The rise and noteworthy expanse of the renewables sector can clearly be seen working to the advantage of global wire and cable materials market.
Use of Cables in Transmission of Renewable Energy to Present Lucrative Opportunities to the Wire and Cable Materials Market
Since the past few years, government authorities have been focusing on reducing the use of fossil fuels for power generation. They are taking efforts to promote adoption of clean renewable sources of energy to reduce impact on environment. Several nations have come in unison to reduce environmental impact and achieve zero emission targets by using clean energy sources. This factor has resulted in an increase in the establishment of solar farms and wind turbines, which in turn have triggered the use of wire and cables. Consecutively, this has translated into an increase in renewable energy capacity on the global front. For instance, according to IRENA (International Renewable Energy Agency), in 2020, the renewable energy capacity touched 2,802,004 MW from 2,542,035 MW in 2019 reflecting an increase of around 10% year-on-year. That said, use of cables in energy distribution is expected to augur well for the wire and cable materials market in the coming years.
In addition, rise in offshore renewable projects such as offshore wind farms are expected to fuel adoption of wire and cables, in turn paving potential pathways of growth for the wire and cable materials market. This can be attributed towards use of cables for power transmission, which is driving demand for advanced wire and cable materials. Likewise, use of wires in distribution of energy generated via solar panels is poised to augment growth. Solar PVs set on water surface, referred to as floating PVs, are connecting using subsea power wires using an anchoring system. In this background, increasing use of cables in renewable energy infrastructure has triggered need for advanced and efficient materials to manufacture cables. This aspect remains instrumental in driving value growth of the wire and cable materials market.
Material Science Advancements to Bode Well for Wire and Cable Materials Market
Pervasiveness of technology in the material science space has provided a huge scope for development of material used in the manufacturing of wire and cables. Wire and cable materials market has been witnessing an evolving curve since the past few years owing to increase in R&D activities, and advancement in material science. This has resulted in introduction of new and improved wire and cable materials that can be customised with regards to their use in different industrial applications. This has fuelled their use in various sectors such as telecommunication, construction, aerospace, information technology, oil and gas, nanotechnology, and industrial machinery. As a result, the demand for wires and cables made from materials such as polyvinyl chloride, polyethylene, and thermoplastic polyurethane is bound to increase at a significant rate in the following years.
Insulation Material Sought-after in Wire and Cable Materials Market
The demand for insulation material in manufacturing of cables is expected to increase at a momentous rate, in turn accounting for a significant share in the wire and cable materials market. Different types of insulation are available. The use of plastic in cables can act as insulating and jacketing material. It also protects the core of the cable from mechanical damage, chemicals, and moisture through the cable’s service life. Moreover, it also acts as an effective barrier protecting humans from accidental electrocution. In addition, it regulates the flow of electrons and avoids chances of electrical shocks when touched. These advantages have propelled use of insulation material such as polyvinyl chloride, polyethylene, polypropylene, cross-linked polyethylene and polyphenylene ether, thus expanding the use of wire and cables in different critical industrial applications.
Asia Pacific’s Wire and Cable Materials Market to Reflects Strongly Growing Attractiveness
The wire and cable materials market is expected to witness high growth opportunities from emerging economies in Asia Pacific. This is mainly owing to increasing demand for energy backed by growth in industrialisation, and urbanisation. In addition, the region has been optimistic for several sectors such as residential and commercial construction, oil and gas, telecommunication, and consumer electronics. This has pushed the development of cables for select applications using improved materials, which is likely to give an impetus to the growth of the wire and cable materials market in Asia Pacific. Moreover, the leading fast-developing economies such as India, and China are investing in improving energy transmission and distribution network owing to rising demand for electricity. For instance, according to the Energy Information Administration (US EIA), a 4.6% year-on-year increase in electricity demand has been witnessed in India and by 2050, around 90% of the electricity will be generated from wind, coal, and solar power. That said, companies involved in manufacturing and distribution of wire and cable materials can expect a stream of opportunities from Asia Pacific in the coming years.
Wire and Cable Materials Market: Competitive Landscape
A few of the major players in wire and cable materials market include Celanese Corporation, 3M, BASF SE, ITC Thermo Cable GmbH, Draka Holding N.V., and Sumitomo Electric Industries Ltd.
The Global Wire And Cable Materials Market Is Segmented As Below:
Key Elements Included In The Study: Global Wire and Cable Materials Market
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