June 14, 2024
Aluminum Cable Market

Aluminum Cable Market is poised to grow by 5.2% owing to rising urbanization and industrialization

The aluminum cable market is used extensively in construction, infrastructure and power industries due to its advantageous properties such as corrosion resistance, light weight and flexibility. Aluminum cables can withstand high temperatures making them suitable for overhead transmission lines. They have high electrical conductivity and allow for compact routing which makes infrastructure projects more cost effective.

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 from 2024 to 2031.

The Aluminum Cable Market Size is expanding globally due to ongoing and upcoming infrastructure projects in regions such as Asia Pacific, Middle East, Africa and Latin America. Mega construction projects for rail, road, bridges and urban metro networks rely heavily on aluminum conductors for transmission and distribution needs. Investments in renewable energy generation including solar and wind farms also contribute to the rising utilization of aluminum cables.

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. NEXANS is one of the prominent players offering an extensive range of aluminum cables for utility, industry, building wiring and infrastructure applications.

The growing demand for reliable and effective power transmission systems from the industrial sector is expected to boost the aluminum cable market during the forecast period. Rapid industrialization and infrastructure growth in developing nations is augmenting the need for mass transmission of electricity. Aluminum cables play a critical role in supplying bulk power requirements for various industries.

Market Key Trends

One of the key trends gaining traction in the aluminum cable market is the rising preference for high voltage aluminum cable systems. With the need to transmit large amounts of power over long distances, heavy-duty aluminum cables with advanced insulation systems are being adopted. These high voltage cables have lower transmission losses and deliver reliable performance under hostile conditions. Leading players are focused on developing extra high voltage (EHV) and ultra-high voltage (UHV) aluminum cable solutions to capture opportunities in utility transmission & distribution sector.

Porter’s Analysis

Threat of new entrants: The capital requirements and economies of scale make it difficult for new companies to enter the market.

 Bargaining power of buyers: Large buyers are able to negotiate lower prices due to high volume purchases but options are still limited.

Bargaining power of suppliers: Supply availability is stable but suppliers still hold somepricing power due to differentiated input requirements.

Threat of new substitutes: Copper cables remain a substitute but aluminium cables have performance advantages in terms of weight and cost. Competitive rivalry: Established players compete on price, productquality and service offerings.

A significant share of the global aluminum cable market value is concentrated in Asia Pacific, largely driven by countries such as China, India, and Japan. Continuous investments in utility-scale projects including transmission lines, renewable energy generation, and railway electrification in Asia Pacific economies contribute to high demand.

North America has emerged as the fastest growing regional market for aluminum cables fueled by macroeconomic growth, infrastructure development initiatives, and large-scale investments in utility, industrial, and commercial sectors across the United States and Canada. Ongoing modernization of energy infrastructure along with government emphasis on smart grid integration is supporting market expansion.

*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it