Wire and Cable Compound Market Size, Share [2031]

Wire and cable compounds make wires and cables with excellent durability, outstanding chemical and corrosion resistance, high mechanical stability, flexibility, and abrasion resistance. Many wire and cable compounds are designed for specific end uses, such as high and low-voltage power cables, telecommunications, telephone wires, coaxial cable, jacketing, etc.

Market Dyamics

Inflating Construction Industry in Asia-Pacific to Spur the Demand for Wire and Cable Compounds

The wire and cable compound market is expected to grow fast throughout the projected period, owing to an increase in the number of construction projects worldwide. Construction is the fastest-growing end-use industry for wire and cable compounds. Housing developments, including residential, commercial, industrial, and smart structures, are quickly increasing worldwide. Wires and cables are used more frequently in smart homes and buildings, increasing the need for insulating materials such as PVC, XLPE, and CPE. The increasing number of mobile homes is also a key factor in the market's expansion.

Two main contributors to the regional market growth are India and China. According to the publication "Worldwide Construction 2030" by the ICE (Institute of Civil Engineers), the global construction market is predicted to reach USD 15.5 trillion by 2030. The top three players, namely India, China, and the United States, account for 57% of global growth. The Indian construction market is expected to grow at roughly twice the rate of China's. India will be the third-largest construction market in the world by 2025.

The growing urban population in India is responsible for this increase. Delhi's population is expected to grow by 10.4 million people by 2030, making it the second-largest metropolis. With a value of USD 5,125 billion, Asia-Pacific was the world's largest construction market in 2018, according to Timetric (GlobalData Inc.). The construction sector in Asia-Pacific is expected to grow at a CAGR of 6.3% by 2022. The wire and cable compound industry will be impacted significantly by the rise of the region's construction business.

Increase in Electric Vehicles to Create Fruitful Opportunities for the Wire and Cable Compound Market

The expansion of the wire and cable compound industry will be dependent on the future production of electric vehicles. Automobile wire harnesses are comprised of wire and cables. Electrical vehicles (EVs) require more wire harnesses than typical or non-electric automobiles. These electric wires are installed in the battery and its surrounds to transmit electric current to electric automobiles. Furthermore, electric vehicles have battery management systems and other integrated systems that necessitate extra wiring.

The growth of electric vehicles (EV) is expected to be relatively robust in the near future, owing to the rising acceptance of environmentally friendly and fuel-efficient vehicles. One of the key factors anticipated to fuel the growth of the electric vehicle market is the growing concerns about air pollution. This is expected to increase wire and cable and compound consumption in the near future. According to the International Energy Agency, global sales of electric vehicles topped 2.1 million in 2019, accounting for 2.6% of global car sales.

Impact of COVID-19

Wire and cable compounds are used in almost every industry. Some of the market's key drivers are increased demand from the power production, automotive, and construction industries. Prior to COVID-19, the construction and electricity generation industries were growing, owing to rising population and consumer spending. As a result, worldwide demand for wire and cable compounds also soared.

However, COVID-19 drastically changed the scenario. Factory closures, building delays and cancellations, and decreasing automotive sales, among other things, are all signs of COVID-19's influence on various end markets. Furthermore, the major end-use industries of wire and cable compounds, such as construction, power generation, and automotive, significantly impacted their production and sale due to reduced operational activity, a lack of workforce, and demand destruction due to government restrictions. The wires and cable compounds market, on the other hand, is likely to revive as the end-use industries improve.

Regional Insights

The Asia-Pacific region has the greatest share in the global wire and cable compound market. It is predicted to be the fastest-growing region in the wire and cables compound market, with an anticipated CAGR of 9.97%, due to the growth of the construction, automotive, and electronics sectors in the region. India and China are projected to be the primary drivers of regional market expansion. According to the India Brand Equity Foundation, India's vehicle output increased at a CAGR of 2.36 percent between 2016 and 2020. (IBEF). India produced nearly 26.3 million automobiles in 2020.

North America has the second-largest share. It is anticipated to grow at a CAGR of 8.11%. It has been a leader in terms of technological advancement. The region is now one of the leading manufacturers and users of wire and cable compounds, owing to the presence of significant chemical plants. Largescale manufacturing of vehicles, booming construction activities, and expanding power generation sector are all contributing to the growth of the North American market.

Key Highlights

The global wire and cable compound market is predicted to grow at a CAGR of 8.68%, generating a revenue of USD 16,802.54 million by 2030.
The global wire and cable compound market is led by halogenated polymers and is anticipated to grow at a CAGR of 7.36%, generating a revenue of USD 4,748.96 million in 2030.
The construction industry holds the largest share in the global wire and cable compound market. It is anticipated to grow at a CAGR of 8.79%, generating a revenue of USD 5,984.88 million in 2030.