CAGR: 5.1%Current Market Size: USD 6.3 BillionFastest Growing Region: Europe
Largest Market: APACProjection Time: 2023-2030Base Year: 2022
The global wire insulation and jacketing compounds market is expected to grow from USD 6.3 billion in 2022 to USD 11.5 billion by 2030, at a CAGR of 5.1% during the Projection period 2023-2030. The growth of this market is mainly driven owing to increasing development in the building construction industry around the world.
An outer sheath called a jacket shields the wire or cable core from abrasion, moisture, and chemical damage. Jackets aid in installation, provide sun protection and aid in flame resistance. Insulation materials guard against electrical leakage, stop the wire's current from touching other conductors, and maintain the wire's material integrity by shielding it from hazards like heat and moisture. The best electrical insulators for your particular application will be chosen based on a number of criteria, such as the material's resistance to the needed voltage, its flexibility, how it feels and looks, how long it will last, and the environment to which it will be exposed (extreme heat or cold). The benefits of thermoplastics are now utilized by Mercury Wire in the insulation and jacketing of the wire and cable it manufactures. One of the most frequently made synthetic plastic polymers is polyvinyl chloride. Typically, PVC is offered in both rigid and flexible forms. The rigid version of PVC, also known as RPVC, is employed in the production of credit cards, bottles, and some types of commercial packaging, as well as plumbing pipes, doors, and windows for the construction sector. In the packaging sector, polyethylene (PE) is generally used to make plastic milk and water jugs, detergent and shampoo bottles, and some types of plastic bags. Polyethylene is combined with additives to make it softer and more flexible when used as an insulator and jacketing material for wire and cable.
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In both the residential and commercial sectors, wires and cables are frequently utilized because, once installed, they provide a secure flow of electric current. Building constructions are made more durable and beautiful by using a thermoplastic polyurethane cable compound. Due to the widespread usage of low voltage copper conductors in domestic home appliance wire and internal wiring for lighting circuits in factories, there is a rising demand for these materials in the building and construction industry. 14 construction investment projects totaling CNY177.8 billion (US$25.2 billion) were granted, according to the National Development and Reform Commission (NDRC), following approvals totaling CNY68.9 billion (US$10.1 billion) in August 2020.
Although polyvinyl chloride compounds are not biodegradable, halogenated polymers, such as polyvinyl chloride cables, offer a cost-effective choice for electrical cables. These persist for a very long time in the environment as waste. There is a lot of chlorine in polyvinyl chloride. Burning chlorine produces a lot of smoke, which makes it difficult to breathe in crowded places. Some carcinogens and hydrochloric gas, both of which are detrimental to the environment, are produced by polyvinyl chloride. As a result, Canada began to regulate PVC plastic as a dangerous material in May 2022. One of the biggest difficulties the wire compound and cable compound business is currently facing is this.
Due to their superior electrical insulating qualities, physical characteristics in both low and high temperatures, and dielectric constant, polyvinyl chloride compounds are utilized in the telecommunications industry. This makes them perfect for telecommunication lines and electrical wiring. Thus, it is anticipated that increased demand for wire and cable compounds will result from growth in the telecom sector. In October 2022, Dixon Technologies intended to invest Rs. 200 crores (US$ 26.69 million) under the telecom PLI scheme, according to the India Brand Equity Foundation (IBEF). Bharti Airtel stated in September 2022 that it would invest Rs. 50 billion (US$ 673 million) in growing its data center business. With this investment, the market demand in and around India will be satisfied.
The market's growth pace will be slowed down by the high cost of research and development as well as the high price of wire insulation and jacketing compounds. The market for Wire Insulation and Jacketing Compounds will experience slower growth as low-cost alternatives are present. In addition, the lockdown's impact on the demand and supply of raw materials will make it difficult for the Wire Insulation and Jacketing Compounds business to expand. Additionally, the market for Wire Insulation and Jacketing Compounds is now being constrained by a restricted production capacity.
The global wire insulation and jacketing compounds market has been segmented based on type, end-user, and region.
