Global Cables Market to Reach $195.24 Billion by 2021, Says Beroe Inc
Source: PR Newswire
RALEIGH, North Carolina, October 15, 2019 - The global cables market is currently estimated to be worth $185.80 billion and is estimated to be growing at a CAGR of 2-3 percent till 2021, according to Beroe Inc, a procurement intelligence firm. The growth of the cables market is driven by increasing investment in infrastructure and greater demands from the telecommunication industry.
The APAC currently has the largest market for cables, valued at $78.2 billion and growing at a rate of 2–3 percent, and is expected to continue to dominate the market until 2021. High market maturity regions are the APAC and Europe while medium market maturity regions are North America, South America, and MEA. In the APAC, the US, Canada, Europe, and MENA there is sufficient capacity while in Latin America the supply is tightening.
Beroe, which is based in North Carolina, further stated that procurement experts can access this report on its recently launched market intelligence platform Beroe LiVE: live.beroeinc.com
Increasing demand for electricity in the emerging and developed countries, increase in demand from the ICT sector especially in China, India, Malaysia and high demand in intelligent systems and IoT are the key drivers of the telecom cables market. Volatility in raw material prices and an increase in competition coupled with Regulatory issues that deal with offshore wind farms and difficulties in achieving an optimal interconnection arrangement in subsea cables are the main constraints.
The global cables market is divided into two major industry segments, electrical and telecom/datacom cables, which could be used in various end-use applications. They are further categorized into cables for LV energy, accounting for 35 percent of market size, power cables for 32 percent, winding wires for 14 percent, internal telecom/data for 9 percent, fiber optic cables for 7 percent, and external telecom for 3 percent. The latest trends in the cables market have focused on the increase in the innovation of core technology, with optimized designs resulting in high energy efficiency.
- There are generally two types of annual contracts for the procurement of cables, such as fixed-price contracts and variable price contracts. In fixed-price contracts, the price is fixed for a given duration, while in variable price contracts the client and the supplier get into an agreement, wherein the final price is subject to variation, based on changes in key raw material prices.
- Buyer power is highly supported by the large number of players in the industry, which provides the buyer with high options. However, the switching cost is relatively higher, as a majority of the cables to be replaced are more than 10-years-old and require significant up-gradation of the support infrastructure, in order to install/replace new cables.
- Many Tier 2 companies are involved in cabling services, such as installation and commissioning, maintenance and repairs, the supply of spare parts, engineering, etc., thus supporting customers across all industries, increasing the reliability and increasing its service life.
- The three broad KPI segments of cables procurement are value creation (the ability of procurement to create value to the organization), operational excellence (efficient and cost-effective manner of procurement), and strategies for growth, pertaining to adopting trends and anticipated changes in cables procurement.
- Currently, there is no technology or product, which provides an alternative to cables from the end use/application point of view. Nowadays, wireless signal transmissions are coming up, which might be a threat to the cables market, but not for the next 10 years.
The research methodology adopted for the report included:
- Experts with twenty years of domain experience
- Interaction with buyers
- Inputs from supply chain partners
The impactful cost components in the cables market are raw materials, constituting approximately 65 percent of total costs, followed by design and labor for 16 percent, and fixed components for 14 percent. Raw materials for cables include copper/aluminum, thermoplastics, rubber materials, and non-metallic elements. As the global cables market is raw material intensive, price fluctuations of raw materials impact the cost of the final cables.
The report also includes:
- Market Maturity
- Market Size and Trend
- Drivers and Constraints
- Regional Market Outlook
- Porter’s Five Forces Analysis
- Supply Market Outlook
- Key Player Market Share
- Supplier Profile
- Top Five Suppliers’ Profile and SWOT Analysis
- Prysmian, Furukawa, Fujikura, Sumitomo, and Southwire
Cost and Pricing Analysis:
- Cost Structure Analysis
- Price Driver Analysis
- Mineral Oil
Procurement Best Practices:
- Industry Best Practices
- Industry Practice Trends
About Beroe Inc.:
Beroe is the world's leading provider of procurement intelligence and supplier compliance solutions. We provide critical market information and analysis that enables companies to make smart sourcing decisions—leading to lower costs, greater profits and reduced risk. Beroe has been providing these services for more than 13 years and currently works with more than 10,000 companies worldwide, including 400 of the Fortune 500 companies.
To learn more about Beroe Inc., please visit: http://www.beroeinc.com