Paper cones are widely used for transportation and storage of cables and wires in various end use industries. They provide protection to cables from abrasion, dust, moisture and other external damage during storage and transportation. The oil and gas industry utilizes extensive cabling infrastructure for offshore operations such as drilling, production and distribution activities. Increasing offshore and deepwater exploration projects are driving the demand for various cables and wires, fuelling the growth of the paper cone market.

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
One of the key drivers for the paper cone market growth is the increasing demand from oil and gas industry. The oil and gas industry utilizes vast network of cables for activities such as drilling, production and distribution of oil and gas in offshore locations. With rising investments in offshore and deepwater exploration projects, the demand for cables and wires from oil and gas industry is surging considerably. This is positively impacting the consumption of paper cones which are used for protection and transportation of cables. Paper cones provide superior protection from mechanical abrasion, moisture and dust damage during handling and transportation of cables. Furthermore, government support in various countries for development of offshore oil and gas reserves through incentives and initiatives is fuelling investments in offshore projects, augmenting the paper cone market growth over the forecast period.

Some other key aspects propelling the market growth include growing submarine cable systems for power transmission and telecom applications and rising investments in renewable energy sector for setting up of offshore wind power projects.

SWOT
Strength: Paper cone is a cost effective material for paper cones as compared to plastic cones. Paper cones are more environment friendly and biodegradable material. Paper cones provide stability and strength for winding cables and wires.
Weakness: Paper cones have lower strength as compared to plastic cones. Paper cones absorb moisture easily thus reducing their lifespan. Transportation of paper cones requires special packaging increasing logistics cost.
Opportunity: Growing renewable energy sector is increasing demand for power cables. This increases need for cable rollers and paper cones for cable winding. Adoption of biodegradable and eco-friendly material like paper cones present growth opportunity.
Threats: availability and price volatility of paper the raw material for cones. Introduction of new technically advanced material replacing paper cones poses competitive threat. Restriction on usage of plastics and regulations supporting eco-friendly alternatives favors paper cones.

Key Takeaways

The Global Paper Cone Market Size is expected to witness high growth over the forecast period of 2023 to 2030.

Regional analysis: Asia Pacific region dominates the global paper cone market with over 35% share. Countries like China, India drive high demand due to massive industrial and construction activities. North America and Europe also have significant share on back of mature power cable industry. Developing nations in Middle East and South America show fastest growth rate for paper cone market during forecast years.

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. These players are focused on enhancing paper cone product quality and expanding production capacity to cater growing demand from cable industry majorly from power sector.

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