Aluminum Wire Market Size, Share & Trend Analysis Report By Grade (Electrical, Mechanical), By Application (Building & Construction, Power & Energy), By Region, And Segment Forecasts, 2023 - 2030

Report Overview

The global aluminum wire market size was valued at USD 20.70 billion in 2022 and is estimated to grow at a compounded annual growth rate (CAGR) of 6.7% from 2023 to 2030. The rising cost of copper has resulted in an increased adoption of aluminum for developing wires and cables. The lightweight, excellent electrical conductivity, and cost effective properties of aluminum make it an ideal alternative for the copper wires and is driving the market growth.

Growing requirement of upgrading infrastructure for the electricity distribution, increasing investments in construction and telecom industries along with growing production of EVs are anticipated to augment demand for the aluminum wires during the forecast period. Different aluminum alloy series such as 3003, 5052 and 316 are used for the production depending upon the characteristics required.

Increasing electricity consumption in the U.S. is further anticipated to augment the requirement of aluminum wires throughout the forecast period. For instance, according to the U.S. Energy Information Administration, the retail sales of electricity in the country are expected to increase by 2.7% in 2021 after a decline of 3.9% in 2020. Moreover, in February 2021, the New York State Public Service Commission approved the New York Energy Solution Project, which is a 54.5-mile, 345-kilovolt transmission line estimated to be developed at USD 530.0 million.

Increasing costs of copper are driving growth of the market and is expected to further augment the market growth. Despite the low strength and higher thermal expansion of the aluminum compared to copper, it is increasingly being preferred owing to its low cost and lightness. It can help bring down cost considerably for the residential as well as commercial buildings. An increase in copper prices has resulted in high cost of manufacturing for several companies, which reflects in the cost of end product. As a result, companies have decided to reduce copper consumption. For example, in August 2021, Daikin Industries announced plans to reduce the amount of copper in its air conditioners by 50.0% from the current 90,000 tons per year by 2024.

The growth in the market is anticipated to be restrained by certain disadvantages associated with aluminum wires that restrict their usage in different applications. They are vulnerable to corrosion and hence, their lifespan is lesser than copper wires. Another key issue associated with the market is related to their installation.

Despite the COVID-19 outbreak, which majorly affected the global economic growth, 3.24 million plug-in vehicles were sold in 2020 that was 43.0% higher than the vehicle sales in 2019, according to IEA.

The electric vehicles sales increased by 137.0% from 2019 to 2020, Europe surpassed China and became the largest electric vehicles market in the world in 2020. With 1.4 million electric vehicles sold, Europe held a share of 45.0% of the global electric vehicle sales in 2020. Rising global electric vehicle production is expected to contribute to the consumption of aluminum wires during the forecast period.

Application Insights

Based on application, power & energy held largest revenue share of more than 48.0% in 2022 of the global market. Utilities such as electrical distribution companies utilize them in power grids (distributing systems) for transmission of electric current. Their lightweight helps reduce load on the grid and transmit current over long distances, which leads to lowering expenses and shortening construction time.

In automotive & transportation, the product is mainly used in manufacturing batteries for vehicles and is deployed in electrical distribution system and harnesses. Growing demand from the automotive industry has compelled manufacturers to expand their production capacity.

The electrical & electronics segment is anticipated to register a growth rate of 6.6%, in terms of revenue, across the forecast period, on account of rising demand for the electronic goods and infrastructural upgrades for the electricity grids. Electronic goods such as air-conditioning units, refrigerators, and heaters have coils in them, which are made using copper and aluminum wires.

Grade Insights

Based on grade, the electrical segment accounted for a revenue share of over 80.0% in 2022 and is anticipated to continue during the forecast period. Aluminum alloys are available in several grades. Depending on the properties of each grade; end-use requirements; and codes and regulations; alloys or grades are selected. For instance, according to the U.S. National Electrical Code, AA-8000 series electrical-grade aluminum alloy conductor material is preferred for building wire applications.

