Rural electrification is playing an important role in driving demand for wires and cables across the world.
Rural electrification involves critical actions, such as enhanced communication, the development of electricity infrastructure, connectivity through wire and cable to the residential, commercial or industrial sectors.
Haseeb
The global market size of wires and cables accounted for USD$ 185 billion in 2018 and is expected to reach USD$ 240 billion by 2025.
The key factors behind the global cable and wire industry are increased investment in smart grids and government-based infrastructure improvement programs coupled with demand for advanced transmission and distribution networks.
Wire and cable applications are quite wide-ranging. The electric wires and cables have many applications in the construction sector where high voltage, low voltage and medium voltage cable are used for power supply. The increasing investments in renewable energy play a keen role in the wire and cable industry.
Offshore OGT (oil, gas producers) and wind power sectors use extra-high-voltage, high voltage, and medium voltage submarine cables.
Wires and cables use different raw material including copper, aluminium, alloys and insulator or plastics such as polyvinyl chloride (PVC) and polypropylene (PP). These raw materials account for nearly 60% of the total wire and cable costs.
The subdued demand and volatility in raw materials prices have been affecting the cost of production recently.