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Insulated Wire & Cable to 2017

Saturday, June 29, 2013 3:44

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US demand to rise 5.8% annually through 2017

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. Building construction will offer the best opportunities for advances, due to a rebound in housing starts. In addition, faster gains in motor vehicle production and the need to upgrade the aging US power transmission and distribution network will drive wire and cable demand.

Demand for infrastructure improvements to spur gains in telecommunications

The telecommunications industry, which utilizes a vast array of wire and cable products, was the leading market for insulated wire and cable in 2012. Through 2017, growth in the number of electronic devices utilizing wireless technology will dampen demand for cable used to connect devices. However, as the number of devices grows, the computing power of the telecommunications infrastructure will need to increase. This will require the construction of new data centers and wireless cellular towers, both of which are heavy users of insulated wire and cable. In addition, further investment in last-mile infrastructure upgrades by telecommunications providers will stimulate advances.

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 will moderate through the forecast period. The bulk of demand gains going forward will come from last-mile applications, which are still primarily comprised of copper coaxial cable.

Building wire & cable to exhibit most rapid gains

Building wire and cable accounted for the largest share of product demand in 2012. Building wire and cable finds usage in nearly all residential and nonresidential structures. As a result, the recovering US construction industry will cause demand for building wire and cable to increase at the fastest rate. Specifically, growth in the number of new housing units will provide the bulk of demand gains, although heightened construction levels of commercial, lodging, and office buildings will also stimulate advances.

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