North America Wires & Cables Market Size,Share, Market Research and Industry Forecast Report 2025 (Includes Business Impact of COVID-19)

                                          
Industry Insights, Market Size, CAGR, High-Level Analysis: North America Wires & Cables Market


The North America wires and cables market size was valued at USD 25.1 billion in 2018 and is estimated to exhibit a CAGR of 4.2% over the forecast period. Over the past years, there have been several developments in the wires and cables industry. The increase in renewable energy generation is expected to influence electricity trade. Thus, resulting in significant investments in the construction of high capacity transmission lines. This, in turn, is expected to significantly drive the market over the forecast period.

Currently, several sub-national governments are gaining a significant position in renewable energy and energy efficiency ingenuities. Various emerging states within the U.S. and Canada are increasing their deployment and investment in renewable energy technologies. This strategy has helped them in their emergence as renewable energy leaders. For instance, in 2019, Energy Information Administration (EIA) anticipates that the share of total U.S. electricity generation produced by all renewables except hydropower will reach 13% of total production in 2020 as compared to 10% in 2018.

Moreover, there has been a rapid increase in economic activity and urbanization, which is expected to drive the growth of the infrastructure and construction industry. The demand from various sectors such as commercial, residential, telecom, energy and power, and automotive is leading to the expansion and upgradation of the infrastructure. Hence, it is anticipated to drive the market for wires and cables. Additionally, the refurbishment of aging infrastructure and the construction of new commercial and residential buildings is expected to drive the overall market.

Smart grids reduce the cost incurred in traditional grids, including operational cost due to loss of power, and hence, improving the profit margins of the electricity distribution companies. Moreover, there are various steps taken by the government in the U.S. to encourage the implementation of the smart grid. For instance, the New York state government, through NYSERDA, invested significantly in the innovation of smart energy technologies. The region chases to expand clean energy technologies, keep energy bills low, reduce carbon emissions, and improve grid reliability. Thus, government initiatives taken for the implementation of smart grids significantly drive the North America wires and cables market.

On the flip side, fluctuation in prices of raw material is expected to be a key factor hindering the market growth over the forecast period. Aluminum is the most preferred metal used in the manufacturing of wires and cables for lightweight applications. Silver has better conductivity as compared to copper and aluminum, but is expensive. The volatile prices of raw materials owing to factors such as soaring exploration costs, labor price hikes, relationships between governments and mining companies, and transportation impact the overall wires and cable manufacturing prices.

Voltage Insights

The low voltage segment held the dominant market share of just under 45.0% in 2018 owing to high usage in the LAN cables, appliance wires, building wires, distribution networks, and others. These wires and cables offer a better provision of electricity for the end-user and simultaneously support smart grids for good quality transmission. The renovation of the existing buildings across North America is expected to support market growth over the forecast period. Besides, the energy and power sector across the region is undergoing rapid changes. Hence, most of the countries are experiencing significant demand for electricity and are moving towards the integration of large-scale renewable resources. Thus, attributing to the increased need for low voltage wires and cables.
The extra high voltage wires and cables have a voltage range from 230kV and above. The segment is estimated to witness the highest CAGR of 6.2% over the forecast period owing to increasing demand from energy and power industries. Additionally, government initiatives taken for the implementation of smart grids is significantly driving the market.

Installation Insights

The overhead segment held the dominant market share in 2018. It is an installation method where cables are laid overhead from poles to poles for electricity transmission and distribution purposes. The overhead installation system is the utmost used approach in less polluted countries. The overhead approach is the easiest and cheapest form of installation. Moreover, countries with a high occurrence of natural disasters like earthquakes incline to have overhead cable installations.

The underground installation is an installation method where wires and cables are laid beneath the ground at a certain distance from the surface level for transmission and distribution purposes. It lowers the maintenance costs, incurs fewer transmission losses, and hence, efficiently absorbs the power loads. The underground wires and cables installation release no electric fields; thus, several states across the region are adopting underground installation. Besides, demand from several sectors such as telecom, automotive, commercial, energy and power, and residential sector is leading to upgradation and expansion of infrastructure. This, in turn, is expected to drive the overall market. The segment is expected to expand at the highest CAGR over the forecast period.

