The cable extrusion market constitutes only 3% of the global plastic consumption, however the market possesses a lucrative scope primarily owing to the huge demand for wires and cables in power and electronics sector. As per the estimates released by AMR, the global wire and cable polymers market was valued at USD 10,822 million in 2022 and is estimated to reach a value of 17,143 by 2028 with a CAGR of 8.0% during 2022-2028.
Though construction sector has been the primary backbone for wire and cables, however rapid technological progress in power transmission, telecom and automotive sector has also contributed in elevating the market for wires and cables and its associated polymers. Increasing focus on reduction of carbon within the power sector has garnered huge investments, thereby creating a multi-benefit scenario for manufacturers that supply power transmission components such as relays, voltage regulators, transformers, and line insulators.
Clean energy investment has achieved a growth of 12% since 2020, around 80% of these investments were concentrated in renewables energy and grid sector. Further, spending on solar PV, batteries and electric vehicles is now growing at rates consistent with reaching global net zero emissions by 2050. This scenario is estimated to put a lucrative demand for wire and cable insulation market during the forecast period.
Demand for high speed internet connectivity from almost every sector has created an immense demand for fiber optics cables and network. As per the estimates released by telecoms, overall spending for optical fiber cable in India is between USD 1-5-2.5 billion in the next three years. As data transfer and communication process is creating a high demand not only within the commercial and industrial sector, but also in the residential sector, the need for high speed data cable is on rise creating a colossal market scope for wire and polymers.
Wires and cables industry is highly complex, owing to its sophisticated applications within power and communication sector. Further, the cable business requires good technical understanding in terms of all parties and components involved in it, thereby restraining the market growth.
Segmental Insights
Global wire and cable polymer market is primarily bifurcated into product type and application. Based on product type, the market is classified as follows: PVC, PE, LS0H/HFFR, PP, TPE, Rubber, Others. In terms of adoption rate, Polyvinyl Chloride (PVC) holds the major share in 2022, accounting around 40.2% in 2021, the primary reason behind the major adoption rate is its lower cost and higher insulating index. The average cost of PVC is around USD 1200 per tons and this pricing is estimated to experience a decreasing trend, owing to its lower adoption during the forecast period. The primary reason behind lower adoption rate is the initiative taken by European CPR that focuses on restricting the use of PFAS, bisphenol and PVC by 2030. On the contrary, the European legislation has made its mandatory to adopt halogen free materials such as XLPE, PE, and HFFR compounds. Below figure depicts the overall adoption rate of wire and cable polymers during the forecast period.
In terms of applications, fiber optic wire and cable is estimated to achieve highest CAGR of 9.4% during the forecast period, primarily backed by increasing need for high data transfer speed. Emergence of 5G, FTTH, data centers are primarily accelerating the demand for high quality optical fibers. Indian telcos are planning to lay ~2,00,000 cable kilometers and spend billions of dollars on fibre roll-out in next 2 to 3 years. This vast network of fiber optic cable requires adequate amount of protection, which is further estimated to create a huge demand for wire and cable polymers, thereby creating a lucrative market scope.
Regional Insights
Global wire and cable polymer market is primarily analyzed across North America, Europe, APAC, Latin America, Middle East and Africa. European market is estimated to grow at a CAGR of 6.5% during the forecast period. Investment trends related to civil engineering projects (road, rail, airport, and maritime) coupled with favorable structural trends are driving higher growth rates for transportation-related cables. Further, the share of PVC compound is drastically decreasing in the region and ongoing concern regarding the discharge of halogens from the cable material has created a huge demand for LS0H/HFFR compounds.
Among the largest cable manufacturing countries, Chile has by far the strongest growth forecast due to new projects in mining and renewables, followed by Peru, while Brazil’s growth is notably lower. Brazil and Argentina dominate cable production in the region, accounting for 43% and 30% respectively of overall material consumption. This scenario is estimated to create an uplift for the wire and cable polymer market in Latin America.
Competitive Landscape
Some of the major companies operating in the market are Dupont, Solvay, Evonik Industries, Borouge, Avient Corporation, Eastman Chemical company, Exxon Mobil corporation, Trelleborg, Hanwa solutions
• In September 2020, International Polymer Compounding Group HEXPOL technologies launched a comprehensive portfolio of wire and cable compounds which is based on high-performance materials such as VMQ, advanced rubber technologies, additives, and thermoplastic elastomers.
• In May 2020, Nexans achieved a major contract to design, manufacture, and install a 335 km subsea high voltage direct current (HVDC) cable system for Ariadne interconnection S.P.S.A. owned by IPTO, Greece’s state grid operator. The interconnection will link the electricity network on mainland Greece to Crete.
• In May 2020, LS Cable & System received a contract worth USD 56.61 million to manufacture and transport advanced cables using modern solid dielectric technology. This will replace the existing six in 1-phase cables for the Wisconsin-based American Transmission Co.’s Straits Cable Replacement Project.and others.
By Product Type
• PVC
• PE
• LS0H/HFFR
• PP
• TPE
• Rubber
• Others
By Application areas
• Electronics wire and cable
• Power transmission wire and cable
• Building wire and cable
• Apparatus wire and cable
• Magnet wire and cable
• Fiber optic wire and cable
• Others