According to our latest wire and cable market study on "Wire and cable market Forecast to 2028 - COVID-19 Impact and Global Analysis - by Type and End Use industry," The market is expected to grow from US$ 153,334.35 million in 2022 to US$ 224,402.27 million by 2028; it is expected to grow at a CAGR of 6.6 % from 2022 to 2028.
The electric vehicle market is a critical component of the automotive sector as it offers a solution to enhance energy efficiency and decrease emissions of pollutants and greenhouse gases. The driving factors for market growth include rising environmental concerns and supportive government policies. According to reports by the International Energy Agency, electric vehicle purchases by consumers amounted to USD 120 billion in 2020, representing a 50% increase from 2019. This increase in sales was due to a rise of 41% in new electric car registrations, and a 6% increase in average pricing, mainly in Europe, where car prices are generally higher than in the Asia Pacific region.
The International Energy Agency reported that the People's Republic of China (China) was the primary driver behind the surge in electric vehicle (EV) sales in 2021, responsible for half of the growth. In 2021, China sold 3.3 million more electric vehicles than any other country did in 2020. Following the 2020 boom, European sales continued to expand significantly, reaching 2.3 million vehicles (up by 65%), while sales in the US rose to 630,000 after two years of decline. Similar trends were observed in the first quarter of 2022, with China leading the worldwide growth, reporting a more than twofold increase in electric vehicle sales compared to the first quarter of 2021. The US and Europe also experienced growth, with electric vehicle sales increasing by 60% and 25%, respectively.
North America is home to some of the leading providers of cabling and connectivity solutions for industrial, commercial, and residential applications, including companies such as Carl Stahl Sava Industries, Elliott Manufacturing, and Bergen Cable Technology. The market for wires and cables in the region is being propelled by growing demands for copper cable, fiber cable, and technologically advanced connectivity solutions across various industry verticals, such as healthcare, automotive, and construction.
This increasing demand is encouraging market players to develop innovative end-to-end copper and fiber network systems, including cable, assemblies, interconnect panels, and enclosures, for various applications such as local area networks, data centers, access control, and home and building automation. Some manufacturers are investing significantly in expanding their manufacturing capacity to keep up with the rising demand due to the increasing use of electric vehicles globally.
For instance, LS Cable and System announced in September 2020 that it had begun producing large quantities of aluminum wires for EVs and established a factory in Korea to manufacture them. The company is providing aluminum wires to major automakers, including Hyundai and Kia Motors. Therefore, the growing adoption of electric vehicles is driving the wire and cable market growth in North America.
Impact of COVID-19 Pandemic on Wire and cable market share
The wire and cable market size witnessed growth during the COVID-19 pandemic due to the adoption of advanced communication technologies. Telehealth services in the healthcare industry, online education, and remote work policies implemented by businesses were a few examples of how technology helped people stay connected during the pandemic. However, the overall demand for wire and cable decreased globally due to the pandemic. The city of Wuhan, home to companies like Fiberhome, YOFC, and Accelink, which produce a quarter of the world's optical fiber, was significantly affected.
The COVID-19 pandemic put immense pressure on the healthcare industry, and countries worldwide implemented effective response strategies in 2021 to combat the pandemic. Hospitals and isolation facilities were set up within days to provide medical care to COVID-19 patients. Control rooms equipped with 24x7 command centers, tech-enabled case mapping, virtual training, and video conferencing facilities were established for crisis management. Reliable and secure cable networks were crucial at every stage of the response since digital connectivity and networking technologies were essential. Although the wire and cable market size in hospitals may not be apparent, a closer inspection reveals that cable networks are vital for routine procedures as well as critical care.
Key Findings of Study
Based on region, the wire and cable market is segmented into five regions-North America, Europe, Asia Pacific, the Middle East & Africa, and South America. Further, Asia Pacific dominated the overall wire and cable market in 2021. North America contributed the second-largest share of the and cable market in 2021, followed by Europe. The global wire and cable market is segmented into type, end use industry, and geography. Based on type, the wire and cable market is segmented into cable, wire, and push-pull controls. Further, the cable segment is bifurcated into safety cable and control cable. The wire segment is expected to dominate the wire and cable market during the forecast period. Based on end use industry, the wire and cable market is segmented into aircraft, transportation, medical, marine, and construction. The transportation segment is expected to dominate the wire and cable market during the forecast period.
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