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Europe - Aluminum Wire Rods Market by Application and Grade Type - Forecast and Analysis 2024-2028

Europe - Aluminum Wire Rods Market by Application and Grade Type - Forecast and Analysis 2024-2028

Published: Dec 2023 152 Pages SKU: IRTNTR41629

Market Overview at a Glance

$1.17 B
Market Opportunity
5.54%
CAGR
4.72
YoY growth 2023-2024(%)

Europe - Aluminum Wire Rods Market 2024-2028

The Europe - Aluminum Wire Rods Market size is estimated to grow at a CAGR of 5.54% between 2023 and 2028, with the market size forecast to increase by USD 1.17 billion. 

The report includes a comprehensive outlook on the Europe Aluminum Wire Rods Market offering forecasts for the industry segmented by Application, which comprises cables and conductors, mechanical, and deoxidization. Additionally, it categorizes Grade Type into electrical and alloy and covers Region, including North America, APAC, Europe, Middle East and Africa, and South America. The report provides market size, historical data spanning from 2018 to 2022, and future projections, all presented in terms of value in USD billion for each of the mentioned segments.

The growth of the market is propelled by the increase in steel production in Europe, although its progress is hindered by the low-cost imports from China. Furthermore, there is a notable upward trend including the rise in HVDC cable installations.

What will be the size of the Europe Aluminum Wire Rods Market During the Forecast Period?

Aluminum Wire Rods Market in Europe Size

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Europe Aluminum Wire Rods Market Definition

Aluminum wire rods are made from liquid aluminum. The diameter of these rods is reduced by extruding them through a series of dies to obtain a diameter of 9-32 millimeters (mm) by roller and drawing processes. Aluminum wire rods are used in applications such as cables and conductors due to their high electrical conductivity, lightweight, and resistance to corrosion. These rods are mainly used in the electric utility segment for power transmission and distribution applications. Aluminum wire rods do not face any stiff competition from other metals for transmission and distribution applications owing to their cost advantages.

Europe Aluminum Wire Rods Market Segment Insights

Application Insights

The cables and conductors segment is estimated to witness significant growth during the forecast period. Aluminium wire rods are used to manufacture a wide range of cables and conductors due to their low costs and high electrical conductivity. Aluminum wire rods are largely preferred for power cables, overhead conductors, and overhead power lines due to their excellent electrical and mechanical properties.

Aluminum Wire Rods Market in Europe Size

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The cables and conductors were the largest segment and were valued at USD  2.50 billion in 2018. Aluminum conductors are typically produced using aluminum wire rods. Generally, these conductors contain about 99.5% aluminum and are made of one or more strands of aluminum wires, depending on their end-use applications. These conductors are primarily used in the transmission and distribution sector in applications such as overhead lines. Aluminum conductors are known for their tensile strength, corrosion resistance, and shockproof properties. They are widely used in urban areas for short-space applications. The increasing focus on the expansion of power networks and the broadening of renewable energy sources such as the installation of offshore and onshore wind energy farms, are likely to drive the demand for aluminum wire rods in the cables and conductors application segment, thereby driving the market growth during the forecast period.

Grade Type Insight 

Based on the grade type, the market has been segmented into electrical and alloys. The electrical segment will account for the largest share of this segment.?  

Europe Aluminum Wire Rods Market: Key Drivers, Trends, and Challenges

An increase in steel production in Europe is notably driving the market growth. Steel is one of the essential commodities that contribute substantially to Europe's economic growth. The construction industry has been a key contributor to the growth of the Europe - aluminum wire rods market. Further, aluminum wire rod products are widely used to produce steel. They are deoxidization agents and help in removing the oxygen content during the steelmaking process. The steel deoxidization process enhances the quality of steel produced and makes it blowholes-free. Aluminum oxide produced during this process ensures durability and provides strength to steel. Therefore, the increase in the production of steel in Europe is expected to significantly boost the market growth during the forecast period.

The rise in HVDC cable installations is an emerging trend shaping the market growth. High-voltage direct current (HVDC) cables are a highly efficient medium for transmitting large volumes of electrical power for special-purpose applications and over long distances. Furthermore, the HVDC uses high-temperature cables that are made of both standard steel or aluminum conductors and high-temperature superconductor materials that enable cables to operate at higher temperatures than standard steel or aluminum cables. Compared to HVDC, cables made of standard conductors heat up very fast if a high-voltage current is passed through them. Therefore, owing to the superior performance of HVDC cables, their adoption is increasing, which in turn will positively affect the market growth during the forecast period.

