Global Wire & Cable Compound Mrket - 2022-2029

Global Wire & Cable Compound Mrket - 2022-2029

Market Overview

The global wire & cable compound market is expected to reach at a CAGR of XX% during the forecast period 2022-2029.

Wire and cable compounds are primarily used to provide high insulation levels to wires while also preventing moisture from entering power transmission or telecommunication cables. Furthermore, the compounds give wires and cables excellent mechanical stability and corrosive and chemical resistance. The compounds are designed to act as effective jackets for conducting materials such as wires or cables, making them suitable for various applications ranging from power and automotive to construction and communication.

Many wire and cable compounds are specifically designed for certain end-use applications, such as high and low-voltage power cables, telecommunications, telephone wires, coaxial cable, jacketing and so on. Polymers that can be utilized as the basic polymer in wire and cable compounds come in various forms. The materials used in the electrical insulation of cables or wires are exposed to various external influences that impact the system's overall performance. The compounds must meet specified standards in terms of abrasion, heat and chemical resistance, flame retardancy and mechanical qualities to provide a robust and believable solution.

Market Dynamics

The global wire & cable compound market is expected to boost with rising investments in renewable energy.

Rising investments in renewable energy

In power transmission applications, cable compounds are widely employed. Furthermore, rising investment in smart grids and expanding renewable energy output are expected to drive market expansion. The existing electricity transmission and distribution system has proven unstable and inefficient. To achieve high supply security, the change in electricity generation to renewable energy sources necessitates overhauling and expanding the Country's electrical infrastructure. The corridor projects are critical to the Country's ability to produce enough energy from renewable sources like wind and solar power and significant transport amounts of green energy across long distances with low losses.

Various compound companies have gained orders for renewable projects, indicating the market growth in the forecasted period. For instance, in 2021, Borealis and Borouge announced that crosslinked polyethylene (XLPE) power cables made with extruded high voltage direct current technology would be used for most of the German corridor projects. The massive project spans three different corridors and is a key enabler of Germany's Energiewende or energy transformation. Borealis Borlink cables will be installed in the northern half of the SuedOstLink and throughout the SuedLink corridor, allowing for low-loss renewable energy transmission from north to south.

Rising environmental concerns about the use of polymer

While cable products are not directly responsible for environmental damage, the items that power the industries, factories and offices that require cables contribute to issues like air pollution and animal disruption. The simplest strategy to reduce environmental impact appears to specify ecologically friendly cable goods at the project's outset. However, because cable products are frequently made with polymer compounds to improve performance across various features, lowering their environmental impact is not always straightforward.

The environmental impact of cable goods utilized in a project should be a top priority for project managers and specifiers. China's Belt and Road program is one of the world's most enormous construction projects, but it has also been dubbed history's most dangerous environmental undertaking. By 2050, the effort will encompass 64 countries, connecting China and the Middle East, including 7,000 infrastructural projects. While the effort is expected to boost regional economic growth, it will also have a substantial environmental impact. In the case of cable, using low-quality products in these projects may cause materials to degrade and break down, resulting in chemical leakage into the soil.

COVID-19 Impact Analysis

COVID-19 has negatively impacted the market for wire & cable compounds worldwide due to decreased demand from numerous end-use industries. Due to the COVID-19, various manufacturers were forced to slow down production. Various end-user industries also halted their ongoing projects due to a sudden hike in raw materials.

Additional important non-metal raw materials for wire & cable production, such as critical resins and polymer chemical compounds, got expensive for the period. Recently, one of the major North American-based wire & cable manufacturers indicated that their insulating & jacketing materials had increased cost by 10-25% depending on the compound and executed broad-based price increases in the Spring of 2021.

Segment Analysis

The global wire & cable compound market is segmented based on type, form, end-user and region.

The need for effective insulation and sheathing in wires & cables has boosted the demand for polyethylene compounds

Based on type, the global wire & cable compound market is segmented into Polyethylene, Ethylene Vinyl Acetate (EVA), Ethylene Acrylate Copolymers, Polyolefin Elastomers (POE), Olefinic Block Copolymers (OBC), Thermoplastic Polyurethane (TPU), Ethylene Propylene Diene Rubber (EPDM) and Others.

