geopolitical uncertainties, all industrialized countries are confronted with megatrends, including a growing demand for electricity and the need to reduce carbon dioxide (CO2) emissions. As power generation remains the largest source of CO₂ emissions, there is a significant shift towards renewable energy sources. According to the Global Energy Perspective 2023 report from McKinsey & Company, electricity from renewable sources is expected to continue its growth, providing up to 50% of global generation by 2030, with solar energy as the largest contributor, followed by wind power.

Globally, the construction of renewable power plants and their connection to substations and the transmission grid are driving the demand for wires and cables. This includes the installation of submarine cable systems. Grand View Research estimated the global submarine cables market size at over US$27.5 billion in 2022 and expects it to grow at a CAGR of 5.9% from 2023 to 2030. The major factors driving this market's growth are increasing investments in offshore wind farms, rising data traffic, and investments by streaming service providers. Submarine power cables are used to connect offshore wind farms to power stations, inter-country connections, power transmission to oil rigs, and island connections.

High voltage (HV) cables, whether ground or overhead power transmission lines, reduce transmission losses, enabling efficient power transmission. The high-voltage direct current (HVDC) power technology is evolving rapidly, allowing for the economically efficient transfer of electricity from high-capacity, high-power sources.

The Internet of Things (IoT) technology is increasingly being integrated into cable systems, enabling real-time monitoring of their effectiveness and ensuring their reliability. Politically driven measures are also pushing the automotive industry towards electric mobility. Wires and cables play a significant role in both electric vehicles (EVs) and their charging infrastructure.

Technological trends

Research and development (R&D) projects focus on developing cables with improved performance characteristics, such as higher conductivity, greater durability, enhanced fire resistance, and more recyclable insulation and jacketing materials.

There is a growing emphasis on sustainability, with manufacturers investing in halogen-free and more eco-friendly insulation materials to comply with environmental regulations.

Additionally, there is an increasing demand across various industries for thinner and lighter conductors to meet space and weight requirements.

Outlook

Given all these developments, the wire and cable industry and their suppliers may continue to expect increasing order volumes combined with challenging tasks. 

International professional associations in the wire & cable industry

Associations in the wire business >>

Associations in the cable business >>

Conferences & trade fairs

Expometals.net lists the major conferences, trade shows, and events in the metalworking industry, including wires and cables, on its Events page. An interesting feature is the search functionality: you can enter the date range and the sector of interest (in this case, Wire and/or Cable), and then click on Search. All relevant events for that sector and time frame will appear below.

The most interesting upcoming conferences are the IWCS Cable & Connectivity Industry Forum in the US and the ICF Congress in Singapore, both in October. Notable trade fairs include wire China and wire India.

Latest market reports on wire & cable

Wires and Cables Global Market Report 2024

https://www.researchandmarkets.com/report/wire-cables

Wires and Cables Market Size & Share Analysis - Growth Trends & Forecasts (2024 – 2029) https://www.mordorintelligence.com/industry-reports/wire-and-cable-market

Wires and Cables Market Size, 2024 – 2032

https://www.fortunebusinessinsights.com/wires-and-cables-market-103322

Wire and Cable Market Size, 2024 – 2032

https://www.gminsights.com/industry-analysis/wire-and-cable-market

Wires and Cables Market Report 2024 – 2032

https://www.imarcgroup.com/wires-cables-market

Stay tuned for more episodes of "Mirror of the Markets." The next installment in September will explore the tubes & pipes industry, offering valuable insights into its market trends and developments.