Freedonia Market Research Analyzes Wire & Cable Market in China

Demand for insulated wire and cable in China is forecast to increase 13 percent annually (including price increases) through 2011 to 335 billion yuan.  Gains will be fueled by strong investment in the power grid, telecommunication and building construction sectors, as well as by further increases in the manufacture of products that incorporate insulated wire and cable.  In order to accommodate the needs of a rapidly expanding industrial sector and to provide a solid foundation for continued economic development, the Chinese government is focusing on expanding and modernizing the country’s utilities infrastructure, including power grids and telecommunication networks.  This is providing significant opportunities for power, electronic and fiber optic cable suppliers.  These and other trends, including market share and company profiles, are presented in Insulated Wire & Cable in China, a new study from The Freedonia Group, Inc., a Cleveland-based industry research firm.

Power wire and cable is expected to remain the largest product segment and post the fastest growth through 2011.  Government efforts to improve China’s power grid will be the principal driver of demand.  For example, China plans to have established a backbone network of ultra-high voltage power transmission by 2020.  Fiber optic cable and electronic wire will also see favorable opportunities as the country increases its telecommunications, computer networking and data communication capabilities.

The electric utilities market for insulated wire and cable is expected to post the fastest rate of growth, reflecting increasing electricity production and the need to upgrade the country’s transmission and distribution network.  Favorable gains will also accrue in electronic and electrical equipment markets, where demand is supported by an expanding communication network and a growing electrical sector.  Market gains for wire and cable in building construction, industrial equipment and transportation applications will be healthy, bolstered by further increases in construction expenditures and industrial and transportation equipment production.

The Freedonia Group is a leading international business research company, founded in 1985, that publishes more than 100 industry research studies annually. This industry analysis provides an unbiased outlook and a reliable assessment of an industry and includes product segmentation and demand forecasts, industry trends, demand history, threats and opportunities, competitive strategies, market share determinations and company profiles.