Wire & cables industry plays a vital role in shaping the world infrastructure. The global wire & cable industry is rapidly growing due to the emerging markets ramping up their digital infrastructure developments and developed world is renovating its age old infrastructure for power transmission & distribution and telecommunication. Wire & cable packaging industry witnessed changing trends during last few years. Safety issues such as fire hazards, damage of fibre optic cables etc. are demanding high-end sophisticated packaging for wire & cables.
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Spools or reels are the packaging products used to pack or bundle the cables or wires. Spools are a cylindrical round drum-shaped object to carry wires & cables. These are usually made of wood, metal, plastic and cardboard. The selection of the spool or reel depends on the diameter and load of the wire or cable intended to transport. Emerging markets like India, China, Russia, Mexico, Argentina, South Africa and Brazil are the target markets which spool manufacturers should focus on. FMI analysis shows that the market is projected to grow at a healthy CAGR with higher growth in emerging markets.
Spools: Market Dynamics
Growing trends of transforming traditional age old infrastructure to digital is driving the global wire & cables industry, which in turn drives the global spools market. Governments’ emphasis on digital infrastructure developments also influences the above mentioned factor. Growing safety concerns on fire hazards and breaking up of cables during transportation demands high durability and efficient spools. Shipping space optimization is the major concern of wire and cable industries face today. Spools with modern technology touch are addressing this aforementioned issue.
Growing demand for renewable energy sources such as solar and wind energy, where challenge is to efficiently store and transfer the power demands reliable, durable and efficient spools, which is driving the global spools market. Load weight optimization, where lightweight wooden, plastic or rigid cardboard spools are used to bundle the wire and cables.
Materials used by many spool manufacturers are 100% recyclable, which reduces carbon footprint considerably, which is driving the growth of spools market. To reduce the packaging costs wire & cable industry manufacturers are started to use returnable spools, which is another driving force of the spools market. Unorganized spools market has a considerable market share in global spools market. Unorganized spools manufacturers lack skilled labours, infrastructure and technology, which is restraining the overall growth of the global spools market.
Indian spools market is the hotspot among the emerging markets according to FMI analysis. India spools market has a strong growth potential due to its rapidly growing infrastructure developments such as Make in India, Smart City and Sagarmala Projects. China is the second pick among emerging markets where it is investing heavily in China Pakistan Economic Corridor (CPEC) which is estimated to be more than US$ 50 billion project and One Belt One Road (OBOR). Adding to these developments, there are many other infrastructure developments going alongside in aerospace, electronics and semiconductor and automotive industries.
Spools: Market Segmentation
The global spools market is segmented on the basis of material type, technology and end use. On the basis of end-use, the global spools market is segmented into building & construction, power transformation & distribution, telecommunications, automotive, electronics & semiconductor, textile, and others. On the basis of material, the global spools market is segmented into wood, plastic, metal and cardboard. Wood and plastic together, are expected to dominate the overall global spools market, due to their lightweight and durability. Cardboard spools are used extensively in lightweight applications. On the basis of technology, the global spools market is segmented into returnable and non-returnable.
Spools: Regional outlook
Spools market has been segmented on the basis of region into North America, Latin America, Eastern Europe, Western Europe, Asia Pacific Excluding Japan (APEJ), Middle East & Africa (MEA), and Japan. Spools market in APEJ is expected to be the fastest growing market due to growing production and government policies to transform the existing infrastructure to digital world. North America and Europe are also expected to grow at a healthy CAGR due to renovating of age old infrastructure.
Spools: Key players
Some of the players in the global Spools market are Sonoco Products Company, Carris Reels, Inc., Vikas Spool Private Limited (VSPL), Pontrilas Group Packaging Ltd, Bobbins India, HI-TECH PLAST, Ace Metal, Inc., and others.