EDM Wire Market is expected to reach US$ 2,323.98 Million by 2028

The EDM wire market size is expected to reach US$ 2,323.98 million by 2028, registering at a CAGR of  7.6% from 2022 to 2028,  according to a new research study conducted by The Insight Partners.

Increasing Disposable Income and Improving Standard of Living to Provide Growth Opportunities for EDM Wire Market During 2022–2028

With a rise in disposable income and an improved standard of living, the demand for electronics and automobiles is increasing gradually. Due to this, the production of appliances and automobiles is increasing rapidly, fueling the demand for electrical discharge machining (EDM) wires. The companies are adopting various growth strategies due to intense competition in the EDM wire market. For instance, in June 2022, Yuang Hsian Metal Industrial Corporation participated in the “2022 Wire & Tube Düsseldorf” exhibition. Similarly, in July 2021, Mitsubishi EDM/Laser announced the sales agency of Oki Electric Cable EDM wire. Such growth strategies are not only bringing opportunities for the company but also positively influencing the market growth.

Several government initiatives to increase semiconductor production are expected to contribute to the EDM wire market growth. For instance, in August 2022, the US House of Representatives announced to fund US$ 52 billion to boost the manufacturing of semiconductors in the US and improve the country’s competitiveness with China. Similarly, in April 2020, The Ministry of Electronics and Information Technology (MeitY), an Indian government organization, passed the “Scheme for Promotion of Manufacturing of Electronic Components and Semiconductors (SPECS).” This scheme will provide 25% of financial incentives on capital expenditure for electronic goods, including semiconductor/display fabrication units, electronic products, specialized sub-assemblies, and all the high value-added manufacturing. This initiative is available for investments made within five years from the application’s acknowledgment date. Such government initiatives are expected to propel the global EDM wire market growth during the forecast period.

EDM Wire Market Share - by Geography, 2021

Source: The Insight Partners Analysis

The Europe EDM wire market is subsegmented into Germany, France, the UK, Italy, and Russia. The presence of a robust aerospace sector boosts the demand for EDM wires across Europe. The European aircraft OEMs and defense equipment manufacturers develop and procure various civil aircraft, radar systems, and flight management systems. For example, Airbus is one of the biggest aircraft manufacturers, and it is also a notable contributor to the European economy. With the continuously rising demand for air transport, the aviation industry is among the most significant sectors contributing to the overall GDP of Europe.

The automotive industry which represents ~7% of the regional GDP is another enabler of the EDM wire market growth in Europe. The ongoing developments and sales of electric vehicles, and the presence of established car manufacturers’ as well as suppliers’ base with strong brand value, and technological and financial capabilities are likely to boost the growth of the EDM wire market in the region in the coming years. In 2020, the UK government awarded US$ 57.87 million for funding various low-carbon automotive projects, including the manufacturing of electric vehicles. Such government initiatives are favoring the growth of the progress of the electric vehicle manufacturing industry, thereby contributing to the EDM wire market share.

The EDM wire market is bifurcated on the basis of wire type and industry. Based on wire type, the market is segmented into brass, zinc-coated, and non-coated. By industry, the market is segmented into aerospace, industrial & general mechanics, automotive, healthcare, electronics, and others.

Berkenhoff GmbH; Hitachi Metals, Ltd.; Novotec BV; Opecmade Inc.; Oki Electric Cable Co., Ltd.; Sumitomo Electric Industries, Ltd.; Thermo Compact; Yuang Hsian Metal Industrial Corp.; Ningbo Kangqiang Micro-Electronics Technology Co., Ltd; and JIA BAO Metal Co., Ltd.  are among the key EDM wire market players profiled during the EDM wire market study. In addition, several other important EDM wire market players were studied and analyzed during the course of this market study to get a holistic view of the market and its ecosystem.

Germany, Italy, the UK, Russia, France, and Spain were among the most-affected countries by the onset of the COVID-19 pandemic in Europe. Governments of the region imposed various regulations to curb the spread of the virus infection. Several countries in the region witnessed an economic hit and a decline in industrial activities in the Q2 of 2020. Many European countries partially closed their borders and implemented drastic measures on imports and exports of goods. These measures declined the production volumes in various industries, which hampered the demand for EDM wires in Europe in 2020. In Q3 of 2021, after the government restrictions were lifted, several EDM wire end-use industries, such as automotive, manufacturing, and electronics, restarted their operations, which increased the demand for EDM wires.

Since early 2022, Europe has been witnessing political issues, due to which the European countries are facing a shortage of semiconductors. However, considering the economic recovery and growing end-user industries in the region, the demand for EDM wires is expected to rise during the forecast period, with companies investing in making operations more efficient and productive. Moreover, any strategic initiatives taken by the companies, such as Berkenhoff GmbH, would propel the company’s growth, which would contribute to the EDM wire market growth in the coming years.