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2020 Is Over: Now What Was the Impact of COVID-19 on the Wire Products Market?

The cable and wire industry is intrinsic in modern life - wire and cable products are used in everything from construction to automotive manufacturing to telecom markets. To that end, given the way the global markets dropped sharply in 2020 due to the pandemic, it's no surprise that wire products were in low demand. But now that a vaccine is increasing the probability of getting the virus under control, how will that affect the industry in 2021?

2020 Is Over: Now What Was the Impact of COVID-19 on the Wire Products Market?
The global demand for wire and cable products dropped by at least 2 to 5% in the United States, Europe, and China in response to the COVID-19 pandemic. This was largely attributed to the temporary shut down of manufacturing plants, construction sites, and other revisions that require wire and cable products. The Chinese market, in particular, saw the sharpest downfall throughout 2020, with a record low of 35.7 PMI last February.

However, the predictions made in early 2020 were much more drastic than reality and the current industry growth is projected to be more robust than ever before. In fact, forecasts suggest that the demand for the industry will be on track again in 2021.

Future Market Projections
At the moment, the global cable and wire industry is projected to grow by 4% over the next five years, with the industry capping at least $1 billion US dollars by 2027. Much of this growth is being attributed to the new demand for green energy, including green automotive designs that will replace combustion engines by 2035 in the United States. The current growth and new demand for the industry suggest that the impact of COVID-19 was nothing more than a hiccup in the long run.

While there is no denying that the pandemic negatively impacted the wire industry in 2020, it's also true that the industry is bouncing back stronger and more in-demand than before.

Read 767 times Last modified on February 24, 2021