Insulated Wire & Cable Market - Forecast(2023 - 2028)

Insulated Wire & Cable Market Overview

The Insulated Wire & Cable Market size is forecast to reach US$ 234.4 billion by 2027, after growing at a CAGR of 5.5% during the forecast period 2022-2027. Insulated Wire & Cable can be made from a wide range of materials which include polyvinyl chloride, chlorinated polyethylene, polyurethane, neoprene, polytetrafluoroethylene (PTFE), styrene-butadiene, polyvinylidene fluoride (PVDF), and other materials. In 2019, the Middle East Solar Industry Association (MESIA) announced that at least US$ 15 billion worth of solar power projects are expected to operate in the region in the next five years. The increasing demand for insulated wires and cables from the power generation and the automotive industries acts as major drivers for the market. On the other hand, fluctuating prices of raw materials may act as a major constraint for the market.

COVID-19 Impact

There is no doubt that the COVID-19 lockdown has significantly reduced production activities as a result of the country-wise shutdown of sites, shortage of labor, and the decline of the supply and demand chain all over the world, thus, affecting the market. Studies show that the outbreak of COVID-19 sharply declined the production of raw materials in 2020 due to a lack of operations across multiple countries around the world. However, a slow recovery in the electronic industry has been witnessed across many countries around the world since 2021. An increase in work from home and e-learning practices during COVID-19 has significantly led to high demand for laptops, tablets, and smartphones and have resulted in the higher production of these electronics. For instance, according to the Retailers Association of India (RAI), consumer electronics net sales increased by 2% in September and 8% in October 2020, in comparison to 2019, owing to the increasing demand for electronic devices for remote practices during COVID-19.

In this way, a steady increase in electronics production activities is expected to increase the demand for insulated wires and cables for use in such electronic gadgets in order to prevent electrical leakage and corrosion of wires and cables from external factors. This indicates a steady recovery of the market in the upcoming years.

Report Coverage

The report: “Insulated Wire & Cable Market Report– Forecast (2022-2027)”, by IndustryARC covers an in-depth analysis of the following segments of the Insulated Wire & Cable Industry.

By Material Type: Plastic (Polyvinyl Chloride, Chlorinated Polyethylene, Polyurethane, Polypropylene, Others), Rubber (Thermoplastic Rubber, Neoprene, Styrene-Butadiene Rubber, Ethylene Propylene Rubber, Others), Fluoropolymer (Polytetrafluoroethylene (PTFE), Fluorinated Ethylene Propylene (FEP), Polyvinylidene Fluoride (PVDF), Others), Others.
By Product Type: Jumper Wires, Magnet Wire, Muscle Wire, Coaxial Cable, Multi-Conductor Cable, Fiber Optic Cable, Twisted Pair Cable, Others.
By Voltage: Low Voltage, Medium Voltage, and High Voltage.
By End-Use Industry: Energy & Power, Electrical & Electronics, Automotive, Telecommunication, Aerospace, Building & Construction, Others.
By Geography: North America (USA, Canada, and Mexico), Europe (the UK, Germany, France, Italy, Netherlands, Spain, Russia, Belgium, and the Rest of Europe), Asia-Pacific (China, Japan, India, South Korea, Australia, and New Zealand, Indonesia, Taiwan, Malaysia, and the Rest of Asia-Pacific), South America (Brazil, Argentina, Colombia, Chile and the Rest of South America), the Rest of the World (the Middle East, and Africa).

Key Takeaways

• Plastic material held the largest share in the Insulated Wire & Cable Market in 2021. Its wide range of characteristics, flexibility, and abrasion resistance made it stand out in comparison to other types of insulation materials in the market.
• Electrical & electronics industry held the largest share in the Insulated Wire & Cable Market in 2021, owing to the increasing demand for insulated wires and cables from the industry. According to recent insights published on Growth from Knowledge (GRK) in September 2021, the global consumer electronics industry obtained a total sales growth of US$ 42.8 billion during the first quarter of 2021, an increase of 18% in comparison to 2020.
• Asia-Pacific dominated the Insulated Wire & Cable Market in 2021, owing to the increasing demand for insulated wires and cables from the electrical & electronics sector of the region. According to the Semiconductor Industry Association, China imported around US$ 378 billion in semiconductors, accumulated 35% of the world’s electronic devices, and was responsible for 30% to 70% of the global PC, TV, and mobile phone exports in 2020.

