According to a new research report released by Global Market Insights, Inc, the global aluminum wire market in 2017 exceeded US$50 billion. It is estimated that this figure will exceed US$65 billion by 2024, and the consumption of aluminum conductors is expected to exceed 10 million tons.
1. Industry trends
The growing consumer demand for light-duty vehicles, as well as the excellent performance of light weight, high strength and corrosion resistance, can meet the growing needs of the construction and electrical industries, thereby driving the growth of the industry during the forecast period.
Specifically, the global original aluminum production exceeded 5 million tons in 2017. It is an electronegative metal with a strong affinity for oxygen. It is mainly used in food packaging and pharmaceutical industries. Because of its non-toxicity, it can store food for a long time and avoid the growth of microorganisms. In addition, its electrical conductivity, corrosion resistance, reflectivity and reusability make it widely used in power transmission lines, which in turn stimulates the market demand for aluminum wires.
In 2017, the global automobile market sold more than 95 million vehicles. Aluminum wire products can be applied to automobiles to reduce vehicle weight, thereby improving fuel economy, and by reducing body weight without affecting the strength and carrying capacity of the vehicle. The increasing demand for light vehicles in the automotive industry has reduced the weight of vehicles by 20%, which is a key factor in promoting the development of the aluminum wire market.
In addition, the global consumer electronics market was valued at more than US$1 trillion in 2017. These wires are used in home appliances such as switches, frying pans and rice cookers because alumina forms an insulating layer, which provides metal-to-metal contact and enhances safety for customers, thereby driving product demand. The increasing R&D efforts of producers to achieve efficient production and higher product development may also promote market growth.
2. Regional market
From the perspective of the regional market, the American aluminum wire market demand may grow by more than 3.5% during the forecast period. Increasing construction expenditures for single-family residential and commercial construction projects may increase product demand. These products are installed in residential applications for low-voltage service feeders from utilities to buildings to stimulate regional demand.
By 2024, China's aluminum wire market is estimated to exceed USD 15.5 billion. Automobile production in this region is increasingly conducive to the lightness of this material, and specifications are usually used to reduce the weight of components and maintain high reliability, thereby providing a stimulus for industry growth.