South Africa Wires & Cables Market - Forecast(2023 - 2028)

South Africa Wires and Cables Market Overview

South Africa Wires & Cables Market size is projected to reach US$7.46 billion by 2026, and it is estimated to grow at CAGR of 4% during 2021-2026. The major growth factor is attributed to the rising demand for wires and cables in automotive industry for various applications and increased adoption in IT & Telecommunications to transfer data and provide high-end communication between the end points. The rising demand for Corning cable providing end-to-end fiber optic cable solutions as optical waveguide for high speed communication network working on the principle of total internal reflection offering high-performance and reliability of networks is augmenting the market. In data communication technology to obtain the optimum result, it is required to polish the ends of fibers, having connectors that hold them in close proximity to each other and using an ‘index matching’ fluid to reduce the refractive index issue. Moreover rising investments towards infrastructure modernization and power transmission network in South Africa is also analyzed to elevate the market. In June 2020, South African Government announced to invest US$ 133 Billion in order to build new infrastructure over next decade.

South Africa Wires and Cables Market Report Coverage

The report: “South Africa Wires & Cables Market Forecast (2021-2026)”, by IndustryARC, covers an in-depth analysis of the following segments of the South Africa Wires & Cables Market.

By Voltage: Low Voltage, Medium Voltage, High Voltage, Extra High Voltage 
By Type of Cable: Power, Data, others
By Material Type: Copper, Aluminum, Fiber Optic, Other
By Installation: Overhead, Underground
By End-user: IT & Telecommunication, Marine, Aerospace & Defense, Automotive, Building Construction, Oil & Gas, Utility, Others

Key Takeaways

• Copper wire and cable dominated the market in 2020 acquiring a share of 41% in 2020.
• Automotive sector is estimated to witness the highest growth during 2021-2026 owing to the growing demand for advanced electronic devices in vehicles.
• High speed bandwidth requirement in various industries and rising investment towards modernization of power infrastructure are driving the market.
• High Recurrent wear and tear of wires and cables is impeding the growth of the market.

South Africa Wires & Cables Market Value Share, by material type, (by %) for 2020

South Africa Wires and Cables Market Segment Analysis- By Material Type

By material type, South Africa Wires & Cables Market has been segmented into copper, aluminum, fiber optic and others. Copper wire and cable held the largest market share of 41% in South Africa in 2020 due to its bolstering demand in power generation, distribution and transmission, electronic circuitry, telecommunications sector. Fiber optic cable solution is anticipated to witness significant growth at a CAGR of 10.56% during the forecast period 2021-2026 owing to the expansion of 5G infrastructure across this region. In August 2021 Telkom Kenya announced to invest in fiber optical cable solution to connect with South Africa in the second phase. Such investments are anticipated to create growth opportunities for the market between 2021 and 2026.

South Africa Wires and Cables Market Segment Analysis- By End-User

By end-user, South Africa Wires & Cables Market has been segmented into IT & Telecommunication, Aerospace Defense, Automotive, Building Construction, Oil & Gas, Utility and Others. Wires and Cables in Automotive sector has recorded the highest market share of 21% in 2020 and is analyzed to grow at the fastest rate at a CAGR of 13.45% during the forecast period 2021-2026 due to the growing demand for advanced electronic devices in vehicles. The growing applications of power, signal, data transfer and other applications in South Africa is driving the market. Many leading automotive manufacturers are investing heavily in the production of vehicles. For instance, more than $20 billion will be spent by General Motors in the next wave of all-electric and autonomous vehicles by 2020 through 2025. These investments and advances are therefore evaluated as key drivers for the growth of the South Africa Wires and Cable market over the 2021-2026 forecast period.

South Africa Wires & Cables Market Drivers

Increasing demand for higher bandwidth network by different industries is driving the market

One of the main elements used by different industries to transfer data and provide high-end communication between the end points is cable & connectors. In addition, cable & connectors are used to provide a secure end-to-end link in diverse industries such as oil & gas, defense & aerospace, manufacturing, automotive, and IT & telecommunication. Furthermore, growth in the commercial aerospace industry is also expected to fuel market growth due to a rising need for lightweight solutions. In South Africa, National Development Plan (NDP) 2030 aims to grow an inclusive economy, building capabilities, enhancing the capacity of the state, and promoting leadership and partnerships throughout society. South Africa’s mining sector has been transformed with the incorporation of sensors and devices into equipment and machinery within an IoT network allowing for the faster analysis of data and increased efficiency and such development in communication network in various industries is paving the way for growth.

Increasing government investment to modernize power grid is poised to create growth opportunities for the market

Numerous government agencies have implemented many developments to strengthen the network infrastructure of their areas for data transmission, thus boosting the demand for South Africa Wires & Cables. Increasing government investments in power distribution network in South Africa is set to drive the market. In 2019, South Africa government had implemented regulations for modernization and improvement of electric grids to reduce the economic losses associated with power outages. It also established mandatory electric grid reliability standards and incentivized transmission and distribution (T&D) investments and such modernization of power transmission networks led to an increase in the demand for power wires and cables in South Africa during the forecast period 2021-2026.

South Africa Wires and Cables Market Challenges

High Recurrent wear and tear of wires and cables is impeding growth rate

Regular wear and tear of wires & cables is anticipated to generate mild restraining effects. These wires are subjected to significant damages due to their large-scale use in the submarine industry, which can prevent data communication and hamper the execution of ongoing operations. This added with rising prices of cables is anticipated to impede the market growth.

South Africa Wires and Cables Market Landscape

Product launches, Acquisitions, Collaboration, and R&D activities are key strategies adopted by players in the South Africa Wires & Cables Market. In 2020, the market of South Africa wire & cable industry outlook has been fragmented into several companies. South Africa wire & cable top 10 companies include:

• STMicroelectronics,
• Renesas Aberdare Cables Limited
• CBI - electric: African Cables Limited
• B & W Instrumentation and Electrical Limited
• CCG Cable Terminations Pvt Ltd
• South Ocean Holdings Limited, Power Technologies Pvt Ltd
• Industrial Cable Suppliers Pvt Ltd
• Texas Instruments
• General Cable Sub – Sahara Africa
• Power Technologies (Pty) Limited

Acquisitions/Product Launches

• In April 2021, Emtel, a telecom network operator in Mauritius has announced the launch of a 3200 km submarine cable that connects South Africa with Mauritius, Reunion Island and Madagascar.
• In June 2019, Google announced the launch of Equiano, a subsea power cable which will connect South Africa and Portugal to extend connectivity.

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