Aluminum Wire Market Size, Share & Trends Analysis Report By Grade (Electrical, Mechanical), By Application (Building & Construction, Automotive & Transportation, Electrical & Electronics), By Region, And Segment Forecasts, 2024 - 2030

Aluminum Wire Market Size & Trends

The global aluminum wire market size was estimated at USD 31.95 billion in 2023 and is projected to grow at a CAGR of 6.1% from 2024 to 2030. As aluminum offers excellent electrical conductivity, as well as is lightweight and cost-effective, it is an ideal alternative to copper wires in overhead lines, residential and commercial wiring, and electric vehicles (EV). An increase in copper prices resulted in a high cost of manufacturing for several companies, which is reflected in the cost of end product. As a result, companies have decided to reduce copper consumption. In August 2021, Daikin Industries announced plans to reduce the amount of copper in its air conditioners by 50% from the current 90,000 tons per year by 2024. As per the company, the prices of copper have spurred by 40-50% in the last one year and owing to rising pressure regarding profitability, the company plans to switch to materials, including aluminum.

Electricity and its transmission and distribution are vital for global economic development and for supporting scientific and technological advancements. Due to its excellent electrical conductivity and lightweight, aluminum is utilized for developing high-voltage power lines for transmission over long distances. The growth in electricity generation and the need to replace old electricity distribution infrastructures are anticipated to drive global aluminum wire consumption over the forecast period. According to the Global Energy Statistical Yearbook by Enerdata, global electricity production has been growing since 2010. Production slightly decreased by 0.6% from 2019 to 2020 owing to reduced electricity demand from various industries in the wake of lockdowns imposed worldwide to contain the spread of COVID-19. However, production increased by 1.8% in Asia, considering an increase of approximately 18% in renewable power generation in China during the same period.

The aluminum wire industry is increasingly aligning itself with Environmental, Social, and Governance (ESG) trends as sustainability becomes a central priority for both regulatory compliance and competitive differentiation. Companies such as Kaiser Aluminum, Encore Wire Corporation, and Southwire Company, LLC are pioneering this shift. Southwire Company, LLC, for instance, outlines a clear path toward carbon neutrality by 2050, with intermediate goals of reducing Scope 1 and Scope 2 emissions by 50% by 2030. This includes expanding the use of renewable energy sources, such as solar power, across its production facilities and improving energy efficiency in manufacturing processes. Encore Wire Corporation has committed to lowering its carbon footprint through energy-efficient technologies and significant waste reduction, including initiatives to recycle more than 90% of production waste.

Grade Insights

In 2023, the electrical grade segment of the aluminum wire market accounted for the largest share of 79.5%, and this trend is expected to continue throughout the forecast period. Aluminum has been used in electrical applications since the early 1900s and its usage and substitution against copper in electrical applications surged post-World War II owing to its low cost, high electrical conductivity, and lightweight. Aluminum is the most preferred material for electricity transmission, distribution, and other related applications.

The mechanical segment is expected to grow at a CAGR of 6.1% over the forecast period. The flexibility offered by aluminum wires, coupled with their lightweight, makes them preferable for use in mechanical applications. Aluminum wires are used in the production of wire mesh or wire cloth, which are extensively used in residential, commercial, and industrial applications. In residential applications, wire mesh is used in façades, ceilings, walls, and balustrades. Other uses of aluminum wires include storage containers, safety barriers, security fences, animal-loading cages, pavement, precast panels, warehouse & industrial shed slabs, and floor gratings. Aluminum wire meshes are also used for screening purposes in mines and factories

Application Insights

The power & energy segment dominated the market with the largest revenue share of 48.7% in 2023 as power transmission is the key application of aluminum wires. Utilities such as electrical distribution companies make use of aluminum wires in power grids (distributing systems) for the transmission of electric current. The lightweight properties of aluminum wires help reduce the load on the grid and help them transmit over long distances, which helps in lowering expenses and shortening construction time.

The electrical & electronics segment is expected to grow at a CAGR of 6.0% over the forecast period. Aluminum wires play a crucial role in electronic goods such as air-conditioning units, refrigerators, and heaters, where they are used in the coils that aid in critical processes such as refrigeration. For instance, in air-conditioning units, coils help convert high-pressure hot refrigerants into cooler liquids during condensation by releasing heat into the outside air. While copper has traditionally been preferred for coils due to its superior heat transfer, strength, and easy repairability, aluminum is increasingly favored for its low cost and pliability. This helps reduce production costs and allows manufacturers to shape the coils more flexibly, making aluminum a viable alternative.

Regional Insights

Asia Pacific dominated the global market with the largest revenue share of 80.1% in 2023. Increasing investments in power grid infrastructure, rising renewable energy generation, increasing electricity consumption, and growing investments in telecom and EV industries are some of the prominent factors contributing to the overall demand for aluminum wires in Asia Pacific. The growth in energy consumption in the overall region is accelerating the need for new distribution networks, thus influencing the need for aluminum wires.

The India aluminum wire market is expected to grow at a CAGR of 7.5% over the forecast period. India’s telecom industry is 2nd largest in the world, with a subscriber base of over 1 billion as of June 2024. The growth in this industry is owing to increasing telecom subscribers, favorable government initiatives, and investments, which are positively influencing the aluminum wire market.

