Electricity is the basic guarantee for the normal functioning of modern economies and societies. The level of development of the wire and cable industry is also a sign of the manufacturing level of a country..
Developed countries, Like Europe and the United States, They were industrialized before. At the end of the 20th century, an industrial cable chain was formed that contributed to most of the production capacity and world demand of the time.
Till the date, continues to occupy an important position in world offer and sales, basically monopolizing the high -end world market.
At the same time, The wire and cable industry of the Asian region is occupying an increasing part of the world market. Currently, The world wire and cable industry has entered a stable growth phase.
After the epidemic of COVID-19, All sectors have suffered a considerable impact. And the wire and cable industry is no exception. Currently, The epidemic has entered a more stable stage. Where does the cable industry go in this environment?
The world demand for cables is gradually recovered in the post-epidemic era
According to data published by CRU, The world market size of the industry insulation wires and cables It was from 161.000 million dollars in 2017. Grew slightly in 2018, reaching the 172.000 millions of dollars.
The size of the world market decreased slightly to 164.000 million dollars in 2019 Due to a decrease in demand in China. Demand growth slowed down significantly.
In 2019 the demand was 19 millions of tons, With an increase in almost the 1% interannual. In 2020 The world market for wires and cables was affected by the epidemic and demand contracted. Market size was approximately 150.000 millions of dollars.
This decrease is due to a series of factors. Among them, You can find revenue reduction in the cable industry, the slowdown in the rhythm of production and the lack of availability of raw materials.
It also faces the suspension of commercial activities and regional blocking measures due to the coronavirus pandemic.
Although the demand for wires and cables contracted around a 5-6% interannual in 2020 In several regions, Market demand is recovering in all countries.
at the end of 2021, total world consumption of Metal wires and cables had exceeded the levels of 2019. market size in 2021 It was from 181.280 millions of dollars. It is expected to be 2002.300 million dollars in 2022.
In recent years, Countries in Asia have experienced faster economic growth. The world production focus of wires and cables has moved to Asia. This promoting the rapid development of this industry in regions like China, Vietnam, Philippines and Egypt in the Middle East.
The general development of the electrical cable industry is specifically characterized by a rapid increase in Asia and a small decrease in America. The European region has developed more precariously in recent years, influenced by political factors.
The Asia-Pacific region represents approximately the 49% of the size of world consumption. Europe and America represent the 15% and the 10% respectively.
Emerging markets grow at an important pace
With the stabilization of the Covid-19 epidemic, The world economy is recovering. The cable sector will grow again, Thanks to public and private investment.
Nevertheless, The growth rate is slightly lower than that of the previous five years. Among them are rapid development economies of emerging markets, represented by Africa and Southeast Asia. Its construction, infrastructures, public services and industrial development will accelerate.
These activities will be an important potential to increase the demand for wires and cables in emerging markets. The growth of demand in emerging markets will continue to support the recovery and growth of world demand.
According to CRU forecasts, The world market of wires and cables will grow at an average annual rate of the 5% from 2021 a 2026. The world market of the wires and cables with metallic isolation is expected to reach the 230.000 million dollars in 2026.