Manufacture of Insulated Wire and Cable in South Africa 2023

Challenges

Accessing international markets. Cable theft is resulting in financial losses and increased maintenance costs, power outages and disruptions to the rail network. Competition and price pressure. Competition from imported wire and cable products. Economic uncertainty affecting demand, infrastructure investments and overall market conditions. Energy costs. Infrastructure development delays and funding. Pressure to adopt sustainable and environmentally friendly practices. Regulatory compliance. Skills shortage. Technological advancements require manufacturers to continuously innovate and upgrade their products. Volatile commodity prices.

Introduction

The insulated wire and cable manufacturing industry plays a crucial role supporting infrastructure development, electrical power transmission, telecommunications and industrial sectors such as construction and automotive. Its success depends on it adapting to market demands, investing in research and development and producing high-quality products. The industry faces challenges such as increasing competition, fluctuating raw material prices, regulatory compliance and technological advancements, which can increase costs. There are opportunities for innovation, export expansion and embracing sustainable practices in a market where demand exceeds supply.

Opportunities

Energy efficiency solutions. Fibre-optic cables for expanding broadband networks. Infrastructure development. Modernising and upgrading electrical and communication infrastructure provides opportunities for replacements and improvements. Providing customised cable solutions for specific applications and industries. Providing smart cables with built-in sensors and monitoring capabilities. Supplying specialised cables for renewable energy projects.

Outlook

The economy remains subdued and there is insufficient power supply to drive growth. There is a high level of uncertainty in the operating environment, although industry players said the outlook is positive. Manufacturers are focusing on securing supply chains and managing input costs, production efficiency and cash flow. Many manufacturers are installing self-generating energy solutions. Demand for low voltage electric cable continues to exceed supply, driving manufacturers to increase production capacity. Companies are also focusing on innovation and product development. The market for medium and high voltage transmission systems is expected to grow due to renewable energy development, rural electrification, and increased deployment of the smart grid network. Manufacturers have significant opportunities to produce wire and cable for renewable energy projects and the electric vehicle market.

Report Coverage

This report on the manufacture of insulated wire and cable in South Africa includes comprehensive information on the state and size of the sector, segmentation by material type, raw material prices, key trends and issues, new technology and innovation, notable players and corporate actions. There are profiles of 13 companies including South Ocean Electric Wire Company, Aberdare, Flexicore, Tulisa and Voltex.

Trends

Customisation and specialisation. Demand for fibre-optic cables is rising. Developing cables with improved fire resistance and fire-retardant properties. Renewable energy integration. Technological advancements, including high-speed data transmission, smart cables, energy-efficiency, innovations in materials and manufacturing processes.