The wire and cable market is currently maturing and experiencing slow growth. From the perspective of market supply and demand, the global wire and cable market is also undergoing a phase of maturity and steady development. An analysis of the industry’s development, both domestically and internationally, shows that as long as the economy of a country or region is active, the wire and cable industry is expected to grow—especially during phases of industrialization and urbanization—at a rate higher than the GDP growth. As the industry grows, the production of high-demand domestic products such as power cables also increases.
The products developed and distributed by the wire and cable manufacturing industry, including non-ferrous wires, telecommunication cables, and fiber optic cables, are essential for operations across a wide range of markets including construction, consumer goods, telecommunications, and utilities. While these sectors are experiencing growth due to the Industry 4.0 technological revolution, the total value of wire and cable manufacturing markets is also rising. Current estimates predict the market will reach $232 billion by 2025, with an approximate annual growth rate (AGR) of 5%.
Industry Characteristics
On the brink of the Fourth Industrial Revolution, the wire and cable industry is gradually benefiting from digitalization, enabling more flexible and efficient manufacturing. Digitization is slowly but steadily transforming how products are manufactured. Known as “Industry 4.0” in Europe, the “Industrial Internet of Things (IIoT)” in the U.S., or simply “Smart Manufacturing,” this movement marks the fourth revolution in manufacturing.
The first industrial revolution introduced mechanization via water and steam power. The second brought mass production and assembly lines powered by electricity. The third introduced computers and automation. The fourth revolution builds on this by enhancing automation with smart, autonomous systems powered by data and machine learning.
In essence, Industry 4.0 optimizes the computerization introduced in Industry 3.0. The introduction of computers during Industry 3.0 was disruptive because it added a completely new technology to various processes. In Industry 4.0, computers are connected and communicating with each other to make decisions without human intervention. Cyber-physical systems, the Internet of Things, and the Internet of Systems have merged to make Industry 4.0 possible and turn the smart factory into reality. With access to more data, smart machines become smarter, and with the support of these machines, factories are becoming more productive, efficient, and generating less waste.
What Industry 4.0 Means
This new industrial digital technology, or Industry 4.0, enables manufacturers to collect and analyze data through machines, ultimately resulting in more efficient, flexible, and faster processes for producing higher-quality goods at lower costs. Technology experts say this revolution not only increases productivity and transforms the economy but also strengthens industrial growth and reshapes workforce profiles. They claim that these changes will ultimately redefine company and regional competitiveness.
Advanced digital technologies are already being used in manufacturing, but combined with Industry 4.0, they will dramatically transform the industry. This combination increases efficiency and significantly alters traditional manufacturing relationships between producers, suppliers, and customers. It will also change the relationship between humans and machines. Certainly, this technology will impact the wire and cable industry as well. The wire and cable industry today seems well-prepared to participate in the Fourth Industrial Revolution.
The industry is rapidly changing. Consumer needs and the market have evolved, while policy pressures and global competition have intensified. Therefore, to remain competitive, the industry must innovate. Innovation should focus not only on processes, services, and products, but also on business models and workforce training and education.
Broad Growth Prospects
High demand for energy, lighting, and communications (data and voice) creates a significant market for the wire and cable and electrical equipment industry. Industry estimates suggest a notable increase in the share of the organized sector. The wire and cable industry is transitioning from a fragmented environment of small players to a more organized sector. The rapid growth of the organized segment has expanded the overall market size.
Constantly rising consumer spending is a strong driver of growth in the wire and cable industry. Population is projected to continue growing, which is a metric for consumption demand. Increasing spending trends, ongoing per capita income growth, and urbanization are contributing to a bright future for the industry. Additionally, the government’s “Smart City” initiative is expected to promote extensive growth in infrastructure, telecommunications, power generation, research and development, engineering, and the automotive sector. This bodes well for the wire and cable industry, as its growth is directly linked to development in these other sectors.
With societies increasingly focusing on renewable energy, global investors are now pushing the industry to supply cables for solar and wind energy projects, in addition to traditional sectors such as oil and gas, railways, and other specialized areas. Moreover, electric vehicles (EVs) are expected to significantly boost the growth of wire and cable companies. As EV adoption rises, so will demand for wires and cables, including those needed to build EV charging infrastructure.
Government initiatives in infrastructure sectors such as electricity, railways, roads, and petrochemicals are driving higher electricity demand and, in turn, greater demand for power cables. Market potential growth, increased adoption of new technologies by large companies, and the rising importance of digital services have broadened the growth landscape for the wire and cable industry.
The industry expects a surge in manufacturing activities and capacity expansion in sectors such as steel, cement, pharmaceuticals, and more. In line with the Supreme Court directive to reduce greenhouse gas emissions per BS-VI norms, petrochemical companies are expected to modernize and expand their plants. This move will further stimulate cable demand.
Wire and Cable Industry and a Smart Solution
The highly attractive wire and cable market has experienced significant growth and will continue to expand in the future. Therefore, wire and cable companies must be prepared to quickly respond to changes in demand. They must find ways to improve management effectiveness, increase output, produce faster, and enhance collaboration with customers and partners.
In this context, one solution is digital transformation. This transformation involves developing new technologies and processes to improve productivity. However, adopting Industry 4.0 does not necessarily mean investing in new equipment. Companies can produce more using existing equipment through digitalization.
Although the wire and cable industry still has a long way to go in terms of digital adoption, digitalization can make it more effective. A company can improve its management systems and align its processes with Industry 4.0 ideology. Moreover, companies can accelerate research and development using Industry 4.0. With full connectivity and communication across all levels of the production process, significant improvements in efficiency and flexibility can be achieved.
Furthermore, embracing Industry 4.0 can better align equipment and workers. In short, it can transform a factory into a “smart factory.” Digitalization is about scalable customization. It makes production much more adaptable and flexible. For wire and cable companies to produce more, grow further, and create better and smarter products, they must embrace Industry 4.0.