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The reels and spools market size is estimated to grow at a CAGR of 5.17% between 2022 and 2027. The market size is forecast to increase by USD 635.29 million. The market's growth depends on several factors such as rising data center construction activities, the growth of the global textile mills market, and the rise in the number of power plants.
This reels and spools market report extensively covers market segmentation by product (reels and spools), type (metal reels and spools, wooden reels and spools, and plastics and others), and geography (APAC, North America, Europe, Middle East and Africa, and South America). It also includes an in-depth analysis of drivers, trends, and challenges. Furthermore, the report includes historic market data from 2017 to 2021.
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Our researchers analyzed the data with 2022 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
The rise in the number of power plants is driving the growth of the reel and spools market. The transmission of the energy produced from power plants is largely carried out by power cables. Power cable is one of the major end-users of reels, including wood and plastics reels. The growing urgency of shifting to renewable energy sources has seen an increase in electricity generation from wind turbines and solar-powered plants. In consequence, there has been a sharp increase in the demand for power cables as well as reels to store and transport them.
Moreover, offshore wind resources generate more energy with fewer turbines compared to conventional electricity grids. The increasing use of renewable energy is also expected to bolster the demand for metallic cables. The shift towards renewable energy systems that will require new transmission and distribution networks is also supported by the environmental rules aimed at reducing carbon emissions. Such developments can contribute to the growth of the global reels and spools market during the forecast period.
Recycling services for reels and spools are a key trend in the market. Hard materials like plastic, wood, or steel are made using reels and spools. The responsibility to dispose of these in a responsible manner is usually shared by the end users of Reels and Spools. However, the disposal process involves high operating costs in terms of labor and energy. In the case of wooden reels, end-users usually break them down and burn or dispose of them in landfills, which can adversely impact the environment.
Therefore, with the aim of resolving the issues faced by end-users regarding the disposal of reels and spools, a few market companies have begun offering reel and spool recycling services. In addition to manufacturers of reels and spools, recycling initiatives are also being undertaken by end users to ensure the sustainability of their business operations. Such initiatives by market companies and suppliers help reduce procurement costs of raw materials and make reels and spools reusable, hence spurring the growth of the market in focus during the forecast period.
The high operational costs are a major challenge in the reels and spools market. The use of large furnaces and machines is necessary for the manufacturing of reels and spools. These machines require significant capital investments given their high maintenance costs, production process changeover, and shipping costs. Another element contributing to the operational costs is the energy costs. The reel and spool manufacturing process requires a continuous supply of energy, including electricity, natural gas, and fuel, which are vital for operations.
Moreover, the increase and volatility in energy costs will have a negative impact on operating costs, which can adversely impact the manufacturer's business operations. Both labor and machine costs for the processing of wood are involved in manufacturing. Similarly, plastic and steel reels and spools also require proper processing of raw materials to obtain high-quality reels and spools. These factors negatively influence the growth of the market in focus during the forecast period.
The market research report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.
Global Reels and Spools Market Customer Landscape
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
ACE METAL INC. - The company offers reels and spools such as metal spools used for drawing ferrous and nonferrous wire.
The research report also includes detailed analyses of the competitive landscape of the market and information about 15 market companies, including:
Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
The reels segment is estimated to witness significant growth during the forecast period. A reel is a cylindrical object on which various types of wires and cables can be found in industries such as manufacturing, shipping, telecommunications, construction, and energy. There are four types of reel available, in sizes ranging from medium to large. The types depend on the materials used to manufacture reels, such as wood, polyplastic, plastic, and steel.
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The reels segment was the largest segment and was valued at USD 1,354.65 million in 2017. Global demand for reels is expected to surge amid the increasing use of cables in the fourth generation (4G) communication networks and the evolution of 5G. With increasing investments in the use of 5G, it will be necessary to build networks with several base stations. This is expected to enhance demand for cables that are needed to connect several base stations to a distribution point, and the need for reels will grow. This factor will hence contribute to the growth of the market in focus during the forecast period.
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APAC is estimated to contribute 39% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period. APAC is the largest market for reels and spools. This is because of strong demand from emerging economies such as China, Vietnam, Bangladesh, and India and stable demand from countries such as South Korea and Japan. China has emerged as the hub for the mass production of goods at low costs, and the items include wires, cables, medical tapes, ships, industrial equipment, and handicraft materials. The Regional Market has been driven by rapid growth in end-user sectors, competitive costs of manufacturing, and high economic growth. These factors are also encouraging market players to expand their businesses in APAC.
The outbreak of the COVID-19 pandemic in 2020 in the region slowed down the growth rate of the shipping industry, which negatively impacted the regional market in focus. However, the number of active infected cases decreased after the second wave of the pandemic during the first half of 2021 owing to the vaccination drives arranged by several countries such as India, China, South Korea, and Japan. These factors impact the growth of the market in focus in the region during the forecast.
The reels and spools market report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2017 to 2027.
Reels And Spools Market Scope |
|
Report Coverage |
Details |
Page number |
157 |
Base year |
2022 |
Historic period |
2017-2021 |
Forecast period |
2023-2027 |
Growth momentum & CAGR |
Accelerate at a CAGR of 5.17% |
Market growth 2023-2027 |
USD 635.29 million |
Market structure |
Fragmented |
YoY growth 2022-2023(%) |
4.58 |
Regional analysis |
APAC, North America, Europe, Middle East and Africa, and South America |
Performing market contribution |
APAC at 39% |
Key countries |
US, China, India, Germany, and UK |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
ABC Plastics Inc., ACE METAL INC., Appiani Group, Bobbins India, Boffi SpA, Boxy SpA, Carris Reels Inc., Comsuc Technology Development Ltd., George Evans Corp., GMP Slovakia sro, Inosym Ltd., Khorporate Holdings Inc., Merrimac Spool and Co., Nortic Inc., P and R Specialty Inc., Pentre Group Ltd., PKR Ltd., Sonoco Products Co., The Beacon Reel Co., and Vandor Corp. |
Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, and Market condition analysis for the forecast period. |
Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
We can help! Our analysts can customize this market research report to meet your requirements.
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Product
7 Market Segmentation by Type
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
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