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Global Wire and Cable Demand Slows, as Europe and East Asia Face Economic Uncertainty


News provided by

Integer Research

11 Dec, 2014, 14:00 GMT

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LONDON, December 11, 2014 /PRNewswire/ --

The world market for wire and cable is witnessing high levels of divergence as demand contracts in the developed European and East Asian economies, according to Integer Research's latest Wire & Cable Global Data Service. The global economy as a whole achieved a mild recovery in 2014, with a resilient US economy, but a weak Eurozone economy.  Elsewhere, China, India and other emerging countries showed signs of a slowdown, and both Russia and Brazil have shown signs of weakening.

Overall global demand for wire and cable grew at 3.2% year-on-year from 2008 to 2014, but Integer's latest research shows global growth in the cable market is expected to slow to just 2% year-on-year in 2015.

Japan and South Korea weighing down the market 

Looking at detailed figures from the latest Wire & Cable Global Data Service, there has been a marked decline in demand for insulated wire and cable in both Japan and South Korea.  The recession in Japan has been deeper than expected, hitting fixed investment. Lacklustre construction activity and delays in building new power plants, due to a slowdown in both economies, have hit the region's wire and cable demand hard.  Many of the leading cable makers in these two countries have seen a decline in their revenues and profit margins.

Mixed fortunes 

Whilst the marked decline in growth across Europe and East Asia is a concern for many in the industry, there are regions which buck the trend, such as Africa and the Middle East, and to some extent Southeast Asia, where there has been greater focus on new infrastructure and investment opportunities. 

Integer's research indicates that despite the constraints to growth due to conflict across the Middle East and Africa, this remains a region where demand is expanding in the power and construction sectors. Both energy and data cable are expected to see strong growth, as the state policies adopted in the aftermath of the Arab Spring have continued to boost infrastructure development - particularly within the GCC.  But this is also at risk if oil prices stay at levels below US$80/bbl.  Africa, Libya, Nigeria and Morocco are key markets that are expected to see solid growth in the next five years.

About Integer Research's global Wire & Cable Data Service 

Integer's ground-breaking Wire & Cable Data Service covers all major product categories across 76 countries and is used by key market players to track the global insulated wire & cable market. It supports strategic decision-making by tracking the latest developments in the wire and cable market, uncovering where demand is growing for different products and identifying exciting new 'hotspots' to consider for future investment.

Delivered in dynamic Excel format, the Data Service is extremely flexible in its offering, allowing different purchasing options and packages so users can tailor it to their exact market intelligence needs. The service has entered into its second year and is celebrating (along with its first birthday) an excellent response and a very high rate of subscription renewal. Use this service to discover the future of the wire and cable industry, be proactive in your approach and make informed, effective decisions. More information on The Wire & Cable Data Service is available here.

To enquire about this data service, please email publications@integer-research.com or call +44-(0)20-3696-2322.

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