Wire And Cable Market Trends

Growth Drivers

• Expanding aerospace and defense industry - The continuous expansion of the aviation sector is likely to augment market demand for aerospace wiress and cables that are utilized in the sector for signal communication, data transfer, and power supply, and are made to endure high temperatures, high pressures, and challenging climatic circumstances, guaranteeing dependable operation and security in applications involving airplanes and spacecraft.
  
  The scale of the aerospace and defense sector worldwide is currently over USD 850 billion.
• Surging adoption of renewable energy - For green technology to function better and be more reliable, premium wiress and cables are needed, which will be essential in transporting electricity from scattered wind and solar farms to the homes and businesses that utilize it.
  
  As per the International Energy Agency, throughout the next five years, over 90% of the increase in global electricity production will come from renewable sources.
• Growing spending in the construction sector - This has caused the number of construction-related activities to rise, leading to a higher demand for electrical cables and wiress which are utilized in practically every residential, commercial, and industrial building construction for various power transmissions, including those of data, electricity, and security.
  
  Before the coronavirus pandemic, the construction industry had grown to a spending value of more than USD 10 trillion, and it is predicted to expand by around 2% per year.

Challenges

• Varying prices of raw materials such as copper, and aluminum - In wiress and cables, copper is the most often utilized metal since it is an excellent electrical conductor. However, economic conditions around the world, supply chain reorganizations, and strict laws have a significant impact on copper prices, which may impede market growth.
  
  Changes in the price of copper can diresctly affect the cost of production and profitability.
• The performance, building, and design criteria for wiress and cables are outlined in several legislative and regulatory compliance standards. Adhering to these regulations can be complex and expensive.