Polyethylene (PE) compounds are frequently utilized as insulation and sheathing in wires and cables. PE compounds are among the most widely used plastics. The PE compounds are mainly based on polyethylene or copolymers of polyethylene properly adjusted to client specifications. PE comes in a variety of forms, including solid and foamed. The dielectric constant is one of the electrical differences between solid and foam. Foamed PE has a lower dielectric constant than solid PE. Solid PE is used to insulate wires rather than as a cable jacket. PE is employed in a wet environment because of its moisture resistance. PE insulation is stiff and can vary based on high and low-density forms (HDPE and LDPE).

Various companies are launching new polyethylene-based compounds for various end-user industries. For instance, in 2020, Borealis announced the commercial launch of HE1355, a high-density polyethylene grade free of azodicarbonamide (ADCA). It is the first chemically-foamed, ADCA-free material intended to manufacture telecommunications cables. The use of HE1355 allows manufacturers to bypass altogether any issues arising from the inclusion of ADCA on the EU’s Annex XIV of REACH.

Geographical Analysis

Various public & private efforts to develop the renewable energy market will boost the demand in Asia-Pacific

The growing usage of innovative wire & cable compounds in various industries and public & private efforts to develop renewable energy will likely boost the region's cable compounds market. Furthermore, the market's expected expansion may be attributable to the increased use of modern manufacturing technologies and government efforts in numerous industries. As a result, the cable compounds market appears to have a bright future ahead of it, with steady growth expected in the following years.

The need for robust safety standards, infrastructure investments and implementation of technologies such as 5G fiber will continue to empower strong growth in the years ahead. Various multinational companies are trying strategies to invest in the regions' growth. For instance, in 2021, Alphagary ha completed the acquisition of Shakun. Alphagary has invested in Shakun Polymers Pvt. Ltd. to create a world-leading specialty compounds solutions provider targeting the wire & cable industry.

Competitive Landscape

The global wire & cable compound market is highly competitive due to the ease of manufacturing and availability of raw materials. The market comprises several local and global brands. Major players in the market include HEXPOL AB, BASF SE, Daikin Industries Ltd., Borealis AG, Dow, Cabot Corporation, Eastman Chemical Co., Trelleborg, Teknor Apex, SCG Chemicals Co., Ltd., Alphagary and Trelleborg Co. The players in the market are known to incorporate numerous market strategies to achieve growth in the global wire & cable compound market; these include expansions, acquisitions, and product launches.

HEXPOL AB

Overview: HEXPOL is a leading polymers group with a significant market position in gaskets for plate heat exchangers, advanced polymer compounds, and wheels made of plastic and rubber materials and castor wheel applications. The business is organized into two segments: HEXPOL Engineered Forms and HEXPOL Compounding.

Product Portfolio:

Mediprene TPE: The product was developed to address the demands of the medical device industry. To assure the customer, representative grades from the Mediprene standard series (500200M and 520580M) have been tested by NAMSA in U.S. for cytotoxicity according to USP <87>/ISO 10993-5.

Key Development:

In 2020, HEXPOL launched a new portfolio for Wire & Cable Compounds. The company has brought expertise in various product areas and technologies to launch a comprehensive wire & cable compounds portfolio. The portfolio includes silicone rubber materials, CPE, NBR+PVC, EPDM, CR rubber compounds, pigment and additive masterbatch and thermoplastic, EVA, TPE and TPV technologies.

Why Purchase the Report?

To visualize the global wire & cable compound market segmentation by type, form, end-user and region and understand key commercial assets and players.

Identify commercial opportunities in the global wire & cable compound market by analyzing trends and co-development.

Excel data sheet with numerous data points of wire & cable compound market-level with four segments.

PDF report consisting of cogently put together market analysis after exhaustive qualitative interviews and in-depth market study.

Form mapping available in excel consists of key products of all the major market players

The global wire & cable compound market report would provide approximately 61 tables, 60 figures and almost 200 pages

Target Audience 2022

Buyers

Industry Investors/Investment Bankers

Education & Research Institutes

Research Professionals

Emerging Companies

Raw Material Providers

Telecommunication Companies

Construction Companies

Logistics companies

Distributors