Middle East cable market size, which surpassed $9.5 billion in 2022, is expected to cross $10 billion this year, growing at 8% CAGR from 2023 to 2032, says a report.
The explosive growth in telecom sector and data technologies is backing this surge in demand, says the Global Market Insights report.
Meanwhile, the global wires and cables market size was estimated at $202.05 billion in 2022 and is projected to grow at a compound annual growth rate (CAGR) of 4.2% from 2023 to 2030, says a Grand View Research study.
Rising urbanisation and growing infrastructure worldwide are some of the major factors driving the market.
The said factors have impacted the power and energy demand in commercial, industrial, and residential sectors. Increased investments in smart upgrading the power transmission and distribution systems and development of smart grids are anticipated to drive the market's growth.
Latest trends
The wires and cables market is constantly evolving, with new trends emerging all the time. Some of the latest trends in the market include:
* The increasing demand for high-speed data transmission is driving the adoption of fiber-optic cables.
* The growth of the IoT (Internet of Things) is creating new demand for low-power, wireless cables.
* The rising popularity of electric vehicles is boosting the demand for high-voltage cables.
* The increasing focus on sustainability is leading to the development of more environmentally friendly wires and cables.
Smart grid
Implementation of smart grid technology has met the increasing need for grid interconnections, thus resulting in rising investments in the new underground and submarine cables, said the Grand View Research report.
The smart grid is an electrical grid that includes controls, automation, computers, and innovative equipment & technologies that function together and offer efficient electricity transmission. The functioning of the entire globe depends on the timely delivery of electric supply. Further, the increasing population leads to a rise in demand for power. Technological advancement in grids is necessary to reduce the frequency and duration of storm impacts, power outages, and restore service quickly after outages. Smart grid helps generate efficient renewable power, reliable power, reducing carbon print, using a mix of energy sources, working with smart devices and smart homes, and encouraging the use of electric vehicles.
Increased energy demands in the Asia Pacific, Middle East, and South America have resulted in rising investments in smart grids in the regions. This will fuel the demand for low-voltage cables.
The other factors that influence the growth of low voltage cables are the growth in the power generation, power distribution sector from renewable energy sources, and demand from automotive and non-automotive industries.
Urbanisation and industrialisation are the major reasons for increasing overall market growth. The need for power grid interconnections in areas with dense population are creating a demand for underground and submarine cables. Regions such as North America and Europe are switching towards the adoption of underground cables instead of overhead cables. The underground cables reduce space required and offers reliable transmission of electricity.
The Covid - 19 outbreak has impacted the wires and cables market growth due to a few minor shifts that occurred in communication technologies. Online courses and classes conducted by universities and colleges due to the worldwide closure, introduction of telehealth in the healthcare industry to reduce in-person visits, and companies working remotely and abiding by the WFH (Work from Home) policies are some of the prominent examples that have been witnessed across the globe. Thus, connectivity and communication technologies have accelerated in the span of the pandemic, the report said.
The telecommunications industry has highly benefitted from the situation as the pandemic has highlighted the true value of connectivity. 5G progress in connections and deployments has continued despite the pandemic and resulting economic downturn, the report said.
