Global Sustainable Wires and Cables Market Research Report: Forecast (2024-2030)

Market Definition

Sustainable wires and cables refer to electrical conductors that are designed, manufactured, and utilized with a focus on minimizing environmental impact, promoting resource efficiency, and adhering to eco-friendly practices throughout their lifecycle. These cables are developed to meet the growing demand for environmentally responsible solutions in various industries, aligning with global sustainability goals. Key characteristics of sustainable wires and cables include the use of recyclable materials, energy-efficient manufacturing processes, adherence to environmental standards, and a commitment to minimizing the overall carbon footprint.

Market Insights & Analysis: Global Sustainable Wires and Cables Market (2024-30):

The Global Sustainable Wires and Cables Market is estimated to grow at a CAGR of around 16.5% during the forecast period, i.e., 2024-30. The growing requirement for energy efficiency across various industries, such as building & construction, industrial manufacturing, etc., is propelling the adoption of sustainable wires and cables. The emissions of greenhouse gases are on the rise across the globe, leading to environmental degradation and climate change globally. According to the International Energy Agency, in 2022, global energy-related CO2 emissions grew by around 0.9% compared to 2021. Thus, governments, businesses, and consumers across the globe are increasingly recognizing the need to optimize energy use to reduce carbon emissions and address climate issues. Consequently, this is driving the adoption of sustainable wires and cables across global markets.

Moreover, the global shift toward renewable energy sources and sustainability, driven by environmental concerns and the need to reduce reliance on fossil fuels, is leading to an expansion of renewable energy projects such as solar and wind. According to the International Energy Agency, renewables are set to contribute around 80% of new power generation capacity by 2030 under current policy settings. Thus, the demand for sustainable cables is increasing globally to transmit, distribute, and connect the electricity generated by solar panels and wind turbines.

Furthermore, the increasing construction of green buildings in the US, the UAE, Europe, etc., owing to environmental awareness, regulatory support, and energy efficiency standards, is fueling market growth. Sustainable cables and wires are essential components in green buildings, as they contribute to minimizing energy loss during transmission, aligning with the overall energy efficiency goals of green construction projects.

Global Sustainable Wires and Cables Market Driver:

Increasing Construction of Data Centers Aligned with Sustainable Initiatives – The increasing need to manage & back up huge amounts of data & information of small, medium, and large businesses across the globe is mounting the adoption of cloud-based technologies, thereby augmenting the demand for data centers. In alignment with this demand and the expanding commitment to green initiatives aimed at reducing carbon footprints, data center providers such as Amazon, Google, etc. are increasingly focusing on the construction of sustainable data centers. For instance,

• In 2023, Singtel, a Singaporean telecommunications conglomerate, launched the construction of the country’s highest power density, a hyper-connected green data center.

This transformation in data centers is widely supporting the market size of sustainable wires and cables, as they contribute to minimal energy loss and align effectively with the energy efficiency goals of economies globally. Furthermore, sustainable data centers prioritize energy-efficient designs, leading to reduced operational costs over time. As a result, businesses are recognizing the financial benefits of reduced energy consumption and operational expenditures, thus making sustainable data centers an economically sound choice.

Global Sustainable Wires and Cables Market Opportunity:

Surging Smart Grid Development to Expand the Market – The surging smart grid development in the UAE, China, Japan, Canada, and other nations is catalyzing the widespread adoption of sustainable wires. Smart grids leverage advanced technologies like sensors, communication networks, and data analytics to enhance the efficiency and reliability of electrical grids. This evolution prompts the integration of sustainable wires, such as high-efficiency conductors and eco-friendly materials, to optimize energy transmission. For instance,

• In 2021, China planned to modernize and expand its power grids with USD 442 billion in investments over the period 2021-2025.

Additionally, the expansion of smart city projects across Asia-Pacific, the Middle East, South America, etc. is also expected to contribute to the demand for smart grids and sustainable wires, respectively. These initiatives integrate advanced technologies for efficient urban operations, where sustainable wiring becomes crucial for smart grids, IoT networks, and intelligent infrastructure.

Global Sustainable Wires and Cables Market Challenge:

Shortage of Raw Material to Slow Down Market Expansion –  Ongoing shortages of aluminum and copper, influenced by shipping delays, China's power cuts, and high demand for green energy and electronics, negatively impact the production of sustainable wires. According to the World Bureau of Metal Statistics (WBMS), in 2023, global copper cathode output was around 2.10 million metric tons, and consumption reached around 2.17 million metric tons, resulting in a supply shortage of over 74,400 metric tons. Aluminum and copper shortages raised production costs, impacting the cost-effectiveness of sustainable cables and wires, thereby discouraging eco-friendly adoption.

Moreover, the shortage of aluminum and copper has disrupted the supply chain activities for cable and wire manufacturers. Procurement delays in raw materials have created production bottlenecks, affecting the ability to meet market demands and causing project timeline delays. This, in turn, is somewhat restricting the supply and demand for sustainable cables globally.