The type segment is halogenated plastic wire insulation and jacketing compounds and non-halogenated plastic wire insulation and jacketing compounds. The halogenated plastic wire insulation and jacketing compounds segment led the Wire Insulation and Jacketing Compounds market with a market share of around 63% in 2022. Halogenated polymers, like polyvinyl chloride, provide flame resistance, wear resistance, and shockproof properties. Polyvinyl chloride is a great material for construction wires, communication wires, electrical appliances, electrical plugs, high flame retardant halogen cables, and low smoke low halogen cables because of its mechanical and electrical resistance capabilities. Because of its superior tensile strength and abrasion resistance, chlorinated polyethylene is frequently utilized in end-use industries such as wire and cable jacketing, construction, and automotive. 14 construction investment projects totaling CNY177.8 billion (US$25.2 billion) were approved, the National Development and Reform Commission (NDRC) reports. This follows the approval of projects totaling CNY68.9 billion (US$10.1 billion) in August 2020. In comparison to January through March of last year, global vehicle manufacturing climbed by 21.08 million, according to the International Organization of Motor Vehicle Manufacturers (OICA).
The end-user includes automotive and transportation, building construction, energy, and others. The building construction segment led the Wire Insulation and Jacketing Compounds market with a market share of around 29% in 2022. Compounds used for wire insulation and jacketing have good insulation qualities, mechanical strength, electrical resistance, high thermal resistance to low temperatures, low toxicity, and minimal emission of smoke and combustion products. These characteristics make wire insulation and jacketing compounds—which are used for wiring—ideal wiring solutions for high-rise constructions and industrial buildings. As a result, it is predicted that the expanding construction industry would increase demand for wire and cable compounds. Building permits in the US increased by 0.3% to 1.76 million annualized in April 2022 from 1.75 million in March 2022, according to the US Census Bureau. The India Brand Equity Foundation (IBEF) reports that in 2020, private equity investments totaling US$ 971 million were made in commercial development projects including warehouses. Healthcare development climbed by 47,113 units in January 2022 compared to 46,769 units in April 2020, according to the U.S. Census Bureau. The Federal National Mortgage Association predicted a significant increase in housing starts with 1 million new homes in 2022. As a result, the expansion of the building and construction sector is anticipated to fuel the growth of the wire and cable compound business.
By Regional Analysis:
The regions analyzed for the Wire Insulation and Jacketing Compounds market include North America, Europe, South America, Asia Pacific, the Middle East, and Africa. The Asia Pacific region dominated the Wire Insulation and Jacketing Compounds market and held a 37% share of the market revenue in 2022.
Global Wire Insulation and Jacketing Compounds Market- Country Analysis:
Germany's wire insulation and jacketing compounds market size was valued at USD 0.43 billion in 2022 and is expected to reach USD 0.64 billion by 2030, at a CAGR of 5.3% from 2023 to 2030. The enormous increase in the building and construction industries, as well as the country's high vehicle manufacturing, both considerably influence the Wire Insulation and Jacketing Compounds market in Germany.
China wire insulation and jacketing compounds’ market size was valued at USD 0.6 billion in 2022 and is expected to reach USD 0.9 billion by 2030, at a CAGR of 5.6% from 2023 to 2030. The demand for Wire Insulation and Jacketing Compounds is increasing in China due to their great strength, stiffness, heat, and chemical resistance, as well as other thermal and chemical characteristics, wire insulation and jacketing compounds, are employed in automotive applications.
India's wire insulation and jacketing compounds market size was valued at USD 0.46 billion in 2022 and is expected to reach USD 0.70 billion by 2030, at a CAGR of 5.5% from 2023 to 2030. Due to the increase in global travel, which has resulted in major manufacturers' increased production of automobiles over the past ten years, the market in India is growing. Due to their qualities, including hardness and advantage in recycling, Wire Insulation and Jacketing Compounds are employed in automotive applications.
Key Industry Players Analysis:
To increase their market position in the global wire insulation and jacketing compounds business, top companies focus on tactics such as adopting new technology, mergers & acquisitions, product developments, collaborations, partnerships, joint ventures, etc.
6.3 billion in 2022
By Type, By End-user, and By Region.
