The global cable glands market size was valued at USD 1.57 billion in 2021 and is estimated to reach an expected value of USD 2.59 billion by 2030, registering a CAGR of 6.4% during the forecast period (2022-2030). Cable glands are devices that are vital when terminating cables in harsh or hazardous environments, where ingress protection, sealing, and grounding are necessary to safely pass a wire, cable, or tube through an enclosure. They provide the required strain relief and are also designed to contain flames or electrical sparks that could occur in hazardous environments.
Generally, industries operate under extreme environmental conditions, exposing equipment and machinery to chemical materials and reactions, which may cause early deterioration and mechanical failure. Machinery used in hazardous environments is subject to different precarious conditions, especially that equipment used in the offshore drilling and petrochemical industries. Corrosion is a common problem because of exposure to environmental and chemical hazards. This factor is poised to drive the usage of cable glands.
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Maintenance and Improvement of Preexisting Networks in Industrialized Countries
Many developed countries like the United Kingdom are investing heavily in upgrading existing systems to improve efficiency and provide reliable services while meeting modern standards. With the rise in upgrading activity in the industry, the demand for equipment and parts supporting the infrastructure has also increased, resulting in a growing need for cable management solutions. Furthermore, transmission and distribution infrastructure is also seeing high investments for development in Asia-Pacific. Growing Investment in renewable energy solutions in Europe is also developing a market for cable glands. Hong Kong has thousands of office buildings aged 50 or above, and the number is set to multiply in the coming years. Hence, creating a massive opportunity for the cable up-gradation and cable glands.
The Surge in Construction Industry Globally
The growing construction industry, especially in developing nations, is one of the major factors driving the growth of cable glands globally. The growth rate in the construction sector is much higher in developing countries like the UAE, China, and India; hence, these regions offer more opportunities for the studied market to grow. For instance, The government of India's Budget 2021 proposed setting up a Development Financial Institution (DFI) called the National Bank for Financing Infrastructure and Development, which is expected to have a capital base of INR 200 billion and a lending target of INR 5 trillion in three years. This would enable FPIs to debt finance REITs, which would likely assist cash-stressed real estate sectors and result in increased construction activities.
Furthermore, BRICS nations have been witnessing an increase in construction activity, owing to increasing real estate investments post-recession, which are still going strong. Cable management systems such as cable glands are gaining popularity in the commercial sector, one of the widely-growing construction industry segments, owing to increased demand for electric and network infrastructure. Thus, establishing new projects is expected to increase the need for cable glands.
Volatility in Raw Material Prices
Cable glands are made of plastic, brass, nickel, aluminum, and stainless steel, depending on the application type. The cost of raw materials used in manufacturing cable glands is highly volatile. As these are primarily metals, their prices depend heavily on the market scenario. Brass and aluminum are widely used raw materials for manufacturing cable glands. In recent years, the market for these materials has fluctuated prices.
The cost of raw materials also depends on other factors, such as region, the concentration of suppliers, and cost in the global market. The cost of raw materials is highly dependent on the region, as these materials are not readily available in some regions and must be imported. This has increased additional costs, such as import taxes and transport charges. The concentration of suppliers in the region also plays a significant role in the price of materials in areas where high supplier concentration is low.
Apart from this, various trade frictions among the countries and regions impact the tariffs and regulatory prices on raw materials. For instance, the US-China trade friction has resulted in a slowdown in manufacturing, thus pulling down the demand for base metals such as aluminum. Such developments impact the overall cost and resource planning in the market.
Increasing Trends of Digitization
The market for electronics has also been impacted by developing technical trends like artificial intelligence (AIAI) and the Internet of Things (IoT). This situation has made it easier for many companies and startups to explore new application areas. In May 2020, Wincomm launched a new cable gland with multiple I/O options and IP66/IP69K proofing for external input-output suites to address rapidly evolving industrial circumstances. The WTP-9E, WTP-8B, and WTP-8D series also comply with the CECE, FCC, VCCI, and class B regulations.
Similarly, the growth of robotics in several industries results from the rising trend of digitalization and automation. According to the International Monetary Fund, Asia's investments in robotics and production automation are essential for the region's economies since more than half of the world's estimated inventory of industrial robots is currently in use. Therefore, Industry 4.0, the rise of new markets, the development of smart cities, and changing technology trends are important factors that will influence the demand for cables and connections and, subsequently, the use of cable glands.
The global cable glands market is segmented by type, cable type, material type, end-user, and region.
By type, the global cable glands market is segmented into non-hazardous area cable glands and hazardous area cable glands. The dangerous area cable glands segment accounted for the largest market share and is estimated to grow a CAGR of 6% during the forecast period. Non-hazardous area cable glands are used extensively in industrial applications, as they offer many levels of safety and security in connections. The emergence of plastic-based cable glands and glands suited for dealing with industrial temperature and humidity variation is expected to drive the market, as they offer flexibility in the choice of materials and may impact the cost of using them. An emerging focus of governments worldwide to strengthen the public transportation system has seen an increase in Investment in infrastructure. For instance, metros, railways projects, tubes, power lines, and grids are on the rise and create an opportunity for the market players.
