Wire Compound and Cable Compound Market size are expected to reach a value of US$21.3 billion by the end of the year 2027 after growing at a CAGR of 7.3% during the forecast period from 2022-2027. Wire compound and cable compound is an integral part of the wire and cable industry which offers various properties such as high durability, excellent chemical and corrosion resistance, high thermal stability and mechanical stability, flexibility, and abrasion resistance. Due to such properties, these compounds are widely used in the automobile, building & construction, telecommunication sectors as they provide high-quality insulation and jacketing to conducting materials which are some of the major factors driving the wire compound and cable compound industry growth. Wire compound and cable compound consists of polyvinyl chloride halogenated polymer which has excellent electrical resistance and flexibility at low temperatures which makes them ideal for power cables and household cables. Wire and cables are extensively used to connect the car battery to other components and used for power transmission which makes them ideal for various end-use industries such as the automotive and power sector which, in turn, is driving the wire compound and cable compound market.
Amid the Covid-19 pandemic, a noticeable impact on the wire compound and cable compound market was experienced. During this period, most of the countries had gone under lockdown, due to which the projects and operations of various industries such as building and construction are disruptively stopped, which had hampered the wire compound and cable compound industry growth. According to the U.S. Census Bureau, in January 2021, the building and construction were declined including residential (-0.2 percent), private construction (-0.5 percent), health care (-4.4 percent), and office (-0.5 percent) in the United States. According to the American Institute of Architects (AIA), construction spending on office buildings declined over 9%, hotels investment decline by 20%, and amusement and recreation centers down almost 13% in January 2021. However, the global wire compound and cable compound market size were hugely affected in terms of consumption from the construction industry which is limiting the market growth.
Wire Compound And Cable Compound Market Analysis – By Function
The insulating function held the largest share of over 50% in the global wire compound and cable compound market in 2021. Wire compound and cable compounds provide high-quality insulating and jacketing to conducting materials. The insulation function of the wire and cable compound preserves the wiring material integrity by protecting against environmental threats such as water and heat. Insulation function provides the longevity and effectiveness of a wire which makes them an ideal solution for automotive wires, home wire & cables, and electrical wiring. The insulation functionality in wires and cables resists electrical leakage, which prevents the wire’s current from coming into contact with other wires and cables nearby. These properties are creating an opportunity for the insulating function of wires in the wire compound and cable compound industry.
Wire Compound And Cable Compound Market Analysis – By Type
Halogenated polymer type held the largest share of more than 55% in the wire compound and cable compound market in 2021. A halogenated polymer such as polyvinyl chloride offers flame resistant, highly flexible, resistant to wear, shockproof. Polyvinyl chloride has mechanical and electrical resistance properties which makes them an ideal solution for building wires, communication wires, electrical appliances, electrical plugs, high flame retardant halogen cable, and low smoke low halogen cables. Chlorinated polyethylene has excellent tensile strength and abrasion resistance which is widely used in a variety of end-use applications such as wire and cable jacketing, building, and automotive. According to the National Development and Reform Commission (NDRC), 14 construction investment projects were approved worth CNY177.8 billion (US$25.2 billion), following approvals of CNY68.9 billion (US$10.1 billion) in August 2020. According to the International Organization of Motor Vehicle Manufacturers (OICA), global vehicle production increased by 21.08 million in January-march 2021 compared to 18.03 million in January-March 2020. Hence, the growing automotive and construction sector is expected to propel the wire compound and cable compound industry growth.
For More Information About Wire Compound And Cable Compound Market @
Wire Compound And Cable Compound Market Analysis – By End-Use Industry
Building and construction held the largest share of more than 35% in the wire compound and cable compound market size in the year 2021. Wire and cable compounds have mechanical strength, electrical resistance, high thermal resistance to low temperatures, good insulation properties, low emission of smoke and combustion products, low toxicity. Due to such properties wire compounds and cable compounds are used for interior wirings which makes them ideal wiring solutions for high-rise buildings and industrial structures. Thus, the growing construction sector is estimated to fuel the demand for wire compounds and cable compounds. According to the US Census Bureau, building permits in the United States increased by 0.3 percent to an adjusted annual rate of 1.76 million in April 2021 from 1.75 million in March 2021. According to the India Brand Equity Foundation (IBEF), commercial construction such as warehouses attracted private equity investments of US$ 971 million in 2020. According to the U.S. Census Bureau, healthcare construction increased by 47,113 units in January 2021 compared to 46,769 units in April 2020. According to the Federal National Mortgage Association, housing starts were expected to jump with 1 million new homes in 2021. Hence, the growing building and construction sector is expected to propel the wire compound and cable compound industry growth.
Wire Compound And Cable Compound Market Analysis – By Geography
The Asia Pacific held the largest share of more than 40% in the wire compound and cable compound market size in the year 2021, due to the increasing demand from various end-use industries such as building & construction, and telecommunication in Asian countries such as India, China, and Japan are estimated to grow the demand for wire compound and cable compound. According to China Electronic Information Industry Development (CCID), the country is expected to spend CNY10 trillion (US$1.4 trillion) on new infrastructure projects between FY20-FY25. According to the India Brand Equity Foundation (IBEF), the real estate sector of India will grow US$ 1 trillion by 2030 and Rs. 65,000 crore (US$ 9.30 billion) by 2040. In September 2020, Mitsubishi Estate Co. announced that it plans to finish work on Japan’s tallest building 390 meters with 63 floors in a redeveloped district near Tokyo Station in the fiscal year 2027. Polyvinyl chloride cables are essentially used in the telecommunication sector due to their excellent insulation properties; thus, the increasing telecom sector is creating an opportunity for the wire compound and cable compound industry growth. According to the India Brand Equity Foundation (IBEF), gross revenue of the telecom sector stood at Rs. 64,801 crore (US$ 8.74 billion) in the first quarter of FY22. Hence, these are hugely creating an opportunity for market growth in the region.
