Wires & Cables: Latest Trends

Wires & Cables

wIrEs & cAblEs: lAtEst trEnds

The global wires and cables market size was estimated at USD 183.14 billion in 2020. It is expected to expand at a compound annual growth rate (CAGR) of 4.4% from 2021 to 2028. Rising urbanization and growing infrastructure worldwide are some of the major factors driving the market. The said factors have impacted the power and energy demand in commercial, industrial, and residential sectors. Increased investments in smart upgrading of the power transmission and distribution systems and the development of smart grids are anticipated to drive the market growth. Implementation of smart grid technology has met the increasing need for grid interconnections, thus resulting in rising investments in the new underground and submarine cables. The global market for wires and cables is estimated to grow from $335.0 billion in 2021 to reach $426.8 billion by 2026, at a compound annual growth rate (CAGR) of 5% during the forecast period of 2021-2026.

The global market for power cables is estimated to grow from $244.5 billion in 2021 to reach $296.3 billion by 2026, at a CAGR of 3.9% during the forecast period of 2021-2026.The global market for telecom cables is estimated to grow from $90.5 billion in 2021 to reach $130.5 billion by 2026, at a CAGR of 7.6% during the forecast period of 2021-2026. The smart grid is an electric grid that includes controls, automation, computers, and innovative equipment and technologies that function together and offer efficient electricity transmission. The functioning of the entire globe depends on the timely delivery of electric supply. Further, the increasing population leads to rising demand for power. Technological advancement in grids is necessary to reduce the frequency and duration of storm impacts, power outages, and restore service quickly after outages. Smart grid helps generate efficient renewable power, reliable power, reducing carbon print, using a mix of energy sources, working with smart devices and smart homes, and encouraging the use of electric vehicles. Increased energy demands in the Asia Pacific, Middle East, and South America have resulted in rising investments in smart grids in these regions. This will fuel the demand for low voltage cables. The other factors that influence the growth of low voltage cables are the growth in the power generation, power distribution sector from renewable energy sources, and demand from automotive and non-automotive industries. Urbanization and industrialization are the major reasons for increasing the overall market growth. The need for power grid interconnections in areas with a dense population is creating a demand for underground and submarine cables. Regions such as North America and Europe are switching towards the adoption of underground cables instead of overhead cables. The underground cables reduce the

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space required and offer reliable transmission of electricity. COVID-19 IMPACT ANALYSIS The COVID-19 outbreak has impacted the wires and cables market growth due to a few minor shifts that occurred in communication technologies. The global power cable industry has been significantly impacted by the COVID-19 outbreak. The production facilities of the electronics and semiconductors have been halted, owing to the slowdown and unavailability of the workforce across the globe. COVID-19 outbreak has caused a significant and protracted drop in manufacturing utilization, and travel bans & facility closures kept workers out of their factories, which led to slowdown in the growth of the power cable market revenue in 2020. However, the negative impact of COVID-19 on the power cable market is expected to be there for a short period of time, and by early 2021 the market is anticipated to observe robust recovery rate along with the extensive demand for power cable products post pandemic. This is due to the fact that a rise in number of market players are reassessing their strategies and coming up with quick responses to stabilize their supply chain. MARKET ANALYSIS AND INSIGHTS: GLOBAL WIRE AND CABLE MANAGEMENT MARKET • Since the COVID-19 virus outbreak in December 2019, the disease has spread to almost 100 countries around the globe with the World Health Organization declaring it a public health emergency. The global impacts of the coronavirus disease 2019 (COVID-19) are already starting to be felt, and will significantly affect the Wire and Cable Management market in 2020. • COVID-19 can affect the global economy in three main ways: by directly affecting production and demand, by creating supply chain and market disruption, and by its financial impact on firms and financial markets. • The outbreak of COVID-19 has brought effects on many aspects, like flight cancellations; travel bans and quarantines; restaurants closed; all indoor events restricted; over forty countries state of emergency declared; massive slowing of the supply chain; stock market volatility; falling business confidence, growing panic among the population, and uncertainty about future. • This report also analyses the impact of Coronavirus COVID-19 on the Wire and Cable Management industry. ELECTRIC WIRE AND CABLE MARKET IN INDIA: SEGMENTATION BY END-USER Based on the segmentation by end-user, the market generated maximum revenue in the railway segment in 2020. Indian Railways is the single largest employer in the country and the 8th largest employer in the world. Over the years, the Government of India has continuously worked on strengthening the growth of the railway sector. For instance, the Vision 2024 initiative by the Indian government is expected to achieve a freight loading target of 2024 MT by 2024. This is expected to attract investments of around USD 190 billion over the next 5 years. Many such developments are expected to drive the growth of the market in the railway segment during the forecast period. ELECTRIC WIRE AND CABLE MARKET IN INDIA: MAJOR VENDORS Apar Industries Ltd. The company offers various types of cables including MV/HV XLPE insulated power cables, LV XLPE insulated power cables, LV & MV aerial bunch cables, screened and instrumentation cables, concentric core (anti-theft) cables, and others.