Global Sustainable Wires and Cables Market Trend:

Increasing Popularity of Cross-linked Polyethylene (XLPE) Technology –  Cross-linked polyethylene (XLPE) has become a preferred choice among various industries such as construction, manufacturing, etc., due to its ability to operate at higher temperatures, increased current carrying capacity, ease of processing, and reduced dielectric losses. Thus, the construction and infrastructure sectors are extensively adopting XLPE-insulated cables for various applications, including building wiring, underground installations, and transmission lines.

Apart from this, industries such as consumer electronics and telecommunications are also adopting these wires and cables for better operational efficiency at a sustainable cost. Further, with the increasing capacity of renewable energy sources and the necessity of long-distance power interconnectors, the need for XLPE cables has widely emerged. Thus, manufacturers such as Sumitomo Electric, Prysmian, Finolex, Hellenic, etc. are introducing and testing XLPE cables to cater to this demand globally.

• In 2022, Sumitomo Electric Industries, Ltd., announced that its 525 kV cross-linked polyethylene (XLPE)-insulated high-voltage direct current (HVDC) submarine cable system has been tested as per the international standard CIGRE-TB496. This XLPE product is approved by a third-party certification body, thus making it safe to use for long-distance and large-capacity power transmission.

As renewable power projects and cross-border electricity trading continue to exist, specifically across Europe and Asia-Pacific economies, the need for XLPE cables will continue to exist. This, in turn, would widely promote the revenue growth of the market in the coming years.

Global Sustainable Wires and Cables Market (2024-30): Segmentation Analysis

The Global Sustainable Wires and Cables Market study of MarkNtel Advisors evaluates & highlights the major trends and influencing factors in each segment. It includes predictions for the period 2024–2030 at the global level. According to the analysis, the market has been further classified as:

Based on Installation:

• Overhead
• Underground

Overhead installations are widely employed in power distribution and transmission systems. They find extensive use in electrical grids, especially across rural areas where the infrastructure spans long distances. With a growing emphasis on environmental sustainability, utility networks are seeking solutions that minimize ecological impact. Sustainable wires, designed with eco-friendly materials and manufacturing processes, align with this environmental consciousness. Further, utility network providers are increasingly incorporating more renewable energy sources into their grids, thereby fueling the demand for sustainable wires & cables that support the transmission of clean energy.

Besides, maintenance and repairs are more accessible in overhead installations. Technicians could quickly identify and address issues, leading to reduced downtime and operational disruptions. Thus, these factors are positively contributing to a substantial share of overhead installations in the Global Sustainable Wires and Cables Market.

Based on End User:

• Building & Construction
• Industrial & Manufacturing
• IT & Telecommunication
• Power Generation & Distribution
• Aerospace & Defense
• Automotive
• Others (Healthcare, Oil & Gas, and Mining)

The building and construction sector is estimated to dominate the market in the forecast period owing to the rising commitment to green building standards like LEED, WELL, BREEAM, etc. Developers and builders are compelled to meet stringent environmental criteria, which in turn propels the adoption of eco-friendly wiring solutions to achieve certification and demonstrate a dedication to energy-efficient and environmentally responsible construction practices. Consequently, the global sustainable wires and cables market is witnessing a notable upswing in the building & construction sectors globally.

Furthermore, rapid urbanization and population growth across the globe are leading to the development of new cities, resulting in increased demand for services, infrastructure, and efficient urban management. Countries like Oman, Malaysia, India, etc. are increasingly launching various smart city initiatives aiming to address challenges posed by urbanization by leveraging advanced technologies. For instance,

• In 2023, Oman unveiled ambitious plans for a new 100,000-person “Sultan Haitham Smart City” outside its capital, Muscat.

As smart cities aim to optimize resources, enhance connectivity, and improve overall urban living conditions, the demand for sustainable construction materials, including cables and wires, is projected to grow significantly in the coming years.

Global Sustainable Wires and Cables Market (2024-30): Regional Projections

Geographically, the Global Sustainable Wires and Cables Market expands across:

• North America
• South America
• Europe
• The Middle East and Africa
• Asia-Pacific

North America is poised to experience significant demand for sustainable wires & cables during the forecast period. This dominance could be attributed to diverse factors, encompassing technological progress, regulatory initiatives, and an increasing focus on sustainability. Notably in the U.S. and Canada, the enforcement of stringent environmental regulations and standards such as the Environment and Climate Change Canada (ECCC) Administers Acts, Inflation Reduction Act, etc. is influencing this demand. For instance,

• In 2023, the US government adopted new building energy standards for homes built and financed by the federal government. The move aims to improve energy savings by more than 35% for families.

This has spurred industries & residents to embrace more sustainable approaches, including the adoption of eco-friendly wire and cable solutions. Moreover, growing awareness of environmental concerns and sustainability is evident among businesses and consumers in North America. Many organizations are actively working to diminish their carbon footprint by opting for sustainable products and solutions. Thus boosting the region's shares in the Global Sustainable Wires and Cables Market.

Global Sustainable Wires and Cables Industry Recent Development:

• In 2023, Southwire Company, LLC, signed letters of commitment for the Copper Mark, affirming its commitment to the responsible production of copper and beginning the assurance process for four manufacturing sites.
• In 2022, Borealis AG and Borouge showcase sustainable wire and cable innovations, 'Borlink', at the WIRE 2022 held in Düsseldorf, Germany.

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