It is being used in electrical applications since the early 1900s and its usage and substitution against copper in electrical applications surged owing to its low cost, high electrical conductivity, and lightweight.

Aluminum wires are used for the domestic wire installations owing to their low costs, which reduce financial pressure on owners during the construction of houses and buildings. These possess a high specific electrical resistivity, which makes them highly preferable for power cables. Power cables are installed as permanent wiring within buildings. Power transmission is another key application.

They are used for main overhead power lines as their lightweight allows them to be used as high-voltage power lines that transmit power over long distances. Aluminum conductor steel reinforced (ACSR) is the most preferred conductor used for developing high-voltage power lines.

Mechanical is another significant grade of the market. The flexibility offered by aluminum, coupled with their lightweight, makes them preferable for use in mechanical applications. These are used for making wire mesh that is extensively used in residential, commercial, and industrial applications. In residential applications, wire meshes are used in façades, ceilings, walls, and balustrade. Their other uses are as storage containers, safety barriers, security fences, animal-loading cages, pavement, precast panels, warehouse and industrial shed slabs, and floor gratings.

Regional Insights

Asia Pacific dominated the market and accounted for over 75.0% share of global revenue in 2022. 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 demand for aluminum wires in Asia Pacific.

The market in North America is expected to witness steady growth during the forecast period, which can be primarily attributed to the rising requirements of electric power transmission, electric vehicle production, and distribution infrastructures. Moreover, growing construction spending is further anticipated to propel the need for the industry in the region over the coming years.

In addition, growth in EV production is further anticipated to augment demand for the market in the region. For instance, in August 2021, Rivian Automotive announced its plan construct automobile manufacturing factory in Texas, U.S. with an investment of USD 5.0 billion. The company also plans to produce around 7,500 vehicles by 2027 and have a target of manufacturing around 200,000 vehicles per annum.

Middle East and Africa is expected to register a growth rate of 5.2%, in terms of revenue, during the forecast period. The region holds a strong position in the oil & gas industry owing to its substantial petroleum and natural gas reserves. The revenue generated from the industry fosters the infrastructural development of oil & gas facilities, which is eventually anticipated to benefit the market growth.

Key Companies & Market Share Insights

The key market players engage in capacity expansions, mergers & acquisitions, and R&D activities to stay ahead of their competitors. For instance, in 2021, Encore Wire Corporation announced the successful completion of its new service center of 720,000 square feet in Texas, U.S., which is almost double in size of its last facility. With this new advancement, the company will be able to meet the requirements of its customers and help them with a modern and new form of wires that will be useful in residential and commercial buildings. Some of the prominent players in global aluminum wire market include:

• Cerro wire LLC

• DUCAB

• Encore Wire Corporation

• Henan Chalco Aluminum

• Kaiser Aluminum

• NEXANS

• Prysmian S.p.A

• Southern Cable Group Berhad

• South wire Company, LLC

• Sumitomo Electric Industries, Ltd.

Aluminum Wire Market Report Scope

Global Aluminum Wire Market Report Segmentation

This report forecasts revenue and volume growth at global, country & regional levels and provides an analysis of the latest industry trends and opportunities 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 the grade, application, and region.

• Grade Outlook (Volume, Kil0tons; Revenue, USD Million; 2018 - 2030)

  • Electrical

  • Mechanical

  • Others

• Application Outlook (Volume, Kil0tons; Revenue, USD Million; 2018 - 2030)

  • Building & Construction

  • Automotive & Transportation

  • Electrical & Electronics

  • Telecommunication

  • Power & Energy

  • Others

• Regional Outlook (Volume, Kil0tons; Revenue, USD Million; 2018 - 2030)

  • North America

    • U.S.

    • Canada

    • Mexico

  • Europe

    • Germany

    • U.K.

    • France

    • Spain

    • Italy

  • Asia Pacific

    • China

    • India

    • Japan

    • South Korea

    • Indonesia

  • Central & South America

    • Brazil

    • Argentina

  • Middle East & Africa

    • GCC