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CABLE INDUSTRY TRENDS
In 2014 the world cable market reversed the slowing trend in
operation from2011 to 2013, mainly thanks to growing demand
by markets in China, the United States and, albeit partially,
in Europe. However, there were major differences within the
industry both geographically and between the various market
segments. Geographically, the increase in global cable demand
was driven by high-growth regions, such as the Middle East,
China and Asia in general, as well as by strongly recovering
countries like the United Kingdom and Eastern Europe
(except Russia). In fact, these regions saw continued invest-
ment to expand and upgrade infrastructure and buildings
in response to growing demand by industrial operators and
local communities. In the United States, the steady economic
upturn was reflected in a slight growth in demand. In Europe
demand regained momentum in the United Kingdom and
Eastern Europe; this trend more than offset ongoing market
stagnation in countries like Italy, France and Germany, exacer-
bated not only by a construction sector still struggling with the
absence of infrastructure investments but also by persistently
weak energy consumption, resulting in generally flat demand
for energy cables and systems.
USA
Russia
China
India
Brazil
2013
2014
8%
6%
4%
2%
0%
-2%
Germany
Italy
Spain
Japan
UK
France
Euro Area
World
GDP GROWTH BY COUNTRY 2013-2014
Even the various market segments displayed considerable
disparities in 2014.
On the one hand, performance by higher value-added busi-
nesses was stable or marginally better; this was the case
for high and extra high voltage submarine cables for inter-
connections and offshore wind farm connections in Europe,
where the Prysmian Group confirmed its market leadership
after being awarded new projects worth a total of more
than Euro 1 billion during the course of the year. Demand
for renewable energy cables was also significantly higher,
particularly thanks to extension of government incentives
to other countries, as was demand for optical fibre cables,
especially in the United States and Europe (France, Spain,
Italy, United Kingdom). There was also a slight recovery in
demand for building wires, particularly in Northern Europe
and Asia Pacific. On the other hand, demand declined for
power distribution cables, especially in Europe, and for
special cables for OEMs; lastly, demand for copper telecom
cables continued to fall, in line with the trend underway
since 2004 to the benefit of optical fibre cables.
Global demand for cables grew slightly in 2014, especially in some market segments like
optical cables and those for renewable energy.