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[194 Pages Report] The global wire & cable compounds market size is projected to grow from USD 12.5 billion in 2021 to USD 19.2 billion by 2026, at a CAGR of 9.0%. The wire & cable compounds market is growing due to the rise in demand from cnstruction, power, communication, and automotive industries. However, owing to COVID-19, the sales of various industries has declined, resulting in reduced demand for wire & cable compounds.
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COVID-19 has negatively affected the demand for wire & cable compounds across the globe due to decrease in demand from various end-use industries. The COVID-19 pandemic affected the market significantly, due to which, manufacturers were required to place production on hold. The global lockdown forced manufacturers to operate on reduced capacities. Disruptions in supply chains due to the pandemic significantly affected businesses in key markets globally.
The major drivers of growth for the construction market are rapid rates of urbanization and increasing population. The global construction industry can be classified majorly into three types, namely, residential, commercial, and infrastructural. The increasing rate of urbanization in emerging markets such as China and India and the development of new cities are the major drivers for the growth of the infrastructure segment. Therefore, the products used in construction are expected to be in high demand, including wire & cable compound products. Asia Pacific is projected to be the highest growing market. The usage of wire & cable compounds in construction projects is increasing at an exponential rate due to their significant number of advantages and the long-term cost implications. COVID-19 led to a global lockdown and hampered the growth of the construction market, but it is expected to pick up pace as construction is a high driver of growth.
The European Union’s Construction Products Regulation (CPR) is a far-reaching legislation that covers various aspects of all kinds of building materials sold in the European Economic Area (EEA). The CPR aims at ensuring the reliability of material performance information using standards and uniform test methods. These test methods measure the performance of cables based on key factors such as the ease of ignition of the cable, the speed and distance at which the fire propagates along the cable, quantity of smoke generated by the burning of the cable, toxicity of the by-products of cable combustion, and corrosivity of the by-products of cable combustion. This regulation restrains the demand for halogenated compounds in the wire & cable industry. The construction industry in the EU has been directed to use non-halogenated wires & cables due to which the market for halogenated polymers is experiencing stagnated growth in the region.
According to the National Institutes of Health in the US, the use of some halogenated plastics such as polyvinylchloride (PVC), chlorinated polyethylene (CPE), and chlorinated PVC may be restricted by federal purchasing regulations and policies. Regulations on halogenated polymers and environmental concerns have resulted in voluntary policies by global wire & cable manufacturers in limiting or eliminating the use of halogenated polymers.
Traditionally, the wire & cable compounds industry was concentrated in North America and Europe. However, in recent years, there has been a significant shift towards emerging economies in the Asia Pacific. Owing to rapid industrialization, the building & infrastructure sector is growing rapidly in emerging economies, creating a significant demand for materials used in construction. Thus, in construction applications wires & cables have significant demand in emerging economies. Affordable commercial air travel is emerging as a feasible option in emerging economies, providing travelers access to various locations. Customers in emerging economies are inclined towards the affordable choice of air travel that provides speed and convenience rather than the traditional modes of transportation. Modern lightweight airplanes exhibit a long range of travel and low cost of operations, enabling the introduction of long distant low-budget business models. These business models are, in turn, benefitting the connected city air travels of carriers and leading to convenience for passengers. The higher production of commercial airplanes is also expected to increase the demand of wires & cables in the aerospace sector, and, in turn, for wire & cable compounds.
The growing wireless communication industry poses a challenge to the wire & cable compounds market. Technological advancements in the communication industry and the industry’s inclination toward wireless communication lead to the low scope for the growth of the wire & cable compounds market. Initially, the communications industry was majorly dependent upon wired communication. However, due to the introduction of wireless communication, the wire & cable compounds market is projected to witness slow growth. Telephones have been replaced by mobile phones, and transmission cables have been replaced with compact antennas. Thus, technological advancements in wireless communication are a major challenge for the wire & cable compounds market. As compared to wired communication, wireless communication requires one-time investment and incurs low maintenance cost which is expected to lead to the shift from wired communication to wireless communication.
