Research analysis on the global aluminum wire rods market identifies that the initiatives from the governments of various countries will be one of the major factors that will have a positive impact on the growth of the market. Technavio’s market research analysts predict that in terms of volume, this market will grow at a CAGR of nearly 2% by 2021. The growth of the aluminum wire rods market is largely driven by the increased support from governments for domestic aluminum manufacturers. The support provided by the governments helps vendors in maintaining a stable market growth with bigger profit margins and also assists them in enhancing their presence across the globe. For instance, the Chinese government provides subsidies to aluminum manufacturers including subsidized energy prices and discounts in the pricing of aluminum. Additionally, the government also offers capital sanctions and beneficial lending terms with subsidized infrastructure and land for the manufacture of aluminum. This increased government support for the vendors plays a significant role in strengthening and the growth of the aluminum wire rod manufacturers in turn, fueling market growth.
In terms of geographic regions, APAC will be the major contributor to the aluminum wire rods market throughout the forecast period. The increasing investments in infrastructure developments will be a major factor contributing to the high consumption of aluminum wire rods in this region. Countries such as China and India already witness a high demand for aluminum wire rods.
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The aluminum wire rods market is quite competitive and the maximum market share is held by the key vendors. Aluminum wire rod manufacturers should focus on increasing their R&D investments and on customer-centric product manufacturing and improved supply chain network to lower lead time. To gain a competitive advantage, the vendors will start focusing on cost-effective manufacturing processes.
The leading vendors in the market are -
The other prominent vendors in the market are Alcoa, Alro, General Cable Technologies, Hindalco Industries (Aditya Birla Management), INOTAL, Lamifil, OAPIL, and Southwire.
Segmentation by grade and analysis of the aluminum wire rods market
During 2016, the electrical grade segment accounted for the major shares of the aluminum wire rods market. The low-cost benefits and improved properties like uniform temperature and better quality will be the major factors augmenting the growth prospects of the market in this industry segment in the coming years.
Segmentation by application and analysis of the aluminum wire rods market
Conductors and cables
According to this market research report, the conductors and cables segment will account for the maximum shares of the aluminum wire rods market until 2021. The strong demand for aluminum wire rods in electrical transmission and distribution applications owing to its features such as light weight, corrosion resistance, and increased conductivity, will drive the growth of the market in this segment.
Key questions answered in the report include
What will the market size and the growth rate be of the global aluminum wire rods market in 2021?
What are the key factors driving the global aluminum wire rods market?
What are the key market trends impacting the growth of the global aluminum wire rods market?
What are the challenges to market growth?
Who are the key vendors in the global aluminum wire rods market?
What are the market opportunities and threats faced by the vendors in the global aluminum wire rods market?
Trending factors influencing the market shares of the Americas, APAC, Europe, and MEA.
What are the key outcomes of the five forces analysis of the global aluminum wire rods market?