Market Trends of North America Wire And Cable Industry
Construction Industry to be the Largest End User
- The construction segment comprises both residential and commercial in the studied scope. The wiring and cabling network are the most critical components for residential buildings, manufacturing plants, or any other type of commercial structure, as wires and cables are used to deliver power, control, data, voice communication, and security to the entire infrastructure.
- The increasing demand for wire and cables in the residential and commercial construction industry is driven by population growth and urbanization in the North American region. According to the FMI Corporation, in 2022, the new constructions built in the United States had an estimated value of almost USD 1.8 trillion. Over the last few years, construction spending has been growing steadily.
- The residential construction industry continues to grow mainly due to low mortgage rates, strong demand for bigger living quarters, and insufficient housing stock on the market. Apart from building houses, home renovations are also an essential aspect of housing construction. The annual value of upgrading homes in the United States is expected to exceed USD 205 billion by 2023. Compared to the previous four years of a boom in construction, more than 330,000 new rental units are planned for delivery nationwide.
- Furthermore, according to the NAIOP (Commercial Real Estate Development Association) report, in 2022, the commercial construction industry was still growing for the US economy. Developing and operating new commercial real estate and existing buildings contributed USD 2.3 trillion to US GDP. These trends may boost the market's growth during the forecast period.
- A significant factor that underpins industry growth is the shifting trend toward a digital economy and information society. The increased demand for products from industries is also attributable to the increasing number of utilities that have converted to smart grids, thereby improving commercial and residential construction activity. Large utility companies within the United States have announced numerous new projects over the last few years.
- For instance, according to the FMI Corporation, new residential construction in the United States rose drastically between 2019 and 2022; even though the COVID-19 pandemic had an impact, the value reached approximately USD 909.8 billion by 2022. Therefore, considering numerous construction-related developments across the region, it is anticipated that the wire and cable market may have a positive impact on the market during the forecast period.
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United States to Witness Major Growth
- The market is experiencing growth due to considerable investments being made in the automotive and manufacturing industries. Additionally, the increasing use of IT and telecommunications is driving up the demand for wire and cables. Concerns about electrical supply failures, health risks, fires, and other operational hazards are contributing to the expansion of the market. Increased investments in extending electrical networks to isolated and rural areas will greatly support the growth of the United States wire and cable sector.
- The United States has obtained a prominent position owing to the increasing pace of fiber optic deployment in the country recently. For instance, according to the 2022 Fiber Provider Survey findings by the Fiber Broadband Association, US fiber-to-the-home (FTTH) deployments are expected to set a record in the coming years. The findings showed that FTTH networks added 7.9 million additional homes in the United States in 2022 despite supply chain and labor constraints.
- Owing to the growing demand for fiber-based networks in the country, many players are expanding their production capabilities in the region. For instance, in August 2022, Corning Incorporated announced its plans to expand the manufacturing capacity for optical fiber cables with the construction of an all-new cable manufacturing facility in Gilbert, Arizona. The facility, expected to open in 2024, will be the industry's westernmost US manufacturing site for optical cable, allowing the company to serve the growing demand in the western United States.
- A recently released report by the Departments of Commerce (DOC) and Homeland Security, titled 'Assessment of the Critical Supply Chains Supporting the US Information and Communications Technology Industry,' highlights the positive outlook for domestic manufacturing of optical transmission equipment, including fiber and optic cables, partly spurred by growing 5G deployment, which requires fiber to every antenna and tower.
- According to the CBRE Group, the power supply of data centers under construction reached 1.9 gigawatts in 2022, with Northern Virginia being the country's leading market for data center construction. Fiber optic technology is expected to serve as the cornerstone of automation in Industry 4.0. It facilitates fast data sharing, allowing distinct segments of the business to be connected, data to be analyzed, and actions to be calculated and implemented without human oversight. Thus, the region also offers considerable growth opportunities to the market as it is a leading adopter of Industry 4.0 globally.
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