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The aluminum conductors market share is expected to increase by 667.27 thousand tons from 2020 to 2025, and the market’s growth momentum will accelerate at a CAGR of 2.88%.
This aluminum conductors market research report provides valuable insights on the post COVID-19 impact on the market, which will help companies evaluate their business approaches. Furthermore, this report extensively covers aluminum conductors market segmentation by type (AAC, AAAC, ACSR, and other aluminum conductors) and geography (APAC, Europe, North America, South America, and MEA). The aluminum conductors market report also offers information on several market vendors, including Apar Industries Ltd., HELUKABEL Romania Srl, Nexans SA, Norsk Hydro ASA, Oman Aluminium Processing Industries LLC, Oman Cables Industry SAOG, Prysmian Spa, PT Voksel Electric Tbk, Southwire Co. LLC, and Sterlite Technologies Ltd. among others.
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Based on our research output, there has been a positive impact on the market growth during and post COVID-19 era. The expansion and revamping of t&d networks are notably driving the aluminum conductors market growth, although factors such as volatile raw material prices may impede the market growth. Our research analysts have studied the historical data and deduced the key market drivers and the COVID-19 pandemic impact on the aluminum conductors industry. The holistic analysis of the drivers will help in deducing end goals and refining marketing strategies to gain a competitive edge.
Key Aluminum Conductors Market Driver
The expansion and revamping of T&D networks are one of the key factors driving the growth of the global aluminum conductors market. In India, consumer confidence, infrastructure, and industrialization are expected to improve due to the strong political mandate (favorable business-focused environment) and an increase in foreign direct investment in various sectors. Initiatives like "Smart Cities" will result in a major renovation in infrastructure and other sectors. India is one of the biggest consumers of electric energy after the US and China. With rapid industrialization and urbanization in the country, there will be more demand for electricity. India has a shortfall in energy supply, with the Eastern and Western parts of the country being exceptions. India is unable to cater to overall demand. The country's outdated electrical infrastructure is quite unreliable, with many areas of the country facing major power cuts. This can be attributed to significant T&D losses as well as inadequate generation capacity. The investment in the power sector in India will reach around $250 billion by 2020. These factors will boost the demand for aluminum conductors.
Key Aluminum Conductors Market Trend
The growing consumption of secondary aluminum will fuel the global aluminum conductors market growth. Globally, scraped aluminum is increasingly used to reduce the manufacturing cost and carbon footprint of the aluminum industry. Aluminum is known for its high recyclability. Secondary aluminum is produced from recycled aluminum obtained from end-of-life aluminum products. Recycling aluminum is an environment-friendly process, and it requires very less energy when compared to primary aluminum. The recycling of aluminum scrap improves the industry's economic viability and minimizes the environmental impact by reducing the need to extract bauxite for aluminum production. This significantly reduces CO2 emissions, minimizes energy and water consumption, and lowers air pollution. However, owing to an increase in electricity and energy costs, manufacturers started using secondary aluminum as the major raw material to decrease their overall cost of production. Moreover, concerns regarding global warming are also driving the use of secondary aluminum to produce aluminum foil products.
Key Aluminum Conductors Market Challenge
The volatile raw material prices are a major challenge for the global aluminum conductors market growth. Aluminum and copper are the primary raw materials used in cables and conductors. The cost of these raw materials accounts for a major percentage of the total manufacturing cost of power cable vendors. After the pandemic, the price of aluminum declined due to a demand-supply gap in 2020. The price rose drastically due to the revised supply-demand level in 2021. By April 2021, LME (London Metal Exchange) aluminum price was $2,344.01 per ton. Because of the large share of raw material cost in total manufacturing cost, volatility in the price of aluminum (as well as other necessary raw materials, including fuel and energy) leads to significant volatility in the cost incurred, the number of units sold, and the revenue earned by aluminum cable and conductor manufacturers. Vendors try to offset the impact of volatile raw material prices on their profit margins through negotiated price changes in the final product. However, in such instances, selling price changes lag behind raw material price changes. This lag occurs as time is required to implement necessary changes in the customer pricing strategy.
This aluminum conductors market analysis report also provides detailed information on other upcoming trends and challenges that will have a far-reaching effect on the market growth. The actionable insights on the trends and challenges will help companies evaluate and develop growth strategies for 2021-2025.
Technavio categorizes the global aluminum conductor market as a part of the global aluminum market within the global metals and mining market. Our research report has extensively covered external factors influencing the parent market growth potential in the coming years, which will determine the levels of growth of the aluminum conductors market during the forecast period.
The report analyzes the market’s competitive landscape and offers information on several market vendors, including:
This statistical study of the aluminum conductors market encompasses successful business strategies deployed by the key vendors. The aluminum conductors market is fragmented and the vendors are deploying organic and inorganic growth strategies to compete in the market.
To make the most of the opportunities and recover from post COVID-19 impact, market vendors should focus more on the growth prospects in the fast-growing segments, while maintaining their positions in the slow-growing segments.
The aluminum conductors market forecast report offers in-depth insights into key vendor profiles. The profiles include information on the production, sustainability, and prospects of the leading companies.
Our report provides extensive information on the value chain analysis for the aluminum conductors market, which vendors can leverage to gain a competitive advantage during the forecast period. The end-to-end understanding of the value chain is essential in profit margin optimization and evaluation of business strategies. The data available in our value chain analysis segment can help vendors drive costs and enhance customer services during the forecast period.
The value chain of the global metals and mining market includes the following core components:
The report has further elucidated on other innovative approaches being followed by manufacturers to ensure a sustainable market presence.
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Five Forces Analysis
5 Market Segmentation by Type
6 Customer landscape
7 Geographic Landscape
8 Drivers, Challenges, and Trends
9 Vendor Landscape
10 Vendor Analysis
11 Appendix
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