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The reels and spools market size is forecast to increase by USD 779.9 million at a CAGR of 5.97% between 2023 and 2028. The growth of the market is influenced by several key factors. Firstly, rising data center construction activities are driving demand for cooling solutions to maintain optimal operating conditions. Secondly, the growth of the global textile mills market is increasing the demand for cooling solutions in textile manufacturing processes. Lastly, the rise in the number of power plants is driving the need for cooling solutions to ensure efficient operation and prevent overheating of critical equipment. These factors collectively highlight the diverse applications and importance of cooling solutions in various industries, driving market growth.
It also includes an in-depth analysis of market trends and analysis, market growth analysis, and challenges. Furthermore, the report includes historic market data from 2018 - 2022.
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The market is driven by a variety of factors, including the building and construction sector's demand for fibre optic cables and the need for power distribution and transmission infrastructure in smart cities. The market is influenced by urbanization and infrastructural development, leading to increased use of raw packaging materials in various industries. Government regulations and trade regulations also impact the market, along with supply chain disruptions. Companies like Ace Matrix, P&R Specialty, Spoolon Manufacturing, and Reel Options are prominent players in the market, offering plastic reels and spools that are lightweight, durable, and versatile. These products are essential for the electrical and electronics industry, ensuring neat and tidy organization of gauge wires, tubes, and hoses, overcoming challenges such as tangling and excess length. The market offers competitive opportunities and investment prospects, with a focus on meeting the needs of various industry verticals and end-use industries. Our researchers analyzed the market research and growth data with 2023 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 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 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 responsibly 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, to resolve 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 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 forecasting 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 market growth and forecasting strategies.
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.
The research report also includes detailed analyses of the competitive landscape of the market and information about 20 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 1.40 billion in 2018. 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 48% 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 market research report provides comprehensive data (region wise segment analysis), with forecasts and estimates in "USD billion" for the period 2024-2028, as well as historical data from 2018 - 2022 for the following segments.
Textile Manufacturing Market: Textile Manufacturing Market Analysis APAC, North America, Europe, South America, Middle East and Africa - US, China, Japan, India, Germany - Size and Forecast
Textile Machinery Market: Textile Machinery Market Analysis APAC, Europe, North America, Middle East and Africa, South America - China, India, Japan, Vietnam, Indonesia - Size and Forecast
Automation in Textile Market: Automation in Textile Market Analysis APAC, Europe, North America, South America, Middle East and Africa - US, China, India, Pakistan, Germany - Size and Forecast
The market is undergoing significant changes due to factors like the pandemic, which has impacted living standards and import-export dynamics. The market is vital for industries like the electrical and electronics industry, where it supports the organization of wires to prevent tangling and ensure they are neatly organized for efficient use. Pine, oak, and maple are commonly used materials for these products. The market faces political and social scenarios that influence its competitive position and product pricing. While there are market opportunities in various application segments and type segments, challenges such as system complexity and the need to unwind materials efficiently exist. Despite these challenges, the market offers investment opportunities and is estimated to grow as industries demand more efficient storage and transportation solutions for wires, tubes, and hoses. Material type, including returnable and non-returnable items, are used in various industries, with end users (building and construction sectors) utilizing wire and cable, as well as tube and hose products at the country level.
Market Scope |
|
Report Coverage |
Details |
Page number |
166 |
Base year |
2023 |
Historic period |
2018 - 2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 5.97% |
Market growth 2024-2028 |
USD 779.9 million |
Market structure |
Fragmented |
YoY growth 2023-2024(%) |
5.28 |
Regional analysis |
APAC, North America, Europe, Middle East and Africa, and South America |
Performing market contribution |
APAC at 48% |
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 forecast, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID 19 impact and recovery analysis and future consumer dynamics, Market condition analysis for forecast period |
Customization purview |
If our market 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 Opportunity/Restraints
11 Competitive Landscape
12 Competitive Analysis
13 Appendix
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