MARKET OVERVIEW - GLOBAL ALUMINUM WIRE ROD MARKET
A wire rod is a rolled alloy product having a round, rectangular, and another cross-section. The aluminum wire rod has a shiny surface that has low emissivity for thermal radiation and low absorption of sunlight. Aluminum wire is wound on a cylindrical object. It is used to wind a long aluminium wire into a smaller area to reduce the storage area. This type of aluminium wire is used by most manufacturers to save time, effort and space. The weight of aluminium wire rods is much less than steel on average, aluminium is around 10 to 40 percent lighter than steel, which makes working with these rods very convenient. Aluminum can help reduce dead weight, which is why car manufacturers are using aluminium wire rods owing to increased corrosion resistance and extended durability when using methods such as painting and varnishing. The increased government initiatives by domestic aluminium manufacturers are anticipated to drive the growth of the market during the forecast period.
MARKET DRIVERS
Favourable social-economic and demographic factors such as urbanization, a growing population, disposable incomes, and a rise in the standard of living have driven the aluminium wire rod market. The growth of the global Aluminium Wire Rod market is primarily driven by a rise in demand for power cables and overhead conductors due to the expansion of power transmission and distribution networks. Overhead, a conductor is a physical medium to carry electrical energy from one end, is a conductor to another, and is a good conductor of heat. The important components related to overhead conductors are used for making underground electrical transmission cables and distribution systems. The conductor used in power cables is selected based on the different types and sizes of conductors available. Also, the growing demand from the automotive and transportation sectors. Aluminum wire rods are extensively used in various applications such as wiring harnesses, power cables, and control cables in automobiles. Furthermore, increasing penetration of aluminium products in the development of charging infrastructure is expcetd to drive the market. The incorporation of aluminum extrusions in e-charging stations is one of the most useful solutions. It is anticipated to drive market growth over the estimated time period.
MARKET OPPORTUNITY
The market is expected to have new opportunities with technological advancements and ongoing R&D activities to develop quality aluminium products. This is expected to provide ample new growth opportunities in the market during the forecast period. In April 2022, Trade group Aluminium Stewardship Initiative announced the certification of Trimet France’s aluminium operations at Saint-Jean-de-Maurienne and Castelsarrasin under its Performance Standard for the responsible production of aluminium. Also, a few market leaders in electronic components are signing an agreement to work with continuous process improvement by making the best use of advanced technology to meet the users' needs in the market. Therefore, companies can increase their brand awareness and broaden their product line with all these advanced instruments and solutions.
MARKET RESTRAINTS
Aluminum is less expensive and lighter weight, and cheaper, but its oxidation behaviour implies that special precautions must be taken at connection points. Also, an increase in competition from substitutes and fluctuations in prices of raw material such as alumina are some factors that inhibits the growth of the market.
MARKET GROWTH CHALLENGES
A key challenge that may affect the growth of the market is the rise in raw material prices. According to the World Bank Group, the cost per ton of aluminium increased from $1,604 in 2016 to $2,108 in 2018, registering an increase of 31.42%. This is a major factor that is expected to pose key challenges for the market growth over the forecast period. The shortage in the raw material may cause the manufacturers to face losses leading to a production delay. In addition, due to the rise in competition, companies have to lower their prices to increase their market share. The supplier can thus cause interruption to the manufacturer by impacting the supply chain's availability and services.
CUMULATIVE GROWTH ANALYSIS
The report provides an in-depth analysis of Aluminium Wire Rod market, market size, and compound annual growth rate (CAGR) for the forecast period of 2023-2029, considering 2022 as the base year. A rise in demand for aluminium wire rod in various applications is anticipated to stimulate the growth of the market and due to this factor, the market is expected to witness growth at a specific CAGR from 2023-2029.
GLOBAL ALUMINUM WIRE ROD MARKET SEGMENTAL OVERVIEW
The global Aluminium Wire Rod market comprises of different market segments like, size, grade, process, application, end-users and geography.
GLOBAL ALUMINUM WIRE ROD MARKET BY SIZE
By size, the global Aluminium Wire Rod market includes key segments like
The medium-sized followed by small sized aluminium wires are expected to witness high demand over the forecast period. These wire rods are used in conductors for overhead lines, flexible cables for robotics, welding and railway engineering, cables using nickel-plated wire for aeronautical engineering, enameled wire for windings, etc. These wire rods are lightweight, easy to use, and have high electrical conductivity, corrosion resistance, lending itself well to surface treatments.
GLOBAL ALUMINUM WIRE ROD MARKET BY GRADE
By grade, the global Aluminium Wire Rod market includes segments like
The EC grade segment is anticipated to dominate the market over the projected time period. It is very useful in applications like construction, automotive and transportation, and electrical appliances, among others, due to its productivity, efficiency, and quality.
Furthermore, the alloy grade segment is expected to witness high growth over the forecast period. It provides durability, strength and ductility. Also, they resist corrosion and provide a smooth finish.
GLOBAL ALUMINUM WIRE ROD MARKET BY PROCESS
By process, the global Aluminium Wire Rod market includes segments like
- Extrusion
- Rolling and Coiling
- Others
The extrusion segment is expected to dominate the market over the forecast period. Continuous rotary extrusion lines are fed with aluminium or aluminium alloy wire rod to extrude solid and hollow products. Extruded sections, tubes or multivoid tubes are often processed in end applications such as household appliances, industrial cooling systems and coolers used in the automotive sector.
