Wires & Cables Industry: An Overview on Wires and Cables Industry: Connecting the Do ts of Growth!

16 Oct 2023

The amplified demand for high-performance data networking and communications has led fiber optic cables to become a mainstay in modern infrastructure, driving growth in the wires and cables market. The escalating need for miniature connectors in mobile technology, aerospace, defense, and medical equipment sectors similarly stimulates market expansion. The report offers detailed insights into these trends, including indepth regional analysis, competitor data, sales channels, and market segment information, formulating a thorough understanding of the industry’s present state and probable future direction. Navigate your way forward in the wires and cables market, well-equipped with the vital knowledge this report provides.

How Industry 4.0 revolutionizing the Wires and Cables Industry?

Digital transformation is reshaping industries, and the automation of structures is turning into vital to this process, opening up new avenues forthe cables and connectors used in machinery. Globally, digitization has changed industries, paving the way for progressive working techniques and Industry 4.0. Smart factories allow ergonomic and resource-efficient manufacturingstrategies with the aid of imposing the Industrial Internet of Things (IIoT). In this age of digitization, quicker records switch is a necessity. Industry four entails the use of custom-made structuressuccessful in managing excessive records costs and handing over expanded overall performance with minimal waste. It requires custom-made industrial elements that are extra bendy and adaptable to the industry’s requirements. Digital transformation is reshaping industries, and the automation of structures is turning into integral to this process, opening up new avenues for the cables and connectors used in machinery. With the introduction of Industry 4.0, humans foresee a splendid increase viable in cable and connection technology. Manufacturers need to rethink and redefine their options to put into effect digital transformations. With the introduction of 5G and miniaturization, machines are turning into extra mighty and compact. The potential to switch massive quantities of factories requires greater bendy cables, have a large bending radius, and are unaffected through electromagnetic interference. Space-saving options with tight bending radii perfect for harsh environments or below excessive mechanical stress or oil publicity will make certain lengthy product existence with minimal maintenance. Every enterprise depends closely on the overall performance of cables and connectors for its machines and systems. The options should mix adaptability, sturdiness, the transmission of excessive records rates, and the simple, toolfree set up of community connectors in the field. Data will persist in flowing through traditional channels and fiber-optic cables, even with the introduction of 5G. The improvement of wi-fi infrastructure is not possible except for wires.

Wire and cable manufacturing strategies are completely wonderful from most electromechanical products. Electromechanical merchandise usually consists of a couple ofcomponents assembled into a single product,  then measured in gadgets or pieces. Wires andcables are measured via their length. Wires and cables are manufactured by using layering insulation, shielding, cables, and sheaths round the conductors. The extra overlapping layers there are, the extra complicated the product structure.

An Industry Overview in 2023 : The estimated size of the wire and industry market in December 2022 was $200 billion worldwide. The market is expected to grow and reach between $280 billion and $300 billion by 2030, with an annual anticipated growth of 4 to 5 percent. Asia Pacific is the fastest growing wire and cable market thanks to rapid urbanization that occurs in previously rural regions. Based on the voltage of electrical cables, the market of wire and cable is divided into lowvoltage, medium-voltage, high-voltage, and very high voltage. Low-voltage is by far the most significant segment of the market (56,5%) due to the widespread use of low-voltage cables across markets and industries. A medium-voltage market segment follows this segment.

Based on the industry where the cables are applied, the most significant segments of the wire and cable market are aerospace and defense, building and construction, power transmission, oil and gas, and IT and communications. All of these segments are currently experiencing growth, especially in the IT and communications sectors. Other segments to watch for are consumer electronics, the automotive sector, and manufacturing. According to the type of cable installation, the largest market share worldwide continues to belong to overhead power installation, which still is responsible for 2/3 of the market’s share because it still, to this date, is the easiest and cheapest type of installation on the market. Despite this, underground installations continue to expand all over the world. In terms of products, the biggest market share belongs to power cables because of their widespread use in new transmission networks.

