According to Technavio, an international market research firm, the North American wire and cable market is expected to grow by $1.33 billion from 2021 to 2025. Due to the impact of the COVID-19 pandemic in the first half of 2020 this marks a significant slowdown in the market compared with the growth forecast for 2020.
However, healthy growth in the industry is expected to continue throughout the forecast period, with the market expected to grow at a compound annual growth rate of more than 1 per cent.
The North American wire and cable market is driven by increased investment in transmission and distribution. The main factor driving the growth of the wire and cable market in North America, especially in the United States, is increased investment in transmission and distribution networks to effectively transfer power to various electrical equipment at different stages of the network. In view of the increasing demand to replace the installation base of aging transformers, there is a lot of room for expansion in the transmission and distribution market in the United States.
In addition, the growth of the transport industry is expected to drive the growth of the wire and cable market in North America. Transport systems that achieve mobility use a variety of wires, such as brake lines, clutch lines, gear lines, accelerator lines, and so on. As a result of technological advances and an increase in disposable income, consumers have spent more on providing safe, comfortable and stylish vehicles. This eventually led to the networking of many self-driving cars and smart cars, such as the Model 3 provided by Tesla.
Vehicles need high-quality special cables and a safe wiring architecture to transfer large amounts of data efficiently and quickly between control units, sensors and vehicle components. The company is continuing to build fail-safe cabling and cabling system architectures to meet the needs of the automotive industry, thereby helping to grow the wire and cable market in North America.
Third, the United States is rich in renewable energy resources. The growth of transmission and distribution networks and the increased demand for renewable energy in countries such as the United States, Canada and Mexico will boost the wire and cable market in North America during the forecast period.
From the perspective of manufacturers, major wire and cable companies in North America, such as General Cable (acquired by Prysman), Southern Cable (Southwire), Baitong, Kangpu Cable, Corning, Encore Wire and Hitachi, will become major suppliers in the market during the forecast period.