Finolex Cables Ltd. The company offers electric wires and cables which are manufactured using more than 99.97% pure electrolytic grade, bright annealed bare copper with more than 100% conductivity. Havells India Ltd. The company offers domestic and industrial switch gears, electrical wiring accessories, industrial motors, pumps, capacitors, domestic cables, and industrial underground cables. The company offers electric wire and cables under the brand, Havells. KEI Industries Ltd. The company is involved in the manufacturing, sale, and marketing of power cables such as low tension, high tension, and extra-high voltage (EHV), control and instrumentation cables, specialty cables, elastomeric / rubber cables, submersible cables, flexible and house wires, and winding wires. The company offers various types of electric wire and cables such as EHV cables up to 400 kV and high voltage cables. Polycab India Ltd. The company offers a wide range of electrical wires and cables including mv power cables, mv single-core power cable, lv power cable, lv control cable, and others. INDIAN MARKET OUTLOOK Cable & Wire Fair organized by Tulip 3P Media Private Limited has announced the rescheduling of the dates of its 4th International Exhibition & Conference for Wire and Cable Industry. India’s most illustrious trade exhibition for wire and cable industry has been postponed from its initial date of October 2021 to 1st to 3rd March 2022 to make it more convenient for all the stakeholders and also ensure that the event is staged at a time when industry is upbeat. It will allow both visitors and exhibitors to optimally serve their business objectives. ASSOCHAM, The Associated Chambers of Commerce of India, has joined hands as the co-organizer of the event. This collaboration will deliver greater value to the wire & cable industry. The infrastructure sector has become the biggest focus area for the Government of India. India plans to spend USD 1.4 trillion on infrastructure during 2019-23 to have a sustainable development of the country. The Government has suggested investment of Rs. 50,00,000 crore (USD 750 billion) for railways infrastructure from 2018-30. This infrastructure push will generate robust demand for Indian wire & cable industry. “The wires and cables industry in India witnessed a significant growth of 10 per cent in last year. Having always been an essential part of the manufacturing industry and with the added impetus provided by the recently introduced government initiatives, the wires and cables industry is now set to record a growth of 10-15 per cent in 2022. With the country’s increased focus on various sectors such as infrastructure, healthcare and affordable housing, the demand for wires and cables have increased significantly. The electric wire and cable market in India has the potential to grow by USD 1.65 billion during 2021-2025, and the market’s growth momentum will accelerate at a CAGR of 3.80%. This electric wire and cable market in India research report provides valuable insights on the post COVID-19 impact on the market, which will help companies evaluate their business approaches. Furthermore, this report extensively covers market segmentation by end-user (railway, power, construction, telecom, and others) and type (power cable and specialty cable). The electric wire and cable market in India report also offers information on several market vendors, including Apar Industries Ltd., Finolex Cables Ltd., Havells India Ltd., KEI Industries Ltd., Panasonic Corp., Polycab India Ltd., RR Kabel Ltd., Sterlite Power Transmission Ltd., Syska Led Lights Pvt. Ltd., and V-Guard Industries Ltd. among others. TOP 10 CABLE COMPANIES IN INDIA • Apar Industries Ltd. • Finolex Cables Ltd. • Gupta Power Infrastructure Ltd. • Havells India Ltd. • KEC International Ltd. • KEI Industries Ltd. • Polycab India Ltd. • RR Kabel Ltd. According to 6Wresearch, India Wires and Cables Market size is projected to grow at CAGR of 6.1% during 2020-2026. The market would witness a decline in 2020 on account of the economic slowdown caused due to COVID-19, however, the market would recover post-2020. The low voltage market portrays dominance in India cable market owing to rapid urbanization synergized by increasing demand for reliable power supply which will encourage product growth in the aforementioned segment. The medium voltage segment is anticipated to grow significantly in terms of revenue share due to its application in the oil and gas industry. India wires & cables market is anticipated to gain momentum during the forecast period 2020-26F backed by the rising growth of the industrial landscape in the country. Further, new government policy, the introduction of a new GST regime under which GST on the electric vehicle has been reduced to 12 to 5% which has led to an upsurge in the electric vehicle adoption coupled with two and three-wheelers is also estimated to secure high electrification rate in the upcoming years and is estimated to evolve the general cable and battery cable deployment to ensure continue transmitting of signals with context to driving, therefore, is expected to bolster the continuous growth of wires and cables market in the coming timeframe. EM