Trends In the Wire and Cable Industry to Watch For : The wire and cable industry is constantly evolving tomeet the changing demands of various industries andapplications. Here are a few trends that are shapingthe future of the wire and cable industry:

Increased use of renewable energy : As the demand for renewable energy continues to expand, so does the need for specialized cablesand wires that can handle the unique challenges associated with transmitting renewable energy, such as from solar panels and wind turbines. Although Covid-19 has slowed down the wire and cable market, the renewable energy trend will not slow down any time soon as it is driven both by governments and a growing number of businesses that excel at renewable energy. The renewable energy market is estimated to have a CAGR of 8.8% by the year 2028. Governments of key industrial states, such as the US, China, and the EU, have set the objectives that fuel the demand for green energy. On the consumer level, installing solar panels for businesses and private homes has been a growth opportunity for the wire and cable business. Another exciting development is the growth of the offshore wind farms.

Smart Grid, Transmission, and Distribution Networks Continue To Expand : Governmentsworldwide increase power and distributionnetworks and increase the efficiency of theexisting networks. These projects are on therise in Asia (India, China, Philippines) and SouthAmerica (Peru, Brazil). As a result, the worldwidedemand for power cables is on the rise. In 2035,the global demand for infrastructure projects willreach 7 trillion USD.

Growing Use of Automation And the Rise of Robotics : Automation and robotics areincreasingly being used in manufacturingprocesses, which is driving demand for specializedcables and wires that can handle the requirementsof these technologies. Automation and roboticsfuel the demand for innovative power, control, andcommunication cables, but it’s not just the cables. Robotics also calls for smart cable management solutions, including cable harnesses, cable glands, cable assemblies, and smart accessories. New technologies related to these products will likely pop up in the upcoming years, and we will also observe improved cable trays.

Increased emphasis on safety and sustainability Manufacturers are placing greater emphasis on safety and sustainability, which is leading to the development of new materials and manufacturing processes that reduce environmental impact and improve safety. When it comes to the safety and sustainability of electrical cables, the challenge that manufacturers face is the importance of finding the balance between sustainability and functionality. For example, straight-up biodegradable materials are not always the best solution for wire and cable, as these materials have short life cycles and are not perfectly functional.

How Solar Cables are empowering the future of Cables segment? : In today’s world, sustainableproducts are playing an increasingly vital role inshaping our future. From renewable energy sourcesto eco-friendly building materials, sustainableproducts are driving innovation and changingthe way we interact with the world around us.This trend is particularly evident in the wires andcables industry, where sustainable practices andproducts are becoming more prevalent.The wires and cables industry is an essentialcomponent of our modern world. It providesthe infrastructure needed to power our homes,businesses, and communities. However, thisgrowth has also led to an increase in ourcarbon footprint, with the production and useof non-renewable energy sources contributingsignificantly to greenhouse gas emissions andclimate change.The shift towards sustainable products is not just about reducing our environmental impact; it isalso about promoting innovation and investmentin sustainable solutions. The demand for ecofriendlyproducts is creating an opportunity forthe wires and cables industry to drive innovationand shape the future. One of the necessaryconnections of transmitting solar power arecables. Solar Cables are specialized cables thatare designed to connect solar panels to theelectrical grid, enabling the widespread adoption of solar power. Solar cables are built to withstandextreme weather conditions, resist UV rays, and handle high electrical loads, making them an essential component in the development of solar power systems. These cables are designed to provide higher flexibility, durability, and reliability. The solar industry is rapidly growing worldwide, and so is the demand for solar cables. In India, the solar energy sector has grown exponentially with the government’s initiatives to promote clean energy sources. According to a report, the global Solar Cables market was valued at USD 628.2 million in 2020 and it is expected to reach USD 1109.6 million by the end of 2027. One of the significant benefits of sustainable products, such as solar power is the ability to reduce our carbon footprint. According to the International Energy Agency (IEA), solar power is the fastest-growing source of renewable energy in the world, and its adoption is critical to meeting global climate goals. The use of solar cables in the development of solar power systems is crucial in reducing our impact on the environment and contributing towards a more sustainable future. Sustainable products also offer energy efficiency and cost effectiveness. By efficiently transporting power, Solar cables not only reduce our carbon footprint but can also result in cost savings over time. By utilizing solar power, we can reduce ourreliance on non-renewable energy sources, which can be expensive and subject to price volatility. In contrast, solar power is a free and abundant resource, which can lead to significant cost savings in the long run. The increasing demand for sustainable products, including solar cables, is driving the wires and cables industry towards a more sustainable future. The industry is responding to this demand with continued innovation and investment in sustainable solutions to meet the growing need for eco-friendly products. As more individuals and companies seek to reduce their environmental impact, the demand for eco-friendly products will continue to grow. This demand creates an opportunity for continued innovation and investment in sustainable solutions to meet the growing need for eco-friendly products. The growth of the solar cables industry in India is driven by various factors, such as the increasing adoption of renewable energy sources, government initiatives and subsidies for solar power projects, and rising awareness about the benefits of clean energy.