Wire Compound And Cable Compound Market Drivers
Increasing Demand from the Construction Industry
Wires and cables are widely used in the residential sector and commercial sector as they provide a safe flow of electric current after installation. A thermoplastic polyurethane cable compound is used to enhance the durability and aesthetics of building structures. Polyvinyl chloride cables are extensively used for domestic home appliances wiring and internal wiring for lighting circuits in factories due to low voltage copper conductors which is an increase in the demand for these compounds in the building and construction sector. According to the National Development and Reform Commission (NDRC), 14 construction investment projects were approved worth CNY177.8 billion (US$25.2 billion), following approvals of CNY68.9 billion (US$10.1 billion) in August 2020. According to Central Sanctioning and Monitoring Committee (CSMC), in India, 1,68,606 new homes were approved to construct in urban areas under Pradhan Mantri Awas Yojana in 2021. According to the US Census Bureau, new housing unit construction was 11,471 thousand units in 2019 in the United States, which reached 3,642 units in 2020. This will further drive the wire compound and cable compound industry.
Increasing Investment in Telecommunication Sector
Polyvinyl chloride compounds are used in the telecommunication sector due to their excellent electrical insulating properties, physical properties in both low and high temperatures, and dielectric constant which makes them ideal for telecommunication lines and electrical wiring. Thus, growth in the telecom sector is expected to augment the demand for wire compounds and cable compounds. According to the India Brand Equity Foundation (IBEF), in October 2021, Dixon Technologies planned to invest Rs. 200 crores (US$ 26.69 million) under the telecom PLI scheme. In September 2021, Bharti Airtel announced an investment of Rs. 50 billion (US$ 673 million) in expanding its data center business. This investment will meet the customer demand in and around India. In 2020, the Commission for Communications Regulation (ComReg) has released an extra radio spectrum. This spectrum provides additional capacity for mobile phone and broadband provision which increases the use of mobile networks. Hence, the globally increased telecom industry is estimated to boost the demand for wire compounds and cable compounds.
Direct Purchase @ https://www.industryarc.com/purchasereport.php?id=505568
Wire Compound And Cable Compound Market Challenges
Increasing Concern Towards Health and Environment
Halogenated polymers such as polyvinyl chloride cables are an ideal solution for electrical cables as they are cost-effective but polyvinyl chloride compounds are not biodegradable. These remain as waste in the environment for a long time. Polyvinyl chloride contains a large amount of chlorine. When chlorine is burning it produced a large amount of smoke which causes suffocation in public areas. Polyvinyl chloride produces some carcinogens and hydrochloric gas, which are harmful to the environment. Thus, in May 2021, Canada started regulating PVC plastic as a toxic substance. This is one of the major challenges faced by the wire compound and cable compound industry.
Wire Compound And Cable Compound Industry Outlook
Technology launches, acquisitions, and R&D activities are key strategies adopted by players in the Wire Compound and Cable Compound Market. Major players in the Wire Compound and Cable Compound Market are;
E. I. Du Pont De Nemours and Company
Eastman Chemical Company
Evonik Industries AG
Exxon Mobil Corporation
General Cable Technologies Corporation
Teknor Apex Company
Techno Vinyl Polymers India Ltd.
SCG Chemicals Co., Ltd., and more.
In September 2020, International Polymer Compounding Group HEXPOL technologies launched a comprehensive portfolio of wire and cable compounds which is based on high-performance materials such as VMQ, advanced rubber technologies, additives, and thermoplastic elastomers.
In May 2020, Nexans achieved a major contract to design, manufacture, and install a 335 km subsea high voltage direct current (HVDC) cable system for Ariadne interconnection S.P.S.A. owned by IPTO, Greece’s state grid operator. The interconnection will link the electricity network on mainland Greece to Crete.
In May 2020, LS Cable & System received a contract worth USD 56.61 million to manufacture and transport advanced cables using modern solid dielectric technology. This will replace the existing six in 1-phase cables for the Wisconsin-based American Transmission Co.’s Straits Cable Replacement Project.
The Asia Pacific held the largest share in the wire compound and cable compound market owing to the growing economy and various end-use industries such as automotive and building and construction.
According to the National Bureau of Statistics, China’s real estate market investment jumped from 15.7% in 2019 to 38.3% in January-February 2021.
According to the Mexican Automotive Industry Association (AMIA) & the United States Department of Commerce, vehicle export in Mexico is expected to reach 2,998 thousand in 2021 from 2,681 thousand in 2020.
Additionally, polyvinyl chloride cable offers high tensile strength, superior conductivity, better flexibility, and ease of jointing which makes them ideal for domestic home appliances wiring, power supply for office automation, in control, and ship wiring applications which are estimated to create an opportunity for the use of such compounds.
Wires & Cables (W&C) Polymer Compound Market
For more Chemicals and Materials Market reports, please click here
About IndustryARC: IndustryARC primarily focuses on Cutting Edge Technologies and Newer Applications market research. Our Custom Research Services are designed to provide insights on the constant flux in the global supply-demand gap of markets. Our strong team of analysts enables us to meet the client research needs at a rapid speed, with a variety of options for your business. Any other custom requirements can be discussed with our team, drop an e-mail to firstname.lastname@example.org to discuss more about our consulting services.