Products developed and distributed by the wire and cable manufacturing industry—such as nonferrous wire, telecom wire, and fiber optic cable—are essential to operations in a wide range of markets, including construction, consumer goods, telecommunications, and utilities. While these industries, among others, face growth in light of the Industry 4.0 technology revolution, so too does the total market value of wire and cable manufacturing operations. Current estimates anticipate a value of USD 232 billion by 2025 at an annual growth rate (AGR) of approximately 5%.
The following blog post provides an overview of the market growth trends in the wire and cable industry and the industrial opportunities these changes have opened up.
Wire and Cable Market Trends and Opportunities
In response to and anticipation of the changing market trends, the cable and wire manufacturing industry has the opportunity to expand and enhance many key operations, including in regard to:
- Fast-charging cables. Newer smartphone technology integrates fast-charging components, which necessitates the use of fast-charging cables. By using these cables, consumers significantly reduce charging times (to approximately 30 minutes), a quality that may help smartphone manufacturers offload more phones to new customers.
- Fire-resistant cables. Fire-resistant cables limit both the spread of fire and the release of toxic gas. As the construction industry grows, these cables will find increasing use in new large residential, commercial, and manufacturing buildings.
- Fiber optic cables. In 2018, fiber optic cables made up the second-largest segment of the wire and cable industry. By 2020, the value of the segment is expected to grow at an AGR of 20.3%—a trend largely attributed to the increasing demand among end-users involved with communications and telecommunications applications.
- Factory automation cables. The push for the integration of Industry 4.0 technology has led—and will continue to lead—to the adoption and installation of increasingly complex equipment and systems. The demanding environments these products are exposed to necessitates the use of durable and reliable components, including cables. The cables used must withstand stresses, such as abrasion, bending, and fast operating speeds.
- Copper stranded wire. From 2016 to 2025, the market for copper stranded wire is projected to grow at a compound annual growth rate of 1%. The primary factors driving this trend are increases in energy requirements and flexible and functional product development demand. Some of the markets that may see an increase in the use of copper stranded wire in the future include construction, energy, infrastructure, telecommunications. In regard to construction, key areas of growth are China, India, Africa, the UAE, Qatar, and the United States.
- Insulated wire and cable. Through 2019, insulated wire and cable demand for the United States is expected to grow by 6% each year. This growth is, in part, due to the predicted rise in construction operations, which will increase the need for wire and cable.
- Customized products. Wire and cable customization services allow manufacturers to provide products tailored to a customer’s application that save time, money, and space. For these reasons, custom wire, cable, and wire harnesses received a recent uptick in customer interest. At Consolidated Electronic Wire & Cable, we noticed this upward trend and provided services catering to those needs all along.
- Green initiatives. As awareness builds around environmental protection and sustainability, more people are striving to reduce the emission of potentially hazardous chemicals and increase the use of natural and recycled/recyclable products. One effect this initiative has had on consumers is rapid growth in the demand for hybrid and electric vehicles. As this market continues to expand, so too does the need for wires, cables, and wire harnesses to outfit the cars.
Consolidated Electronic: Your Single-Source Manufacturer of Standard and Custom Electronic Wire and Cable
Increases in overall consumer spending have translated to growth in many markets for wire and cable, such as the manufacture of automobiles and electronic equipment. As these markets expand, their industry professionals require greater quantities of wire and cable to meet consumer demand. For cable and wire manufacturers, the continued rise of consumer spending—and the resulting effects on downstream markets—poses both a challenge and an opportunity.
At Consolidated Electronic Wire & Cable, we are up to the challenge and prepared to benefit from the opportunity. Equipped with more than 100 years of industry experience in producing high-quality cable and wire, we have the knowledge and skills to develop and deliver solutions that meet the needs and growing demands of a diverse set of industries and markets, including medical, automotive, aerospace, telecommunications, construction, and home.
For more information about our wire and cable products and how we meet changing market demands, contact us today.