Underground Power Cables: Why Underground Cables Are A Better Deep-Rooted Choice For Utilities? : This article gives an all inclusivedescription of what are Underground andOverhead Power Cables, its advantages and disadvantages, development, structures and dynamic shift in the market ! Electric power is transmitted and disturbed either by overhead systems or by underground cables. A cable is an insulated conductor and is used for underground transmission and distribution of electricity. Underground cables are generally used in densely populated areas such as cities, metros, where there is a high density of automobiles. Underground cables are also preferred in industries, sub-stations, railways and road crossings, servicing of residential installations and other similar locations. This cable structure help in ensuring uninterrupted power supply, which are uncommon in the overhead wiring system.

What is an Underground Power Cable? : The power transmission achieved through cables that are laid underground are called Underground Power cables. The primary function of an underground power cable is to transfer power between locations including generation sources, substations, load centers, etc. Most modern communities today utilize underground electrical cables to distribute electricity instead of hideous overhead cable and utility poles. Underground cable lines first appeared backin 1890, when the first successful installation was introduced by Vincent de Ferranti using his famous 10, 000 - volt concentric cable in the UK. Since then, underground power transmission has evolved dramatically.

The first underground power cables to be used in India were probably at Shivanasamudra hydelpower station in the erstwhile Mysore sub-station in around 1902 but there is no such official record, it is anticipated that underground cables had to be used to bring the electricity from the generators to the open outside.

This was Asia’s first hydro-electric generating station, commissioned in 1902 : Although, it is onrecord that in 1920, Shimla installed undergroundcables fed from the substation that still stands onthe ridge, and has an official heritage status. Someof the cables connecting to it are still in use after 90 years.Traditionally, underground cables are used incities where overhead lines are not feasible; inareas where an overhead line may risk lives.In terms of safety, there is no disturbance at theground surface when a short circuit occurs or avery high amount of energy is released, becausethe soil contains the fault.The soil also protects against third party damageas long as proper authorization procedures are followed before digging, especially in urban areas.Additionally, the current generation ofunderground systems require less maintenance, and reclamation is only required every 40 -50 years, which is the specified lifespan of a transmission line.

Structure of the Underground Power Cable : The underground cabling system consists ofvarious components like temperature & conditionmonitoring systems, earthing and bondingsystems, cable joints, junction boxes, above theground termination points, etc.

Types of Underground Power Cables : The types of the underground power cables based on its voltage handling capacity, insulation material and core diameter, these cables are classified into five different types as:

Low Tension Cables (LT)

High Tension Cables (HT)

Super Tension Cables (ST)

Extra High Tension Cables (EHT)

Extra Super Voltage Cables (EST)

Underground v/s Overhead Power Lines : Whilechoosing between overhead power lines and underground cables, it is important to know the pros and cons so you can make an educated and wise decision. Between these two cables, overhead electrical cables are more common for good reasons. Although some may consider them as monstrosity specially in urban areas, in terms of cost they are three to four times cheaper than underground cables.

Extra Safeguard : Underground cabling may require additional charges as the wires will go the longer route between the two points unlike the overhead wires where the wires will just hang above houses and buildings. Also, underground cabling requires additional insulation and cooling because the wires can overheat otherwise. The reason for it being quite expensive is because when burying the wires in rocky areas for example, you need to clear the location with huge machines and fill it with soil to avoid damage to the cable and apart from this, you need to install cable jointing structure every 500 meters as well as extra insulation. As we have already stated, electrical wires emit heat so they have to be kept away from drainage, marshes, and bogs. We need to take care of the deeply rooted plants and buildings with deep foundations in order to avoid the destruction. It’s also a known fact that there is an effect to the soil of the plastic sheathing on the cable wires that have decomposed into the soil. We cannot say that it’s not achievable as a country like Singapore has a 100 percent underground cable system.