China held majority of the share in the Asia Pacific aluminum wire market in 2023. Rising investments in power infrastructure are anticipated to augment the demand for aluminum wires in China over the forecast period. For instance, as per the recent news article of 2024, it has been observed that the purchases of aluminum wires increased by State Grid Corp. of China, over soaring prices of copper wires. This is a positive indicator toward the growing demand for aluminum wires in the country.

Europe Aluminum Wire Market Trends

Europe held 9.0% of the global aluminum wire market share in 2023. The European economy showed stagnation in 2023, impacted by inflation, higher interest rates, and weaker demand. However, the economy showed a positive trend at the start of 2024, following a long period of stagnation. As per the European Commission Spring Forecast, the expected GDP growth is 1.0% in the European Union (EU) and 0.8% in the Euro Area for 2024. Moreover, the GDP growth is likely to improve in 2025, reaching a y-o-y growth of around 1.6% in 2025 for the EU.

The Germany aluminum wire market is expected to grow at a CAGR of 5.2% over the forecast period. Germany's shift toward renewable energy sources has led utilities to invest heavily in developing a sustainable grid infrastructure to integrate various renewable energy sources effectively. This transition underscores the growing need for aluminum wire, which plays a crucial role in enhancing the efficiency and reliability of Germany's evolving energy grid.

Key Aluminum Wire Company Insights

The global aluminum wire market is moderately consolidated, with a mix of large multinational players and small regional participants. Companies increasingly engage in strategic initiatives, such as partnerships, collaborations, and capacity expansion, to strengthen their market position and capture emerging opportunities. Partnerships and collaborations are preferred over M&As in the aluminum wire market as they can spread operational risks, accelerate time-to-market for innovative solutions, and foster mutually beneficial arrangements without the financial burden of complete acquisitions. This strategy also enables companies to tap into new regions or sectors, such as renewable energy, thus driving the demand for aluminum wires without the need for large-scale infrastructure investments.

• Kaiser Aluminum manufactures semi-fabricated specialty aluminum products for industries such as aerospace and automotive. The company offers a wide range of products including flat-rolled sheets & plates, extruded rods, bars, pipes, tubes, wires, and other cast aluminum goods.

• Prysmian S.p.A. is a manufacturer of energy & telecom cable systems and is engaged in enabling digital & energy transition across the world. The company manufactures miles of submarine & underground cables and systems for the power distribution & transmission sector. It also provides a wide range of products for various sectors. For the construction sector, the company provides low & medium-voltage cables. For the telecommunication sector, it offers copper cables, connectivity systems, and optical fibers. The other end use industries include oil & gas, nuclear, mining, marine, and military & defense.

Recent Developments

• In March 2024, Norsk Hydro ASA partnered with NKT A/S to create a low-carbon aluminum power cable value chain for reducing the carbon footprint of power cables used in energy infrastructure. By integrating Hydro’s low-carbon aluminum production capabilities with NKT’s expertise in power cable manufacturing, this initiative supports the shift toward more sustainable energy systems, contributing to the aluminum wire industry’s overall sustainability efforts.

• In May 2024, Southwire announced the expansion of its Cofer Technology Center in Carrollton, Georgia, to enhance its research, development, and testing capabilities. This expansion focuses on developing innovative technologies, including the development of aluminum wire products and other electrical components. The project is part of Southwire's ongoing commitment to improving product quality and meeting the growing demand for advanced electrical solutions across multiple industries, such as utilities, construction, and infrastructure.

• In April 2024, Ducab launched its new Eco-Aluminum Rods, marking a significant step toward revolutionizing sustainability in the aluminum industry. These ecofriendly rods are produced with reduced carbon emissions and align with the company's broader environmental strategy.

• In January 2024, Alcoa announced a strategic partnership with Nexans to supply low-carbon aluminum for sustainable aluminum solutions, marking a significant initiative toward reducing the carbon footprint in the aluminum industry. This agreement includes aluminum produced using the ELYSIS technology, a breakthrough process that eliminates all direct carbon dioxide emissions during smelting and relies on renewable energy sources. By integrating lowcarbon aluminum into its product portfolio, Nexans aims to enhance the sustainability of its wire solutions, thus contributing to the global transition toward greener, carbon-neutral, and more energy-efficient infrastructure solutions.

Aluminum Wire Market Report Scope

Global Aluminum Wire Market Segmentation

This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2018 to 2030. For this study, Grand View Research has segmented the global aluminum wire market report based on grade, application and region:

• Grade Outlook (Volume, Kilotons; Revenue, USD Million, 2018 - 2030)

  • Electrical

  • Mechanical

  • Others

• Application Outlook (Volume, Kilotons; Revenue, USD Million, 2018 - 2030)

  • Building & Construction

  • Automotive & Transportation

  • Electrical & Electronics

  • Telecommunication

  • Power & Energy

  • Others

• Regional Outlook (Volume, Kilotons; Revenue, USD Million, 2018 - 2030)

  • North America

    • U.S.

    • Canada

    • Mexico

  • Europe

    • Germany

    • UK

    • France

    • Italy

    • Spain

  • Asia Pacific

    • China

    • Japan

    • India

    • South Korea

    • Indonesia

  • Latin America

    • Brazil

    • Argentina

  • Middle East and Africa (MEA)

    • GCC