Figure: Asia-Pacific Insulated Wire & Cable Market Revenue, 2021-2027 (US$ Billion)

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Insulated Wire & Cable Market Segment Analysis – By Material Type

The plastic material held the largest share in the Insulated Wire & Cable Market in 2021 and is expected to grow at a CAGR of 5.6% between 2022 and 2027, owing to its increasing demand due to the characteristics and benefits it offers over other types of insulation materials. Plastic materials such as polyvinyl chloride, chlorinated polyethylene, polyurethane, and polypropylene offer higher flexibility and better fire resistance in comparison to fluoropolymer, and other insulation materials. Moreover, plastic insulated wires and cables are comparatively lightweight, cost-effective as well as easier to use and install. They provide excellent corrosion resistance and abrasion resistance, and they are less affected by heat, water, and other factors. Furthermore, plastic materials such as polyvinyl chloride, chlorinated polyethylene, polyurethane, and polypropylene offer excellent thermal resistance and electrical insulation which makes them ideal for use in the insulation of wires and cables. Hence, all of these properties are driving its demand over other forms of adhesives, which in turn, is expected to boost the market growth in the upcoming years.

Insulated Wire & Cable Market Segment Analysis – By End-Use Industry

The electrical & electronics industry held the largest share in the Insulated Wire & Cable Market in 2021 and is expected to grow at a CAGR of 5.7% between 2022 and 2027, owing to the increasing demand for insulated wires and cables for use in electrical transmission and distribution projects across the globe. For instance, according to NES Fircroft, the U.S has invested around US$ 3 billion for its electrical transmission and distribution project called the Euro-Asia Connector worth US$ 4.1 billion in 2022. The project aims at building a cross-border electricity grid that will be connected through bi-directional cables in order to provide a steady and sufficient supply of electricity through national transmission operators. Similarly, it further states the commencement of another electrical distribution project called the Euro-Africa Connector worth US$ 4 billion. The project is expected to begin in 2022 and aims at connecting Egypt, Cyprus, and Greece through a 2,000MW electricity interconnector by the end of 2022. This, in turn, is expected to increase the demand for insulated wires and cables, to prevent electrical leakage, and short-circuits, along with protecting the wire and cables used in such electrical transmission and distribution facilities from corrosion, abrasion, harsh weather, and other external factors. This is expected to drive the growth of the market during the forecast period.

Insulated Wire & Cable Market Segment Analysis – By Geography

Asia-Pacific held the largest share in the Insulated Wire & Cable Market in 2021 up to 31%. The consumption of Insulated Wire & Cable is particularly high in this region due to its increasing demand from the electrical & electronics sector. Insulated wires and cables play a vital role in this sector since they are primarily used in batteries, substrates, and other electronic components to prevent electrical leakage, short circuits, and for providing good protection of electrical components against moisture, corrosion, and abrasion. For instance, recent insights from NES Fircroft state that the State Grid Corporation of China (SGCC) has started a new power transmission and distribution project worth US$ 33.7 billion in 2020 in order to meet the increasing electricity demands in China.  The project aims at building 12 electricity transmission lines which will be capable of connecting the coal production and hydropower centers to the densely populated parts of the country. According to a recent study published in the Economic Times (Telecom) in 2021, electronic manufacturing and production were valued at around US$ 100 billion in India. It further states that mobile manufacturing in India surpassed INR 90000 crore (US$ 12 trillion) in 2021 as per the statement made by the Indian IT Minister. Likewise, according to the annual reports published by Samsung during the fourth quarter of 2020, the total revenue of the consumer electronics division was valued at KRW 13.6 trillion (US$ 11.3 billion) with an operating profit of KRW 0.8 trillion (US$ 668 million).

Hence, an increase in demand for electricity, and electronic devices is expected to increase the use of insulated wires and cables, owing to their properties such as excellent corrosion resistance, abrasion resistance, thermal resistance, fire resistance, and more.  This is anticipated to boost the growth of the market during the forecast period.