Low-cost imports from China are a significant challenge hindering the market growth. China is one of the largest producers and consumers of aluminum. In 2021, China produced more than 38.8 million metric tons of aluminum. Furthermore, the easy availability of low-cost raw materials and labor has a positive influence on the aluminum industry in China. Europe is focusing on decreasing its carbon footprint and progressing toward its low-carbon economy goals. This discourages aluminum wire rod manufacturers in the region compared with Chinese aluminum wire rod manufacturers. Due to the above-mentioned factors, price competition from Chinese suppliers might become one of the major challenges faced by aluminum wire rod manufacturers in Europe if the region does not proactively implement anti-dumping measures against China. Hence, the low-cost imports from China is expected to hamper the growth of the market during the forecast period.

Who are the Major Europe Aluminum Wire Rods Market Companies?

Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.

Alcoa Corp  - The company offers aluminum wire rods under its brand SUSTANA.

The research report also includes detailed analyses of the competitive landscape of the market and information about 15 market companies, including Alcoa Corp., Asturiana de Aleaciones S.A., Hindalco Industries Ltd., INOTAL Alumíniumfeldolgozo Zrt., Lamifil NV, LONTANA S.A., National Aluminium Co. Ltd., Nexans SA, Norsk Hydro ASA, NPA Skawina Sp. z o.o., Prysmian Spa, TRIMET Aluminium SE, United Company RUSAL, Vedanta Ltd, Vimetco NV, and Zvetlit

Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.

 Europe Aluminum Wire Rods Market Customer Landscape

The market research report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.

Aluminum Wire Rods Market in Europe Share by Geography

Europe Aluminum Wire Rods Market Customer Landscape

                  Europe Aluminum Wire Rods Market Scope

Report Coverage

Details

Page number

152

Base year

2023

Historic period

2018-2022

Forecast period

2024-2028

Growth momentum & CAGR

Accelerate at a CAGR of 5.54%

Market Growth 2024-2028

USD 1.17 billion

Market structure

Fragmented

YoY growth 2023-2024(%)

4.72

Competitive landscape

Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks

Key companies profiled

Alcoa Corp., Asturiana de Aleaciones S.A., Hindalco Industries Ltd., INOTAL Alumíniumfeldolgozo Zrt., Lamifil NV, LONTANA S.A., National Aluminium Co. Ltd., Nexans SA, Norsk Hydro ASA, NPA Skawina Sp. z o.o., Prysmian Spa, TRIMET Aluminium SE, United Company RUSAL, Vedanta Ltd, Vimetco NV, and Zvetlit

Market dynamics

Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, Market condition analysis for the forecast period. 

Customization purview

If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized.

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What are the Key Data Covered in this Europe Aluminum Wire Rods Market Report?

  • CAGR of the market during the forecast period
  • Detailed information on factors that will drive the growth of the market between 2024 and 2028
  • Precise estimation of the market  size and its contribution of the market in focus to the parent market
  • Accurate predictions about upcoming trends and changes in consumer behavior
  • Growth of the market across Europe
  • A thorough analysis of the market’s competitive landscape and detailed information about companies
  • Comprehensive analysis of factors that will challenge the growth of market companies

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Table of Contents not available.

Research Methodology

Technavio presents a detailed picture of the market by way of study, synthesis, and summation of data from multiple sources. The analysts have presented the various facets of the market with a particular focus on identifying the key industry influencers. The data thus presented is comprehensive, reliable, and the result of extensive research, both primary and secondary.

INFORMATION SOURCES

Primary sources

  • Manufacturers and suppliers
  • Channel partners
  • Industry experts
  • Strategic decision makers

Secondary sources

  • Industry journals and periodicals
  • Government data
  • Financial reports of key industry players
  • Historical data
  • Press releases

DATA ANALYSIS

Data Synthesis

  • Collation of data
  • Estimation of key figures
  • Analysis of derived insights

Data Validation

  • Triangulation with data models
  • Reference against proprietary databases
  • Corroboration with industry experts

REPORT WRITING

Qualitative

  • Market drivers
  • Market challenges
  • Market trends
  • Five forces analysis

Quantitative

  • Market size and forecast
  • Market segmentation
  • Geographical insights
  • Competitive landscape

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Frequently Asked Questions

Aluminum Wire Rodsin Europe market growth will increase by $ 1.17 bn during 2024-2028.

The Aluminum Wire Rodsin Europe market is expected to grow at a CAGR of 5.54% during 2024-2028.

