Wires & Cables (W&C) Polymer Compound Market - Forecast(2024 - 2030)

Wires & Cables Polymer Compounds Market Overview

Wires & Cables Polymer Compounds Market size is forecast to reach $14 billion by 2026, after growing at a CAGR of 8.1% during the forecast period 2021-2026. Wire and cable polymers are widely used in core applications such as power transmission and the telecom sector. Wire and cable protect from mechanical and chemical damages during installation. Various polymer compounds such as thermoplastic polyurethane solution-based formulations are used for creating durable industrial wirings and cables. Apart from this, polyvinyl chloride (PVC) and ethylene-vinyl acetate (EVA) are low voltage copper conductors, which are used in solar energy. Polyvinyl chloride has high tensile strength and superior conductivity; therefore, these are used in wiring applications. Furthermore, the mechanical strength and flexibility of polymer compounds protect wires and cables against damage, thus the demand for polymer compounds for wires & cables is rapidly increased. The demand for wires & cables polymer compounds is widely used for power transmission. But COVID-19 caused hold all production including polymer compounds, due to supply chain disturbances. Like the production of ethylene acrylate copolymers including methyl acrylates, which are used to improve halogen-free insulation and jacketing for wire and communication cable. Due to the COVID-19 pandemic, many companies shut their production plants which are limiting the market growth.

Report Coverage

The report: “Wires & Cables Polymer Compounds Market – Forecast (2021-2026)”, by IndustryARC, covers an in-depth analysis of the following segments of the wires & cables polymer compounds industry.
By Product: Ethylene Vinyl Acetate (EVA), Ethylene Acrylate Copolymers (Methyl Acrylate, Ethyl Acrylate, and Butyl Acrylates), Polyolefin Elastomers, Olefin Block Copolymers, Polybutene-1, Polyethylene (Low-Density Polyethylene, High-Density Polyethylene), Thermoplastic Polyurethane, Thermoplastic Elastomer, Ethylene Propylene Diane Rubber, Polyvinyl Chloride, and Others
By End-Use Industry: Building & Construction {Residential Sector (Apartments, Raw Houses, Others)}, {Commercial Sector (Healthcare Center [Hospitals, Clinics and Diagnostic Centers, Others]), Offices, Factories, Industrial Buildings (Production Space, Warehouse, Others), Educational Institutes (Schools, Universities and Colleges, Research Centers, Others), and Others}, Automotive Industry (Passenger Cars, Light Weight Commercial Vehicles, Heavy Duty Commercial Vehicles), Telecommunication Sector, Aerospace Industry (Aircraft, Military, Others), and Others
By Geography: North America (USA, Canada, and Mexico), Europe (UK, Germany, Italy, France, Spain, Netherlands, Russia, Belgium, and Rest of Europe), Asia Pacific (China, Japan, India, South Korea, Australia & New Zealand, Indonesia, Taiwan, Malaysia, and Rest of Asia Pacific), South America (Brazil, Argentina, Colombia, Chile, and Rest of South America), and RoW (Middle East and Africa)

Key Takeaways

• Asia Pacific dominates the wires and cables polymer compound market due to increasing demand from construction and rising population with the high energy demand is expected to propel the market growth.
• Increasing demand for high voltage direct current (HVDC) power system for current transmission over long distance and investment in advanced electricity network offers growth for the wires and cables polymer compound market.
• Methyl acrylates is used as low voltage cables in construction and automotive because it is flame retardant compounds, which boost the growth of wires & cables (W&C) polymer compound industry.

 Figure: Asia-Pacific Wires & Cables (W&C) Polymer Compound Market Revenue, 2020-2026 (US$ Billion)

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Wires & Cables Polymer Compounds Market Segment Analysis – By Product

Polyvinyl chloride (PVC) is expected to lead the wires & cables (W&C) polymer compound market in 2020 as polyvinyl chloride is a thermoplastic material which is widely used in wire insulation and cable jacketing. PVC is a highly durable polymer compound that is widely used in the communication sector. PVC wire and cables are also used for wiring circuits, house wiring, power supply solutions, mining operations, and ship wiring with versatility. Apart from this, ethylene vinyl acetate, thermoplastic polyurethane, methyl acrylates polymer compounds held significant growth for the market. Thermoplastic polyurethanes are used in the wire and cable jacketing which is protected from UV light. Thus, such factors are estimated to increase demand for the wires and cables (W&C) polymer compound.

