Wire & cable market trends for 2026 according to CRU
This article marks the launch of a new quarterly editorial series authored by CRU, a globally recognized authority in metals, materials and value chain analysis. Each edition will deliver forward-looking insights into the wire and cable industry, focusing on the trends, risks and opportunities shaping metallic wire and cable, as well as optical fiber and cable markets.
This inaugural edition specifically outlines CRU’s top calls for 2026, highlighting the key market forces expected to shape the year ahead.
Global market backdrop
The global wire and cable industry continues to be underpinned by structural demand for electrification and connectivity. As urbanization and industrialization progress worldwide, demand for both metallic and optical cables is rising, reflecting the increasingly energy- and data-intensive nature of modern life.
Over the past year, data centers have emerged as a major growth engine for the cable industry, with power requirements and data connectivity needs reaching record year-on-year growth rates across applications. Combined with broader themes such as decarbonization, energy security and accelerating digitalization, overall cable demand remains strong. While short-term challenges persist in specific segments—such as slower FTTH rollouts and cyclical weakness in construction—the industry is well positioned to absorb these pressures.
No. 1 trend to watch
Continued Chinese cable exports amid weak domestic demand
Prolonged weakness in China’s construction sector continues to weigh on building wire demand, while manufacturing output and grid network expansion remain relatively strong. Although new anti-involution measures aim to curb excessive competition and limit further margin erosion, producers are still expected to rely heavily on exports to offset poor domestic market conditions.
Smaller manufacturers may struggle to adapt to this export-dependent environment, increasing the likelihood of further consolidation among distressed players.
No. 2 trend to watch
Reshoring of manufacturing to the US as tariffs curb imports
Imports currently account for around one quarter of total US cable supply, yet Section 232 tariffs—set at 50%—on certain copper and aluminum cables and wire rod are making these imports increasingly uneconomic. As inventories are depleted, onshoring is expected to become more attractive.
At present, Section 232 applies mainly to low-voltage copper cables, though there is potential for tariffs to expand into additional import categories, including power cables. Looking further ahead, planned tariffs on refined copper from 2027 are also expected to support investment in new US wire rod production capacity.
No. 3 trend to watch
Data center demand to maintain momentum as investment hits record levels
The data center market has become a key demand driver for both metallic and optical cable segments. Metallic cables are benefiting from rising power requirements, and despite concerns around the long-term sustainability of investment levels, data centers continue to deliver the fastest year-on-year growth across all cable applications.
Power cables for energy infrastructure and low-voltage cables used in building construction are both seeing incremental demand from this segment. By 2026, data centers are expected to account for approximately 8% of total US metallic cable demand.
As for fiber optics, stronger demand for server room connectivity and data center interconnect is reshaping consumption patterns. Optical cable demand from data centers is forecast to reach around 16% of total global demand in 2026, with suppliers increasingly prioritizing this segment.
No. 4 trend to watch
Further consolidation expected among European optical cable suppliers
Europe is likely to see a smaller pool of active optical cable suppliers in 2026 as consolidation accelerates. Persistent price pressure, subdued regional demand and aggressive exports from Asia continue to compress margins, particularly for mid-tier manufacturers.
No. 5 trend to watch
Hollow core fiber ecosystem to expand, but commercial rollout remains early stage
Hollow core fiber is expected to gain traction in 2026, with a growing number of suppliers, trials and technology partnerships emerging across the US, Europe and China. Interest from hyperscalers remains strong, driven by the technology’s low latency and low attenuation characteristics, which align well with advanced data center infrastructure requirements.
Investment in hollow core fiber is likely to stimulate new joint development programs involving hyperscalers, telecom operators and optical fiber and cable suppliers, while accelerating existing collaborations. The segment also presents opportunities for start-ups to enter this niche and partner with established industry players.
In brief
Momentum remains broadly positive across both metallic wire and cable and optical fiber and cable markets, despite ongoing challenges in select applications. Metallic cable producers will need to navigate shifting global supply dynamics, particularly China’s export recalibration under anti-involution policies and the growing pull of the US market as tariffs and copper price differentials reshape trade flows.
In optical fiber and cable, competition is intensifying across the value chain as suppliers seek new regional and application-driven growth opportunities to offset weaker domestic demand and sustained pricing pressure. While elements of market saturation and cyclical softness persist, the wire and cable industry remains strategically essential, increasingly innovation-driven and supported by long-term demand fundamentals that appear firmly intact in 2026.
Authors:
Aisling Hubert
Lead, Wire & Cable Services – Chicago
Aisling is the editor of CRU’s Wire & Cable Market Outlook and Electricity Transmission Market Outlook. Her work focuses on global trends in metallic wire and cable, with particular attention to electrification, energy transition and infrastructure-driven metal demand. Aisling holds an MSci in Geology from the University of Southampton and is a member of Women in Mining UK.
Ahmed Ali
Lead, Optical Fibre and Cable Service – London
Ahmed leads CRU’s Optical Fibre and Cable Service and is editor of the Optical Fibre & Cable Market Outlook. His expertise spans optical fiber, optical cable, data center connectivity and FTTx markets. Ahmed holds a Master’s degree in Communications Electronics and Computer Engineering from the University of Nottingham.
CRU’s Wire and Cable team has provided market-leading analysis and client support for decades, with dedicated experts based in key global hubs including London, Chicago, Pittsburgh, Beijing, Shanghai, and New Delhi. Specialists are available for direct engagement on emerging trends and market developments.
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