Wire & Cable

Wire and cable is a dynamic industry with several trends influencing operations:

• Demand for related materials. The rising demand for copper in electric vehicles and renewable energy infrastructure will continue to tighten supply for wire and cable construction, driving up material prices and potentially, the cost of finished goods. Similar to copper, demand for antimony — an essential component in solar panels — will grow alongside renewable energy generation installations, making material costs higher for wire and cable manufacturers. These rising costs present an opportunity for manufacturers to explore alternative materials, such as low-smoke, zero-halogen options.
• Fiber-to-the-home (FTTH) initiatives. Now that urban and suburban regions are mostly covered, FTTH programs are expanding into rural areas supported by the Broadband Equity, Access and Deployment (BEAD) program. Continued fiber installation projects will drive strong demand for related polymers through the rest of the decade, particularly as remote work and digital services continue to grow. This puts pressure on the polymer industry to meet rising demand while also managing costs and availability.
• Rising feeder power cable demand. Grid upgrades, new construction and renewable energy projects are driving the need for more power infrastructure and demand for feeder power cables. The surge in AI and data center construction, which is expected to increase electricity demand by 160%, will also significantly impact demand for power cables and related materials. As data centers consume more energy, potentially rising from 1-2% of global electricity to 3-4% by 2030 according to Goldman Sachs, energy-efficient materials will become a focus. Efforts to reduce carbon emissions from products used in these facilities will be a goal for data center owners and customers.
• Changing regulatory requirements. The European Union's Registration, Evaluation, Authorization and Restriction of Chemicals (REACH) and Restriction of Hazardous Substances (RoHS) updates may cause legacy wire and cable compounds to be reformulated to meet new standards. Staying proactive and working closely with suppliers to find alternatives will be critical.

AI-driven process improvements will be instrumental in compound development in 2025. AI tools are already being used to reverse engineer new materials for specific applications, reducing material development time and costs. By minimizing the number of R&D experiments needed, AI can accelerate time-to-market for optimized products, allowing wire and cable manufacturers to meet customer needs more quickly and effectively.

Additionally, there will be additional demand for novel cable designs and polymer formulations, particularly for applications like fiber-optic cables and fiber/power hybrid cables. These technologies will play a critical role in the expansion of fiber networks and energy transmission systems, supporting both the digitalization movement and the energy transition.