April 21, 2024
Paper Cone Market

The Paper Cone Market is Expected to be Flourished by Rapid Growth in Digitalization

Paper cones are lightweight and disposable cones made of paper or cardboard that are used in winding electrical wire, cables, fiber optics, yarn or other similar materials. Paper cones provide protection during winding, storage, and transportation of wound products. They find widespread applications in industries such as electronics, telecommunications, construction, packaging and others. The global paper cone market is driven by growing digitalization trends across the world. Rapid growth in usage of smart devices and increasing digital connectivity has augmented the demand for networking cables and wires wound on paper cones. Moreover, wide applications of paper cones in winding fishing lines, twines and threads in textiles and packaging industries has contributed to the market expansion.

The global paper cone market is estimated to be valued at US$ 8.05 Bn in 2023 and is expected to exhibit a CAGR of 10.% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.

Market Dynamics:
The global paper cone market growth is majorly driven by rapid digitalization. According to data by International Data Corporation, worldwide digital transformation spending is expected to reach $2.8 trillion by 2025. This massive growth in digital spending is augmenting the demand for high speed data networks and infrastructure, thereby driving the demand for fiber optical cables, networking cables and wires wound on paper cones. Additionally, increasing construction activities globally have also contributed to the market growth. Paper cones are extensively used in winding construction tapes, twines and ropes. According to Euroconstruct, the total construction output across 82 countries worldwide is projected to rise by 71% between 2021 to 2030, thus creating significant opportunities for paper cone manufacturers.

Segment Analysis:
The paper cone market can be segmented into oil & gas production, oil & gas refining, and petrochemicals. The oil & gas production segment held the highest share in 2023 and is expected to be the dominating segment during the forecast period. This segment is dominating as most of the paper cones are utilized in offshore production activities like deepwater drilling, pipeline inspections, well completion activities etc.

PEST Analysis:
Political: Government regulation and intervention favoring increasing investments in oil & gas exploration especially in deepwater and ultra-deepwater reserves will drive the market growth.
Economic: Rising energy demand coupled with high oil prices are encouraging heavy investments in offshore E&P activities which will boost demand.
Social: Supportive government policies encouraging private investments in oil & gas exploration will augment the growth.
Technological: Advancements in offshore drilling technologies enabling operations in deeper reserves, longer pay-outs and improved recoveries are fueling the demand.

Key Takeaways:
The Global Paper Cone Market Size was valued at US$ 8.05 Bn In 2023 and is expected to reach US$ 17.49 Bn by 2030, expanding at a CAGR of 10.% during the forecast period.

Regional analysis: North America accounted for the largest market share of around 35% of the overall paper cone market in 2023. This is attributed to the presence of major offshore hydrocarbon reserves in countries like United States and Canada. Additionally, rising offshore E&P spending especially in Gulf of Mexico is stimulating the demand.

Key players: Key players operating in the paper cone market are Prysmian Group, Aker Solutions, TechnipFMC plc, SUBSEA 7, Saipem S.p.A., McDermott International, Ltd., DeepOcean Group Holding BV, Schlumberger, Halliburton, NOV Inc., Vallourec, Oceaneering International, and Siemens. Prysmian Group and Aker Solutions are the dominant players owing to their extensive product portfolio and global presence.

*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it