Wire rod market size is projected to reach US$ 2,225.04 million by 2031 from US$ 1,678.14 million in 2023. The market is expected to register a CAGR of 3.6% in 2023–2031.
A wire rod is made by drawing hot metal through shafts. These shafts form and compress the metal from all sides, thus turning a piece of metal into a long and thin wire. They have round cross-sections and are wound up in the coil. They act as excellent raw materials for high-voltage cable and wire manufacturing. These wire rods are used to carry loads, electricity, and telecommunications signals. They are used in various sectors, including electrical, infrastructure, aviation, telecommunication, and automotive. For example, wire rod is used in multiple electronic components, telecom cables, sockets, and terminal blocks.
The construction projects of commercial, industrial, and residential buildings are growing across the world, majorly in developing countries such as China, India, Malaysia, Poland, Saudi Arabia, and the UAE. This factor is projected to fuel the demand for products such as wires, wire ropes, wire and cables in various electrical and electronic applications. Hence, with rising construction activities, the scope of using different wire rods will endure to boost. For instance, in February 2023, Vedanta Aluminium introduced a 12 mm aluminum wire rod for the electrical industry at the International Aluminium Conference (IAC) 2023
Wire rod is a rolled steel product produced from rectangular or cylindrical steel. Wire rods are wounded into coils and transported into the form of wires. These wire rods are widely used to manufacture welding wires, electrodes, electrical cables, reinforcement strands and fibers. Wire rod has a wide range of applications, including tie wires, meshes, fencing, shopping carts, shelving, wire hangers and nails. In addition, wire drawn from the rod is painted, galvanized, and plated.
Wire rods are developed by using continuous casting technology. An increase in the construction of industrial plants, including electrical industries, will propel the scope of wire rods. According to the TASS (a Russian news agency), the commissioning of housing in Russia increased by 28.4% in the first five months of 2021 compared to 2020. According to the Ridgewater Homes website data, Australia witnessed a 10% growth in the construction of residential buildings in 2021. This growth is attributed to the increasing demand for houses due to sustained employment, record-low interest rates, and surging government programs such as HomeBuilder. HomeBuilder is an Australian Government initiative to aid confidence in residential construction sector buyers for procuring or renovations, which might get delayed owing to uncertainty caused by the pandemic.
Furthermore, several government initiatives are supporting the growth of the housing industry. For instance, in February 2021, according to the Yonhap News Agency website, the South Korean government announced that they would ease building regulations and support redevelopment projects in urban areas of the country by supporting the construction of 836,000 new houses nationwide. Also, the new housing policy by the government focuses on increasing the number of houses in the Seoul metropolitan area and other major cities.
The growing urbanization and digitization across the world are raising the demand for uninterrupted electric supply. For this, the need for the upgradation or installation of new electric transmission and distribution systems is increasing globally. Subsequently, governments of various countries have increased their investments in the power & energy sector. For instance, in November 2022, the US Department of Energy (DOE) announced an investment of US$ 13 billion in supporting the upgradation and expansion of the US electric grid. The US government will provide this funding under the Grid Resilience Innovative Partnership (GRIP) Programme, the Transmission Facilitation Programme, and President Joe Biden’s Bipartisan Infrastructure Law. Through this funding, the US government aims to increase the reliability of power grids by building transformative projects. In November 2022, Ofgem, an energy regulator of the UK, announced the five-year (between 2023 and 2028) investment package of ~US$ 26.6 billion for electricity distribution network companies. This investment is made to help deliver cheaper and cleaner energy and increase the reliability of local grids with no extra cost to consumers.
Wire rod is an important part used in various EV components such as motor, onboard charger, battery, and Electric Power Control Unit (EPCU). Increasing demand for zero-emission vehicles and growing supportive regulations for zero-emission vehicles through subsidies and tax rebates have compelled manufacturers to provide electric cars across the world. When switching to an electric vehicle (EV), customers expect a high level of automated experience and advanced driving features. Therefore, the growing technological innovation in EVs will raise the demand for wire rods.
