Wire and Cable Compound Market

The renewable energy resources (e.g., solar power plants and windmill-powered plants) market is growing at a fast pace because of the high energy prices and limited energy resources. Power demand is growing at a fast rate due to growing infrastructure, industrialization, and urbanization. Recently, over 190 nations have signed the Paris Agreement, in which every nation submits reports of its own contribution toward controlling global warming. For instance, India pledged to produce 40% of its electricity from non-fossil fuels by 2030. Every nation is working toward producing energy from renewable energy sources because of the need for low maintenance and operating costs, as well as for sustainable development. The market for wires and cables used in the power sector, i.e., medium voltage (MV), high voltage (HV), and extra high voltage (EHV), is estimated to expand rapidly during the forecast period. The expansion is due to the increasing power sector globally, which is anticipated to fuel the market for wire and cable compounds. Seven nations have introduced legislation to implement net-zero emissions, and over 120 nations have vowed to do the same. The commitment by nations is anticipated to be a turning point in the market growth for renewable energy resources. It will increase the demand for lightweight, fuel-efficient mobility, leading to a surge in the requirement for next-generation and technologically advanced wire and cable compounds.

The European Union’s Construction Products Regulation (CPR) is a comprehensive piece of legislation that addresses different elements of any type of building material available for sale in the European Economic Area (EEA). The CPR is designed to ensure the consistency of material performance information through the use of standards and standard test methods. These test procedures measure the performance of cables in terms of important factors like ease of ignition of the cable, rate and distance with which fire travels through the cable, amount of smoke caused by cable combustion, toxicity of cable combustion by-products, and corrosivity of cable combustion by-products. This regulation curbs the use of halogenated compounds in the wire & cable sector. The EU construction sector has been instructed to employ non-halogenated wires & cables, because of which the market for halogenated polymers is witnessing sluggish growth in the region.

The growth of electric vehicle (EV) infrastructure is greatly influencing the wire & cable compound market, triggering a growing demand for specialized EV-specific cables able to fulfill the requirements of EV charging networks. With the increasing popularity of electric vehicles, the demand for efficient and durable charging networks increases accordingly. This also involves the need for high-current and high-voltage capable charging cables, which can handle these efficiently and safely. For different charging standards like Level 1, Level 2, and DC fast charging (DCFC), cables have to accommodate high amperage and voltages, in many cases up to 800 volts for DC fast chargers. These cables are constructed using high-grade thermoplastic elastomers (TPE) or cross-linked polyethylene (XLPE) insulation for durability and flexibility, supporting repeated use and exposure to the environment.

The durability of insulation is a significant concern in the wire and cable sector, particularly for submarine cables. These cables are laid on the ocean floor and traverse deep, often turbulent waters, requiring insulation materials that can endure extreme pressure, high salinity, and temperature fluctuations. As time passes, such conditions will result in degradation of insulation that may cause potential failure or diminished performance. Keeping insulation intact and functional over the long life of a cable is important for maintaining operational reliability and limiting expensive repairs or replacements. This problem requires ongoing improvements in material science and engineering to create more durable insulation materials that can withstand the harsh underwater environment. Moisture ingress is a persistent threat, significantly reducing insulation resistance and potentially causing electrical failure. Impurities, coarse additives, or heavy metals in the compounds can also degrade insulating properties. Developing compounds that combine all necessary properties, thermal and chemical resistance, mechanical strength, flame retardancy, and long-term durability without excessive cost or environmental impact is technically complex and requires advanced formulations and manufacturing precision.