2023 Market Insights: Automotive, Electrical & Electronics and Wire & Cable
January 16, 2023 • Posted in Market InsightsIn the third and final installment of our 2023 Market Insights series, we spoke with Matt Zessin, Carlos Aponte and Todd Waddle — M. Holland’s leaders for the Automotive, Electrical & Electronics and Wire & Cable markets, respectively.
Automotive, Electrical & Electronics and Wire & Cable were top performers in 2022 as electrification incentives and digitalization efforts expanded market opportunity. Matt, Carlos and Todd shared their thoughts on future growth and their predictions for 2023.
Automotive: Electric Vehicles Drive Sustainability
In 2022, after years of planning, the automotive market benefited from new electric vehicle (EV) manufacturers entering the market. Recent government actions like the Inflation Reduction Act and the National Electric Vehicle Infrastructure program began to lower prices and drive higher consumer demand for EVs. The increasing demand has allowed auto manufacturers to plan and launch full EV lineups.
Matt Zessin, M. Holland’s Director, Global Automotive, expects electrification trends to significantly increase the popularity of EVs in 2023 and beyond.
“The push and presence of electric vehicles is not just a trend but an enduring part of the automotive fold going forward,” Matt said. “Electrification is the most transformative technology we have seen in the industry in decades.”
Electronic vehicle technology is still new, and Matt expects to see a good amount of material development and innovation as production continues. He says it’s likely that sustainable materials will evolve to fill new application and part requirements in both electric and traditional vehicles in 2023.
Material development and selection will be key to creating sustainable EVs that can stay on the road longer. “Getting in front of the sustainability wave will be extremely important,” Matt advises. “Sustainability requirements will only grow in 2023 as auto manufacturers work to meet their corporate goals for 2030. They are actively looking for more ways to get sustainable materials into their vehicles.”
Explore M. Holland’s automotive capabilities and offerings by visiting the Automotive market page.
Electrical & Electronics: Deglobalization Increases U.S. Innovation
Over the past year, the electrical and electronics market has also experienced growth related to EVs. Recent legislation has fast-tracked the installation of EV charging station infrastructure, increasing production and driving a host of new startups in the market. But Carlos Aponte, M. Holland’s Electrical & Electronics Market Manager, expects reshoring to have the greatest impact on the market in 2023.
“The Asian stronghold on electrical and electronics manufacturing has loosened,” Carlos said. “U.S.-based corporations have been deglobalizing supply chains and bringing product development and manufacturing to North America.”
Consequently, as companies move research and development and engineering operations to the U.S., Carlos expects domestically owned intellectual property (IP) rights to help companies bring products to market faster in 2023.
“Electrical and electronic products are constantly becoming smarter, faster and more innovated,” Carlos said. “By controlling the IP and engineering through manufacturing, U.S.-based companies will be more competitive globally by increasing their speed to market.”
Visit the Electrical & Electronics market page to learn more about M. Holland’s solutions.
Wire & Cable: Digitalization and Electrification Trends Endure
Since the COVID-19 pandemic moved the world to embrace a remote-first culture, digitalization has been driving the wire and cable market. In 2022, the need for fast, reliable bandwidth and data increased to accommodate hybrid work and learning, telehealth services and cloud-driven technologies and infrastructure.
Todd Waddle, M. Holland’s Director of Wire & Cable, sees digitalization efforts continuing. “We’re in year three of a massive 10-year infrastructure investment cycle,” he explained. “Network creators will continue using government funds to invest heavily in digital infrastructure in 2023, especially in rural and low-income areas with minimal internet coverage.”
But digital infrastructure is not the only major system getting an upgrade. Sustainability goals are increasing electrification efforts and the consumption of electricity around the world. The industry is focused on upgrading and modernizing existing electrical grid infrastructure to incorporate renewable energy sources.
“Costs for clean energy like solar and wind power are coming down as they reach scale,” Todd said. “This increased affordability combined with tax incentives, a desire for more reliable energy and global sustainability initiatives, are accelerating adoption and positively influencing demand for power cables.”
According to Todd, “As supply chains become more consistent across polymers and conductors in 2023, it will be critical for manufacturers to optimize and automate production to allow room for growth.” To meet the increasing demand for electrification and digitalization, he recommends original equipment manufacturers (OEMs) focus on new project and cable developments in the new year. See how M. Holland can help on the Wire & Cable market page.
This concludes our 2023 Market Insights series. Get caught up on part one, featuring predictions and advice for the 3D Printing, Color & Compounding and Rotational Molding markets. Part two is also available, discussing the 2023 outlook for the Healthcare, Packaging and Sustainability markets.
If you enjoyed this post, please check out some additional posts:
- M. Holland’s 2023 Plastics Industry Trends & Predictions
- 2023 Market Insights: 3D Printing, Color & Compounding and Rotational Molding
- 2023 Market Insights: Healthcare, Packaging and Sustainability
- Inflation Reduction Act Will Spark North American Manufacturing Renaissance
- Plastics Reflections Webinar: Macroeconomics, The Plastics Industry and Riding Out a Possible Recession
- Integrating Masterbatch PCR Carrier Resins to Support Sustainability Goals
- M. Holland Company Collaborates with LyondellBasell to Distribute Purell Medical-Grade Resins
- M. Holland Company Offers Post-Consumer Recycled Resins to Help Brands Meet Sustainability Goals