End-use Insights

In the IT and telecommunication sector, wires and cables are used for telecommunication lines such as multiple phone lines, internet services, data and security services, and fax machines. Cables such as communication cables and power cables are widely used in the IT and telecommunication sector. North America has seen a massive increase in data consumption, which has resulted in investments by companies such as Verizon and AT&T in fiber networks. In May 2017, Prysmian S.p.A. signed an agreement with Verizon Communications to upgrade the network architecture with fiber platform targeting to arrange the fundamentals for the consequent expansion of IoT and 5G technologies and to increase the 4G coverage.

In the oil and gas sector, wires and cables are used to ensure the safety and operational integrity in the onshore, offshore, and subsea sectors. These products handle very harsh and severe drilling activities. Thus, these cables are needed to be replaced after a regular interval of time. Besides, the communication cables carry critical information to the stations and variable frequency cable ensures smooth operation. Wires and cables are also used for several applications such as pipeline management, process control, land-based drilling systems, offshore drilling, and pump equipment. Hence, demand for wires and cables across such oil & gas applications is anticipated to increase over the forecast period.

Country Insights

By country, the North America wires and cables market is segmented into the U.S. and Canada. The market in North America has reached a mature stage. However, the refurbishment of the aging infrastructure and the construction of new buildings is expected to drive the market growth. The value of construction measures private investments in non-residential and residential buildings, such as schools, hospitals, power plants, mining shafts, office towers, railroads, industrial facilities, apartment complexes, and single-family homes. These construction projects generate demand for wires and cables to provide power, internet, and other electrical and communication services.
The U.S. held the largest share of the revenue in 2018 and is estimated to witness the fastest CAGR over the forecast period. Expanding internet access, lower broadband service costs, and the increasing use of smartphones have spurred more broadband connections in the country. These trends have encouraged higher demand for fiber-optic cable and other electrical cable products used to deliver internet access, cable television programming, and other communication services to homes and businesses.

North America Wires and Cables Market Share Insights

The key industry competitors include Belden Inc.; Encore Wire Corporation; Fujikura Ltd.; Furukawa Electric Co., Ltd.; Hitachi Metals, Ltd. (Hitachi Cable America Inc.); LEONI AG; LS Cable and System Ltd.; Nexans; Prysmian S.p.A.; and Siemon. These companies are focused on strategic expansion to gain presence across the markets with high potential. For instance, in May 2018, Furukawa Electric Co., Ltd. established a new optical cable fiber plant in Morocco to strengthen its business activities in Europe, Africa, and the Middle East.

The market is fragmented in nature owing to the presence of several global as well as regional manufacturers. However, to maintain their crucial positions, companies are significantly investing in R&D activities to develop new and innovative technologies. For instance, in August 2019, Belden Inc. announced the launch of its new Digital Electricity Cables, designed in combination with VoltServer, the inventor of Digital Electricity. The cables are offered in hybrid copper/fiber and copper version to transfer power and data over a long distance.

Segmentations, Sub Segmentations, CAGR, & High-Level Analysis overview of North America Wires & Cables Market Research Report

This report forecasts revenue growth at regional and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2015 to 2025. For the purpose of this study, this market research report has segmented the North America wires and cables market report on the basis of voltage, installation, end use, and country:

Voltage Outlook (Revenue, USD Million, 2019 - 2030)

  
Low Voltage
  
Medium Voltage
  
High Voltage
  
Extra High Voltage

Installation Outlook (Revenue, USD Million, 2019 - 2030)

  
Overhead
  
Underground

End-use Outlook (Revenue, USD Million, 2019 - 2030)

  
Aerospace & Defense
  
Building & Construction
  
Oil & Gas
  
Energy & Power
  
IT & Telecommunication
  
Others

Country Outlook (Revenue, USD Million, 2019 - 2030)

  
U.S.
  
Canada