INSTRUMENTATION CABLE MARKET challenges and opportunities

The global instrumentation cable market faces significant challenge due to fluctuations in raw material prices such as copper, aluminum, and polymers. Copper and aluminum are the primary raw materials used in the manufacturing of instrumentation cables owing to their high conductivity properties. However, the prices of copper and aluminum are highly volatile and fluctuate based on global demand-supply forces. As these commodities are traded globally, any geopolitical issues affecting the major producing countries can impact their prices drastically. Similarly, key polymers such as PVC, used as insulation material in cables, are also derived from petroleum chemicals whose prices fluctuate frequently depending on crude oil rates. Since raw materials constitute nearly 60-70% of the total cost for cable manufacturers, unstable raw material prices squeeze their margins. This leaves cable makers with less room to absorb other input costs and remain competitive. The frequent upward price movement of critical inputs makes long term business planning challenging for market players.

Global Instrumentation Cable Market Opportunity - Expansion of renewable energy projects

The global instrumentation cable market is presented with tremendous opportunities arising from increasing renewable energy capacity additions worldwide. With policy support and technological advancements, renewable sources such as solar and wind energy are emerging as viable green alternatives to fossil fuels-based power generation. This massive build-out of solar and wind farms requires extensive underground and underwater cabling network for interconnecting remote generation projects as well as for transmitting clean power to electricity grids and urban areas. Instrumentation cables having features, such as UV resistance and fire-retardant properties, are highly suited for deployment in solar and wind farms. Growing investments in renewable energy infraprojects will therefore drive healthy demand for specialized cables used in solar and wind applications going forward.