Extra Hazardous : In contrast, overhead cables are easy to maintain but the danger is associated with it. Although visual discordance can be a huge challenge for urban areas. The wires are also vulnerable to low-flying crafts, birds, external obstructions like extreme weather conditions which can cause shrinkage and stretching on the cables. The damage of the pole due to unforeseen conditions like a truck smashing into the pole can create undue stress to the transmission of the lines. Government has advised to employ professional electrical reticulation services in order to minimize the risk. The companies specializing in wires and cables electrification networks have also advised to install maximum safety mechanisms to ensure that the electric system is insulated from unnecessary risks.

A Huge Shift to Underground System : Underground cables are usually used in suchlocations where overhead line rights of way are notavailable, in areas where local or state regulationsoverride economic considerations, near airportsand other locations where an overhead line mayendanger lives, and in picturesque areas whereappearance is an important consideration.Infrastructure is one of the considered shaping force for urban and regional developmentas underground wiring frameworkin developed areas may offer bestacceptable ways to encourageand support moresustainablegrowth in future sustainability of cities and towns. Because of the associated dangers to overhead cables framework, government is seeing the advantages of underground cables framework In 2021, the Delhi government approved a policy to convert bare electricity lines into insulated conductors for protection to life and property. Prior to this announcement, the Delhi High Court directed various agencies including North MCD, MTNL, BSES and mobile service providers to comply with the order of removing hanging wires and cables in the Chandni Chowk area while undergoing redevelopment. The high court made it clear that non-compliance of the order will invite contempt action against the agencies. A bench of justices Vipin Sanghi and Rekha Palli said,” We direct all the agencies including North MCD, MTNL, and BSES, etc to ensure compliance so that all hanging wires and cables are removed. All service providers shall ensure compliance failing which we will be compelled to initiate contempt action.” The government said in a statement that about 2,264 km of bare conductor network will be converted into an insulated network by the three distribution companies - Tata Power Delhi Distribution Limited, BSES Yamuna Power Limited and BSES Rajdhani Power Limited in Delhi. The chief Minister of Delhi, Arvind Kejriwal has also stated that the government was working on shifting all overhead electrical wires into underground cables framework. The official data shows that out of a total of 2,264 km of electric wires, TPDDL will convert 1,270km into an insulated network, BYPL 29 km and BRPL 965 km. The discom sources said in South and West Delhi, BRPL has 6,926 km of cables at the 11 kV level. Of this, 5,888 km or 85% is underground and 73 km or one % is overhead (insulated) Rural areas and towns, with vast open spaces, have a higher degree of overhead network. Moreover, usually the old electrical networks are overhead and all the new upcoming networks are underground. Just 965 km or 14% is over-head wire and uninsulated. In East and Central Delhi, BYPL has 2, 662 km of cables at the 11 kB level. Of this, 2,636 km or 99% is underground and only 26 km or one % is overhead uninsulated, they said. In TPDDL, area of North and North West Delhi, around 65% of the cables are underground at the 11 kV level. Around 1,270 km overhead is uninsulated, the sources said. Around Rs 2, 400 crore is estimated to be required for the conversion of the entire existing high tension overhead network to Underground. On the other hand, it is estimated to cost around Rs 700 crore for insulating them. The Delhi government has provided Rs 25 crore to the power department in the financial year 2021- 22 for the project under the ‘Jagmagati Delhi” programme.

“There are two philosophies for conversion of overhead bare conductors (wires) to enhance safety and aesthetics,” said power sector experts. “The first option is overhead to underground and the second option is insulating bare conductors (wires). Between the two, the first one is the preferred option,” they said. Although, in a practical outline, a combination of the two works the best. In rural areas with appropriate clearance, insulated covered conductors (cables) will be a cost effective solution compared to shifting them completely underground, while in areas with rocks underneath, insulation must be needed, they added to their statement.

Advantages Of Using Underground Power Cable Underground transmission is picking up steamfor good reasons.Affordable and Simplified Sedentary Process inUrban Areas Overhead wire lines require land acquisition in the right of way for support structures like poles, towers and conductors and land acquisition comes with inherent challenges like removal of structures for electrical clearances in the line’s path, and often a large price tag Enter underground transmission lines can be installed in dedicated public passages with dense populations, and don’t require right of way acquisition. Underground lines are often more economical than requiring land acquisition for support structures in overhead wiring.

