Residential Building Wire and Cable Market – Global Industry Size, Share, Trends, Opportunity, and Forecast Segmented By Voltage Rating (Low Voltage, Medium Voltage, High Voltage, Extra-High Voltage), By Cable Type (Commercial Wire & Cable and Power Cable), By Material (Metallic and Non Metallic), By Region, Competition 2018-2028

Market Overview

Global Residential Building Wire and Cable Market

Key Market Drivers

5g Network Applications Are Rapidly Gaining Momentum

5G network applications are rapidly gaining momentum, and IT connector systems play a crucial role. Due to ever-higher signal frequencies, data rates, packing density, and signal integrity requirements, the need for high-performance and high-quality board-to-board connection solutions is also growing. The growing demand for connectivity in developing nations for cable producers presents significant business prospects. Yet factors such as installing fiber optic cables provide several operational difficulties for market growth.

Adoption of Fiber-optic cable

Fiber-optic cable spans long distances between local phones and provides the backbone for network systems. Other system users include cable television services, office buildings, university campuses, industrial plants, and electric utility companies. Fiber cables travel between 984.2 feet and 24.8 miles, while the maximum transmission distance is 9,328. Fiber optic cables are less susceptible to interference.

The government programs to support 5G deployment across the globe drive market growth. For instance, the European Commission recognized the importance of the 5G network early and established a public-private partnership to develop and research 5G technology. As a result, the European Commission announced public funding of over GBP 700 million to support 5G deployment across Europe through the Horizon 2020 Program.

In Industry 4.0, the fiber optic cable network enables the upgrade of telecom networks, industrial data communication, and real-time monitoring in traditional industries with high-speed M2M/M2S networks. Thus, manufacturers of optical fiber cable focus on improving production to keep up with the growing demand for fiber-to-the-home (FTTH) broadband and power 5G services in the global market. According to GSMA, the Gulf Cooperation Council (GCC) states of Bahrain, Kuwait, Oman, Qatar, Saudi Arabia, and the United Arab Emirates are forecast to have the highest 5G adoption rates of any region worldwide in 2030. In the past few years, cloud and content providers have attempted to attract more users and offer reliable bandwidth-intensive services, increasing submarine infrastructure popularity.

Key Market Challenges

Volatility in Raw Material Prices to Restrain Market Growth

The primary raw materials required for manufacturing cables are rubber and plastic-based ingredients such as PVC grains. Organic polymer materials are mainly fluorine plastic and silicone rubber, whereas copper is essential for wires. An increase in the price of raw materials, especially copper, directly impacts the wires & cables manufacturer's profit margin, which restraints the market growth.Raw materials used to manufacture cables have experienced a steep rise after major countries started reopening their economies post-COVID in August 2020. Copper rates dipped during the pandemic, after which have witnessed an increasing trend. Copper was trading at USD 4617.50 / MT on March 19, 2020, on London Metal Exchange (LME) and has continuously shown an increasing trend, with day prices reaching USD 10,724 per tonne on May 10, 2021. Copper prices have been changing in the range of USD 9K-10.5K per MT till July 30, 2021. This price fluctuation can be attributed to rising Chinese manufacturing demand and stimulus package announcements by many countries like U.S. and Japan to support manufacturing.

Key Market Trends

India Housing For All plan driving the market

Rising energy demand and implementing smart grid networks in Japan are the primary drivers driving market expansion. The increasing demand for continuous power supply in many industries has expanded power generation, distribution, and transmission across various locations, resulting in greater use of LV cables. India's low-voltage cable market is expected to see significant growth shortly due to the government's Housing For All plan and the construction of new residential buildings. Low voltage overhead lines, which may use bare conductors carried on glass or ceramic insulators or an aerial bundled cable system, are often used to connect a residential or small commercial customer and the utility. Several other Asian countries are investing heavily to strengthen connectivity through undersea cable networks, thus boosting the market's growth.

Increasing Demand for Renewable Power Generation to Aid Market Growth

Governments have implemented vast targets to deploy green energy technologies to reduce dependency on fossil fuels. Adherence of various nations to exceed the required objectives will likely provide a great opportunity for the market. The increasing setup of wind turbines and solar farms has increasingly led to the growth of requirements for wires and cables. According to the IRENA, the world's renewable energy capacity has risen from 2,542,035 MW in 2019 to 2,802,004 in 2020, portraying a 10.23% increase year-on-year. Moreover, there has been a growth in offshore renewable technologies like offshore wind farms. The offshore wind turbines are connected to power cables that must be buried in seafloors to transmit power. Further, subsea umbilical cables are also required for the constant maintenance activities of these wind turbines. Similarly, solar PV is installed on water instead of land in recent times, called the floating PV. The floating PV system is fixed on a floating platform with an anchoring system in water bodies and is connected by subsea power cables. The increasing reliance on renewable energy has led to massive development in renewable energy infrastructure worldwide, which has increased the demand for wires and cables.

Growing Demand from Data Centers and IT Facilities to Favor Market Growth

Data centers are essential to IT services, communications, and networking. Data centers are heavily relied upon for data storage and routing traffic through them. Due to the growth of Big Data, data centers are now in great demand, and the emergence of Big Data is contributing to the exponential growth of qualitative and reliable data centers. Companies have been preferring cloud storage to cut costs and eliminate the hassle of maintaining data centers that would cost billions of dollars. The growing count of data centers for increased availability, security, and affordable connectivity of IT infrastructure would surge the requirement of wires and cables. Hyperscale data center deployments is anticipated to be trending in the coming years. AC/DC power, ground, copper, and fiber optic are the prominent network cables that are anticipated to be used in data centers. According to Cloud Scene data of 110 countries with found at information, as of January 2021, there were nearly 8,000 data centers globally, majorly in the U.S. , the U.K., Germany, China, Canada, and the Netherlands.

Segmental Insights

Voltage Rating Insights

The market is segmented into low, medium, high, and extra-high voltage based on voltage. The low voltage segment dominates the wires and cables market share owing to the wide application of low voltage wires & cables in infrastructures, automation, lighting, sound and security, and video surveillance, among other applications. The medium voltage segment is projected to hold the second-largest share due to the increasing application in mobile substation equipment, commercial buildings, hospitals, and universities & institutions. Medium voltage wires and cables are widely used for power distribution between high voltage mains power supply and low voltage applications and utility companies to connect residential and industrial complexes, or renewable energy sources such as wind and solar farms, to the primary grid.

The high voltage segment also increases its market share due to growing government initiatives for expanding the grid. It is preferable for power transmission & distribution purposes from utilities and commercial applications. Extra-high voltage cable is mostly used in power transmission utilities and many other industries, including water, airports, railways, steel, renewable energy, nuclear and thermal power stations, and other manufacturing industries.

Regional Insights

The Asia Pacific region has established itself as the leader in the Global Residential Building Wire and Cable Market with a significant revenue share in 2022

Recent Developments

• May 2021 – Prysmian Group announced the launch of its ECO CABLE label. It is the first proprietary green product label in this industry and is expected to support utilities and distributors in strengthening their green supply chain and value proposition.

Key Market Players

• Sourhwire
• Cerrowire
• Encore Wire
• Copperweld
• Belden
• Prysmian Group
• Nexans
• Sumitomo Electric
• LS Cable & System
• Rowe Industries