In the construction industry, wire & cable compounds are used for commercial, residential, and industrial purposes for power transmission and low- and medium-voltage cable applications. The construction industry accounts for the largest share of the market and this growth is attributed to increasing industrialization, economic development, and urbanization. The construction industry is experiencing high growth in the Middle East & Africa (MEA) and the Asia Pacific (APAC) regions due to the rising governmental spending on infrastructure development and increasing industrialization. The increasing demand for low- and medium-voltage cables in this industry is driving the wire & cable compounds market globally. Increasing environmental regulations on the use of halogenated polymers for wire & cable compounds are driving the demand for non-halogenated cable compounds.
Halogenated polymers include polyvinyl chloride (PVC) and chlorinated polyethylene (CPE) which are widely used in various industries such as wire & cable, footwear, plastics, and packaging. PVC is used in a wider range of applications than CPE. PVC compounds accounted for the largest market share among all types of halogenated and non-halogenated polymers. PVC is the world's third-highest produced synthetic plastic polymer, followed by polyethylene and polypropylene, and is projected to account for the largest share of the market. CPE is a form of polyethylene which has a chlorine content of approximately 30.0% to 40.0%. CPE acts as a modifier of PVC depending upon the application.
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North America is a prominent market for wire & cable compounds and growth in the region is steady in all the industrial verticals. The market in the region is largely dependent upon industrial development in the domestic market. The communication industry in the region is growing at the highest rate due to technological advancements and infrastructural development in the communication industry. Increased investments by governments to produce green and clean energy through the installation of solar power plants and windmill-powered plants is expected to drive the wire & cable market in the power industry. This is further expected to increase the demand for wire & cable compounds in this industry.
The key players in the global wire & cable compounds market are DuPont de Nemours, Inc. (US), Solvay S.A. (Belgium), Evonik Industries AG (Germany), Borouge (UAE), Avient Corporation (US), Eastman Chemical Company (US), Exxon Mobil Corporation (US), Hanwha Solutions Corporation (South Korea), Siam Cement Public Company Limited (Thailand), Trelleborg AB (Sweden), Mitsubishi Chemical Corporation (Japan), and RIKEN TECHNOS CORPORATION (Japan). These companies are involved in adopting various inorganic and organic strategies to increase their foothold in the wire & cable compounds industry. The study includes an in-depth competitive analysis of these companies in the wire & cable compounds market, with their company profiles, recent developments, and key market strategies.
Report Metric
Details
Years considered for the study
2017–2026
Base year
2020
Forecast period
2021–2026
Units considered
Value (USD Million)
Segments
By Type, End-use Industry and Region
Regions
Europe, North America, APAC, MEA, and South America
Companies
DuPont de Nemours, Inc. (US), Solvay S.A. (Belgium), Evonik Industries AG (Germany), Borouge (UAE), Avient Corporation (US), Eastman Chemical Company (US), Exxon Mobil Corporation (US), Hanwha Solutions Corporation (South Korea), Siam Cement Public Company Limited (Thailand), Trelleborg AB (Sweden), and Mitsubishi Chemical Corporation (Japan).
This research report categorizes the wire & cable compounds market based on type, end-use industry, and region.
What are the factors influencing the growth of the wire & cable compounds tanks market?
The growing emerging applications of wire & cable compounds in various end-use industries
Which is the fastest-growing country-level market for wire & cable compounds?
China is the fastest-growing wire & cable compounds market due to high demand
What are the factors contributing to the final price of wire & cable compounds?
Raw material plays a vital role in the costs. The cost of these materials contributes largely to the final pricing of wire & cable compounds.
What are the challenges in the wire & cable compounds market?
Growing wireless communication technology is the major challenge in the wire & cable compounds market.
Which polymer type of wire & cable compounds holds the largest market share?
Halogenated polymers hold the largest share due wide applications.
How is the wire & cable compounds market aligned?
The market is growing at a significant pace. It is a potential market and many manufactures are planning business strategies to expand their business.
Who are the major manufacturers?
DuPont de Nemours, Inc. (US), Solvay S.A. (Belgium), Evonik Industries AG (Germany), Borouge (UAE), Avient Corporation (US), Eastman Chemical Company (US)
What are the major end-use industries for wire & cable compounds?
The major end-use industries are construction, power, communication, and automotive.
What is the biggest restraint in the wire & cable compounds market?
Government regulations restricting the use of halogenated polymers.
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