Cable Industry Market Analysis- Size, Top Player, Segmentation and Trends


Yogita1008

Uploaded on Jun 13, 2024

Category Business

According to a recent study, the global cable market size was approximately $145 billion in 2022 and is projected to grow at a CAGR of 6.2% from 2023 to 2030, reaching over $225 billion.

Category Business

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Cable Industry Market Analysis- Size, Top Player, Segmentation and Trends

Cable Industry Market Analysis- Size, Top Player, SAcceorgdinmg eto nat aretceiont ns tuadyn, dth eT rgelobnal dcabsle market size was approximately $145 billion in 2022 and is projected to grow at a CAGR of 6.2% from 2023 to 2030, reaching over $225 billion. Market Demand Drivers for cable products include ● Rising internet & mobile data usage requiring network build outs. ● Continued growth in construction of residential and commercial buildings. ● Investments in upgrading ageing electrical grid infrastructure. ● Increasing renewable energy projects requiring cable connections. ● Proliferation of internet-connected devices and need for robust data cabling. Recent Industry Developments ● Major cable companies are rapidly deploying fiber-optic and 5G networks to offer multi-gigabit internet speeds. ● New subsea cable projects are underway to boost global internet bandwidth. ● Aluminium cables are gaining share versus copper for some applications due to lower costs. ● Vendors are innovating with products like mini data centre cabling to enable edge computing. Top Players in Cable Market Landscape ● Prysmian Group (11% share, $12B revenue): A global leader supplying energy, telecom, and fiber optic cables. Leveraging M&A and vertical integration strategy. ● Nexans (7% share, $7.5B rev): Focuses on cables for building, utilities, industrial applications. Targeting high-value market segments. ● Sumitomo Electric (4% share, $4.2B rev cabling): Diverse portfolio includes auto wires plus info & energy cables. Strength in Asia markets. ● Southwire (3% share, $6.5B rev): A leading North American wire and cable maker investing in new capacity and products. ● General Cable (2% share, $3.7B rev): Recently acquired by Prysmian. Solid market position in North America. Other major players include LS Cable & System, Furukawa Electric, Leoni, Fujikura, and Far East Cable. Strategic Positioning Top vendors are employing strategies like ● Vertical integration into raw materials like aluminium and optical fiber. ● Developing higher performance cabling products (e.g. fire- resistant, underwater). ● Tailored solutions for focus industries like energy, telecoms, construction. ● Geographic expansion into emerging markets. ● Selective M&A to gain capabilities and cable industry. Market Segmentation of Cable Industry The Cable Market is majorly Segmented by these: Power Cables - $52 billion (36% share) ● Overhead Transmission Cables: $18.5 billion ● Underground Distribution Cables: $21 billion ● Building Wires & Cables: $12.5 billion Telecom Cables - $49 billion (34% share) ● Fiber Optic Cables: $18.2 billion ● Copper Twisted Pair Cables: $16.5 billion ● Coaxial Cables: $14.3 billion Data Cables - $43.5 billion (30% share) ● Ethernet Cables: $19.8 billion ● USB Cables: $9.2 billion ● AV/Consumer Cables: $8 billion ● Other Data Cables: $6.5 billion Challenges, Opportunities and Trends in the Cable Market Challenges: Raw Material Volatility - Cable manufacturing relies heavily on inputs like copper, aluminium, insulating materials and optical fiber. Prices for these raw materials can fluctuate considerably, impacting profitability. Supply Chain Disruptions - The cable industry has intricate global supply chains that can be vulnerable to disruptions from events like the COVID-19 pandemic, geopolitical tensions, port congestion, etc. Chinese Competition - Low-cost cable manufacturers, especially from China, provide aggressive pricing competition in certain segments like building wire and fiber optic cables. Cyclical Demand - Much of the demand for cable products is tied to cyclical construction markets for residential, commercial and infrastructure projects which can decline during economic downturns. Technical Disruption - Wireless technologies like 5G and satellite internet could theoretically make some telecom/data cabling obsolete over the very long-term, though deployment will take decades. Opportunities: 5G & FTTx Deployments - Nationwide build outs of 5G mobile and fiber-to-the-home/premises networks are driving major new demand for fiber optic and high-speed data cables. Electric Vehicle Growth - The proliferation of electric vehicles will require upgrading residential and public charging infrastructure, boosting demand for electrical and data cables. Renewable Energy Projects - Major investments in solar, wind and other renewable electricity sources will necessitate installations of new transmission cables to connect to the grid. Smart Building/City Demand - Next-generation buildings and smart city projects incorporate vast data cabling for connectivity, energy management, security and other applications. Emerging Market Growth - There are tremendous long-term opportunities in developing markets like India to build out robust national cable-based communications and electrical networks. Market Trends: Aluminum Cable Adoption - With high copper prices, aluminium cabling solutions are gaining interest as a more affordable option for certain stationary power applications. Miniaturisation of Data Cables - Ongoing innovations in miniaturised, high- density cabling to support edge computing and IoT deployments. Subsea Cable Expansion - Major new subsea fiber optic cable initiatives are underway to upgrade global internet bandwidth between continents. Shift to HVDC Transmission - There is a transition towards high voltage direct current (HVDC) cables for more efficient bulk transmission over very long distances. Vertical Integration Moves - Major cable manufacturers are vertically integrating across raw materials like copper, aluminium and fiber optic strands to enhance supply and margins. Advanced Cable Tech - Producers are investing in higher performance cable innovations like compact robotics cables, fire-resistant cables, underwater cables, etc. Conclusio n Despite headwinds like raw material costs and competition, the cable market outlook remains robust through 2030 and beyond. Driven by megatrends like 5G/FTTx, electric vehicles, renewable energy and smart infrastructure, analysts project a $225 billion+ market by 2030 - representing 6-7% annual growth for this vital connectivity infrastructure.