Negligible Impact to the Environment Underground transmission preserves naturalresources and land value. The lines are out of thesight, which clears one of the main concerns foroverhead lines- aesthetic impact. While aestheticimpact is not the only concern, it also tops the listof long-term impacts that can be mitigated.The International Council on Large ElectricalSystems, or (CIGRE) compared the impacts ofoverhead lines and underground cable linesin terms of impacts on the environment in its technical brochure 110.

Reliability : At a time where system reliability is top of the mind for almost all the utilities, underground transmission is a dependable solution in the market.

Underground lines pull through in the face of extreme conditions including

•Atmospheric conditions like hurricanes, typhoons, tornadoes, wind and ice storms

•Human activities like vandalism and terrorism

•Natural calamities including landslides, floods, and in some cases even tectonic activity

Provides Safety : Underground cables are electrically shielded and out of the way. Whereas in overhead wiring cable accessories like terminations are exposed at poles, terminal towers and substations, underground transmission constitutes less risk:

•No crucifixion hazard for people and wildlife

•No collision or quagmire hazards for small planes or helicopters

•No risk of like exposure from traffic collisions

•No risk of fire to people, wildlife, nature or homes from curving lines during windy conditions

•Transmission loss is negligible in underground wiring.

•Completely eliminates electrical and magnetic field above the ground level which otherwise would pose a threat to health concerns

Disadvantages of Underground Power Cables

•Underground wiring is convenient and aesthetically pleasing, but when problems occur you have to enlist numerous services and electrical experts to pinpoint the break and advise you on the best methods of repair the damage

•Laying of cables requires digging which might be difficult in congested areas

•Cost of maintenance is high as we need huge machines and electrical professionals to maintain and repair the damage

•Modification to exciting cable network is arduous as it requires completely new excavation

•Susceptible to damage due to underground water and moisture in the soil

•Heat depletion is less effective

•As underground cables are more thicker than overhead cables, the cost involved in the manufacturing is high

Market Scope : The rise in urbanization and increase in infrastructure are major factors driving the market growth. These factors have impacted the power and energy demand in commercial, industrial, and residential sectors. Implementation of smart grid technology has met the rise in need for grid interconnections, resulting in a surge in investments in the new underground and submarine cables. However, initial heavy cost is the only factor which limits the growth of the underground cable market.

Impact of Pandemic in the Market of Underground Power Cable : COVID - 19 pandemic has shutdown the production of various products in theunderground cable market worldwide. This hasobstructed the growth of the underground cablemarket from the last two years but it has pickedup the growth from 2021.The major demand for underground cable waspreviously noticed from giant manufacturingcountries like US, Germany, Italy, UK, and Chinawhich are negatively affected by the spread ofthe coronavirus, thereby declining the demand forunderground cable products.Further, potential impact of the pandemicis currently vague and financial recovery of companies is totally based on its cash reserves. Underground cable market are expected to focus on protecting their workforce, operations, and supply chains to respond towards immediate crises.

Market Trends : With the growth of smart grid technologies and the increase in renewable energy capacity, specialized cables are being designed. For instance, medium voltage smart cables which integrate optical fiber cable with power cables, are preferred for smart grid applications. Number of government initiatives and programmes have been undertaken such as Deendayal Upadhyay Gram Jyoti Yojana (DDUGJU), the Integrated Power Development Scheme (IPDS) and the recently launched Sahaj Bijli Har Ghar Yojana (Saubhagya). All these schemes have created a market for cables and conductors in the country. Business expansion strategies also assist in enhancing the geographical footprint of the complete and help in gaining significant market share for underground cables. Key companies take various strategies and initiatives, including partnerships, mergers & acquisitions, collaborations and new product launches give a huge scope to emerge in the market. Challenges for underground cables include the lifespan of a transmission line and high cost as well as the lack of public acceptance. However, underground cables not only protect against blackouts during peak and load hours and severe weather events, but also from an environmental point of view provide massive electrification, which is the best way to decarbonize our energy system.