Wednesday 10 February 2016

South Africa Wire and Cable Market to be driven by the Growing Automobile and Telecommunication Industries

Wires and cables are the vital components of the modern day industries owing to its application in diversified sectors. They provide users with communication, light, and power. The developing economy of South Africa holds a great potential for the wire and cable market in the near future.

The South Africa wire and cable market is anticipated to touch US$834.5 billion by the end of 2020, exhibiting a progressive 12% CAGR between the years 2014 and 2020. The South Africa wire and cable market was valued at US$355.0 million in 2013.

South Africa is witnessing a tremendous growth of automobile industry which is boosting the wire and cable market in the country. Apart from that, the growth in local cable manufacturers and the government initiatives to procure from these local manufacturers are expected to further propel the demand of wire and cables market in South Africa. Moreover, the increasing in-vehicle wiring application bears the biggest opportunity for key players for providing specialty automotive wire and cable in the forecast period. On the other hand, the rising environmental concerns regarding the recycling and safe disposal of wire and cables is hampering the growth of the South Africa wire and cable market.

Low Voltage Wire and Cables Find Application in Several Industries

On the basis of voltage, the South Africa wire and cable market has been segmented into low voltage, medium voltage, and high voltage. The voltage capacity or power is provided to the end-user or included in a device as per their requirement.

Among all the voltage type, low voltage wire and cable sector dominates the market. This sector finds its application in various industries such as communications, buildings, power distribution and transmission, automobiles, and electronic applications.



Copper Wire and Cable Sector to Continue with the Dominance in South Africa Market

The South Africa wire and cable market has been categorized according to its types, which are aluminum, fiber optic, copper, and others. In 2013, the copper wire and cable segment dominated the South Africa market with a 38.17% market share, followed by the fiber optic cables segment.

The domination of the copper segment is anticipated to continue throughout the forecast period. The rising demand of copper is due to the investments made by the South African government in infrastructure sector. These rising investments are anticipated to fulfill the demands of a rapidly growing population and economy of South Africa. Copper wire and cable are widely used in power generation, telecommunications, electronic circuitry, distribution and transmission among other types of electrical equipment.

Building Segment to lead the South Africa Wire and Cable Market in the Forecast Period

The South Africa wire and cable market has been further segmented on the basis of its application such as home appliances, buildings, communication, power distribution and transmission, automotive, and others (aerospace, consumer electronics, and healthcare).

Among all the applications, buildings segment is the largest contributor in the South Africa market for wires and cables that include both residential and commercial projects. The increasing infrastructural development and new government initiatives in South Africa have boosted the demand of wire and cable. Another rising application segment is telecommunications, which is growing rapidly in South Africa. Apart from that, other applications such as power distribution and transmission, communications, automotive and electronic appliances collectively are expected to propel the demand of wire and cable market in South Africa.

The South Africa wire and cable market bears limited competition. Some of the key players operating in the market are South Ocean Holdings Ltd., CBI - electric: African Cables, CCG Cable Terminations, STMicroelectronics, Texas Instruments, Renesas Aberdare Cables, General Cable Sub-Sahara Africa, Power Technologies, and Industrial Cable Suppliers.


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