Wires & Cables Polymer Compounds Market Segment Analysis – By End-Use Industry

Building and construction sector dominated the wires & cables (W&C) polymer compound market in 2020 and is growing at a CAGR of 8.4%, owing to the increasing demand for electricity from residential and commercial sectors. According to Energy Information Administration (EIA), the world energy consumption will grow nearly 50% and electricity generation is expected to increase by 79% by 2050. Wires and cables are used to deliver power and voice communication to the entire infrastructure. Single conductor cables are highly recommended in hazardous situations because they are used for safety purposes. Instrumentation cables are used for wired communication between the operators and the instrument available on any construction site. Methyl acrylates cables have low voltage, which is used in static conditions or environments that require protection against electrical or mechanical damages. Wires and cables polymer compounds are highly demanded because they are affordable in residential infrastructure as well as commercial infrastructure. Thus, growing demand from building & construction is estimated to grow the market size.

Wires & Cables Polymer Compounds Market Segment Analysis – By Geography

Asia Pacific dominated the wires & cables (W&C) polymer compound market in 2020 with 30%, followed by North America. Asian countries are significantly increasing investment in expanding their solar energy network. According to the United States Agency for International Development, Asia Pacific power generation will more than double to 17% by 2030. According to the India Brand Equity Foundation (IBEF), India is expected to invest worth US$ 500 billion in the renewable energy sector by 2028. North America holds the second-largest market share at the global level due to increasing renewable energy generation. According to the Center for Climate and Energy Solution, solar generation is projected to reach from 11% to 48% of total U.S. renewable energy generation by 2050. These all factors are expected to create growth opportunities for the wires and cables (W&C) polymers compound market in the upcoming years.

Wires & Cables (W&C) Polymer Compound Market Drivers

Increasing Demand from Building & Construction

Wires and cables are widely used in the residential and commercial sector as they provide a safe flow of electric current after installation. They are replacing new and latest ones for the proper functioning of electrical applications and appliances. Thermoplastic polyurethane is used to enhance the durability and aesthetics of building products for both commercial and residential structures. Thus, increasing building & construction is estimated to grow the market size. 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. Furthermore, according to the Canadian Mortgage and Housing Corporation (CMHC), Canadian housing occupied 21.6% in March as compared with February 2021. Hence, such factors are expected to grow the market scenario during the projected year. 

Increasing Investment in Power Transmission Sector

Wire and cables are used in power transmission, thus increasing investment in the power transmission sector is a major factor leading to the growth of wires and cables (W&C) polymer compounds. According to the Confederation of Indian Industry (CII), the transmission sector has investments to below 1.8 lakh crore in the last five years and is expected to reach as 500 GW of renewable energy to the grid by 2030. Furthermore, India requires Rs 5 lakh crore worth of investments in power transmission over the next five years. Hence, such factors are estimated to grow the market size. 

Wires & Cables (W&C) Polymer Compound Market Challenges

Increasing Concern Towards Environment

Polyvinyl chloride (PVC) cables are an ideal solution for electrical cables. They are robust, cost-effective, have high conductivity, and can provide insulation against any electrical faults. But PVC polymer compounds are not biodegradable hence, they remain as waste in the environment for a long time. Polyvinyl chloride contains a large amount of chlorine. When chlorine is burning it produces a large amount of smoke that causes people’s suffocation. PVC produces some carcinogens and hydrochloric gas, which are harmful to the environment. This can pose a risk for the environment and may limit market growth.

Wires & Cables Polymer Compounds Market Market Landscape

Technology launches, acquisitions, and R&D activities are key strategies adopted by players in the Wires & Cables (W&C) Polymer Compound Market. Major players in the Wires & Cables (W&C) Polymer Compound Market are:

1. 3M
2. BASF SE
3. Daikin Industries Ltd.
4. DowDuPont Inc.
5. Eastman Chemical Co.
6. ExxonMobil
7. Lubrizol Corp.
8. Akrema Group
9. Polyone Corp.
10. Trelleborg Co., and among others.

Acquisitions/Technology Launches

• 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.
• 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.
  

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