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The winding wire market size is forecast to increase by USD 10.61 billion, at a CAGR of 4.5% between 2023 and 2028. The market is experiencing significant growth due to the expansion of power generation and the increasing focus on enhancing the efficiency of Transmission and Distribution (T&D) networks. The demand for energy-efficient winding wires, particularly those with superior thermal and insulation resistance, is driving market growth. Copper wire, as a popular electrical conductor, is a key player due to its excellent electrical properties, including high conductivity, malleability, and corrosion resistance. However, the market's high fragmentation limits consistent increases in Average Selling Prices (ASPs). The renewable energy sector's growth is also contributing to market expansion, as winding wires are essential for power transmission and distribution in wind turbines and solar panels.
Additionally, the increasing use of winding wires in telecommunications, electrical appliances, and other industries further boosts market demand. Despite these opportunities, energy loss remains a significant challenge for the market, necessitating continuous research and development efforts to improve wire efficiency and reduce energy consumption.
The market is witnessing significant growth due to its extensive applications in various industries, including the industrial sector, electric vehicles market, and telecommunications. In the industrial industry, magnet wire is used for winding stator windings in compact motors and electric generators, owing to its excellent electrical properties, such as conductivity, malleability, and corrosion resistance. Moreover, the increasing demand for electric and hybrid vehicles is driving the growth of the magnet wire market. Magnet wire is used in the manufacturing of electric motors and electric chargers for these vehicles. The electrical properties of magnet wire, such as conductivity, flexibility, and bending ability, make it an ideal choice for winding applications in electric vehicles.
Furthermore, magnet wire is used in power transmission and distribution systems for electrical power cables. Its electrical properties, such as low energy loss, make it an efficient choice for power transmission applications. Additionally, magnet wire is used in electrical appliances, owing to its excellent insulation properties and resistance to moisture and oxidation. Both stranded copper wire and solid copper wire are used in the magnet wire market, depending on the specific application requirements.
The market research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in "USD billion" for the period 2024-2028, as well as historical data from 2018-2022 for the following segments.
The copper segment is estimated to witness significant growth during the forecast period. The market encompasses the production and sale of aluminum and copper winding wires in various shapes, including round, rectangle, and square, for diverse applications. Among these, copper winding wire is anticipated to dominate the market due to its superior mechanical and electrical properties. Copper's low thermal expansion, higher corrosion resistance, and reduced inspection and maintenance requirements make it the preferred choice for motor applications in electrical motors, home appliances, transformers, generators, and industrial, energy, and infrastructure segments. Copper's popularity extends to electric vehicles (EVs) as well, where it is used in motors due to its dielectric strength and electrical conductivity.
Aluminum winding wire, while lighter and more cost-effective, cannot match copper's electrical and mechanical properties, limiting its market share.
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The copper segment accounted for USD 30.04 billion in 2018 and showed a gradual increase during the forecast period.
APAC is estimated to contribute 76% to the growth of the global market during the forecast period. Technavio's analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period.
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The market is primarily driven by the extensive utilization of aluminum winding wires in various applications, including motor applications in electrical motors, home appliances, transformers, generators, and industrial segments. APAC is the largest geographical segment of this market due to its significant production of motors, transformers, electric generators, inductors, inverters, and other related products. These products are essential in power generation and transmission and distribution networks, process and discrete industries, residential and commercial equipment, and automotive motors for subsystems and traction. In 2020, APAC accounted for approximately 46% of the global power generation and around 50% of the global automotive production.
The energy segment and infrastructure segment are also significant consumers of winding wires due to the increasing demand for renewable energy and the expansion of power grids. Additionally, the growing adoption of electric vehicles (EVs) is expected to boost the demand for winding wires in the automotive industry. The dielectric strength of aluminum winding wires makes them an ideal choice for high-voltage applications in these segments.
Our researchers analyzed the data with 2023 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
Expansion of power generation and T&D network is the key driver of the market. The market experiences significant growth due to the increasing demand for electric generators and transformers in the Industrial industry. The global consumption of electricity continues to rise, with China and India leading the way. In 2021, China's total power usage reached 8.31 trillion kilowatt-hours (kWh), while India's power consumption grew by 4%. The electric vehicles market, including hybrid vehicles, also contributes to the demand for winding wires, as electric chargers require stator windings made of magnet wires. Compact motors used in home appliance products and technology applications further boost the market's growth. The market for magnet wires is segmented into Aluminum magnet wires and Copper magnet wires, with insulations made of resin being commonly used.
