by The aluminum cable market has been gaining major traction over the recent years led by increasing adoption of aluminum cables in various applications owing to their various advantages like high conductivity, corrosion resistance, and light-weighted nature. Aluminum cables have become the preferred choice over other cables in infrastructure projects, power transmission & distribution, and industrial sector due to their high strength to weight ratio and lower power losses during transmission. Aluminum cables offer 25% more conductivity than copper at lighter weight which provides substantial cost saving during deployment and logistics.
The global aluminum cable market is estimated to be valued at US$ 35.98 Bn in 2024 and is expected to exhibit a CAGR of 5.2% over the forecast period 2024 to 2031.
The global expansion of Aluminum Cable Market Size remains focused on Asia Pacific and Middle East & Africa regions. Many key players are strengthening their distribution and manufacturing footprint in these high growth potential regions. Also, some players are adopting strategies like strategic partnerships with local players to better address the regional demand. The aluminum cable market is projected to witness highest growth in the infrastructure and renewable energy sectors across developing nations in the coming years.
Key Takeaways
Key players operating in the aluminum cable market are NEXANS , Prysmian S.p.A, Finolex Cables, Havells India, Polycab, Sterlite Technologies, Paraflex, Elson House, Vimco Plast, Emmflex Group, Modern Industries, KIE Industries, Cerro wire LLC, DUCAB, Encore Wire Corporation, South wire Company, LLC. The key players are focusing on new product launches, expansion strategies and mergers & acquisitions to gain stronghold in the global market. For instance, in 2021 Nexans inaugurated new aluminum cable plant in India to cater to the growing demand of transmission and distribution sector in the country.
Key opportunities in the aluminum cable market include increasing investment in renewable energy projects like solar and wind which requires long transmission networks. The global shift towards clean energy is presenting lucrative growth opportunities for aluminum cable manufacturers. Moreover, growing infrastructure development activities in emerging economies of Asia Pacific and Middle East Africa is anticipated to boost the demand.
Market Drivers
The major market driver for increasing adoption of aluminum cables is growing investment in new infrastructure development projects globally. Mega infrastructure projects in areas of road & highway construction, urban transportation, smart city development are expected to drive the demand. Also, ongoing power transmission & distribution network upgradation by utilities especially in developing countries is surging the consumption of aluminum cables. The demand from renewable energy sector is further substantiating the market growth led by global push for clean and green sources of energy like solar and wind. Aluminum cables enable effective connectivity of remote renewable energy projects to the main power grids.
PEST Analysis
Political: Aluminum cable market may face regulations on its raw material extraction and processing due to environmental concerns. Restrictions on aluminum production can negatively impact the market.
Economic: Changes in income levels and spending patterns impact infrastructure investment and construction activities which drives the demand for aluminum cables. A fluctuating economy can restrain market growth.
Social: Increasing investments in smart grid technology, renewable energy projects boost the use of aluminum cables. Growing population and urbanization increase demand for power distribution and transmission infrastructure development.
Technological: Adoption of advanced cable designs with better load bearing capacity and lower energy losses aid market expansion. Investments in research for developing innovative aluminum alloys further improves cable conductivity and lifespan.
Geographical Regions of Concentration
The Asia Pacific region holds the largest share of the global aluminum cable market in terms of value. Countries like China, India, Japan, and South Korea are undergoing continued industrialization and infrastructure development which requires extensive power transmission and distribution networks. This results in high demand for aluminum cables in the Asia Pacific region.
Fastest Growing Region
The Middle East and Africa region is projected to be the fastest growing market for aluminum cables during the forecast period. This is mainly due to ongoing and planned power projects across GCC countries and investment in rail and road network development across Africa. The rising population and urbanization in the region is leading to construction of new cities, factories and commercial buildings which spurs the use of aluminum cables for internal and external wiring.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