Revenue Projection, competitive landscape, company ranking, growth factors, and trends
I. du Pont de Nemours and Company, Sonneborn LLC., General Cable Technologies Corporation, Melos GmbH, Electric Cable Compounds Inc., Polyone Corporation, Solvay SA, Trelleborg AB, Eastman Chemical Company, and Mexichem Specialty Compounds Limited.
Scope of the Report
Global Wire Insulation and Jacketing Compounds Market by Type:
Global Wire Insulation and Jacketing Compounds Market by End-user:
Global Wire Insulation and Jacketing Compounds Market by Region:
Global wire insulation and jacketing compounds market size was USD 6.3 billion in 2022
Asia Pacific region witnessed a major share. The need for wire insulation and jacketing compounds is expected to rise in APAC
Development in the Building Construction sector around the globe is projected to influence the market in the Projection years.
High cost is primarily impeding the growth of the wire insulation and jacketing compounds market.
Political Factors- Wire Insulation and Jacketing Compounds Market should take current trade laws into account when deciding where to expand its operations, and management should choose areas with free or flexible trade agreements. The region under consideration is currently relaxing trade restrictions to create a more welcoming environment for foreign business players, which raises its allure for Wire Insulation and Jacketing Compounds Market, which is looking for prospects for international company expansion. Wire Insulation and Jacketing Compounds Market should thoroughly analyse the taxation policies that are relevant to the business before deciding whether to expand. Industries that are high priorities for the government will benefit more from tax policy. Many developing nations' governments currently want to cut business taxes in an effort to draw in foreign direct investment.
Economic Factors- Since rising inflation reduces the purchasing power of money and deters consumers from spending on goods and services, it may have a detrimental effect on Wire Insulation and Jacketing Compounds Market's ability to raise its revenue. Exchange rate fluctuations can have an impact on a company's profitability. In order to accurately predict exchange rate variations and prevent unintended trade and business performance implications, Wire Insulation and Jacketing Compounds Market should do this research. A high interest rate means that Wire Insulation and Jacketing Compounds Market will have to make payments at a high rate of interest, increasing the overall cost of the loans received.
Social Factors- The research and development trend in the selected industry or region shows how proactive businesses are in introducing cutting-edge solutions for customer needs. Wire Insulation and Jacketing Compounds Market must improve its comprehension of how new technological advancements can help the company in addition to offering value to customers. In markets defined by disruptive technology, significant investment in research and development efforts would be necessary. However, it is crucial for Wire Insulation and Jacketing Compounds Market to have a long-term perspective and not anticipate a quick payoff from its R&D activities.
Technological Factors- The development of renewable technology to lessen reliance on natural resources has become a strong trend in many industries. To capitalize on this environmental trend, Wire Insulation and Jacketing Compounds Market should assess how well a nation's technology infrastructure supports the usage of renewable technologies. Governments in certain parts of the world provide enticing incentives for the use of renewable energy sources. Wire Insulation and Jacketing Compounds Market may achieve its goals for sustainable business development by taking advantage of the opportunity and investing in renewable energy sources.
Environmental Factors- Businesses are under pressure to lessen environmental harm due to strict environmental legislation in many different countries. Wire Insulation and Jacketing Compounds Market should adopt ethical production methods in response, promote ethical consumption among its target market, work to enhance its brand's sustainability reputation, and ensure full compliance with local and international environmental laws because failure to do so may result in severe, reputation-damaging criticism from relevant stakeholders. Due to improved brand perception, this investment will also result in higher stakeholder satisfaction and a more extensive consumer base.
Legal Factors- A broad category of laws protecting employees' rights, including those to a fair salary, equality, equity, inclusion, fairness, and their physical and mental safety, is known as employment law. While some nations lack efficient enforcement of employment laws, others have harsh penalties for violating any of the specified rights of employees. Wire Insulation and Jacketing Compounds Market should safeguard the safety of the working environment while entering or operating in such nations. Appropriate systems must be in place to prevent both direct and indirect discrimination. In the continuous competition for talent, effective compliance with employment rules can aid Wire Insulation and Jacketing Compounds Market in enhancing its employer brand reputation, which is critical for luring and keeping top personnel in the market.
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