Insulated Wire & Cable Market Drivers

An increase in demand from the power generation industry is most likely to increase demand for the product

The demand for insulated wires and cables has been increasing rapidly as it is primarily used for insulation of solar wires and solar panels used during solar PV installations. Likewise, insulated wires and cables are also installed in wind power plants since they are highly resistant to corrosion, torsion, abrasion, and wear while offering excellent thermal and electrical insulation.  According to the Global Outlook for Solar Power Industry published by the Global Solar Council, a total of 138.2 GW solar PV capacity was installed across the world during 2020, which indicated an increase of 18% in comparison to 117.6 GW solar in the year 2019. China was the leading country with 48.2 GW of solar PV capacity installed in 2020. This is followed by the US with 19.3 GW, Vietnam with 11.6 GW, Japan with 8.2 GW, and Australia with 5.1 GW of total solar PV capacity installed by 2020. All of the top five leading countries saw an increase in their annual growth rate in comparison to 2019. Furthermore, according to MEED (Middle East Economic Digest), around 28 GW of renewable energy production capacity is installed across the Middle East region including solar and wind energy. It also stated that 98 GW of new renewable energy generation capacity was planned across the region at the beginning of 2021, with projects ranging from solar to wind power.

In this way, an increase in demand for the installation of new solar PV capacity and wind power plants is expected to increase the demand for insulated wires and cables for use in such power plants, thus, leading to market growth in the upcoming years.

An increase in automobile production is most likely to increase demand for the product

According to a recent study published by the German Association of Automotive Industry during the fourth quarter of 2020, the new registration of motor vehicles reached up to 16,763 units in Europe, 37,467 units in Asia, 3080 units in South America, 17,421 units in North America, 12,733 units in Western Europe, and 5180 units in other regions worldwide. Likewise, a recent study published by the International Netherlands Group (ING) states that the demand for the production and development of electric vehicles has been increasing since the pandemic. It states that the global sales of new electric vehicles have increased by 50% in 2021, and it is expected to increase by 8% in 2022. It further states that the sales of electric vehicles have increased by 14% in Europe, 9% in China, and 4% in the US.

Hence, an increase in demand and production of vehicles is expected to increase the demand for insulated wires and cables for use in automotive batteries and other electrical components of the vehicle in order to prevent electrical leakage, short circuits and for providing good protection of electrical components against moisture, corrosion, and abrasion. This is most likely to drive the growth of the market in the upcoming years.

Insulated Wire & Cable Market Challenges

Fluctuating prices of raw materials can cause an obstruction to the market growth

Shortage and lack of availability of key raw materials along with a significant increase in prices are causing supply chain disruption in the U.S, Europe, and other regions across the world. For instance, in 2021, the polypropylene prices increased significantly from 13.5 to 96.5 cents per pound in the U.S, owing to a shortage in production, delays in imports along with delays in exports to Latin America. This was the highest recorded hike in its prices since 2018. Likewise, export prices of polyvinyl chloride in the U.S almost increased by double to US$ 1,625 per ton in 2021. Furthermore, in December 2021, AOC, a global supplier of specialty resins and solutions, announced a price increase of €200 (US$ 236.5) per ton for its complete collection of polyester, epoxy, and vinyl ester resins sold in Europe, the Middle East, and Africa. Hence, fluctuating prices of such raw materials that are used in the production of insulation materials for wires and cables may confine the market growth.

Insulated Wire & Cable Industry Outlook

Technology launches, acquisitions, and R&D activities are key strategies adopted by players in the Insulated Wire & Cable Market. Insulated Wire & Cable top 10 companies are:

1. ABL Electronic Supplies Inc.
2. AFC Cable Systems Inc.
3. AmphenolCorp.
4. Asia Pacific Wire & Cable Corporation Ltd.
5. Belden Inc.
6. Cable USA
7. Carlisle Interconnect Technologies
8. Cerro Wire LLC
9. Hitachi Metals Ltd.
10. Sumitomo Electric Industries Ltd.

Recent Developments

• In December 2021, Maillefer, a manufacturer of cable machinery, launched its new line of building wire insulation in India. The new wire insulation line offers a speed of 1200 MPM (meter per minute). The company claims that its new product line would be suitable for the insulated wire manufacturers engaged in the production of building wires in India.
• In October 2021, EIS Legacy LLC, acquired Pyramid Wire & Insulation, an electrical solutions company headquartered in Wisconsin, U.S. The acquisition was a part of the company’s growth strategy and aims at expanding the company’s product portfolio to better serve its customers.
• In November 2019, Sumitomo Electric Industries, Ltd. launched its new brand of insulated wires and traveling cables designed for use in electrical equipment and panel. The new product range is lightweight, flame retardant, easy to use and install, and offers high strength and enhanced flexibility.

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