A wire is a single conductor, and the cable is the group of wires bundled together in an assembly and wrapped in a single jacket to allow the flow of charge through it. Several types of cables are used for transmitting communication signals and electric power across different verticals. The mounting demand from the power distribution industry and massive investments in smart grid projects are leading to the increasing production of wires & cables across GCC nations.
The GCC Wires and Cables Market is anticipated to grow at a CAGR of around 15% during the forecast period, i.e., 2021-26. Wires & cables are a crucial part of infrastructure development. Hence, rapid infrastructural developments across GCC nations are projected to drive the market. In addition to this, various government initiatives and emphasis on generating power from renewable sources have also fueled the adoption of wires & cables.
Moreover, the surging demand for refined power transmission & distribution systems is another crucial factor that shall boost the market. Wires & cables are used in several applications to transmit electric signals. Rising urbanization & robust government support to expand power distribution networks across different areas are also likely to propel the overall market growth during 2021-26. Besides, increasing projects in the residential & commercial sector, coupled with the soaring demand for uninterrupted electricity, are other crucial factors proliferating the market growth.
Furthermore, snowballing investments in smart grid projects have surged the need for grid interconnection and, in turn, fueled the wires & cables market growth. Apart from this, increasing demand for underground cables is also contributing to the overall market growth in the coming years.
|Study Period||Historical Data: 2016-19|
|Base Year: 2020|
|Forecast Period: 2021-26|
|Key Companies Profiled||Riyadh Cable, Jeddah CableBahra Cables, Al Fanar Electrical Systems, Dubai Cable, Power Plus Cables, National Cable Industry, Oman Cables Industry (OCI), QICC Cables, Doha Cables|
|Unit Denominations||USD Million/Billion|
Impact of Covid-19 pandemic on the GCC Wires and Cables Market
The Covid-19 pandemic in 2020 catastrophically impacted most industries across the GCC region. Governments of various nations across the region imposed lockdowns & movement restrictions that led to the shutdown of manufacturing units & delays in construction projects, which, in turn, negatively impacted the Wires & Cables Market.
The demand for wire and cables witnessed a significant decline amidst the pandemic. Wuhan is the largest concentration of the fiber optics supply chain. As a result, during the initial phase of the pandemic, the market witnessed adverse effects.
However, due to mounting inclination toward online classes, work-from-home policies, and the introduction of telehealth amidst the pandemic, there was a paradigm shift of people toward communication technologies, which surged the need for better connectivity and communication. Also, the continuous progress in 5G deployments despite the pandemic & economic downfall has been contributing to the market growth. Furthermore, the demand for wires & cables from the automotive & aviation sector has remained stable & is increasing steadily after the upliftment of lockdown, which, in turn, is propelling the overall market growth.