By cable type, the global cable glands market is segmented into armored cable glands and unarmored cable glands. The unarmored cable glands segment accounted for the largest market share and is estimated to grow a CAGR of 5.7% during the forecast period. Fiber optic cables are generally unarmored cables and create a massive opportunity for unarmored cable glands vendors. In buildings and enclosed areas with no fear of rodents or sabotage, using unarmored cables may be a cost-effective measure, offering these cable glands an opportunity.
By material type, the global cable glands market is segmented into brass, aluminum, plastic, stainless steel, and other material types. The brass segment accounted for the largest market share and is estimated to grow a CAGR of 5% during the forecast period. Brass is an alloy of copper with zinc that processes good water resistance, water vapor, various saline solutions, and numerous organic liquids. As brass features NPT/PG threads with integrated strain relief properties and is nickel-plated, it is corrosion-resistant. Cable glands are primarily used underground and under dynamic working environments and are, thus, prone to rust and early damage. In this case, brass glands plated with nickel ensure a better life for accessories. Such properties drive segment growth.
By end-user industry, the global cable glands market is segmented into aerospace, construction, manufacturing and processing, oil and gas, power and utilities, and other end-user industries (marine, mining, chemicals). The oil and gas segment accounted for the largest market share and is estimated to grow at a CAGR of 5.4% during the forecast period. There is an increasing focus on materials-specific, degree-of-protection, and cable-specific requirements such as brass, nickel-plated, and stainless-steel products, cable glands of Degree of Protection IPIP 66 to IPIP 68, and armored cable glands with connecting elements for all types of armoring in the oil and gas sector. The oil and gas sector has drawn attention to environmental protection, as the increase in oil spills and pollution. This factor is expected to drive the usage of robust cable glands and eco-friendly materials.
By region, the global cable glands market is segmented into North America, Europe, Asia-Pacific, Latin America, and Middle East & Africa.
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Asia-Pacific accounted for the largest market share and is estimated to grow a CAGR of 7.9% during the forecast period. Large-scale construction activities, especially in emerging economies, such as China and India, are expected to drive growth in this region, as it is rich in mines, refineries, and chemicals. Thus, the adoption of industrial equipment, such as cable glands, is expected to witness considerable growth in this region.
According to IRENA (International Renewable Energy Agency), Thailand's total solar energy capacity was 2,987 Megawatts in 2019. The renewable energy sector has observed significant global expansion, expecting worldwide renewable energy consumption to increase. Countries like Australia, China, India, and Japan have invested in their respective renewable energy sectors. The Investment in renewable energy in the Asia Pacific region accounted for USD 48.2 Billion in 2019. According to Exxon Mobil, Energy demand is expected to reach 316 quadrillion BTUs by 2040. It is expected to reach 271 quadrillion BTUs by the next five years (2025), thus increasing the demand for the market studied.
Europe is the second largest region. It is estimated to reach an expected value of USD 555 billion by 2030, registering a CAGR of 5.4%. The demand for oil and gas has been rising in Europe, driven by economic recovery, industrial activity, and more robust heating demand caused by winter cold spells. The region is one of the forward and one of the largest crude oil refiners in the world. According to IEA (International Energy Agency), the annual Investment by the oil industry in new refining capacities in Europe is USD 3.8 Million in 2019. The construction sector is significant to the European Union economy. The initiative provides 18 million direct jobs and contributes to about 9% of the EU'sEU's GDP. According to Trading Economics, the UK construction GDP is estimated to be around GBP 30,330 Million in 2022. According to the Office of National Statistics(UK), construction revenue in the United Kingdom can likely amount to approximately USD 454,2 billion by 2024. The current low crude oil prices have significantly boosted the demand for expanding existing refineries and the inception of new projects. Therefore, with the increasing oil and gas industry's capacity in the region, the rising number of new projects and growing up-gradation of existing oil and gas plants are expected to provide significant opportunities to the cable glands market growth.
North America is the third largest region. Cable glands are in high demand in North America due to the desire for technologically improved equipment. North America is a technologically advanced region that mostly depends on the building, manufacturing, and oil and natural gas sectors. One of the important markets for cable glands (and other cable management equipment) is the USUS, and this dominance is predicted to continue. The United States is one of the most attractive markets due to rising consumer demand, innovation, a competitive labor force, and a supply chain that can develop, install, and maintain all energy technologies. According to the International Energy Agency, the United States saw a total global Investment in energy efficiency of USD 250 billion in 2019. Many people are investing in eco-friendly resource use due to the population's growing environmental worries. In recent years, the use of solar energy has experienced rapid expansion. The federal government has also established financial incentives to increase solar's accessibility. The demand for cable glands is expected to increase over the forecast period as solar applications require cables with maximum reliability to prevent costly downtime and disruptions to the energy grid.
List of key global cable glands market manufacturers profiled