South Africa Wires & Cables Market - Forecast(2024 - 2030)

South Africa Wires & Cables Market size is projected to reach US$15.5 billion by 2030, and it is estimated to grow at CAGR of 5.5% during 2024-2030. With the rising demand for electricity and telecommunications, the market is poised for steady expansion and innovation. Government initiatives are also playing a crucial role in propelling the market forward. Increased investments in infrastructure development and electrification projects are contributing to the demand for South Africa wires and cables.

A wire is an electrical conductor, while a cable is a group of individually insulated wires encased together in sheathing. Wires and cables can be made from various materials, such as copper, steel, aluminum and others. The materials each have different resistances. Thick wire will have a lower resistance than thin wire made from the same material. Resistance of the wire can change proportionally with change in temperature or length of the wire. Wires and cables form an integral part of the modern-day industries. South Africa, a developing nation holds a significant potential for the wire and cable industry. It forms the backbone of the present information age, providing users with power, light and communication. Wires and cables are used in industries such as power transmission & distribution, buildings, automotive, home appliances and communications among others.

The Gauteng provincial government in South Africa is investing $4.9 billion to transform Mooikloof, a suburb of Pretoria, into a green city by 2030. The "Mooikloof Mega City" project aims to address environmental challenges such as water access, waste management, and air pollution. Growing investments in South Africa's construction sector, especially due to smart city trends and significant government infrastructure spending, are propelling demand for South Africa wires and cables market.

The report: “South Africa Wires & Cables Market Forecast (2024-2030)”, by IndustryARC, covers an in-depth analysis of the following segments of the South Africa Wires & Cables Market.

                                                   

By Material Type: Copper, Aluminum, Galvanized Steel, High Strength Composite Core, Others

By Voltage Ratings: Medium Voltage, High Voltage

By Installation: Overhead, Underground, Submarine 

By Type: Power Cables, Control Cables, Speciality Cables, Instrumentation Cables, Others

By Insulation Type: XLPE, EPR, PVC, MI, Others

By End-user: IT & Telecommunication, Marine, Aerospace & Defense, Automotive, Building Construction, Oil & Gas, Energy & Transportation, Residential, Infrastructure and Others

By Company Type: Local Manufacturing, Local Sales Presence, Imports

By Geography: SADC, EAC

• Copper wire and cable dominated the market in 2023 acquiring a share of 35.2% in 2023.

• IT and Telecommunication sector is estimated to witness the highest growth during 2024-2030 of 9.4% owing to the growing demand for advanced electronic devices in vehicles.

• The significant increase in investment in Construction Sector projects is set to drive the South Africa Wires and Cables Market

• The adoption of automotive Ethernet is hampering the wires and cables market in South Africa by replacing traditional copper wires with high-speed network technology.

                                               

 

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By Material Type, South Africa Wires & Cables Market has been segmented into Copper, Aluminium, High Strength Composite Core, Galvanized Steel and others. Copper wire and cable held the largest market share of 35% in South Africa in 2023 due to its excellent electrical conductivity and high tensile strength. It is widely used in various applications, including power transmission, telecommunications, and automotive industries. Several compelling factors contribute to the rising demand for copper in this critical industry as the country navigates a terrain of technological improvement, infrastructural growth and urbanization. High Strength Composite Core is anticipated to witness significant growth at a CAGR of 6.5% during the forecast period 2024-2030 owing to their outstanding strength-to-weight ratio, flexibility, and resistance to environmental conditions, align with the country’s quest for cutting-edge solutions for its changing industrial landscape. High-strength composite core materials are essential to advancing clean energy programs as South Africa switches to renewable energy sources.

By End-User, South Africa Wires & Cables Market has been segmented into IT & Telecommunication, Marine, Aerospace & Défense, Automotive, Building Construction, Oil & Gas, Energy, Transportation, Residential, Infrastructure and Others. Energy sector has recorded the highest market share of 20% in 2023. The National Energy Regulator of South Africa approved an 18.65% tariff increase for Eskom customers starting on April 2023. Higher electricity tariffs could lead to increased demand for investments in energy efficiency and renewable energy sources, which might indirectly impact the demand for certain types of cables and wires used in these systems. However, IT & Telecommunication is analyzed to grow at the fastest rate at a CAGR of 9.4% during the forecast period 2024-2030 due to increasing connectivity demands, technological advancements, and a growing digital economy. The country has seen significant investments in expanding its telecommunications infrastructure, including Fiber-optic networks, mobile networks, and broadband services. 

The use of wires and cables in the construction sector is a crucial component of modern infrastructure projects. These components play a vital role in enabling the transmission of electricity, data, and communication signals within buildings, across construction sites, and in various infrastructure installations. Increasing investment in the construction sector is set to drive market growth. With the growing popularity of smart cities, there is a significant increase in investment in Construction Sector projects that incorporate South Africa Wires and Cables Market. According to Trade Economics, GDP from construction in South Africa rose up to 667.87 million in the first quarter of 2023 from 6523.04 ZAR Million in the fourth quarter of 2022. The increase in construction-related GDP in South Africa is beneficial for the wires and cables market, as more construction projects mean more demand for wires and cables.

The growing adoption in the telecommunications industry is a significant growth-driving factor for the wires and cables market in South Africa. The dynamic expansion and evolution of the telecommunications sector, encompassing mobile networks, broadband internet, data centers, and advanced communication technologies, create a robust demand for various types of wires and cables. Nokia secures a landmark contract with MTN South Africa for its 5G Radio Access Network (RAN), marking its first partnership with MTN. The partnership involves upgrading the existing 2G/3G/4G network and expanding the 5G network across 2800 sites in Central and Eastern South Africa, contributing to digital transformation in Africa. MTN Group Limited, Africa's leading mobile network operator, covers 17 countries with 272 million subscribers. This deal underscores the growing demand for wires and cables in the telecommunications sector.

The South Africa wires and cable market experiences volatile raw material prices, impacting production costs and market dynamics. Fluctuations challenge manufacturers to adapt, affecting pricing strategies and overall industry stability. According to the Organisation for Economic Co-operation and Development (OEDC), African steel production fell by 9.1% year on year in the first half of 2022. South Africa suffered the greatest loss in steel production, with a 16.3% decrease. The fall in African steel output is anticipated to have a detrimental influence on the cable and wire business, as steel is a major raw material utilized in the production of wires and cables. Steel price increases are likely to contribute to increased pricing for cables and wires, which may limit demand for these products.

Product launches, Acquisitions, Collaboration, and R&D activities are key strategies adopted by players in the Market. The key players in the South Africa Wires and Cables market include

In July 2023, Nexans has announced an expansion in its presence in the offshore wind and interconnection market, by adding a third cable laying vessel to its fleet.

In March 2023, Prysmian Group, world leader in the energy and telecom cable systems industry, announced the launch of the first optical cables certified green thanks to its ECO CABLE label, the first proprietary green product label in the cable industry.