WIRE AND CABLES MARKET SIZE AND SHARE ANALYSIS - GROWTH TRENDS AND FORECASTS (2024-2031)

Wire And Cables Market Size and Trends

The wire and cables market is estimated to be valued at USD 225.61 billion in 2024 and is expected to reach USD 321.93 billion by 2031, growing at a compound annual growth rate (CAGR) of 5.2% from 2024 to 2031.

The market is expected to witness positive growth over the forecast period owing to increasing investments in telecommunication and power transmission infrastructure projects across both developed and developing countries.

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Moreover, rapid urbanization and industrialization along with reviving construction activities post the COVID-19 pandemic will boost the consumption of wires and cables. Furthermore, rising demand for reliable and durable wires and cables from end-use industries, such as IT & telecom, construction, energy, and automotive, will drive the market growth during the next few years. However, volatility in raw material prices may hamper the business growth of market players to a certain extent over the coming years.

Growing Infrastructure Development Projects

The global infrastructure sector has witnessed significant growth over the past few years and this growth is expected to continue moving forward. Governments around the world are sharply focusing on the development of smart cities and upgrading of the transportation and utility infrastructure. Major economies are making enormous investments in construction of new roads, bridges, rail networks, airports, seaports, power generation, and distribution facilities. This widespread infrastructure construction activity is directly driving the demand for wire and cables. Various types of cables including power cables, control cables, instrumentation cables, fiber optic cables and others are essential components used in different infrastructure projects. As modern infrastructure increasingly incorporates digital and smart technologies, the role and importance of cables becomes even more pronounced.

According to the World Bank, investments in infrastructure varied by region in 2022 and the first half of 2023. While Europe, Central Asia, and the Middle East saw growth, South Asia experienced a decline, indicating a need for policy changes. The energy sector now leads in investments, emphasizing the shift towards sustainable energy. However, investments in the poorest countries remain low, highlighting the need for more support. Development and Export Finance Institutions (DEFI) have played a crucial role in supporting infrastructure projects. Despite recent investments, there's still a significant gap in funding, posing a challenge for economic development.

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The renewable energy sector has emerged as a major driver of global economic growth in recent times owing to sustainability concerns. Strong policy support for clean technologies along with plunging prices of solar panels and wind turbines has made renewable power commercially viable. According to estimates, the global renewable energy capacity is projected to almost double by 2030. This clean energy expansion predominantly relies on technologies such as solar PV, wind, hydro among others. All these renewable power solutions have one thing common - extensive use of cables for smooth generation, transmission and distribution of electricity. Right from inter-array cables used within solar parks and wind farms to long transmission cables required to wheel power from remote projects to cities - cables lie at the heart of renewable infrastructure. Furthermore, construction of offshore wind projects necessitates special types of cables that can withstand harsh marine conditions. The bright outlook for renewable sources of energy guarantees rising demand trajectories for different varieties of polymer and metallic wires & cables in the upcoming years.

According to the International Energy Agency (IEA), renewable electricity generation capacity worldwide is expanding rapidly, with the potential to triple by 2030. In 2023, the capacity for renewable energy increased by 50%, reaching nearly 510 gigawatts (GW). Solar photovoltaic (PV) accounted for three-quarters of this growth globally. China saw the largest increase, installing as much solar PV in 2023 as the entire world did in 2022, and its wind power capacity rose by 66%. Europe, the United States, and Brazil also experienced record-high growth in renewable energy capacity.