Market Challenges And Opportunities

Global Cable Glands Market Drivers:

Need for renewal and upgrading of existing networks in developed regions to propel the market growth

There are several electrical and communication networks in developed regions that are getting old with time. As per the estimates, several communication and electrical infrastructures in the U.S. have become more than a decade old. Along with the increasing technological development, the demand for modern infrastructure has also increased. Moreover, growing consumption of energy is also creating demand for upgradation of power grids all over the world. Thus, this factor is expected to propel growth of the global cable glands market over the forecast period.

Worldwide growth of construction industry to augment the market pace

The demand for cable glands is increasing across the globe due to rise in growth of construction industry, specifically in emerging regions. The construction industry is growing with higher rate in emerging countries such as India, UAE, and China. Thus, these regions are offering several opportunities for the growth of this market. The government of India announced the 2021 budget, which proposed building a Development Financial Institution (DFI) named the National Bank for Financing Infrastructure and Development, with is likely to have a capital base of INR 200 billion, with a lending target of INR 5 trillion in three years. Thus, increasing growth of construction industry is expected to fuel growth of the global cable glands market over the forecast period.

Global Cable Glands Market Opportunities:

Growing focus of manufacturers and vendors on innovation is expected to create several growth opportunities in the global cable glands market over the forecast period. Product manufacturers and vendors are likely to bring innovations related various material science and production technology to strengthen their market share in the near future. Manufacturers are expected to rely on production innovation, while advent of alternative distribution channel will also create several opportunities in the market.

Growing technological development such as Internet of Things (IoT), and artificial intelligence (AI) leading to disruption of electronics market space is creating several opportunities for existing companies and new startups to enter new areas of application of cable glands. For instance, in May 2020, Wincomm launched a new cable gland for external input-output suits for catering the increasingly changing industrial environments with combinations of I.O. under IP66/IP69K test proof. Thus, this factor is creating various business opportunities in the global cable glands market.

Global Cable Glands Market Restraints:

Fragmentation in regional markets to hamper the market pace

Several companies have been manufacturing cable glands for many years; however, due to the long time they have been in operations, several regional/local players are entering the market with relative ease to provide the cable glands at much lower costs compared to the existing market players. This has aided in developing a healthy competition in terms of development of safety, ingress, and other factors; it has however created fragmentation in the market. With the emergence of new manufacturers, the standards by which the cable glands were produced by earlier manufacturers, became diluted, as they focused solely on providing low cost alternative with no emphasis on standards. This has been restraining growth of the market as consumers looked for steady nomenclature for safety, production, and compatibility. However, certification systems such as ATEX, IEC Ex, NEC, UL, ISO, and BS are expected to address this issue, which will minimize the adverse impact of fragmentation on the market.

Unpredictability of raw material prices to impede the market pace

Cable glands are made from materials such as stainless steel, aluminum, nickel, brass, plastics, and others depending on the type of application. The cost of raw materials utilized in production of cable glands is significantly volatile, due to the cost of these materials depends heavily on the market scenario. In recent times, markets for materials such as aluminum and brass that are largely used raw materials in cable gland production, have witnessed fluctuation in their costs. Thus, changing cost of raw materials affect the production cost of cable glands, which in turn impacts adoption of these materials. This factor is therefore anticipated to restrain growth of the market in the coming future.