As per the Global Electric Vehicle Outlook, sales of electric cars, including fully electric and plug-in hybrid vehicles, increased in 2021 to a new record of 6.6 million units. As per the same report, in China, electric car sales increased significantly to 3.3 million in 2021, accounting for about half of the total global sales. EV sales in Europe grew strongly by 65% and reached 2.3 million units, and sales in the US doubled to 630,000 units in 2021 from the previous year. Supportive government regulations for electric vehicle charging stations propel the sales of electric vehicles. In June 2022, the US government proposed new standards for its program to build a national network of 500,000 electric vehicle charging stations by 2030. Furthermore, the government had introduced a plan to allocate US$ 5 billion to states to fund EV chargers by 2028. Therefore, the rising sales of EVs are expected to drive the wire rod market in the coming years.
Key segments that contributed to the derivation of the wire rod market analysis are material and industry.
The geographic scope of the Wire Rod market report is mainly divided into five regions: North America, Asia Pacific, Europe, Middle East & Africa, and South America/South & Central America.
The wire rod market in North America is segmented into the US, Canada, and Mexico. The market growth in this region is attributed to the increasing demand for wire rods in automotive applications. According to the American Automotive Policy Council (AAPC), the automotive industry in the US accounts for ~3% of the country's GDP. Wire rods, particularly aluminum wire rods, are used in precision parts during automotive manufacturing. As they are lightweight yet durable, there is an increasing need for these rods in the manufacturing of different vehicles, such as cars and trucks. In addition, copper wire rods are used in the manufacturing of high-efficiency bar-wound electric motors.
Asia Pacific is expected to have the largest share in 2023. This is owing to the rising production of copper across the globe. According to the World Bureau of Metal Statistics, in 2021, Japan produced around 1.52 million metric tons of refined copper. Out of the total copper produced, it is assumed that approximately 60% of it is used for the production of copper wire rods due to its rising use in the automotive, electronics, and telecom industries. Furthermore, according to the Japan Aluminium Association, in 2021, around 786.6 thousand metric tons of aluminum were produced.
The regional trends and factors influencing the Wire Rod Market throughout the forecast period have been thoroughly explained by the analysts at Insight Partners. This section also discusses Wire Rod Market segments and geography across North America, Europe, Asia Pacific, Middle East and Africa, and South and Central America.
| Report Attribute | Details |
|---|---|
| Market size in 2023 | US$ 1,678.14 Million |
| Market Size by 2031 | US$ 2,225.04 Million |
| Global CAGR (2023 - 2031) | 3.6% |
| Historical Data | 2021-2022 |
| Forecast period | 2023-2031 |
| Segments Covered |
By Material
|
| Regions and Countries Covered | North America
|
| Market leaders and key company profiles |
The Wire Rod Market market is growing rapidly, driven by increasing end-user demand due to factors such as evolving consumer preferences, technological advancements, and greater awareness of the product's benefits. As demand rises, businesses are expanding their offerings, innovating to meet consumer needs, and capitalizing on emerging trends, which further fuels market growth.
Market players density refers to the distribution of firms or companies operating within a particular market or industry. It indicates how many competitors (market players) are present in a given market space relative to its size or total market value.
Major Companies operating in the Wire Rod Market are:
Disclaimer: The companies listed above are not ranked in any particular order.
The Wire Rod market is evaluated by gathering qualitative and quantitative data post primary and secondary research, which includes important corporate publications, association data, and databases. The following is a list of developments in the market for innovations, business expansion, and strategies:
Asia Pacific is expected to dominate the wire rod market in 2023.
Increasing construction and infrastructure development activities across the globe drive the wire rod market growth during the forecast period.
Rising Adoption of Electric Vehicles across the globe is driving the market growth.
Mitsubishi Materials Trading Corp, APAR Industries Ltd, Hindalco Industries Ltd, Norsk Hydro ASA, Leebo Metals Pvt Ltd, Sumitomo Electric Industries Ltd, Vedanta Aluminium and Power Ltd, United Co RUSAL Plc and Vimetco NV.
Wire rod market size is projected to reach US$ 2,225.04 million by 2031 from US$ 1,678.14 million in 2023.
The market is expected to register a CAGR of 3.6% in 2023–2031.
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