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North American Wire and Cable Materials Market Strengthened by Construction and Infrastructure Boom Finds Frost & Sullivan - Necessity for high-performance materials in power and communication cable segments boosts growth - Chemicals.Frost.com
North American Wire and Cable Materials Market Strengthened by Construction and Infrastructure Boom Finds Frost & Sullivan

 

NewswireToday - /newswire/ - Mountain View, CA, United States, 2013/03/12 - Necessity for high-performance materials in power and communication cable segments boosts growth - Chemicals.Frost.com.

   
 
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The demand for materials in the wire and cable industry is tied directly to the economy. Improving economic conditions in the short term and growth in construction and infrastructure activities will result in an increasing demand for cables and, subsequently, the materials that comprise them. Growth in revenue is also driven by the shift of the industry toward higher-performance materials, especially in the power and communication cable segments.

New analysis from Frost & Sullivan (chemicals.frost.com), Analysis of the North American Wire and Cable Materials Market, finds that the market earned revenues of $1.92 billion in 2012 and estimates this to reach $2.53 billion in 2018. The analysis covers the segments of power cables, building wires and communication cables.

If you are interested in more information on this research, please send an email to Jeannette Garcia, Corporate Communications, at jeannette.garcia[.]frost.com, with your full name, company name, job title, telephone number, company email address, company website, city, state and country.

"Overhead lines are generally bare conductors, where air acts as the insulation; underground cables, however, require plastic insulation, jacketing and sheathing materials," said Frost & Sullivan Chemicals & Materials Research Analyst Anita Pamu. "Thus, the growth of the underground T&D market will accelerate the sales of cable materials within this segment."

While there is significant demand for new cables in the power sector, there is little demand within the replacement market because building cables and the cables used for T&D of electricity. The average lifespan of a power cable can range from 25 to 40 years, which translates to low replacement rates.

This drop in revenue-generation opportunities can be offset by the market's shift toward higher-performance materials, as manufacturers are paying more attention to lifecycle costs. There is also increasing pressure from both customers and regulators to maintain and enhance service reliability, while simultaneously controlling costs.

Almost all cable applications are subject to standards, which influences the type of plastic used for specific applications. Stringent fire safety regulations also have a bearing on the wire and cables industry, as they fuel demand for better-performing alternatives.

To stand out in a competitive, commodity market, material suppliers must focus on developing lighter compounds and reducing material costs. Resin and compound suppliers should seek to establish their presence in high-growth markets to sustain sales volumes. Suppliers that offer a wide range of cable-grade resins and compounds are much better able to retain existing customers and gain new business.

"Suppliers can also develop a specialized product to capture a niche market and consequently, improve profit margins," concluded Pamu.

Analysis of the North American Wire and Cable Materials Market is part of the Materials Growth Partnership Service program. Frost & Sullivan's related research services include: North American Construction Chemicals Market, Materials Market for Solar Thermal Collectors, Plastics Market in Water Infrastructure, and Global Wind Turbine Chemicals Market. All research services included in subscriptions provide detailed market opportunities and industry trends evaluated following extensive interviews with market participants.

About Frost & Sullivan
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The Integrated Value Proposition provides support to our clients throughout all phases of their journey to visionary innovation including: research, analysis, strategy, vision, innovation and implementation.
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Analysis of the North American Wire and Cable Materials Market / NB79-39

 
 
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North American Wire and Cable Materials Market Strengthened by Construction and Infrastructure Boom Finds Frost & Sullivan

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Frost & Sullivan |
Publisher Contact: Jeannette Garcia 
210-477-8427 jeannette.garcia[.]frost.com
 
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