The industry of wire and cable is the basic guarantee for the normal operation of modern economy and society. The level of development of the wire and cable industry is also a sign of a country’s manufacturing level.
Europe and the United States and other developed countries industrialized earlier. In the late twentieth century has formed a mature cable industry chain and contributed to most of the global production capacity and demand at that time.
To date, it still occupies an important position in the global supply and sales, basically monopolizing the global high-end market.
At the same time, the wire and cable industry in the Asian region is taking an increasing share in the world. At present, the global wire and cable industry has entered a stable growth phase. And to a certain extent, it is characterized by stock competition.
After the Covid-19 epidemic, all industries have suffered a considerable impact. And the wire and cable industry is no different. At present, the epidemic has entered a more stable stage. in this environment, where is the wire and cable industry headed?
Global cable demand growth slows in gradual recovery in post-epidemic era
According to data published by CRU, the global market size of the metal-core (núcleo metálico del cable) insulated wire and cable industry was $161 billion in 2017. It grew slightly in 2018, reaching $172 billion.
The global market size declined slightly to $164 billion in 2019 due to a decline in demand in China. The growth rate of demand has slowed down significantly. 2019 demand is 19 million tons, an increase of nearly 1% year-on-year.
2020 global wire and cable market was affected by the epidemic and the demand shrinks with a market size of about $150 billion.
This decline is attributed to a variety of factors, such as reduced revenues in the cable industry, slow production pace and lack of availability of raw materials (materiales primas eléctricos).
It is also facing the suspension of business activities and regional blockade measures due to the Covid-19 pandemic.
Although demand for wire and cable contracted by about 5-6% year-on-year in 2020 in several regions. However, market demand is recovering in various countries.
By the end of 2021, total global consumption of insulated metal-core wire and cable has surpassed the level of 2019. The market size in 2021 is USD 181.28 billion. It is expected to be USD 2002.3 billion in 2022.
In recent years, emerging countries in Asia have experienced faster economic growth. The world’s wire and cable production center of gravity to Asia, driving the rapid development of the industry in countries such as China, Vietnam, the Philippines and Egypt in the Middle East.
The overall development of the power cable industry on a global scale shows a rapid rise in Asia and a small decline in the Americas. Europe in recent years has been in the development of more unstable, by the influence of economic and political factors.
Asia-Pacific region accounted for about 49% of the global consumption scale, Europe and the Americas accounted for 15% and 10%, respectively.
Emerging markets grow at a significant rate, boosting demand in the post-epidemic era
With the stabilization of the Covid-19 epidemic, the global economy begins to recover. The cable industry starts to return to healthy growth, led by government and private investment.
However, the growth rate is slightly slower than the previous five years. Among them, the rapid economic development of emerging markets represented by Africa and Southeast Asia.
Their construction, infrastructure, public utilities and industrial development will accelerate. These activities will provide a huge potential for increased demand for wire and cable in emerging markets.
Growth in emerging market demand will continue to support the recovery and growth of global demand.
According to CRU forecasts, the global wire and cable market is expected to expand at an average annual growth rate of 5% from 2021 to 2026. The global market for the metal-core insulated wire and cable industry is expected to reach $230 billion in 2026.