Commodity: Wire and Cable, Optical Fibre and Cable

Authors: Aisling Hubert, Ahmed Ali

Introduction

The overall wire and cable industry continues to be supported by global demand for electrification and connectivity. As the world continues to urbanise and industrialise, demand for both metallic and optical cables is growing as the requirements of modern life become increasingly energy and data intensive. Over the past year, data centres have continued to emerge as a staggering growth opportunity for cables as the power requirements and data connectivity demands break records of year-on-year growth rates by applications. Combined with the wider themes of decarbonisation, energy security and increasing digitalisation, cable demand is robust and able to weather short-term challenges which may be experienced in specific applications such as FTTH rollout slowdown and cyclical construction slowdowns.

#1 Top call – Metallic Wire and Cable

Continued exports of cables from China as low domestic demand persists

Multi-year weakness in China’s construction industry has plagued building wire demand while manufacturing and grid network expansion have continued at pace. Although new anti-involution measures hope to limit the hyper-competitiveness of the industry and try and avoid the continued erosion of margins, we still expect that producers will continue to rely on exports to make up for a poor domestic market. Smaller companies may struggle in this new paradigm of relying on international markets for returns. As a result, we also expect to see increased consolidation of smaller, distressed manufacturers.

#2 Top call – Metallic Wire and Cable

Reshoring of manufacturing to the US as tariffs make imports prohibitive

Some copper and aluminium cables, and wirerod’s exposure to 50% Section 232 duties has made imports more prohibitive. Imports currently represent one quarter of US cable supply. As inventories are drawn down, onshoring will become more attractive. Currently, only low voltage copper cables are covered by the Section 232 ruling but there is scope for the tariffs to be broadened further to other key cable import categories such as power cables. Longer-term tariffs on refined copper, which are due to come in in 2027, will also fuel investments in more US wirerod manufacturing capacity.

#3 Top call – Metallic Wire and Cable, and Optical Fibre and Cable

Data centre demand to continue at pace as investments reach record highs

Data centre market has become a key driver of both the metallic and optical cable segments. Metallic cables are benefitting from the higher power requirements of data centres, and despite wariness around the sustainability of the investments, data centre demand continues to deliver the fastest y/y growth rates across applications. Power cables for energy applications as well as low voltage cables for building construction are both receiving a boost from this demand area. We expect that data centres will account for roughly 8% of total US metallic cable demand in 2026. On the fibre optic side, stronger pull from server room connectivity and data centre interconnect is driving a noticeable shift in demand patterns. Optical cable for data centres will reach around 16% of total global demand in 2026, with suppliers increasingly prioritising the requirements of this segment.

#4 Top call – Optical Fibre and Cable

There will be more consolidation among European optical cable suppliers

Europe is likely to see a shrinking ecosystem of active optical cable suppliers in 2026 as consolidation accelerates. This is driven by current price pressure, subdued cable demand, and aggressive Asian exports that are squeezing the margins of mid-tier players.

 

#5 Top call – Optical Fibre and Cable

Hollow core fibre ecosystem will expand, but it will remain early days for commercial rollout

Hollow core fibre will gain momentum in 2026 with more suppliers, trials and technology partnerships emerging across the US, Europe and China. This is due to sustained interest from hyperscalers in its low latency and low attenuation capabilities that align with their data centre infrastructure needs. Investment in hollow core will likely prompt new joint development programmes between hyperscalers, telcos and optical cable and fibre suppliers as well as accelerating the existing ones. There is also space for start-ups to emerge to serve this niche market and collaborate with established players.

 

Summary

There is a shared momentum across both metallic wire and cable and optical fibre and cable despite challenges in some specific applications. Metallic cable producers will have to navigate shifting global supply dynamics, most notably China’s export recalibration under anti-involution policies and the accelerating pull of the US as tariffs and copper price differentials shape trade patterns. On the optical side, competition across the supply chain is intensifying as manufacturers in many regions look for new avenues for growth across regions and applications to compensate for their subdued domestic demand and mounting price pressure. Despite elements of saturation and cyclical challenges, the combined wire and cable industry remains strategically indispensable, increasingly innovation-led and supported by long-term demand fundamentals that appear firmly intact for 2026.

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