Albany, NY -- (SBWIRE) -- 02/19/2020 -- Wire & Cable Plastics Market: Introduction
The global wire & cable plastics market was valued at ~US$ 10.8 Bn in 2018 and is anticipated to expand at a CAGR of ~4% from 2019 to 2027. In 2018, China and the U.S., the world's two major power sectors, accounted for 70% of the global electricity demand. Increase in the demand for electricity is expected to drive the global wire & cable plastics market during the forecast period.
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Key Drivers of Wire & Cable Plastics Market
Plastic-insulated wires and cables play a pivotal role in residential, commercial, and industrial establishments, as they are used for delivering power, data, and voice communication safely to electric devices. Hence, increase in investments in the building & construction industry led by rise in the purchasing power parity along with improvement in the living standards is anticipated to propel the global wire & cable plastics market during the forecast period.
Increase in Demand for Cross-linked Polyethylene to Offer Attractive Opportunities
Rise in urbanization, increase in population, and improvements in economic conditions across different regions are projected to drive the demand for houses worldwide in the near future. This is expected to boost the demand for wood-based panels. This, in turn, is anticipated to augment the demand for wire and cable plastics, as resins based on wire and cable plastics are employed to produce wood-based panels. Increasing demand for wire and cable plastics in automotive, chemical, and personal care & cosmetics sectors led by their excellent adhesive and binding properties is projected to drive the global wire & cable plastics market during the forecast period
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Surge in Concerns about Plastic Disposal to Hamper Market
Over the last decade, demand for plastic has increased significantly across the globe, owing to its growing usage in sectors such as electrical & electronics (E&E) for insulating wires and cables. Plastic is made of several types of polymers such as polyethylene, polypropylenes, polyesters, PVC, and polyamides (including nylon). Most of these polymers are not biodegradable and hence, they remain as waste in the environment for a long time. This can pose a risk to human health and environment. This factor is likely to hamper the global wire & cable plastics market during the forecast period.
Asia Pacific Dominates Wire & Cable Plastics Market
In terms of volume, Asia Pacific held a leading share of the global wire & cable plastics market in 2018. Demand for energy in Asia Pacific is projected to increase at a rapid pace during the forecast period, with simultaneous increase in energy usage in sectors such as industry and transportation and in newly electrified rural areas in countries of the region. This is likely to boost the market in the region in the near future. The wire & cable industry in Europe is expected witness significant growth in the near future, owing to initiatives such as 'Digital Agendas for Europe-2025'. Thus, growing use of wires and cables in the IT & telecommunication sector in the region is anticipated to drive the wire & cable plastics market in Europe in the near future.
High Demand for Wire & Cable Plastics in Power & Energy Industry in North America
In terms of end-use industry, the power & energy segment constituted a key share of the wire & cable plastics market in North America in 2018. The power sector in North America is mature. The building & construction segment of the market in the region is expected to expand rapidly during the forecast period. Rapid increase in construction activities in North America, especially in the residential sector, led by low borrowing costs is estimated to boost the demand for housing units in the region. This factor drives the building & construction segment of the wire & cable plastics market in North America.
Prominent Companies in Global Market
Prominent players operating in the global wire & cable plastics market are SABIC, Formosa Plastics, Solvay Group, BASF SE, and Arkema Group. These five companies hold a major share of the global market. In 2019, Siechem Wires and Cables, SE, a leading manufacturer and exporter of marine and shipboard cables in India, announced to have developed underwater cables by using plastic additives produced by BASF. In 2019, Arkema announced its plans to increase its production capacity for high-performance polymer PVDF (polyvinylidene difluoride) at its Changshu plant in China.