The electrical wire industry in China has witnessed significant growth in recent years, driven by the country’s surging economy coupled with rapid development of infrastructure and the significant expansion of national electricity grids. Today, China’s wire and cable manufacturers are self-sufficient in a booming domestic market and have emerged as the largest wire and cable exporter in the world. The Chinese electric cable and wire industry has strengthened its fundamentals in the face of an increasingly challenging environment, which has led to an increased output of cable wires manufactured in China. Global demand for wire and cable is also expected to follow suit; along with stronger support for favorable policies from the Chinese government for.
Global wire and cable industry overview
According to a recent report from Wire China (China’s International Wire & Cable Industry Trade Fair), the production capability in China’s wire industry has seen significant growth after the rapid development in the period of the country’s 10th Five-Year Plan. Since 2006, China has surpassed the US and Japan to become the world’s largest wire and cable manufacturing country in terms of the production value. Currently, electrical wire products made in China accounts for over 20% of the world market, ranking first in the world.
Wire industry market trends and its impact on China’s economy
Despite the global recession in 2009, causing China’s wire and cable industry revenue growth to slow, largely due to a 26.3% decline in foreign demand, the recovering global economy in the following years also led to a strong rebound for China. In 2016, China’s wire and cable industry was worth over US$238.6 billion, representing a CAGR of 4.8% over the last five-year period, mainly boosted by strong domestic demand and high economic growth across China, reported by IBISWorld’s Wire and Cable Manufacturing market research report.
Over the next few years, China’s wire and cable industry is expected to remain as the world’s largest producer of wire, copper wire, electrical wire, wire rope, and many more wire products, and will be fastest growing wire market – maintaining a growth rate faster than 10%. The Chinese government has also announced plans to focus on the development and revitalization of Central and West China and Northeast China to improve people’s living standard. As a basic supporting industry, wire & cable industry will maintain fast growth to meet the demand of state economic construction.
Meanwhile, according to the next Five-Year Plan issued the by the government, infrastructure construction will be further intensified, urbanization will speed up and the development of the country’s manufacturing sector will also be optimized. It is believed that the implementation of the new Five-Year plan will give China’s wire and cable industry a strong boost over the next five years. The wire industry has never looked more promising.
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