The rolling and coiling segment is expected to witness significant growth over the forecast period. This process comprises a foundry where smelted aluminium alloy is fed into the continuous casting and rolling machine. Once rolled, the metal is cold-drawn and then rolled into a coil. The process requires heat treatment, which can be intermediate annealing (to remove deformation stresses and permit the wiredrawing.
GLOBAL ALUMINUM WIRE ROD MARKET BY APPLICATION
The global Aluminium Wire Rod market finds major applications in
- Cables and conductors
- Mechanical
- Deoxidization
The cables and conductors segment is expected to dominate the market over the forecast period. The rods are used as raw material for making aluminium cables and overhead conductors that yield excellent mechanical and electrical cable properties.
The deoxidization segment is predicted to witness the fastest growth over the forecast period. Aluminium wire rod is used for deoxidation of steel. It is able to remove oxygen from surface films resulting in improved crystal growth when used as an etch-stop agent during semiconductor processing.
GLOBAL ALUMINUM WIRE ROD MARKET BY END-USER
The global Aluminium Wire Rod market finds key end-users like
- Mechanical
- Power Industry
- Wire and Cable
- Automotive
- Aerospace
- Others
The wire and cable segment is predicted to lead the market over the forecast period. The growth of the segment can be attributed to the expansion of the telecom sector in the region. For instance, estimations by the European Telecommunications Network Operators' Association suggest that between 2020 and 2021, 5G coverage in Europe almost increased two-fold, reaching 62% in 2021 compared to 30% in 2020. The FTTH coverage in the country reached 51.6% of the overall NGA (next-generation access) connections.
The automotive segment is predicted to witness the fastest growth over the forecast period. The use of aluminum wire in automotive applications is primarily due to aluminum’s reduce maintenance requirements and corrosion resistance. The increasing trend towards lightweight vehicles and the growing adoption of electric vehicles are boosting the demand for this segment.
GLOBAL ALUMINUM WIRE ROD MARKET BY GEOGRAPHY
The global Aluminium Wire Rod market is studied for the following regions
- North America
- Asia Pacific
- Europe
- RoW
The Asia Pacific is projected to lead the market during the forecast period. The high demand for aluminium wire rods in the region, especially in China, and India. Also, due to the increasing demand from end-use industries such as construction, automotive, marine, power generation, and electronics. The high growth in the medical and pharmaceuticals, food and beverage, and aerospace and defense sectors. Moreover, the increasing investments in infrastructure developments, strong governmental initiatives, and ongoing projects will boost the market in the APAC region. China is expected to maintain its top position as it is one of the top countries for developing electricity transmission infrastructure. The considerable presence of big corporations, easy access to abundant resources, and increased investment in product development are only a few of the resources driving the market expansion in this region. Adding to that, several significant projects have started in the country. For instance, the State Grid Corporation of China has declared that it will build a 1.1 million-volt transmission line in March 2019 that can move the output of 12 large power plants over 2000 kilometres. These factors are expected to drive market’s growth.
North America is expected to witness high growth over the projected time period as the growing electricity transmission infrastructure in the region drives the market growth. For instance, numerous initiatives have recently been launched in the United States of America. The grain belt express clean line is one of the biggest transmission project in the United States. Thus, the major investment in the energy sector is the main driving factor for the growth of the aluminium wire rod market in the North America region.
COVID-19 IMPACT ANALYSIS ON GLOBAL ALUMINUM WIRE ROD MARKET
Axiom MRC provides a 360degree analysis of micro and macro-economic factors on the global Aluminium Wire Rod market. In addition, complete analysis of changes on the global Aluminium Wire Rod market expenditure, economic and international policies on supply and demand side is provided in this exclusive report. The report also studies the impact of pandemic on global economies, international trade, business investments, and GDP and marketing strategies of key players present in the market.
The COVID-19 pandemic has adversely affected almost all the sectors. The movement restrictions of workers, a decline in demand from consumers, and the closure of production facilities has negatively impacted the growth of the market. However, the growth has been high after the market opened after COVID-19, it is expected that there would be considerable growth in the sector, owing to higher demand of power cables and charging infrastructure. This factor is further expected to drive the overall growth of the market. Manufacturers and solution providers are making various strategic decisions to bounce back post-COVID-19. Players are conducting several research and development activities to improve the technology involved in the market.
COMPETITIVE LANDSCAPE ANALYSIS
The competitive landscape analysis of Aluminium Wire Rod market is primarily focused on expanding the global growth of aluminium wire rod industry with new product innovation, business expansion, increasing presence of range of manufacturer operating in aluminium wire rod sector has led the growing demand for the market. Besides, the market offers range of products in different application to fulfil the required demand of consumer which is further contributing healthy growth in the market.
The key players studied in market are
- Boryszew SA Oddzial Nowoczesne Produkty Aluminiowe Skawina
- Hindalco Industries Ltd.
- INOTAL Aluminiumfeldolgozo Zartkoruen Mukodo Reszvenytarsasag
- Lamifil NV
- National Aluminium Co. Ltd.
- Norsk Hydro ASA
- Prysmian Spa
- SURAL
- United Company Rusal IPJSC
- Vimetco NV
- GUTMANN ALUMINIUM DRAHT GMBH
- Esal Rod Alloys, S.A.
- Elcowire Group AB
RECENT DEVELOPMENT:
May 2022: - Midal Cables Ltd announced a partnership between Imerys' Al Zayani, Yellow Door Energy, and Midal to install a solar power plant in Bahrain. The partnership will help the companies to increase solar energy production. This will help the company increase its profit margin and diversify its energy portfolio solutions.
