In 2023, market players might incur losses due to huge gap in currency translation followed by contracting revenues, shrinking profit margins & cost pressure on logistics and supply chain.
Controlling Inflation has become the first priority for global economies from last quarter of 2022 and to be followed in 2023. With skewed economic situations, rise in interest rate by governments to control spending and inflation, spiked oil and gas prices, high inflation, geo-political issues including U.S. & China trade war, Russia-Ukraine conflict to intensify the global economic issues.
The interest rates in the U.S. may be less sensitive in 2023 as compared to 2022; sigh of relief for businesses. Positive business sentiments, healthy business balance sheets, growth in construction spending (private construction value in 2022 stood at $1,429.2 billion, 11.7 percent (±1.0 percent) above the $1,279.5 billion spent in 2021, Residential construction in 2022 was $899.1 billion, up by 13.3 percent (±2.1 percent) from $793.7 billion in 2021, non-residential construction touched $530.1 billion, 9.1 percent (±1.0 percent) above the $485.8 billion in 2021.) showcases minimal impact of recession in the country.
Similarly, spiked spending in the European and major Asia economics including, India, China & Japan to showcase less impact on the global demand.
Fire performance cables are referred to the cables that are designed specifically to have resistance to fire. These cables are widely used across areas which are anticipated to have high temperature or exposure to fire. Fire performance cables are also widely utilized in emergency lighting systems, fire alarm systems and others. These cables are available in two forms, namely, single core cable and multicore cable. Single core cables are intended for establishments in trunking and channels where a fire circumstance may represent a serious and immediate danger. On the other hand, a multicore cable includes numerous single core cables which are jacketed to form a single cable. These cables have different fire rated durations.
The rising awareness for good electrical wires that have the characteristics of fire resistance across end user industries and the increasing adoption of fire performance cables in the end user industries are some of the factors believed to benefit the expansion of the Global fire performance cables market. The Global fire performance cables market is slated to grow at a highest CAGR of around 3% throughout the forecast period, i.e. 2019-2027. Further, the market accounted for a value of around USD 1700 million in the year 2018 and is predicted to reach a value of around USD 2200 million by the end of 2027. Additionally, the global fire performance cables market is anticipated to gain an absolute $ opportunity of around USD 440 million during the forecast period.
The global fire performance cables market is segmented by regions into North America, Latin America, Europe, Asia Pacific and Middle East and Africa. Among these regions, the market of North America fire performance cables held the largest market share of around 31% in the year 2018 and is anticipated to cross a value of around USD 630 million by the end of 2027 by registering a CAGR of around 2% during the forecast period. Additionally, the market in the region is anticipated to gain an absolute $ opportunity of around USD 94 million during the forecast period.
On the other hand, the fire performance cables market in Europe is anticipated to cross a value of around USD 680 million by the end of 2027 by growing at a CAGR of 3% throughout the forecast period. The market is further anticipated to gain an incremental $ opportunity of around USD 22 million in the year 2027 as compared to the previous year.
By Product Type
The global fire performance cables market is segmented on the basis of product type into fire rated or FR 30 minutes, FR 60 minutes and FR 120 minutes. The FR 30 minutes segment in Europe is estimated to expand at a CAGR of around 2.8% over the forecast period and is showcasing great potential for the future growth of the segment. The segment with around 40% share in the year 2018 is anticipated to grow by a growth rate of 1.2x over the forecast period. Additionally, the segment in Europe is also anticipated to cross a value of around USD 260 million by the end of 2027 by attain an absolute $ opportunity of around USD 52 million during the forecast period.
By End User
The global fire performance cables market is also segmented by end user into public & commercial building, automotive & transportation, manufacturing, energy and others. It is observed that there is a high demand amongst manufacturers of different industry verticals for fire performance cables. Moreover, the manufacturing segment in Europe fire performance cables market, held a value of around USD 120 million and a market share of around 23% in the year 2018. It is further anticipated to grow with a CAGR of around 3% throughout the forecast period. The segment in Europe is also anticipated to gain an incremental $ opportunity of around USD 4.5 million in the year 2027 as compared to the previous year. On the other hand, the public & commercial building segment in Europe is anticipated to grow with the highest CAGR of around 3.5% over the forecast period on account of stringent norms of the government of the nations in Europe for providing fire safety, especially for residential building construction.
Presence of stringent safety and security regulations in regions worldwide, especially across end user industries, such as building & construction, manufacturing and others, as well as in hospitals, residences, and workplaces for fire and safety norms are raising the need for the greater utilization of fire performance cables. Fire performance cables provide superior characteristics over conventional cables. Otherwise called as circuit integrity cables or CI cables, these cables are characterized as the cable that is fit for keeping up circuit respectability for a predefined timeframe during a fire. Additionally, growing number of construction activities around the globe and availability of favorable characteristics of fire performance cables that can withstand high temperatures, low toxicity and features such as non-corrosiveness, along with low smoke emission during a fire are s0me of the factors anticipated to drive the growth of the globe fire performance cables market.
High product cost of fire performance cables which might restrict the desired sales of the manufacturer of fire performance cables is one of the major factors anticipated to impact negatively towards the growth of the global fire performance cables market.
The global fire performance cables market has several key players that are functioning both locally as well as globally. Moreover, several global players in the fire performance cables market are also providing their products and services in Europe to cater to the rising demand for fire performance cables in the region. Additionally, several small and mid-size players around the globe are also looking for options by expanding their existing product width and line to cater to the market. On the other hand, several players in the global fire performance cables market are also investing heavily to develop advanced materials used for manufacturing fire performance cables.
Ans: Increasing construction activities in the region as well as the stringent safety regulations in construction industry are some of the major factors that are driving the growth of the market.
Ans: The market is anticipated to attain a CAGR of around 3% over the forecast period, i.e. 2019-2027.
Ans: The FR 30 minutes segment, which is a sub-segment of the product type segment, held the largest market share of around 40% in the year 2018 and is anticipated to display significant growth opportunity.
Ans: Growing concerns for the impact on sales of the manufacturer of fire performance cables due to the high-end product cost is one of the major factors anticipated to act as a barrier towards the growth of the Europe fire performance cables market.