Aluminum Wire Rodsin Europe market is segmented by Application( Cables and conductors, Mechanical, Deoxidization) Grade Type( Electrical, Alloy, Argentina, Consumer goods, Others)

Alcoa Corp., Asturiana de Aleaciones S.A., Hindalco Industries Ltd., INOTAL Alumíniumfeldolgozo Zrt., Lamifil NV, LONTANA S.A., National Aluminium Co. Ltd., Nexans SA, Norsk Hydro ASA, NPA Skawina Sp. z o.o., Prysmian Spa, TRIMET Aluminium SE, United Company RUSAL, Vedanta Ltd, Vimetco NV, Zvetlit are a few of the key vendors in the Aluminum Wire Rodsin Europe market.

Europe will register the highest growth rate of 100% among the other regions. Therefore, the Aluminum Wire Rodsin Europe market in Europe is expected to garner significant business opportunities for the vendors during the forecast period.

Germany, France, Italy, UK, Rest of Europe

  • Growing demand for cables and conductorsAluminum is widely used to manufacture cables and conductors because it is lightweight and has high electrical conductivity. The demand for cables and conductors is increasing significantly in Europe due to the expansion of power transmission and distribution networks. Europe has more than 2 is the driving factor this market.
  • 000 electric distribution companies and high electrification coverage. Smart grid networks are rapidly gaining momentum in Europe owing to the increasing focus on sustainable development. The increase in regulatory support for smart grids and smart buildings is one of the major factors driving the aluminum wire rods market in Europe. The UK established a Smart Grid Forum to provide a roadmap for demonstrating the potential of smart grid technology. The government also established a Low Carbon Networks Fund worth $760 million for the trial and testing of smart grid solutions in 2015. Similarly is the driving factor this market.
  • to reduce energy consumption in buildings is the driving factor this market.
  • the European Union (EU) has mandated regulations such as the Energy Performance of Buildings Directive (EPBD) and Ecodesign Directive. These regulations is the driving factor this market.
  • along with favorable regulatory and monetary support for energy-efficient measures is the driving factor this market.
  • will drive the demand for cables and is the driving factor this market.
  • subsequently is the driving factor this market.
  • the growth of the aluminum wire rods market in Europe during the forecast period. Europe is a global leader in renewable power generation. The increase in the number of offshore wind farms has provided industries with multiple power options is the driving factor this market.
  • thereby affecting the demand for stationary generators. The growth in energy demand is expected to attract investments in new power projects in this region. According to the European Economic and Social Committee is the driving factor this market.
  • an annual investment of $110-$170 billion (Euro 95-Euro 145 billion) is required to be made in the regional power sector during 2021-2050 is the driving factor this market.
  • of which $46-$72 billion (Euro 40-Euro 62 billion) is required for electricity transmission and distribution grids every year is the driving factor this market.
  • as compared to around $40 billion (Euro 35 billion) in 2016. Such investments will provide high growth opportunities for vendors operating in the aluminum wire rods market in Europe. The current capacity installed in Europe is inadequate to serve the growing electricity demands. The governments in Europe are planning to invest a significant amount during the forecast period to upgrade the power infrastructure. There has also been an increase in the use of renewable energy is the driving factor this market.
  • which is also expected to create a demand for power cables. The UK is one of the leading countries in terms of offshore installed wind capacity. Environmental regulations designed to curb carbon emissions will encourage a shift toward renewable energy systems is the driving factor this market.
  • which will require new transmission and distribution systems. Such developments may contribute to the growth of the aluminum wire rods market in Europe. This region has also seen an increase in demand for data centers. Governments have mandated laws for data storage supporting cloud adoption. Safe Harbor is one such law enforced in the EU. Furthermore is the driving factor this market.
  • investments in the railway sector have been increasing. High-speed railways need more electricity is the driving factor this market.
  • which would require the installation of more overhead cables. Trans-European networks program is the driving factor this market.
  • Structural Funds is the driving factor this market.
  • and Cohesion Funds are some of the sources of funds for railway investment made in the EU. These developments are expected to create a demand for overhead cables. Aluminum wire rods are predominantly used to manufacture cables and conductors. Therefore is the driving factor this market.
  • the expansion of power transmission and distribution networks and the growth in demand for cables and conductors are likely to propel the growth of the aluminum wire rods market in Europe during the forecast period. is the driving factor this market.

The Aluminum Wire Rodsin Europe market vendors should focus on grabbing business opportunities from the Cables and conductors segment as it accounted for the largest market share in the base year.