Demand for Insulated Wire, Cable to Exceed $29-Billion



US demand for insulated wire and cable is projected to increase 5.8 percent per year through 2017 to $29.2 billion, recovering from declines during the 2007-2012 period, according to a study from The Freedonia Group Inc., a Cleveland-based industry market research firm.

Building construction, particularly new housing, will drive demand for many types of wire and cable, including building, electronic, and power wire and cable products. In addition, upgrades to the aging US power transmission and distribution network will stimulate gains for power wire and cable and a turnaround in motor vehicle production will benefit advances for primary, ignition, and battery wire and cable.

Fiber optic cable is a vital component of the telecommunications market. After bottoming out in 2003, demand for fiber optic cable picked up at a rapid rate as telecommunications providers invested heavily in laying a fiber optic network to deliver data, television, and voice signals to consumers. The majority of this backbone infrastructure was installed during the past decade. As a result, although fiber optic cable demand will continue to record strong growth, demand increases will moderate through the forecast period. A large share of demand gains going forward will come from last-mile applications, which are still primarily comprised of copper coaxial cable.

Building wire and cable accounted for the largest share of product demand in 2012, as it is used in nearly all residential and nonresidential structures. As a result, the recovering US construction industry will cause demand for building wire and cable to advance at the fastest rate.

Power wire and cable demand will also benefit from growth in construction expenditures. Underground cable will experience the strongest segment gains, due to its aesthetic advantages over aerial cable. However, due to the higher costs of installing underground cable, it will experience only modest growth in replacement applications. As the nation's infrastructure ages, necessary upgrades to the current power transmission and distribution network will boost aftermarket gains. Electronic wire and cable demand will be spurred by advances in the telecommunications market, as well as by a turnaround in electronic equipment shipments.


source from wire world