Increasing focus on energy-efficient winding wires is the upcoming trend in the market. The market is witnessing significant growth due to the increasing demand for efficient electrical components in various industries, including the industrial sector and the electric vehicles market. Winding wires are essential components in electric motors, transformers, electric generators, and inductors, facilitating the transformation of energy. In electric vehicles and hybrid vehicles, winding wires are used in stator windings, compact motors, and electric chargers. The use of aluminum and copper magnet wires, along with advanced insulations such as resin, contributes to the enhancement of technology in these applications. The focus on energy efficiency in urban areas is driving the demand for winding wires capable of carrying current with minimal heat generation.
High fragmentation of the market limits consistent increases in ASP is a key challenge affecting the market growth. The market encompasses a vast array of players due to the relatively low barrier to entry. With accessible technology and minimal capital investment, even small-scale manufacturing facilities can be established. In countries like China and India, where manufacturing costs are lower, numerous companies dominate the market. Various B2B marketplaces host hundreds of these companies, providing winding wire for various industries. A significant portion of these suppliers falls under the MSME category, often without an online presence, offering competitive pricing compared to established companies. Key industries utilizing winding wire include the industrial sector, electric vehicles and hybrid vehicles, electric chargers, stator windings for compact motors, and home appliance products.
Aluminum and copper magnet wires, insulated with resins such as polyvinyl chloride (PVC) or polyethylene (PE), are essential components in these applications. Urban areas and technology advancements continue to drive the demand for these products.
The market forecasting 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 market growth analysis strategies.
Customer Landscape
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.
Elcowire Group AB - The company offers winding wires that are used in cables employed in the electrical and automotive industry as well as telecommunications.
The market research and growth report includes detailed analyses of the competitive landscape of the market and information about key companies, including:
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.
The market is witnessing significant growth due to the increasing demand from various industries, including industrial and energy segments. Industrial applications, such as motor windings for compact motors and electrical appliances, account for a substantial market share. The electric vehicles (EV) market, including hybrid vehicles and electric chargers, is another major consumer of magnet wires for stator windings and battery systems. Magnet wires are available in various shapes, including round, rectangle, and square, and are made of metals like copper and aluminum. Copper magnet wires offer high electrical conductivity, malleability, and corrosion resistance, making them suitable for motor applications and electrical power cables.
Aluminum magnet wires, on the other hand, provide flexibility, bending, and shaping properties, making them ideal for use in transformers, generators, and other industrial equipment. Insulations, such as resin, play a crucial role in enhancing the dielectric strength, thermal resistance, and insulation resistance of magnet wires. The renewable energy sector, including wind power and solar power, is a significant contributor to the market's growth. The infrastructure segment, including electrical infrastructure, renewable energy projects, and substations, is also driving the demand for magnet wires. The increasing adoption of EVs, urbanization, industrialization, and infrastructure projects are some of the key factors fueling the market's growth.
The market is also witnessing significant demand from emerging economies and industries like aerospace, healthcare, and emerging technologies, where sustainability and environmental concerns are becoming increasingly important. The market is expected to continue its growth trajectory due to the increasing demand for eco-friendly materials, green energy infrastructure, and the expansion of data transmission demands and 5G networks.
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Market Scope |
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Report Coverage |
Details |
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Page number |
148 |
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Base year |
2023 |
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Historic period |
2018-2022 |
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Forecast period |
2024-2028 |
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Growth momentum & CAGR |
Accelerate at a CAGR of 4.5% |
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Market Growth 2024-2028 |
USD 10.61 billion |
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Market structure |
Fragmented |
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YoY growth 2023-2024(%) |
4.23 |
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Regional analysis |
APAC, Europe, North America, South America, and Middle East and Africa |
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Performing market contribution |
APAC at 76% |
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Key countries |
China, Japan, US, Germany, and France |
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Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
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Key companies profiled |
Bharat Insulation Co. Pvt. Ltd., EL Sewedy Electric Co., Elcowire Group AB, Fujikura Co. Ltd., Furukawa Electric Co. Ltd., G. K. Winding Wires Ltd., Hitachi Ltd., International Wire Group Inc., KEI Industries Ltd., Khaitan Winding Wire Pvt. Ltd., LS Cable and System Ltd., Prysmian Spa, REA MAGNET WIRE Co. Inc., Sam Dong America, Shanghai Metal Corp., Sumitomo Electric Industries Ltd., SUZHOU WUJIANG XINYU ELECTRICAL MATERIAL Co. Ltd., SynFlex Elektro GmbH, Vimlesh Industries Pvt. Ltd., and Zhengzhou LP Industrial Co. Ltd. |
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Market dynamics |
Parent market analysis, market growth inducers and obstacles, market forecast, fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, market condition analysis for the forecast period |
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Customization purview |
If our market report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
We can help! Our analysts can customize this market research report to meet your requirements.
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Product
7 Customer Landscape
8 Geographic Landscape
9 Drivers, Challenges, and Opportunity/Restraints
10 Competitive Landscape
11 Competitive Analysis
12 Appendix
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